Raised Bill No. 5391 aims to create the Housing Density Rating Program, which encourages municipalities to adopt zoning regulations that promote increased housing density. The program, administered by the State Responsible Growth Coordinator within the Office of Policy and Management, will award housing density points to municipalities for specific actions that support higher density housing, such as allowing accessory apartments, reducing parking requirements, and permitting multifamily housing developments without public hearings if they meet zoning regulations. Municipalities will be classified into tiers based on the points they accumulate, which will determine their eligibility for funding and other incentives. The bill defines relevant terms and sets criteria for earning points, with the program set to be effective from October 1, 2024.

The bill also details the implications of a municipality's tier classification, with Tier I municipalities required to follow certain development standards and Tier III and IV municipalities eligible for additional benefits, including doubled housing unit-equivalent points and funding for development projects. Tier IV municipalities may also be exempt from the affordable housing appeals procedure and receive grants based on population increases. The Secretary of the Office of Policy and Management is tasked with adopting regulations to implement the program. The bill includes new legal language to be inserted into current law but does not indicate any deletions. The act's purpose is to incentivize the development of denser housing to meet community needs, with full implementation starting on October 1, 2026.