Substitute House Bill No. 5390 is a legislative proposal aimed at fostering the development of transit-oriented communities (TOCs) by amending existing statutes, with an effective date of October 1, 2024. The bill introduces a new definition for "live work unit" and updates definitions related to housing and zoning, such as "accessory apartment" and "middle housing." It also defines terms specific to transit-oriented development and sets out eligibility criteria for municipalities to receive prioritized discretionary infrastructure funding for TOCs. The bill mandates that qualifying TOCs must permit certain developments as of right and establishes requirements for long-term affordability through deed restrictions or contributions to affordable housing funds. Additionally, it creates an interagency council on housing development to advise on housing growth regulations and programs.

The bill also has fiscal implications for the state and municipalities, with costs associated with additional staff for the Office of Policy and Management (OPM) and potential revenue gains from discretionary infrastructure funding for TOCs. It modifies the definition of "housing growth zone" to include transit-oriented districts and allows for the construction of accessory apartments as of right within these districts. The bill outlines the responsibilities of the State Responsible Growth Coordinator and the council, including developing guidelines for transit-oriented districts and submitting a report with recommendations by October 1, 2025. Furthermore, it establishes a public water and sewer rehabilitation or expansion account within the General Fund and amends the affordable housing land use appeals procedure. The Planning and Development Committee has given the bill a Joint Favorable Substitute with a vote of 12 to 8.

Statutes affected:
Raised Bill: 8-2o
PD Joint Favorable Substitute: 8-2o
File No. 237: 8-2o