The bill, Substitute Senate Bill No. 1364, proposes the appropriation of ten million dollars from the General Fund to the Department of Housing for the fiscal year ending June 30, 2026. This funding is designated for grants-in-aid to private and nonprofit entities aimed at constructing five hundred permanent tiny homes. These homes are required to be connected to either private water or septic systems or to public water, sewer, and electric utilities. The bill is set to take effect on July 1, 2025.

In terms of fiscal impact, the bill specifies a cost of ten million dollars to the General Fund for the Department of Housing in FY 26, with no anticipated municipal impact. The legislative process for this bill has seen support from the Housing Committee, which reported it favorably with a vote of 15 in favor and 3 against. The bill does not include any deletions from current law, as it introduces new provisions related to the funding and construction of tiny homes.