The proposed bill, Substitute Bill No. 1361, establishes a Housing Growth Fund aimed at providing grants to municipalities to enhance the availability of affordable housing and promote mixed-use and transit-oriented developments. The fund will be administered by the Commissioner of Economic and Community Development, with an annual allocation of fifty million dollars. The bill defines key terms such as "housing authority," "mixed-income development," and "housing growth score," which will be calculated based on the number of dwelling units approved for construction in each municipality during the preceding fiscal year.

To qualify for grant funding, municipalities must meet specific criteria, including having approved a minimum percentage of housing permits relative to state totals and ensuring that a portion of new housing is affordable for low- and moderate-income families. The bill also outlines the process for calculating each municipality's housing growth score and the total state-wide score, which will determine the distribution of funds. The act is set to take effect on October 1, 2025, and includes new legal language to amend existing statutes related to housing development.