The proposed bill, Substitute House Bill No. 7031, aims to amend the affordable housing appeals procedure by including all accessory apartments in the calculation of the threshold for exemption from this procedure, regardless of whether they are subject to affordability restrictions. Specifically, the bill repeals the existing provision that legally approved accessory apartments must have affordability restrictions for at least ten years to count towards the exemption threshold. Instead, it allows any accessory apartment to be counted, thereby potentially increasing the number of housing units that qualify for the exemption. Additionally, the bill removes a provision that previously excluded accessory apartments built or permitted after January 1, 2022, from being counted in the total number of housing units for this purpose.

The bill is set to take effect on July 1, 2025, and is expected to provide potential savings to municipalities by reducing legal costs associated with affordable housing appeals, as more municipalities may qualify for a moratorium under the new rules. The changes could lead to an increase in the base housing stock total for municipalities, as all accessory apartments will now contribute to the total count. The bill reflects a shift in policy to encourage the inclusion of accessory apartments in the affordable housing framework, thereby promoting more flexible housing options within municipalities.