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's changes are expected to provide municipalities with potential savings in legal costs associated with affordable housing appeals, as more municipalities may qualify for a moratorium under the revised criteria. The effective date for these changes is set for July 1, 2025. Overall, the bill seeks to facilitate the inclusion of accessory apartments in the affordable housing framework, thereby promoting the development of more housing options within municipalities.