Substitute House Bill No. 7031 proposes changes to the affordable housing appeals procedure by allowing all accessory apartments to be included 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. Additionally, it eliminates a provision that excluded accessory apartments built or permitted after January 1, 2022, from being counted in a municipality's total housing units for this purpose. The bill defines "accessory apartment" in accordance with existing law, ensuring that these units meet specific criteria.

The bill is set to take effect on July 1, 2025, and aims to potentially increase the number of municipalities that qualify for a moratorium under the affordable housing appeals procedure, which could lead to savings on legal costs for municipalities. By broadening the definition of what counts as affordable housing, the bill seeks to encourage the development of accessory apartments and enhance the overall housing stock in municipalities, thereby addressing housing affordability issues.