Substitute House Bill No. 7062 is designed to support the installation and maintenance of temporary shelter units for individuals experiencing homelessness or refugees in municipalities with populations of 25,000 or more. The bill mandates that zoning regulations in these municipalities must allow, as of right, the establishment of such units on properties owned by federally tax-exempt religious organizations, provided they serve as accessory uses to houses of worship. It sets forth specific regulations regarding the number, size, safety, and occupancy of these shelters, including requirements for sanitation facilities and setbacks from adjacent properties. Municipalities are required to adopt or amend their zoning regulations by July 1, 2026, or their existing noncompliant regulations will become void.

Additionally, the bill introduces new definitions, such as "refugee" and "temporary shelter unit," and mandates that the State Building Inspector and the Codes and Standards Committee incorporate regulations for these units into the State Building Code and Fire Safety Code. It exempts temporary shelter units from certain zoning restrictions and utility connection fees, ensuring municipalities cannot impose additional standards beyond those specified in the bill. The act is set to take effect on October 1, 2025, with certain provisions effective immediately upon passage.