Substitute House Bill No. 7062 is designed to streamline 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. Specific regulations are outlined, including limits on the number of units per lot (up to eight), occupancy restrictions (maximum of 12 consecutive months), and safety and sanitation requirements. 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 and requirements for temporary shelter units, ensuring compliance with building and fire safety codes. It specifies that these units are nonpermanent structures designed for easy dismantling and excludes certain materials like tents and tarps. The bill prohibits municipalities from imposing additional utility connection fees or classifying these units as new residential uses for utility calculations. The State Building Inspector and the Codes and Standards Committee are tasked with incorporating relevant regulations into the State Building Code and Fire Safety Code. The bill is set to take effect on October 1, 2025, with certain provisions effective upon passage.