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 specific regulations, including a maximum of eight units per lot, size restrictions, safety requirements, and sanitation provisions. Municipalities are required to adopt or amend their zoning regulations by July 1, 2026, or their existing noncompliant regulations will become void.

The bill also introduces definitions and clarifications regarding temporary shelter units, which are defined as nonpermanent, prefabricated structures that are accessory to a house of worship. It requires the State Building Inspector and the Codes and Standards Committee to amend the State Building Code and Fire Safety Code to include regulations for these units, ensuring they meet safety and occupancy standards. Notably, the bill exempts these temporary shelter units from being classified as new residential uses for utility connection fees and prohibits municipalities from imposing additional standards beyond those specified in the bill. The act is set to take effect on October 1, 2025, with certain provisions effective upon passage.