Senate Bill No. 1444, also known as Public Act No. 25-164, establishes a framework for the conversion of commercial real property into residential use, effective October 1, 2025. The bill defines key terms such as "commercial building," "industrial building," and "residential development," and allows for the conversion of commercial buildings into residential developments subject to a summary review process. This process requires the building owner to certify that the property has been vacant or has had an average occupancy rate of less than fifty percent over the previous year. Importantly, municipalities cannot require the correction of nonconforming uses as a condition for approval, and the conversion must still comply with applicable building and fire safety codes.

Additionally, the bill stipulates that municipalities must render a decision on conversion applications within sixty-five days, with the possibility of extensions. It also provides that converted properties will not be subject to revaluation for three years following the issuance of a certificate of occupancy. Furthermore, municipalities that adopt zoning regulations facilitating these conversions will receive priority funding from the Commissioner of Economic and Community Development under the greyfield revitalization program. Overall, the bill aims to promote the repurposing of underutilized commercial properties into residential spaces while ensuring compliance with safety regulations and expediting the approval process.