Senate Bill No. 1444, now 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 is initiated when the owner certifies that the building has been vacant or has had an average occupancy rate of less than fifty percent over the preceding 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 a three-year exemption from property revaluation for converted buildings and prioritizes municipalities that adopt these zoning regulations for funding under the greyfield revitalization program. Overall, the legislation aims to facilitate the repurposing of underutilized commercial properties into residential spaces while ensuring compliance with safety standards and expediting the approval process.