This bill amends Chapter 65, Title 67 of the Idaho Code by adding a new section, 67-6542, which establishes provisions for allowing multifamily residential housing developments in areas zoned for commercial use. The legislation aims to address the housing shortage in Idaho communities by enabling developers to utilize underutilized office spaces, thereby increasing housing supply, reducing commute times, and promoting economic growth. Local governments are required to permit these developments in commercial zones, adhering to the same siting, design, and development standards as other commercial uses. Additionally, the bill prohibits local governments from requiring more than one parking space per dwelling unit unless specific safety or infrastructure concerns are demonstrated.

The bill also stipulates that multifamily residential projects meeting established land use requirements must be approved administratively and as a matter of right, without discretionary approval. Approval standards set by local governments must be clear and objective, ensuring that they do not render the development economically infeasible. Furthermore, the legislation allows affected parties to seek legal recourse for enforcement of its provisions. However, the bill excludes certain areas from these provisions, including land zoned for industrial use, floodplains, steep slopes, and areas near airport runways. The act is set to take effect on July 1, 2026, due to an emergency declaration.