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. Cities 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 cities 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 housing projects meeting established land use requirements must be approved administratively and as a matter of right, without discretionary approval. Local governments are tasked with ensuring that any approval standards are clear and objective, preventing economic infeasibility for these developments. Furthermore, the provisions do not apply to land zoned exclusively for industrial use or certain designated areas, such as floodplains and airport influence zones. The act is set to take effect on July 1, 2026, due to an emergency declaration.