This bill mandates that municipalities allow multi-family residential development on commercially zoned land, with specific conditions related to infrastructure and exemptions for adaptive reuse projects. The new legal language introduced in the bill defines key terms such as "commercially zoned land," "mixed-use," and "adaptive reuse." It also stipulates that municipalities must ensure adequate infrastructure, including roads, water, and sewage systems, is available to support such developments. However, municipalities retain the authority to restrict residential development in areas where industrial and manufacturing uses may create incompatible impacts, such as noise or air pollution.

Additionally, the bill allows municipalities to require that a portion of ground floor space in new developments be dedicated to retail or similar uses. Importantly, it provides exemptions from certain zoning requirements, such as setbacks, height, or frontage, for buildings undergoing adaptive reuse, as long as their overall dimensions do not change. The act is set to take effect on July 1, 2026.