This bill mandates that municipalities must allow multi-family residential development on commercially zoned land, with specific conditions regarding infrastructure and exemptions for adaptive reuse of existing buildings. 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 an exemption for buildings being converted to multi-family or mixed-use through adaptive reuse, allowing them to bypass certain zoning requirements related to setbacks, height, or frontage, as long as the building's overall dimensions do not change. The act is set to take effect on July 1, 2026.