This bill mandates that municipalities must permit the construction of multi-family dwelling units on commercially zoned land, contingent upon the local planning board's assessment of adequate infrastructure, including roads, water, and sewage systems. The bill introduces new provisions that allow the planning board to require traffic impact studies and ensure that water and sewage connections meet regulatory standards. Additionally, it grants the planning board the authority to deny applications for multi-family units if they determine that traffic volume exceeds road design capacity, if water sources are insufficient, or if wastewater disposal does not comply with regulations.

Furthermore, the bill eliminates the previous ability of municipalities to provide exceptions for the conversion of structures into multi-family units, replacing it with a requirement that such conversions must not violate zoning dimensional requirements. It also clarifies that municipalities can still impose restrictions on residential development in areas designated for industrial and manufacturing uses due to potential incompatibilities. The effective date for this legislation is set for July 1, 2026.

Statutes affected:
As Amended by the House: 674:80
As Amended by the Senate: 674:80
Version adopted by both bodies: 674:80
CHAPTERED FINAL VERSION: 674:80