This bill establishes a framework for municipal workforce housing targets, reporting requirements, zoning review procedures, and a special property tax assessment for municipalities that fail to meet their housing targets. The Department of Business and Economic Affairs, in collaboration with regional planning commissions, will set annual workforce housing targets for each municipality over the next ten years, based on factors such as available land, infrastructure access, and proximity to employment centers. Municipalities that achieve less than 50% of their cumulative targets will be required to conduct zoning reviews and develop plans to improve housing outcomes, although they will retain discretion over whether to implement recommended changes.

Additionally, starting in 2028, municipalities that fall below the 50% threshold will face a tiered special property tax assessment on high-value properties, with proceeds funding a newly established Workforce Housing Revolving Loan Fund. This fund will provide below-market-rate loans to developers for multi-family workforce housing and municipalities for infrastructure upgrades related to housing projects. The bill also includes new legal language, such as the insertion of sections 12-O:70-a through 12-O:70-f, which detail the targets, reporting, zoning review requirements, special assessments, and the revolving loan fund, while deleting any conflicting provisions in current law. The act is set to take effect on April 1, 2026.

Statutes affected:
Introduced: 6:12
HB1764 text: 6:12