This bill establishes a new chapter in the law, Chapter 162-V, which allows cities and towns to create special assessment districts through a two-thirds vote of their governing body and a majority vote from their legislative body. The purpose of these districts is to finance public infrastructure improvements necessary for new development, including roads, sidewalks, water mains, and utility extensions. The bill outlines the process for establishing these districts, the types of improvements that can be financed, and the method for apportioning costs to property owners who directly benefit from the improvements. Additionally, municipalities are permitted to issue bonds to finance these improvements, with assessments collected over a period not exceeding 20 years.

Furthermore, the bill expands the housing infrastructure grant program administered by the Department of Business and Economic Affairs to include funding for sewer, water, and road upgrades associated with new housing units. An appropriation of $1 is made for the fiscal year ending June 30, 2027, to support this expansion. The bill does not create new positions or generate additional revenue but may lead to indeterminable increases in local expenditures as municipalities establish special assessment districts. The overall fiscal impact remains uncertain, depending on the number of municipalities that choose to create these districts.