The proposed bill introduces the "Residential Reuse Incentive Act," which establishes a state program to facilitate the conversion of existing buildings into multi-family or mixed-use housing, including adaptive reuse projects. The program will provide low-interest loans, subordinate debt, equity investments, or competitive grants to support qualified residential reuse projects.

Key definitions are provided, including "adaptive reuse," "affordable housing," and "qualified residential reuse project." To be eligible for support, applicants must demonstrate a project financing gap and that the project aligns with state policy objectives. The act mandates that at least 20% of the housing units must be affordable, and for projects with hard construction costs exceeding $25 million, specific labor and wage standards must be met. Additionally, projects with budgets over $10 million must ensure that all hours worked are performed by contractors affiliated with apprenticeship programs.

The act establishes a "residential reuse incentive fund," detailing its composition, which includes state budget appropriations, federal program funds, and repayments from loans. The corporation overseeing the program is responsible for approving funding, ensuring compliance, and publishing annual reports on fund usage and economic impact.

The act includes a sunset provision, stating that the program will expire on December 31, 2035, after which no further funding or incentives will be authorized. The act will take effect upon passage.