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 through financial support such as low-interest loans, subordinate debt, equity investments, or competitive program grants. The act mandates that at least 20% of the units in qualifying projects be designated as affordable housing, as defined by existing law. It also sets specific labor, wage, and apprenticeship standards for construction projects with budgets exceeding certain thresholds, ensuring that a significant portion of work is performed by apprentices and that all contractors comply with relevant regulations.

A dedicated Residential Reuse Incentive Fund will be created to finance the program, which will be supported by state appropriations, federal programs, private contributions, and repayments from loans. The bill outlines eligibility criteria for projects, giving priority to those that utilize assets from the housing land bank, leverage non-competitive federal low-income housing tax credits, or demonstrate partnerships with employers in the health and education sectors.

The act includes provisions for oversight and requires the corporation to publish an annual report on fund usage and the economic impact of funded projects. It also includes a sunset clause, stating that the program will terminate on December 31, 2035, with no funding or incentives authorized after that date. The act is set to take effect upon passage.