H.893 proposes the establishment of a municipal emergency shelter program that allows municipalities to provide emergency shelter, contingent upon compliance with disaster or emergency response housing requirements. The bill includes provisions for reimbursing municipalities for the actual costs incurred in operating the shelter, as well as for municipal services provided to participants and any additional staffing needs. It allocates funds for fiscal year 2027 to the Department for Children and Families to support this program, including a specific appropriation of $1,000,000 from the PILOT Special Fund for reimbursement of public safety, fire, mental health, and medical services for individuals in the emergency housing program.

Additionally, the bill mandates that any unspent funds from the fiscal year 2027 emergency shelter program be used for grants aimed at enhancing housing resilience in flood-prone areas and developing entry-level family housing. The definition of entry-level family housing is specified as residential units ranging from 400 to 1,000 square feet, with a maximum of two bedrooms, designed to allow for future expansion by the residents.