Substitute House Bill No. 5390 File No. 237 aims to foster the development of transit-oriented communities (TOCs) by providing a framework for municipalities to receive prioritized discretionary infrastructure funding. The bill defines new terms, such as "live work unit," and renumbers subsequent definitions. It sets eligibility criteria for TOCs, which include the presence of transit services and the adoption of zoning regulations that promote density and mixed-use development. Municipalities that do not qualify can become eligible by adopting resolutions and enacting zoning regulations within 18 months, with the risk of losing funding and future eligibility if they fail to comply. The bill also requires zoning commissions to collaborate with inland wetlands agencies when establishing transit-oriented districts.

The bill establishes an interagency council on housing development to advise on housing growth and requires the council to meet semi-annually starting July 1, 2024. It creates a public water and sewer rehabilitation or expansion account within the General Fund, effective October 1, 2024, and amends the definition of "housing growth zone" to include transit-oriented districts. The bill also modifies the process for allowing accessory apartments and mandates that property owners in transit-oriented districts can construct accessory apartments as of right after three years of ownership. The bill includes insertions such as the file number, criteria for Bonus Funding, and deed-restriction requirements, as well as deletions for standard drafting conventions. The fiscal impact includes costs to the OPM and OSC, potential revenue gains for municipalities, and the establishment of the interagency council upon passage, with other provisions effective October 1, 2024.

Statutes affected:
Raised Bill: 8-2o
PD Joint Favorable Substitute: 8-2o
File No. 237: 8-2o