Effective Date: August 6th, 2025
Key points:
Housing Needs Assessments: The Department of Local Affairs (DOLA) is tasked with developing methodologies for conducting statewide, regional, and local housing needs assessments by December 31, 2024. Local governments with populations of 5,000 or more, or 1,000 or more if participating in a regional assessment or classified as rural resort communities, are required to conduct and publish local housing needs assessments by December 31, 2026, and update them every six years thereafter.
Housing Action Plans: Based on the assessments, eligible local governments must develop housing action plans by January 1, 2028, outlining strategies to address identified housing needs, promote regional coordination, and inform the public of efforts to improve housing affordability.
Technical Assistance and Funding: The Division of Local Government is directed to provide technical assistance and guidance to local governments in establishing regional entities, creating housing needs assessments, conducting displacement risk analyses, and implementing strategies to promote affordable housing. A Housing Needs Planning Technical Assistance Fund is established, with $10.5 million transferred from the Local Government Severance Tax Fund and $4.5 million from the Local Government Mineral Impact Fund to support these efforts.
Master Plan Requirements: Counties and municipalities are required to update their master plans by December 31, 2026, to include water supply and strategic growth elements. The water supply element must identify adequate and suitable water supplies and facilities, while the strategic growth element should describe policies and tools to promote strategic growth, analyze vacant and underutilized sites for housing development, and assess underdeveloped sites not adjacent to developed land for potential residential use.
Homeowners' Associations (HOAs) Restrictions: The bill prohibits HOAs from adopting or enforcing declarations, bylaws, rules, or regulations that restrict the construction of accessory dwelling units or middle housing if such constructions are permitted by local zoning laws.
This legislation emphasizes a partnership between state and local governments to strategically plan for and address affordable housing needs, while preserving local autonomy and community character
