Concerns development of accessory dwelling units and related regulations.

The definition of 'buildable area' was expanded from only the rear yard beyond a five-foot setback to include the area within the front setback as well, significantly increasing the space available for detached ADUs.

The definition of 'complete independent living facilities' was changed from listing sanitation as an optional component ('or sanitation') to a required one ('and sanitation').

The definition of 'personal purpose' (limiting ADU occupancy to property owners, family members, or non-paying guests) was deleted entirely, removing the basis for restricting ADUs to owner-occupied use.

The requirement that ADUs be a permitted use as of right only 'if used or intended to be used for personal purposes' was struck, making ADUs a permitted use as of right regardless of whether they are rented or owner-occupied.

The definitions of 'primary dwelling,' 'single-family dwelling,' and 'two-family dwelling' were all revised to remove the limitation that they must be in an area where such dwellings are permitted uses. The single-family dwelling definition was rewritten to explicitly include semi-detached houses, row houses, and townhouses.

A new subsection (e) allows municipalities or common interest community associations in planned real estate developments to impose reasonable regulations on ADUs concerning stormwater, utility capacity, fire safety, parking, common elements, architectural standards, and proportionate increases in common expenses. Regulations must be reasonable, uniformly applied, and cannot prohibit, unreasonably restrict, or materially delay ADU development.

The minimum size requirement for an ADU was changed from a fixed 300 square feet to 'the minimum amount of square footage for complete independent living facilities per unit as provided in the State Uniform Construction Code,' tying the standard to existing building code rather than a hard number.

A new mandatory provision (subsection c(8)) requires that ADUs developed on or after the effective date shall not be rented for less than 30 days, with penalties permitted. This was previously an optional provision municipalities could choose to include.

The optional provision limiting detached ADUs to no more than 60 percent of the lot's buildable area was removed from the list of provisions a municipal ordinance may include.

A new optional provision (subsection d(4)) states that a primary dwelling with an ADU shall be subject to the same dimensional controls as without the ADU, except for residential density controls, provided those restrictions do not prohibit ADU construction on any lot containing a single-family dwelling.

A new provision (subsection 6(a)(4)) creates an appeal mechanism: if a municipality denies or conditions an ADU application, the applicant may appeal to the Commissioner of Community Affairs. If the commissioner finds the denial inconsistent with the bill, the commissioner shall approve the application and levy costs including the applicant's legal expenses against the municipality.