Housing (Housing Finance)

HB 7153 changes the fee-in-lieu payment required for developers who opt not to build affordable housing units on-site. Instead of standard fees, developers must pay 150% of the average development cost for a single-family home or condo unit (with a minimum $40,000 per unit). This fee must be used exclusively by municipalities to fund new affordable housing for households earning 80% or less of the area median income. The bill affects developers in qualifying projects (10+ units) and local governments responsible for managing these funds through dedicated housing boards.

Creates an affordable housing business tax credit as well as eliminate sales tax on any materials purchased for use in the renovation of affordable rental housing.

Allows faith-based organizations to develop affordable and mixed-use housing on land they own as a by-right use, set statewide development standards, limit local barriers, and streamline approvals to expand housing supply.