Large counties must allow homes on some commercial and recreation land

Counties must allow qualifying apartment buildings and mixed-use buildings as permitted uses. This applies only in counties with more than 150,000 people, on land zoned for commercial or recreation use and served by public or private water and sewer. A permitted use can be approved without a public hearing or other discretionary zoning action, but the county may check that the site plan follows zoning rules. The law takes effect June 1, 2026, and expires May 31, 2027.

Counties may not impose certain limits on these permitted developments. These limits apply to the permitted apartment and mixed-use developments on qualifying parcels in covered counties. Counties may regulate where buildings sit and how they are designed. They may require up to 20% of available floor space for retail and may require on-site parking; minimum off-street parking is allowed only as needed to comply with federal law. These rules take effect June 1, 2026, and expire May 31, 2027.

The Department of Housing and Community Development must study residential-in-commercial-zone laws and make recommendations. Recommendations must address subjects such as parking, building height, density, and the types of commercial areas that may suit these developments. The study must compare laws in other states and assess effects on communities, infrastructure, local economic goals, and housing production. The department must report its findings and recommendations to the Governor and General Assembly by December 1, 2026.