Local governments could set up housing zones for resident owners

Counties, cities, and towns could establish housing zones and would manage the resulting projects. Zones could include houses, condominiums, and buildings with several homes. Homes would need slab foundations and at least two bedrooms. Owners would have to live in their homes, including after resale. Cities and towns would check ownership every two years. Projects could not be limited to people 55 or older. If the bill passes, these rules would take effect 60 days after passage.

If funding is provided, the state would offer $20 million in grants for roads, water lines, and sewers. The grants would support county, city, and town housing projects. A project would need at least 30 single-family homes or 40 condominiums to qualify. A city or town could receive up to $1 million, and a county could receive up to $5 million. Joint projects could pool grants if they include more than 50 homes. The bill sets aside no money and names no agency to run the grants, so grants could not be paid without funding. If the bill passes, the grant rules would take effect 60 days after passage.

The state would exempt certain project property transfers and land parcels from the listed taxes. The transfer exemption would cover the first transfer from a developer to an owner. The land exemption would cover parcels over 10 acres. If the bill passes, these tax exemptions would take effect 60 days after passage.