With just a few days remaining in the legislative session, several bills highlight an effort to expand local funding mechanisms for economic development and address housing needs. Many communities are prioritizing workforce and income-aligned housing as economic drivers making these legislative changes relevant for businesses, developers, and local governments.
Notable Bills Supporting Economic Development & Housing
- SB 25: Expands Industrial Revenue Bonds for multifamily housing, enabling financing for developments of at least 48 units while limiting zoning appeals to contiguous property owners. Passed Senate.
- SB 50: Establishes residential infrastructure districts, allowing local governments to issue bonds and levy special assessments to support infrastructure in growing communities. Passed Senate.
- HB 7: Creates housing districts and offers incentives to developers, supporting local efforts to increase workforce housing availability. In committee.
- HB 372: Increases the annual cap for the New Markets Tax Credit from $10M to $20M, promoting additional investment in housing and business development. Awaiting action.
- HB 546: Establishes the Local Access Road Program (LARP), funding rehabilitation of local roads critical to new and expanding development. Passed House.
- HB 707: Allows local governments to form regional industrial taxing districts, creating a new tool for funding economic development projects. Awaiting committee assignment.
- HB 243 & HB 253: Focus on financial incentive oversight and centralized local business tax collection, impacting the way economic development projects are funded. Awaiting committee action.
Legal & Strategic Considerations
As local governments and economic development professionals navigate new funding tools and incentives, it is essential to assess how these changes will impact financing strategies, zoning approvals, and long-term development planning. The increasing focus on housing as an economic development priority signals a shift toward policies that align job creation with housing solutions.
With the session nearing its end at DBL Law we will stay engaged in legislative developments and prepare for opportunities that maximize any new economic tools that become law.
Our firm’s Economic Development Practice Group is dedicated to helping businesses, developers, and local governments navigate these evolving policies, secure funding, and structure projects that align with the latest legislative changes. We provide strategic legal guidance to ensure compliance and optimize economic development opportunities for our clients.