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House conference text applies same durational primary‑residence rule to owner‑occupied and rental housing

3611727 · May 30, 2025
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Summary

Conference committee staff said the House counteroffer to the Senate would require that units in housing infrastructure agreements be offered as primary residences until project indebtedness is retired, and would allow municipalities flexibility on enforcement mechanisms.

In the Jan. 27 House–Senate conference on S.127, John Gray of the Office of Legislative Council said the House is proposing that any housing unit subject to a housing infrastructure agreement be offered exclusively as a primary residence “until all indebtedness for the housing infrastructure project of which that housing development is part has been retired.”

The provision replaces an earlier two‑pronged approach that treated owner‑occupied and rental housing differently by applying the same durational requirement to both categories, Gray said. The change appears in the conference draft’s housing infrastructure agreement section and is intended to match the durational test the Senate had proposed for rental housing.

Committee members said the conference language gives municipalities options for how to satisfy and enforce the requirement. Under the House text, a municipality may elect to require a covenant that “runs with the land” in a developer contract, or the municipality can adopt an ordinance to enforce primary‑residence conditions. Gray noted the covenant option was included to provide a mechanism that binds future owners without requiring the municipality to enact an ordinance.

Committee members discussed administrative proof of primary residency. One member said the current practical method used in property‑transfer tax filings — a landlord certificate or homestead declaration — is the only reliable verification mechanism the state currently uses to check that a unit is not a second home. The conference draft therefore preserves language allowing the condition to be satisfied by such documentation.

Speakers also flagged enforcement questions. Committee remarks clarified that a municipality could enforce the covenant if a neighbor complains and that a private enforcement mechanism might also exist; the transcript shows participants debating whether enforcement should be exclusively municipal or allow private rights of action.

No formal vote was recorded in the conference call excerpt. Committee staff said they would circulate additional revised language and that further review would occur when the co‑chairs reconvened.

The discussion on primary‑residence requirements occurred during the House–Senate conference on S.127 and was procedural: committee participants described the conference draft language and the enforcement options being retained or clarified.