Administration proposes extending interim exemptions to 2035, easing Tier 1A requirements and switching Tier 1B to opt‑out mapping

Alex Farrell, Commissioner of the Department of Housing and Community Development, told the Jan. 30 joint hearing that the governor's omnibus housing bill would make several substantive changes to Act 181 implementation, interim exemptions and tier mapping to make Tier 1A more attainable and to smooth the transition to permanent mapping.

The bill would extend interim exemptions through 2035 to avoid a gap between interim exemption boundaries and the rollout of Tier 1A/1B mapping, though administration lawyers and committee members said the bill can be drafted either to keep interim exemptions concurrent until permanent maps are adopted or to extinguish interim exemptions immediately when overlapping Tier 1A/1B maps take effect. Max Krieger, general counsel for the Department of Housing and Community Development, told the committee the current draft leaves that as a drafting choice and recommended clarifying the intended approach.

Farrell said the bill would clarify that subdivisions (for example, subdividing at least 10 parcels as part of a residential development) were intended to be included in interim exemptions and would allow municipalities to count contracted capacity from a regional planning commission (RPC) or other contractors toward the Tier 1A capacity threshold — a change currently allowed in Tier 1B but not Tier 1A.

The administration also proposes switching Tier 1B mapping from an opt‑in model to automatic mapping with a municipal opt‑out, on the behavioral principle that opt‑out will yield more participation. To keep priority housing projects (PHPs) viable, the draft would allow up to 50 units in areas that opt out of Tier 1B if the project qualifies as a PHP and would permit PHPs to exceed the 50‑unit cap and reach 75 units in Tier 1B areas when eligibility conditions are met.

Committee members raised several concerns. Members asked for maps that show which places would be affected, and asked for clarifying language about whether interim exemptions would extinguish automatically when permanent maps are adopted. Rural legislators and others voiced wariness about resurrecting the "road rule" and Tier 3 rulemaking; Farrell said the bill proposes converting Tier 3 rulemaking to a study and repealing the road rule to allow further study and avoid immediate rulemaking.

Pete Gill, executive director of the Land Use Review Board, told the committees the board's field study and mapping work are underway; representatives asked the administration and LURB to provide clearer maps and drafting to resolve potential ambiguities.

Ending: Committee members said they will review the draft language and requested follow‑up materials and maps to clarify how the proposed changes would apply at the parcel and municipal level.