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Housing bill (HB1001) would override some local zoning to permit accessory units; local lawmakers skeptical

Greater Bloomington Chamber of Commerce legislative update · February 2, 2026

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Summary

Representative Matt Pierce said house bill 1001 aims to increase housing supply by overriding some local zoning to allow accessory dwelling units and limit impact fees, but cautioned it lacks mechanisms to ensure cost savings reach homebuyers and may favor developers.

Representative Matt Pierce described house bill 1001, the session’s housing affordability proposal, saying the bill creates defaults to allow accessory dwelling units and similar outbuildings (sometimes called "granny flats") while permitting local units to opt out by ordinance. Pierce said the measure aims to reduce local regulatory barriers and impact fees that developers face.

Pierce argued the bill contains no requirement that any cost savings be passed on to homebuyers. "My number 1 objection is there's nothing in the bill that requires the cost savings that might accrue to developers actually onto the homeowner," he said, and warned that changes could end up "just padding the profits of the developers themselves." He said he voted against the bill because he doubted it would meaningfully address affordability.

The update included no sponsor response defending the bill; Pierce noted home‑building interests strongly influence the measure. Next steps: HB1001 was moving in the house and could reach the senate; legislators urged constituents to watch for amendments.