Senate committee signals concurrence on S.328 changes, narrows ADU language and adds Jan. 1, 2028 sunset

Chair opened the May 26 meeting of the Senate Economic Development, Housing & General Affairs committee and said members would consider S.328, the Miscellaneous Housing Bill, which returned from the House with a further proposal of amendment. The committee reviewed a draft labeled 2.1 and discussed a series of nine amendment instances before agreeing on next steps.

The committee member reviewing the draft ran through key changes: an adjustment to the state treasurer27s credit facility (noting an increase to 12.5 and that a 1% credit facility for off-site construction was not included), adding a consultant seat (VPC/BEPC) to the off-site construction accelerator pilot program, striking a provision that would have allowed the Department of Housing and Community Development to upfront BHIP funds, and inserting the word "labor" in municipal planning language governing housing elements and constraint analysis. The reviewer also described reinserting previously struck language in section 9 (manufactured housing provisions) and restoring reporting language related to common interest communities.

Much of the committee27s discussion focused on a disputed subsection (referred to in the draft as "15") that would limit municipal bylaws that require owner-occupancy in ADUs and duplexes. One committee member said the language could "tie the hands" of municipalities, particularly in towns where second-home ownership exceeds 50 percent, because it would prevent some municipalities from creating local occupancy requirements. Another committee member stressed that ADUs and duplexes are a primary source of long-term rental housing in many towns and warned against imposing owner-occupation requirements that would discourage private investment in these unit types.

Members debated whether the phrase "no bylaw shall require" should be read as forbidding municipalities from imposing an owner-occupancy requirement or as preventing municipalities from banning the creation of ADUs/duplexes. The committee referenced prior work on the "Home act" and noted that projects built with certain state funds carry owner-occupancy requirements; members emphasized that the draft language was intended to preserve the ability to build ADUs and duplexes while balancing local concerns about full-time residency and short-term rental pressures.

As a compromise, members agreed to keep the rewritten section 15 narrowly focused on duplexes and ADUs (removing multi-unit/triplex requirements) and to include that language as part of a sunset provision. The Chair and committee member said staff would prepare a revised draft 3.1 incorporating the agreed changes (including section 15 as limited to duplexes), and distribute the draft before the floor session. The committee indicated informal support to "concur with further proposal of amendment" pending circulation of draft 3.1.

The discussion also addressed other insertions in the draft: a new section 9A to restore previously struck language, section 9B to reinsert state community investment program language, and restored report language about common interest communities. The committee noted the effective date language would be removed to accommodate the new sunset (identified in the meeting as effective Jan. 1, 2028).

The meeting record shows the committee directed staff to produce draft 3.1 and circulate it before floor action; members indicated they would move forward to concur with the House27s further proposal of amendment once that revised draft is available. The committee then paused the S.328 work to shift to another bill on the agenda.