HB 5390 Summary

• Establishes "transit-oriented communities" as municipalities with regular bus service (5+ days/week) or rapid transit stations, eligible for prioritized state infrastructure funding and required to allow middle housing and mixed-use developments as of right in designated transit-oriented districts.

• Requires qualifying transit-oriented communities to allow middle housing developments (2-9 units including duplexes, triplexes, townhouses, and cottage clusters) and 10+ unit developments with 30% affordable units as of right, with no public hearings or special permits needed.

• Mandates 40-year deed restrictions on non-as-of-right developments with 10+ units, requiring 5-15% affordable units depending on local housing market typology, or alternative contribution agreements to affordable housing funds.

• Municipalities not currently qualifying may adopt resolutions to become transit-oriented communities within 18 months and receive priority funding; failure to comply requires return of any received discretionary infrastructure funding.

• Creates an interagency council on housing development to develop guidelines and recommendations for transit-oriented districts and establishes a nonlapsing account for water and sewer infrastructure rehabilitation in these communities; effective October 1, 2024.