HB 1601 Summary

• Establishes a housing assistance program within the Department of Human Services to provide state grants and rental subsidies to private property owners in counties with populations exceeding 500,000 who set aside, construct, or improve accessory dwelling units for rent to homeless families and individuals for five-year periods.

• Creates a housing assistance program coordinator position (appointed by the director) and a temporary housing assistance program commission with at least 14 members, including state agency directors and representatives appointed by the governor, legislature, and county officials, to oversee the program.

• Authorizes assistance to qualifying property owners including construction grants, renovation grants, monthly rental subsidies, real property tax waivers or reductions, and zoning/building code exemptions, with priority given to owners not requesting construction grants.

• Requires property owners withdrawing before five years to return any construction grants within specified timeframe and imposes penalties up to three times monthly rental amounts for vacant units or those rented to non-qualifying tenants; establishes lien recovery procedures.

• Sunsets the program on June 30, 2027, with the commission repealing June 30, 2024 or upon approval of 2,000 accessory dwelling units, whichever is sooner; directs coordinator to submit interim and final reports to the legislature.