Area Plan Commission reviews House Bill 1001 and the local implications for zoning and permitting

Commission staff walked members through key provisions of House Bill 1001, the state "Housing Matters" bill signed March 4, 2026, and discussed how the new law will change local planning, reporting and zoning practices.

Staff provided the full bill and condensed materials to commissioners and outlined sections staff views as most relevant. Staff said section 2 will require the local unit to submit an annual report to the designated authority listing: the total number of proposed residential housing units submitted to the local unit; the number approved and the number denied; net new residential housing units after subtracting losses (demolition or conversions); the number of entitled/planned/permitted/completed units; and the calendar days spent processing housing proposal applications. "I'm not sure how we're going to do all this, but we'll figure out a way and work with building inspection," staff said, noting coordination with building inspection will be necessary to compile the data.

On section 13, staff reviewed the bill's definition of accessory dwelling units (ADUs) and explained that the commission's existing ordinance contains no ADU definition or permitting pathway. Staff paraphrased counsel's response, saying the bill does not automatically add ADUs to the local ordinance; rather, counsel recommended the commission consider adding an ADU definition and developing local permitting standards. Staff said the office will study how ADUs would be incorporated into the current UZO over the coming months.

Staff also summarized section 17, which limits how and when local governments can increase construction-related fees: any fee adopted before Jan. 4, 2027, may be increased only once every five years and any increase cannot exceed the combined annual percentage change in the CPI-U as published by the U.S. Bureau of Labor Statistics.

Section 25 will require a public hearing to review zoning regulations (the bill uses the term UDO; the local office will substitute UZO) with a stated goal of encouraging housing development; staff said the commission will schedule special meetings to follow the bill's outline and to review corresponding city-code sections. Staff also noted section 28 will require permitting housing development by religious institutions in specified circumstances and said they will track that requirement for future implementation.

Commissioners asked practical questions, including how the office should measure "calendar days" for permit processing and whether the annual reporting will be burdensome. Staff acknowledged those implementation questions and said they would prepare a concise summary for commissioners, coordinate with building inspection and counsel, and schedule follow-up work sessions to develop procedures and timelines.

The commission did not take formal action on the bill itself but directed staff to continue reviewing the statutory language and to return with recommendations and a proposed schedule for the UZO/UDO review process and public hearings.