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HB1389

Affordable Housing Law Changes

Last scannedAug 24, 2026, 10:35 AM

In one sentence

This law requires counties to allow apartment and mixed-use buildings in specific areas while limiting rules on building heights.

What it does

  • Requires counties to allow apartments and mixed-use buildings on commercial, industrial, or religious property if at least 40% of units are affordable rentals for 30 years.
  • Prohibits local governments from using setbacks or stepbacks to lower the maximum height allowed for these new developments below specific limits.
  • Sets a minimum building height limit based on nearby existing buildings within one mile or three stories, whichever is higher.
  • Allows developers to combine neighboring land parcels into one project if they are under common ownership and separated by no more than 15 feet of public pedestrian access.
  • Permits local governments to offer extra density bonuses to landowners who donate property for affordable housing for military families.

Who it affects

  • Counties that manage zoning rules
  • Developers proposing multifamily or mixed-use residential projects
  • Religious institutions owning properties with houses of worship
  • The Office of Program Policy Analysis and Government Accountability

Limits and unknowns

  • The rule allowing developers to combine neighboring land parcels expires on July 1, 2030.
  • Height restrictions may be stricter if the new building is next to an area with at least 25 single-family homes or inside a historic district listed before January 1, 2000.

Plain language

Terms to know

Multifamily development
A building or project that contains multiple separate housing units, such as an apartment complex.
Mixed-use residential
A property where at least 65% of the space is used for living and no more than 10% can be used for non-residential purposes like shops or offices.
Setbacks and stepbacks
Rules that require buildings to stop rising in height as they get taller, effectively limiting the total size of a structure.

Official record

Sources

Source attached

Official summary

Affordable Housing

Official activity

Bill history

  1. Chapter No. 2026-179; Companion bill(s) passed, see SB 962 (Ch. 2026-163)