Adds to existing law to establish provisions allowing for multifamily residential housing developments in areas zoned for commercial use.

LEGISLATURE OF THE STATE OF IDAHO Sixty-eighth Legislature Second Regular Session - 2026 IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 802 BY WAYS AND MEANS COMMITTEE AN ACT1 RELATING TO LOCAL LAND USE PLANNING; AMENDING CHAPTER 65, TITLE 67, IDAHO2 CODE, BY THE ADDITION OF A NEW SECTION 67-6542, IDAHO CODE, TO ESTABLISH3 PROVISIONS ALLOWING FOR MULTIFAMILY RESIDENTIAL HOUSING DEVELOPMENTS4 IN AREAS ZONED FOR COMMERCIAL USE; AND DECLARING AN EMERGENCY AND PRO-5 VIDING AN EFFECTIVE DATE.6

Be It Enacted by the Legislature of the State of Idaho:7

SECTION 1. That Chapter 65, Title 67, Idaho Code, be, and the same is8 hereby amended by the addition thereto of a NEW SECTION, to be known and des-9 ignated as Section 67-6542, Idaho Code, and to read as follows:10 67-6542. MULTIFAMILY RESIDENTIAL HOUSING DEVELOPMENTS IN COMMERCIAL11 USE ZONES. (1) The legislature finds that Idaho communities face a shortage12 of housing close to jobs, schools, and services. Authorizing multifamily13 residential housing developments in commercial zones allows developers to14 make use of underutilized office space, increase housing supply, reduce com-15 mute times, and promote economic growth.16 (2) Cities shall permit multifamily residential housing developments17 in areas zoned for commercial use in accordance with the provisions of this18 section and subject to the same siting, design, and development standards19 that apply to other commercial use in the same zoning district. "Commercial20 use" means any zoning district established by a local government where the21 primary permitted uses are retail, office, or other non-residential commer-22 cial activity.23 (3) By resolution or ordinance adopted, amended, or repealed in accor-24 dance with the notice and hearing procedures provided under section 67-6509,25 Idaho Code, each city governing board shall amend its comprehensive plan and26 land use regulations for all land zoned for commercial use to:27 (a) Allow for multifamily residential housing developments in dis-28 tricts zoned for commercial use as provided for in this section; and29 (b) Prohibit requiring more than one (1) parking space per dwelling30 unit within a multifamily residential housing development, unless a31 demonstrated site-specific safety or infrastructure capacity concern32 justifies additional parking.33 (4) Multifamily residential housing development projects that meet the34 jurisdiction's established land use requirements shall be approved adminis-35 tratively and as a matter of right, without the need for discretionary ap-36 proval. Such projects shall not be subject to permitting or review that is37 not applied to other projects that are approved as a matter of right in a com-38 mercial use zone.39 (5) Any approval standards, including siting and design, adopted by a40 local government shall be clear and objective and shall not have the effect,41

2 either singularly or cumulatively, of rendering the development of multi-1 family residential housing economically infeasible.2 (6) A property owner, housing provider, or other affected party may3 bring a private cause of action for injunctive relief, monetary damages,4 reasonable attorney's fees and costs, and any other appropriate relief5 available under the law to enforce compliance with the provisions of this6 section.7 (7) The provisions of this section shall not apply to:8 (a) Land zoned exclusively for industrial use;9 (b) Areas designated as floodplain, steep slope, or critical environ-10 mental hazard;11 (c) Parcels located within the approach area of an airport runway, de-12 fined as one-half (1/2) mile laterally and one (1) mile longitudinally13 from the outer limits of a runway protection zone; and14 (d) Parcels located within an airport overlay district, airport influ-15 ence area, or airport zoning district adopted by a state or local gov-16 ernment within the state of Idaho.17

SECTION 2. An emergency existing therefor, which emergency is hereby18 declared to exist, this act shall be in full force and effect on and after19 July 1, 2026.20