Georgia General Assembly · Full text

SB 508: "Community Housing Options Increase Efficiency (CHOICE) Act"; enact

Introduced version, the latest LegiScan holds · Last action February 17, 2026 · Introduced

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Senate Bill 508

By: Senators Parent of the 44th, Jones II of the 22nd, Wicks of the 34th, Harrell of the 40th, Orrock of the 36th and others

A BILL TO BE ENTITLED

AN ACT

To amend Titles 12, 32, and 50 of the Official Code of Georgia Annotated, relating to conservation and natural resources, highways, bridges, and ferries, and state government, respectively, so as to provide for a system whereby certain local governments may seek certifications from the Department of Community Affairs upon the enactment of certain policies that can be used to receive priority in grant and loan applications submitted to state agencies; to provide that the Department of Natural Resources give priority to certified local governments in awarding grants under the federal recreational trails program; to provide that certain certified local governments are not required to provide matching funds when receiving grants under the local maintenance and improvement grant program; to provide that the Department of Community Affairs give priority to certified local governments in awarding grants and loans; to provide for the certification of local governments by the Department of Community Affairs upon the enactment of certain policies; to provide for the revocation of such certifications; to provide for the verification of such certifications by other state agencies; to provide for the determination of population size and median household income of local jurisdictions; to provide for statutory construction; to provide that the Georgia Environmental Finance Authority give priority to certified local governments when awarding grants and loans; to provide definitions; to provide exceptions; to provide for related matters; to provide a short title; to provide legislative findings; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

SECTION 1.

This Act shall be known and may be cited as the "Community Housing Options Increase Cost Efficiency (CHOICE) Act."

SECTION 2.

The General Assembly finds and declares that:

(1) Georgia is facing a housing crisis caused primarily by the interaction of a housing supply shortage, construction labor shortage, lasting impacts from the COVID-19 pandemic, outdated policies and regulations, ongoing population shifts, economic stressors, and market speculation;

(2) Such housing crisis poses serious immediate and long-term risks to the state and its residents, with significant potential repercussions in arenas such as economic development, homelessness, crime, poverty, health, and education, with such repercussions likely compounding over time that could have intergenerational consequences;

(3) According to the Harvard Joint Center for Housing Studies, the cost of new home construction in Georgia rose by 35 percent between the onset of the COVID-19 pandemic and 2025, while affordable rentals declined by some 67,000 units, the second highest drop of any state in the United States;

(4) The U.S. Department of Housing and Urban Development has assessed that homelessness in Georgia has reversed its downward trend and begun increasing for the first time since 2011;

(5) The National Low Income Housing Coalition has reported that housing shortages in the United States have cost Americans more than 13 percent of potential GDP growth since the 1960s, or nearly $9,000.00 in annual wages per worker;

(6) The nonprofit research group Up for Growth found that in 2023, Georgia ranked in the second highest tier of states for housing underproduction, at 138,000 units below demand, an increase of more than 2,600 percent over a ten-year period; and

(7) Therefore, this Act is needed to increase the supply of affordable housing in the state by encouraging local governments to adopt policies and reforms that will promote the construction of affordable housing and reduce the burden of outdated policies and regulation on housing construction and the cost of housing to Georgia's citizens.

SECTION 3.

Title 12 of the Official Code of Georgia Annotated, relating to conservation and natural resources, is amended by adding a new Code section to read as follows:

"12-2-6.1.

(a) As used in this Code section, the term 'qualified county or municipal corporation' shall have the same meaning as set forth in Code Section 50-8-310.

(b) Except as provided in subsection (c) of this Code section, when reviewing applications from multiple qualified counties or municipal corporations for the receipt of grant funds under the federal recreational trails program administered by the department, the department shall:

(1) Give priority to any such county or municipal corporation that has been certified by the Department of Community Affairs as a workforce housing ready community pursuant to Code Section 50-8-311 over any such county or municipal corporation that has not received any certification from the Department of Community Affairs pursuant to Code Section 50-8-311;

(2) Give priority to any such county or municipal corporation that has been certified by the Department of Community Affairs as a workforce housing ready expert pursuant to Code Section 50-8-311 over any such county or municipal corporation that:

(A) Has not received any certification from the Department of Community Affairs pursuant to Code Section 50-8-311; or

(B) Has been certified by the Department of Community Affairs as a workforce housing ready community pursuant to Code Section 50-8-311; and

(3) Give priority to any such county or municipal corporation that has been certified by the Department of Community Affairs as a workforce and home ownership leader pursuant to Code Section 50-8-311 over any such county or municipal corporation that:

(A) Has not received any certification from the Department of Community Affairs pursuant to Code Section 50-8-311;

(B) Has been certified by the Department of Community Affairs as a workforce housing ready community pursuant to Code Section 50-8-311; or

(C) Has been certified by the Department of Community Affairs as a workforce housing ready expert pursuant to Code Section 50-8-311.

(c) When reviewing applications from multiple counties or municipal corporations for the receipt of grant funds under the federal recreational trails program administered by the department, the department shall not give priority to any county or municipal corporation that has received a certification from the Department of Community Affairs pursuant to Code Section 50-8-311:

(1) Over any county or municipal corporation that does not meet the definition of a qualified county or municipal corporation; or

(2) If doing so would be contrary to the purposes of such program or would conflict with any provision of general law, the Georgia Constitution, or any applicable federal law or regulation."

SECTION 4.

Title 32 of the Official Code of Georgia Annotated, relating to highways, bridges, and ferries, is amended in Code Section 32-5-27, relating to allocation formula development and implementation for the state public transportation fund, by revising subsection (d) as follows: "(d) Funds allocated for the local maintenance and improvement grant program shall replace funds formerly available under the local assistance road program and state-aid program and shall be allocated by the Local Grants Division of the department to local governing authorities as grants or otherwise according to a funding formula developed by the division and the director. Such formula shall include considerations of paved and unpaved lane miles and vehicle miles traveled and may include population, employment, and local funding matches available, as well as other factors as may be determined by the division and the director; provided, however, that no funding matches shall be required of any county or municipal corporation that has been certified by the Department of Community Affairs as a workforce and home ownership leader pursuant to Code Section 50-8-311. Funds allocated each fiscal year for the local maintenance and improvement grant program shall be not less than 10 percent nor more than 20 percent of the money derived from motor fuel taxes received by the state in the immediately preceding fiscal year, less the amount of refunds, rebates, and collection costs authorized by law and shall be used only for the purposes available for the proceeds of such taxes. Grants of such funds shall include provisions requiring adherence to adequate roadway standards, accounting practices, and applicable transportation plans. Additional allocations to this program from other funding sources shall be allocated subject to the requirements for usage attached to such funds."

SECTION 5.

Title 50 of the Official Code of Georgia Annotated, relating to state government, is amended in Chapter 8, relating to the Department of Community Affairs, by adding a new Code section to read as follows:

"50-8-8.1.

(a) As used in this Code section, the term 'qualified county or municipal corporation' shall have the same meaning as set forth in Code Section 50-8-310.

(b) Except as provided in subsection (c) of this Code section, when reviewing applications from multiple qualified counties or municipal corporations for the receipt of grant funds or loans under any grant or loan program administered by the department, the department shall:

(1) Give priority to any such county or municipal corporation that has been certified by the department as a workforce housing ready community pursuant to Code Section 50-8-311 over any such county or municipal corporation that has not received any certification from the department pursuant to Code Section 50-8-311;

(2) Give priority to any such county or municipal corporation that has been certified by the department as a workforce housing ready expert pursuant to Code Section 50-8-311 over any such county or municipal corporation that:

(A) Has not received any certification from the department pursuant to Code Section 50-8-311; or

(B) Has been certified by the department as a workforce housing ready community pursuant to Code Section 50-8-311; and

(3) Give priority to any such county or municipal corporation that has been certified by the department as a workforce and home ownership leader pursuant to Code Section 50-8-311 over any such county or municipal corporation that:

(A) Has not received any certification from the department pursuant to Code Section 50-8-311;

(B) Has been certified by the department as a workforce housing ready community pursuant to Code Section 50-8-311; or

(c) When reviewing applications from multiple counties or municipal corporations for the receipt of grant funds or loans under any grant or loan program administered by the department, the department shall not give priority to any county or municipal corporation that has received a certification from the department pursuant to Code Section 50-8-311:

(1) Over any county or municipal corporation that does not meet the definition of a qualified county or municipal corporation; or

(2) If doing so would be contrary to the purposes of the grant or loan program or would conflict with any provision of general law, the Georgia Constitution, or any applicable federal law or regulation."

SECTION 6.

Said chapter is further amended by adding a new article to read as follows: "ARTICLE 14

50-8-310.

As used in this article, the term:

(1) 'Accessory dwelling unit' means an independent residential dwelling unit that is located on the same lot as a single-family home or duplex, regardless of whether such independent residential dwelling unit is attached or detached from the single-family home or duplex.

(2) 'Cottage courtyard' means a series of attached or detached independent residential dwelling units, each of which do not exceed 1,600 square feet and that share a common outdoor amenity space.

(3) 'Duplex' means a single building that has two separate residential dwelling units.

(4) 'Flag lot' means a lot which has access to a public right-of-way by means of a narrow strip of land, which is part of the lot.

(5) 'Higher density housing facility' means a multifamily structure that has a maximum allowable number of residential dwelling units that is 10 percent higher than the current highest maximum allowable number of residential dwelling units for a multifamily structure within the jurisdiction.

(6) 'Household income' means all wages and income received by each member of a household from all sources.

(7) 'Mixed use development' means a multifamily structure that also contains one or more commercial units.

(8) 'Multifamily structure' means a building, other than a townhouse, that contains four or more individual residential dwelling units.

(9) 'Qualified county or municipal corporation' means:

(A) Any county in this state that has a population of at least 50,000 or any municipal corporation in this state that has a population of at least 6,500, each as determined by the department pursuant to Code Section 50-8-313; or

(B) Any county or any municipal corporation in this state that has a median household income of more than $115,000.00, as determined by the department pursuant to Code Section 50-8-313.

(10) 'Qualifying policy' means any tier 1 policy, tier 2 policy, tier 3 policy, or tier 4 policy.

(11) 'Single-family home' means a building that constitutes a single residential dwelling.

(12) 'Small multifamily structure' means a multifamily structure with between four and eight individual residential dwelling units.

(13) 'Tier 1 policy' means a policy that:

(A) Imposes a minimum heated square footage requirement for residential dwellings of 1,200 square feet or less in at least 50 percent of the area of the jurisdiction zoned for residential use;

(B) Imposes a minimum heated square footage requirement for residential dwellings of 1,200 square feet or less in all of the area of the jurisdiction that is zoned for residential use;

(C) Permits the construction of a duplex on any parcel of land where the construction of a single-family home is permitted;

(D) Imposes a minimum lot size requirement for land that is zoned for residential use that is no greater than:

(i) The minimum lot size required by the rules and regulations of the Department of Health for lots with on-site, nonpublic sewage management systems;

(ii) The minimum lot size required to comply with the requirements of Code Section 12-5-134 for lots with private water wells; and

(iii) One-half acre for lots with access to public water supply and public sewage management systems;

(E) Permits the use of all building materials that meet the standards of the International Residential Code in the construction of new residential dwellings; or

(F) Permits the construction of an accessory dwelling unit on any parcel of land where a single-family home exists.

(14) 'Tier 2 policy' means a policy that:

(A) Commissions a housing study to determine the need for the construction of single-family homes and multifamily structures within the jurisdiction;

(B) Permits the construction of townhomes in any area that is zoned for single-family residential use;

(D) Permits the creation of residential subdivisions with flag lots;

(E) Reduces the minimum road frontage requirements applicable to residential lots;

(F) Permits the construction of small multifamily structures in any area that is zoned for residential use;

(G) Permits the construction of higher density housing facilities in areas that are served by public transit and that are near places of employment, higher education facilities, and other appropriate population centers, as determined by the governing body of the jurisdiction;

(H) Permits the construction of multifamily structures or mixed use developments in all areas zoned for commercial use; or

(I) Permits the use of single-stair construction in multifamily structures with up to five stories.

(15) 'Tier 3 policy' means a policy that:

(A)(i) Imposes a minimum parking requirement of no more than one parking space per residential dwelling unit for multifamily structures that are not served by public transit; and

(ii) Imposes no minimum parking requirements for multifamily structures that are served by public transit;

(B) Supports community land trusts that secure land for affordable housing developments and that allow participation from community residents in the decision making process of such land trust;

(C) Applies the International Residential Code to residential buildings that contain no more than four individual residential dwelling units;

(D) Imposes no setback requirements on residential dwellings or decreases the minimum setback requirements applicable to residential dwellings by at least 25 percent;

(E) Imposes no height restrictions on residential and commercial structures or increases the height restrictions applicable to residential and commercial structures by at least 25 percent;

(F) Imposes no density limits on areas zoned for residential or commercial use or increases the density limits applicable to areas zoned for residential or commercial use by at least 25 percent;

(G) Imposes processing time limits on applications for building permits;

(H) Reduces any permit or regulatory fee applicable to the construction of accessory dwelling units or multifamily structures by at least 25 percent;

(I) Establishes an online platform for the submission and processing of building permit applications; or

(J) Commissions a study to assess whether the current permit or regulatory fees applicable to the construction of residential dwellings reflect the cost incurred by the jurisdiction in processing such permit applications or carrying out such regulatory procedures.

(16) 'Tier 4 policy' means a policy that:

(A) Permits the construction of multifamily residential structures in any area that is zoned for residential use;

(B) Establishes measurable goals for the construction of affordable housing based on projected population growth and regional job creation;

(C) Imposes no maximum lot coverage applicable to residential dwellings or increases the maximum lot coverage applicable to residential dwellings by at least 25 percent;

(D) Does not require the creation of a homeowners' association, property owners' association, or condominium owners' association for any new residential development;

(E) Streamlines the process of approving minor changes to construction plans for residential developments;

(F) Creates or joins a local land bank pursuant to Article 6 of Chapter 4 of Title 48;

(G) Encourages the collaboration with neighboring counties and municipal corporations and nonprofit organizations in addressing regional housing needs; or

(H) Creates a public-private partnership with local businesses to reduce the land acquisition costs on housing developments.

(17) 'Townhouse' means an individual residential dwelling unit within a larger structure that contains two or more attached residential dwelling units constructed in a row where each residential dwelling unit is located on an individual lot or parcel and shares at least one common wall with an adjacent unit.

50-8-311.

(a) On or after July 1, 2027, and for the purpose of receiving priority in grant or loan applications submitted to certain state agencies, any qualified county or municipal corporation may, but is not required to, apply for certification from the department that such county or municipal corporation is either a workforce housing ready community, a workforce housing ready expert, or a workforce and home ownership leader. The department shall, by rules and regulations, prescribe the form and manner of such application for certification.

(b) The department shall only certify a qualified county or municipal corporation as a:

(1) Workforce housing ready community if such county or municipal corporation has adopted, by ordinance or resolution, at least ten qualifying policies of which at least two are tier 1 policies, at least three are tier 2 policies, and at least one is a tier 3 policy;

(2) Workforce housing ready expert if such county or municipal corporation has adopted, by ordinance or resolution, at least 15 qualifying policies of which at least two are tier 1 policies, at least three are tier 2 policies, and at least one is a tier 3 policy; and

(3) Workforce and home ownership leader if such county or municipal corporation has adopted, by ordinance or resolution, at least 20 qualifying policies of which at least two are tier 1 policies, at least three are tier 2 policies, and at least one is a tier 3 policy.

(c) Upon submission of an application by a qualified county or municipal corporation evidencing that such county or municipal corporation has adopted, by ordinance or resolution, the requisite number of qualifying policies as set forth in subsection (b) of this Code section, the department shall issue the appropriate certification to such county or municipal corporation. Thereafter, to maintain such certification, such county or municipal corporation shall, every five years, verify in writing to the department that the requisite number of qualifying policies as set forth in subsection (b) of this Code section are still in effect in such county or municipal corporation.

(d) The department may revoke a certification issued to a qualified county or municipal corporation pursuant to this Code section if it determines that such county or municipal corporation no longer has in effect the requisite number of qualifying policies as set forth in subsection (b) of this Code section or if such county or municipal corporation fails to verify in writing to the department every five years that such policies are still in effect. (e)(1) A qualified county or municipal corporation that has been certified as a workforce housing ready community may, upon adoption of the requisite number of qualifying policies as set forth in subsection (b) of this Code section, apply to the department for certification as either a workforce housing ready expert or a workforce and home ownership leader.

(2) A qualified county or municipal corporation that has been certified as a workforce housing ready expert may, upon adoption of the requisite number of qualifying policies as set forth in subsection (b) of this Code section, apply to the department for certification as a workforce and home ownership leader.

50-8-312.

Any state agency considering a grant or loan application from a qualified county or municipal corporation may inquire from the department whether such qualified county or municipal corporation has been certified by the department pursuant to this article. Within a reasonable time after receiving such an inquiry, the department shall verify to such agency whether such county or municipal corporation has a valid certification issued by the department pursuant to this article.

50-8-313.

(a) On and after January 1, 2027, the department shall annually determine and publish on its website the:

(1) Median household income of each county and each municipal corporation in this state; and

(2) Population of each county and each municipal corporation in this state.

(b) In making determinations of the median household income and the population of each county and each municipal corporation in this state pursuant to subsection (a) of this Code section, the department may rely on data and information provided by the United States Census Bureau, the United States Department of Housing and Urban Development, the United States Department of Labor, the United States Department of Commerce, and any other source the department determines to be accurate and reliable.

(c) The median household income and the population of each county and each municipal corporation in this state determined and published by the department pursuant to subsection

(a) of this Code section shall be used to determine whether a given county or municipal corporation in this state meets the definition of a qualified county or municipal corporation under this article.

50-8-314.

The department is authorized to promulgate rules and regulations to implement the provisions of this article.

50-8-315.

Nothing in this article is intended to authorize counties or municipal corporations to adopt or enforce any ordinance or resolution that is contrary to the provisions of general law, the Georgia Constitution, or any applicable federal law or regulation. To the extent any qualifying policy now or hereinafter conflicts with the provisions of general law, the Georgia Constitution, or any applicable federal law or regulation, such policy shall no longer constitute a qualifying policy and shall not be used to determine whether a qualified county or municipal corporation may be certified, or continue to be certified, by the department under the provisions of this article."

SECTION 7.

Title 50 of the Official Code of Georgia Annotated, relating to state government, is amended in Chapter 23, relating to the Georgia Environmental Finance Authority, by adding a new Code section to read as follows:

"50-23-5.1.

(a) As used in this Code section, the term:

(1) 'Department' means the Department of Community Affairs.

(2) 'Qualified county or municipal corporation' shall have the same meaning as set forth in Code Section 50-8-310.

(b) Except as provided in subsection (c) of this Code section, when reviewing applications from multiple qualified counties or municipal corporations for the receipt of any grant funds or loans from the authority as authorized by this chapter, the authority shall:

(A) Has not received any certification from the department pursuant to Code Section 50-8-311; or

(B) Has been certified by the department as a workforce housing ready community pursuant to Code Section 50-8-311; and

(A) Has not received any certification from the department pursuant to Code Section 50-8-311;

(B) Has been certified by the department as a workforce housing ready community pursuant to Code Section 50-8-311; or

(c) When reviewing applications from multiple counties or municipal corporations for the receipt of any grant funds or loans from the authority as authorized by this chapter, the authority shall not give priority to any county or municipal corporation that has received a certification from the department pursuant to Code Section 50-8-311:

(1) Over any county or municipal corporation that does not meet the definition of a qualified county or municipal corporation; or

(2) If doing so would conflict with any provision of general law, the Georgia Constitution, or any applicable federal law or regulation."

SECTION 8.

All laws and parts of laws in conflict with this Act are repealed.