Multifamily Housing Program: Homekey: adaptive reuse

Converting existing buildings into housing can require extensive rebuilding or demolition. The law lets the Department of Housing and Community Development consider timelines that better reflect that work for qualifying Homekey awards made on or after July 1, 2026.

What the law does ​

• Requires the department to consider applying new-construction timelines to qualifying adaptive-reuse projects.
• Limits eligibility to adaptive reuse involving substantial rehabilitation, reconstruction, or demolition of an existing structure.
• Defines substantial work as demolishing, replacing, or substantially reconstructing at least 55% of the existing structure.
• Defines adaptive reuse as retrofitting and repurposing an existing building to create new housing units.

Who it affects ​

• Homekey applicants converting existing buildings into housing.
• Individuals and families experiencing or at risk of homelessness who may be served by Homekey housing.
• The Department of Housing and Community Development.