HF540

Purpose

Require a statewide assessment of vacant office space and explore whether it can be converted into housing, including potential revenue from renting or selling repurposed properties.

Main Provisions

• A report by the commissioner of administration due February 15, 2026 to the chairs and ranking minority members of the legislative committees with primary jurisdiction over the Department of Administration’s budget.
• The report must catalog all state-owned or state-leased office space and identify how much of it is substantially vacant.
• It must describe whether and how vacant space could be converted into housing.
• It must estimate how much revenue could be returned to the state through renting or selling repurposed properties.
• The commissioner is authorized to obtain cost estimates for converting vacant state office space to housing.
• The commissioner may contract for a study on real estate market conditions to support evaluating potential revenue from repurposing.

Significance and What It Changes

• Creates a new mandatory reporting requirement and feasibility review related to state office space.
• Does not authorize immediate funding or actions; it sets the framework to assess options and potential revenue before any decisions are made.
• Could inform future policy decisions about property management, housing supply, and state finances.

Implementation Details

• Who: Commissioner of Administration.
• To Whom: Chairs and ranking minority members of the legislative committees with primary jurisdiction over the budget for the Department of Administration.
• By When: February 15, 2026.
• Scope: All owned and leased state office space; definition of “substantially vacant.”
• Methods: Obtain cost estimates for conversion; contract for a real estate market study.

Terminology and Concepts Emphasized

• commissioner of administration
• vacant state office space
• owned or leased office space
• substantially vacant
• housing
• conversion
• repurposed property
• revenue
• rental
• sale
• real estate market conditions
• estimates
• study

Relevant Terms - February 15, 2026 - chairs and ranking minority members - legislative committees with primary jurisdiction over the budget - Department of Administration