The resolution and documentation of the city's creation of a zone must be submitted to the State Treasurer for approval. The zone is established when the Treasurer determines that the requirements of the act have been met and approves the designation in writing to the local governing body.

The city may propose a separate building code for housing in the hofreedom zone that permits decent, safe and sanitary residential housing to be built at an affordable cost. The proposed code must comply with all state and federal requirements regarding environmental protection and historical preservation. Proposed codes must be submitted to the Department of Consumer and Industry Services for approval. The department is required to make a determination that the code provides decent, safe, and sanitary residential housing to be built at a cost affordable to families with an income below the median income of the city. The department must also make a determination that state and federal requirements regarding environmental protection and historic preservation are satisfied. The proposed building code is effective when the department approves it in writing to the governing body of the city.

Senate Bill 350 provides that the State Construction Code Act and Code do not apply to residential housing constructed in a housing freedom zone if the Department of Consumer and Industry Services has approved an alternative building code pursuant to Senate Bill 349.