AN ACT AUTHORIZING BONDS OF THE STATE TO FUND AFFORDABLE AND WORKFORCE HOUSING DEVELOPMENT IN CERTAIN MUNICIPALITIES.

SB 989 authorizes Connecticut to issue up to $40 million in state bonds to fund low-interest loans for affordable and workforce housing development. It directly affects developers in municipalities that have not met a 7% threshold for affordable housing compliance, requiring new projects to dedicate at least 10% of single-family units as affordable/workforce housing and prohibiting rental properties. The Connecticut Housing Finance Authority will administer the loans, with individual projects capped at $5 million, and eligible homebuyers can access these loans directly to purchase qualifying properties. This bill creates a targeted funding mechanism to address housing shortages in areas lagging on affordable housing goals.