AN ACT CONCERNING MUNICIPAL RIGHT OF FIRST REFUSAL.

HB 5366 requires municipalities to grant developers a "right of first refusal" for affordable housing developments. It defines "affordable housing" as projects where at least 30% of units are permanently restricted (for 40 years) to be sold or rented at prices affordable for households earning ≤60% or ≤80% of median income. Developers must submit detailed affordability plans covering pricing calculations, marketing, and long-term administration, with rent/sale prices capped at 100% or 120% of HUD's Section 8 fair market rent for specific income tiers. This directly affects developers seeking housing approvals, municipalities reviewing applications, and low/moderate-income residents eligible for these units. The law takes effect October 1, 2026.