Housing (Historic Preservation)

HB 5368 requires the Department of Housing to study deeply affordable housing availability in Connecticut. The bill defines "deeply affordable housing" as units rented or sold at 30% or less of a household's income (for households earning 40% or less of the state median income). The study must examine county-level availability, development barriers, and potential grant programs to incentivize such housing, with results due to the legislature by January 1, 2027. This bill does not create new housing or funding but mandates a report to inform future policy.

SB 151 prohibits local municipalities from imposing specific zoning restrictions that limit housing options, effective October 1, 2026. It directly affects local governments (by restricting their zoning authority), homeowners (especially those seeking to add accessory units or operate home-based businesses), and housing developers. Key provisions ban requirements like minimum lot sizes over 5,000 square feet for single-family homes, caps on multifamily units, excessive parking mandates, and restrictions on cottage food operations or home child care in residential zones. The bill exempts historic properties, agricultural land, and conservation areas, and does not override essential safety codes. This aims to increase housing density and affordability by removing common barriers to diverse housing types.

SB 254 creates a tax credit program allowing owners of commercial buildings (like offices, retail spaces, or industrial properties) to receive a credit equal to 10% of eligible conversion costs when transforming those properties into residential developments. To qualify, the conversion must meet standards prioritizing affordable housing creation or preservation, and owners must spend at least $15,000 on eligible construction costs (excluding personal labor, site improvements, or non-construction fees). Before starting work, owners must submit a detailed conversion plan for approval by the Commissioner of Housing, and after completion, they must verify the work to receive the credit, which applies against specific Connecticut state taxes. The program is administered by the Commissioner of Housing, with standards posted online by January 1, 2027.

HB 5364 creates a tiered system for deed restrictions requiring affordable housing units to remain affordable for specific periods. It defines three tiers: 40-year, 30-year, and 20-year set-asides, mandating that units in these developments be sold or rented at income levels not exceeding 30% (for 15% of units), 60%, or 80% of area median income. The bill directly affects municipalities, developers, and housing commissions by modifying how affordable housing applications are processed and extending moratorium periods for certain projects. Key provisions include standardizing income thresholds based on HUD data and clarifying eligibility for moratorium extensions after project completion.