Connecticut HB 5364: AN ACT CONCERNING TIERED DEED RESTRICTIONS.

Bill Text

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General Assembly Substitute Bill No. 5364
February Session, 2026

AN ACT CONCERNING TIERED DEED RESTRICTIONS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

Section 1. Subsection (a) of section 8-30g of the 2026 supplement to 1
the general statutes is repealed and the following is substituted in lieu 2
thereof (Effective October 1, 2026): 3
(a) As used in this section: 4
(1) "Affordable housing development" means a proposed housing 5
development which is (A) assisted housing, or (B) a set-aside 6
development; 7
(2) "Affordable housing application" means any application made to 8
a commission in connection with an affordable housing development by 9
a person who proposes to develop such affordable housing; 10
(3) "Assisted housing" means housing which is receiving, or will 11
receive, financial assistance under any governmental program for the 12
construction or substantial rehabilitation of low and moderate income 13
housing, and any housing occupied by persons receiving rental 14
assistance under chapter 319uu or Section 1437f of Title 42 of the United 15
States Code; 16
(4) "Commission" means a zoning commission, planning 17
commission, planning and zoning commission, zoning board of appeals 18

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or municipal agency exercising zoning or planning authority; 19
(5) "Municipality" means any town, city or borough, whether 20
consolidated or unconsolidated; 21
(6) (A) "Set-aside development" means a development in which not 22
less than thirty per cent of the dwelling units will be conveyed by deeds 23
containing covenants or restrictions which [shall] require, [that,] for [at 24
least forty years] a fixed period of time after the initial occupation of the 25
proposed development, such dwelling units [shall] to be sold or rented 26
at, or below, prices which will preserve the units as housing for which 27
persons and families pay thirty per cent or less of their annual income, 28
where such income is less than or equal to eighty per cent of the median 29
income. In a set-aside development, of the dwelling units conveyed by 30
deeds containing covenants or restrictions, a number of dwelling units 31
equal to not less than fifteen per cent of all dwelling units in the 32
development shall be sold or rented to persons and families whose 33
income is less than or equal to sixty per cent of the median income and 34
the remainder of the dwelling units conveyed by deeds containing 35
covenants or restrictions shall be sold or rented to persons and families 36
whose income is less than or equal to eighty per cent of the median 37
income; 38
(B) "Forty-year set-aside development" means a set-aside 39
development for which the covenant or deed restriction lasts at least 40
forty years; 41
(C) "Thirty-year set-aside development" means a set-aside 42
development for which the covenant or deed restriction lasts at least 43
thirty and not more than thirty-nine years; and 44
(D) "Twenty-year set-aside development" means a set-aside 45
development for which the deed restriction lasts at least twenty and not 46
more than twenty-nine years; 47
(7) "Median income" means, after adjustments for family size, the 48
lesser of the state median income or the area median income for the area 49

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in which the municipality containing the affordable housing 50
development is located, as determined by the United States Department 51
of Housing and Urban Development; and 52
(8) "Commissioner" means the Commissioner of Housing. 53
Sec. 2. Subsection (l) of section 8-30g of the 2026 supplement to the 54
general statutes is repealed and the following is substituted in lieu 55
thereof (Effective October 1, 2026): 56
(l) (1) Except as provided in subdivision (2) of this subsection, the 57
affordable housing appeals procedure established under this section 58
shall not be applicable to an affordable housing application filed with a 59
commission during a moratorium, which shall commence after (A) a 60
certification of affordable housing project completion issued by the 61
commissioner is published in the Connecticut Law Journal, or (B) notice 62
of a provisional approval is published pursuant to subdivision (4) of this 63
subsection. Any such moratorium shall be for a period of four years, 64
except that for any municipality that has (i) twenty thousand or more 65
dwelling units, as reported in the most recent United States decennial 66
census, and (ii) previously qualified for a moratorium in accordance 67
with this section, any subsequent moratorium shall be for a period of 68
five years. Any moratorium that is in effect on October 1, 2002, is 69
extended by one year. 70
(2) Such moratorium shall not apply to (A) affordable housing 71
applications for assisted housing in which ninety-five per cent of the 72
dwelling units are restricted to persons and families whose income is 73
less than or equal to sixty per cent of t