Connecticut HB 5363: AN ACT CONCERNING THE INCOME THRESHOLD FOR TENANTS RENTING A DWELLING UNIT IN A SET-ASIDE DEVELOPMENT.

Bill Text

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General Assembly Raised Bill No. 5363
February Session, 2026 LCO No. 2188

Referred to Committee on HOUSING

Introduced by:
(HSG)

AN ACT CONCERNING THE INCOME THRESHOLD FOR TENANTS
RENTING A DWELLING UNIT IN A SET-ASIDE DEVELOPMENT.
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the general statutes is repealed and the following is substituted in lieu 2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

Raised Bill No. 5363

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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
or municipal agency exercising zoning or planning authority; 19
(5) "Municipality" means any town, city or borough, whether 20
consolidated or unconsolidated; 21
(6) "Set-aside development" means a development in which not less 22
than thirty per cent of the dwelling units will be conveyed by deeds 23
containing covenants or restrictions which shall require that, for at least 24
forty years after the initial occupation of the proposed development, 25
such dwelling units shall be sold or rented at, or below, prices which 26
will preserve the units as housing for which persons and families pay 27
thirty per cent or less of their annual income, where such income is less 28
than or equal to eighty per cent of the median income, except as 29
provided in subdivision (1) of subsection (d) of this section. In a set-30
aside development, of the dwelling units conveyed by deeds containing 31
covenants or restrictions, a number of dwelling units equal to not less 32
than fifteen per cent of all dwelling units in the development shall be 33
sold or rented to persons and families whose income is less than or equal 34
to sixty per cent of the median income and the remainder of the dwelling 35
units conveyed by deeds containing covenants or restrictions shall be 36
sold or rented to persons and families whose income is less than or equal 37
to eighty per cent of the median income; 38
(7) "Median income" means, after adjustments for family size, the 39
lesser of the state median income or the area median income for the area 40
in which the municipality containing the affordable housing 41
development is located, as determined by the United States Department 42
of Housing and Urban Development; and 43
(8) "Commissioner" means the Commissioner of Housing. 44

Raised Bill No. 5363

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Sec. 2. Subsection (d) of section 8-30g of the 2026 supplement to the 45
general statutes is repealed and the following is substituted in lieu 46
thereof (Effective October 1, 2026): 47
(d) (1) A person renting a covenant or deed-restricted dwelling unit 48
in a set-aside development shall be permitted to enter an agreement 49
with the landlord to continue renting such dwelling unit at the 50
affordable rental rate the person or family was previously entitled to for 51
not more than three years after such person's or family's income exceeds 52
either sixty per cent or eighty per cent of the median income, as 53
applicable, provided such set-aside development has not been allocated 54
any federal low-income housing tax credits. 55
(2) Notwithstanding the income ineligibility of a person or family 56
renting a covenant or deed-restricted dwelling unit in a set-aside 57
development under subdivision (1) of this subsection, such dwelling 58
unit shall count toward the set-aside percentage required to be rented 59
to persons or families within the income limits specified in subdivision 60
(6) of subsection (a) of this section. 61
(3) Nothing in subdivision (1) of this subsection shall be construed to 62
(A) expand the rights of a person or family to occupy a dwelling unit 63
beyond the terms of the applicable rental agreement, or (B) limit the 64
rights of the owner of a set-aside development under chapter 832. 65
[(d)] (4) For any affordable dwelling unit that is rented as part of a 66
set-aside development, if the maximum monthly housing cost, as 67
calculated in accordance with subdivision (6) of subsection (a) of this 68
section, would exceed one hundred per cent of the Section 8 fair market 69
rent as determin