AN ACT CONCERNING TIERED DEED RESTRICTIONS.

House of Representatives
sHB5364 / File No. 198 1

General Assembly File No. 198
February Session, 2026 Substitute House Bill No. 5364

House of Representatives, March 26, 2026

The Committee on Housing reported through REP. FELIPE of
the 130th Dist., Chairperson of the Committee on the part of the
House, that the substitute bill ought to pass.

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the general statutes is repealed and the following is substituted in lieu 2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
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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) (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
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(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
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 the median income, (B) other 74
affordable housing applications for assisted housing containing forty or 75
fewer dwelling units, or (C) affordable housing applications which were 76
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filed with a commission pursuant to this section prior to the date upon 77
which the moratorium takes effect. 78
(3) Eligible units completed before a moratorium has begun, but that 79
were not counted toward establishing eligibility for such moratorium, 80
may be counted toward establishing eligibility for a subsequent 81
moratorium. Eligible units completed after a moratorium has begun 82
may be counted toward establishing eligibility for a subsequent 83
moratorium. 84
(4) (A) Except as provided in subparagraph (B) of this subdivision, 85
the commissioner shall issue a certificate of affordable housing project 86
completion for the purposes of this subsection upon finding that there 87
has been completed within the municipality one or more affordable 88
housing developments which create housing unit -equivalent points 89
equal to (i) the greater of two per cent of all dwelling units in the 90
municipality, as reported in the most recent United States decennial 91
census, or seventy -five housing unit -equivalent points, or (ii) for any 92
municipality that has (I) adopted a municipal housing growth plan or 93
has elected to comply with a regional housing growth plan in 94
accordance with the provisions of section 8 -13cc, (II) twenty thousand 95
or more dwelling units, as reported in the most recent United States 96
decennial census, and (III) previously qualified for a moratorium in 97
accordance with this section, one and one -half per cent of all dwelling 98
units in the municipality, as reported in the most recent United States 99
decennial census. 100
(B) If a municipality has received a final letter of eligibility from the 101
commissioner pursuant to section 8 -13gg, the commissioner shall issue 102
a certificate of affordable housing completion to such municipality at 103
such time as, upon application, the commissioner determines, in the 104
commissioner's discretion, that the municipality is in compliance with 105
the following conditions: The municipality remains in compliance with 106
all requirements for a final letter of eligibility, and there has been 107
completed within the municipality one or more affordable housing 108
developments that create housing unit-equivalent points equal to (i) the 109
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greater of one and three -quarter per cent of all dwelling units in the 110
municipality, as reported in the most recent United States decennial 111
census, or sixty -five housing unit -equivalent points, or (ii) for any 112
municipality that (I) has adopted a municipal housing growth plan or 113
has elected to comply with a regional housing growth plan in 114
accordance with the provisions of section 8 -13bb, (II) has twenty 115
thousand or more dwelling units, as reported in the most recent United 116
States decennial census, and (III) previously qualified for a moratorium 117
in accordance with this section, one and one-half per cent of all dwelling 118
units in the municipality, as reported in the most recent United States 119
decennial census. 120
(C) A municipality may apply for a certificate of affordable housing 121
project completion pursuant to this subsection by applying in writing to 122
the commissioner, and including documentation showing that the 123
municipality has accumulated the required number of points within the 124
applicable time period. Such documentation shall include the location 125
of each dwelling unit being counted, the number of points each dwelling 126
unit has been assigned, and the reason, pursuant to this subsection, for 127
assigning such points to such dwelling unit. Upon receipt of such 128
application, the commissioner shall promptly cause a notice of the filing 129
of the application to be published in the Connecticut Law Journal, 130
stating that public comment on such application shall be accepted by the 131
commissioner for a period of thirty days after the publication of such 132
notice. Not later than ninety days after the receipt of such application, 133
the commissioner shall either approve or reject such application. Such 134
approval or rejection shall be accompanied by a written statement of the 135
reasons for approval or rejection, pursuant to the provisions of this 136
subsection. If the application is approved, the commissioner shall 137
promptly cause a certificate of affordable housing project completion to 138
be published in the Connecticut Law Journal. If the commissioner fails 139
to either approve or reject the application within such ninety -day 140
period, such application shall be deemed provisionally approved, and 141
the municipality may cause notice of such provisional approval to be 142
published in a conspicuous manner in a daily newspaper having general 143
circulation in the municipality, in which case, such moratorium shall 144
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take effect upon such publication. The municipality shall send a copy of 145
such notice to the commissioner. Such provisional approval shall 146
remain in effect unless the commissioner subsequently acts upon and 147
rejects the application, in which case the moratorium shall terminate 148
upon notice to the municipality by the commissioner. 149
(5) For the purposes of this subsection, "elderly units" are dwelling 150
units whose occupancy is restricted by age, "family units" are dwelling 151
units whose occupancy is not restricted by age, and "resident -owned 152
mobile manufactured home park" has the same meaning as provided in 153
subsection (k) of this section. 154
(6) For the purposes of this subsection, housing unit -equivalent 155
points shall be determined by the commissioner as follows: (A) No 156
points shall be awarded for a unit unless its occupancy is restricted to 157
persons and families whose income is equal to or less than eighty per 158
cent of the median income, except that (i) unrestricted units in a set -159
aside development shall be awarded one -quarter point each, and (ii) 160
dwelling units in transit community middle housing developments 161
developed pursuant to subdivision (2) of subsection (a) of section 8 -2s 162
shall be awarded one -quarter point each; (B) family units in forty-year 163
set-aside developments (i) restricted to persons and families whose 164
income is equal to or less than eighty per cent of the median income shall 165
be awarded one point if an ownership unit and one and one-half points 166
if a rental unit; [(C) family units] (ii) restricted to persons and families 167
whose income is equal to or less than sixty per cent of the median 168
income shall be awarded one and one -half points if an ownership unit 169
and two points if a rental unit; [(D) family units ] and (iii) restricted to 170
persons and families whose income is equal to or less than forty per cent 171
of the median income shall be awarded two points if an ownership unit 172
and two and one -half points if a rental unit; (C) family units in thirty -173
year set-aside developments shall receive seventy per cent of the points 174
that would be received by an equivalent family unit in a forty -year set-175
aside development under the provisions of subparagraph (B) of this 176
subdivision; (D) family units in twenty -year set -aside developments 177
shall receive forty per cent of the points that would be received by an 178
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equivalent family unit in a forty -year set-aside development under the 179
provisions of subparagraph (B) of this subdivision; (E) elderly units 180
restricted to persons and families whose income is equal to or less than 181
eighty per cent of the median income shall be awarded one -half point; 182
(F) a set -aside development containing family units which are rental 183
units shall be awarded additional points equal to twenty -two per cent 184
of the total points awarded to such development, provided the 185
application for such development was filed with the commission prior 186
to July 6, 1995; (G) a mobile manufactured home in a resident -owned 187
mobile manufactured home park shall be awarded points as follows: (i) 188
One and one -half points when occupied by persons and families with 189
an income equal to or less than eighty per cent of the median income, 190
(ii) two points when occupied by persons and families with an income 191
equal to or less than sixty per cent of the median income, and (iii) one -192
fourth point for the remaining units; and (H) any unit described in 193
subparagraphs (A) to (G), inclusive, of this subdivision shall be awarded 194
an additional one-quarter point, provided such unit was constructed by 195
or in conjunction with a housing authority, as defined in section 8-40, of 196
a neighboring municipality. 197
(7) Points shall be awarded only for dwelling units which (A) were 198
newly-constructed units in an affordable housing development, as that 199
term was defined at the time of the affordable housing application, for 200
which a certificate of occupancy was issued after July 1, 1990, (B) were 201
newly subjected after July 1, 1990, to deeds containing covenants or 202
restrictions which require that, for at least the duration required by 203
subsection (a) of this section for set -aside developments on the date 204
when such covenants or restrictions took effect, such dwelling units 205
shall be sold or rented at, or below, prices which will preserve the units 206
as affordable housing for persons or families whose income does not 207
exceed eighty per cent of the median income, or (C) are located in a 208
resident-owned mobile manufactured home park. 209
(8) Points shall be subtracted, applying the formula in subdivision (6) 210
of this subsection, for any affordable dwelling unit which, on or after 211
July 1, 1990, was affected by any action taken by a municipality which 212
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caused such dwelling unit to cease being counted as an affordable 213
dwelling unit. 214
(9) A newly-constructed unit shall be counted toward a moratorium 215
when it receives a certificate of occupancy. A newly-restricted unit shall 216
be counted toward a moratorium when its deed restriction takes effect. 217
(10) The affordable housing appeals procedure shall be applicable to 218
affordable housing applications filed with a commission after a three -219
year moratorium expires, except (A) as otherwise provided in 220
subsection (k) of this section, or (B) when sufficient unit -equivalent 221
points have been created within the municipality during one 222
moratorium to qualify for a subsequent moratorium. 223
(11) The commissioner shall, within available appropriations, adopt 224
regulations in accordance with chapter 54 to carry out the purposes of 225
this subsection. Such regulations shall specify the procedure to be 226
followed by a municipality to obtain a moratorium, and shall include 227
the manner in which a municipality is to document the units to be 228
counted toward a moratorium. A municipality may apply for a 229
moratorium in accordance with the provisions of this subsection prior 230
to, as well as after, such regulations are adopted. 231
This act shall take effect as follows and shall amend the following
sections:

Section 1 October 1, 2026 8-30g(a)
Sec. 2 October 1, 2026 8-30g(l)

Statement of Legislative Commissioners:
In Section 1(a)(6)(A), "which [shall] require that," was changed to "which
[shall] require, [that,]" for consistency with standard drafting
conventions.
HSG Joint Favorable Subst. -LCO

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The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of
the General Assembly, solely for purposes of information, summarization and explanation and do not
represent the intent of the General Assembly or either chamber thereof for any purpose. In general,
fiscal impacts are based upon a variety of informational sources, including the analyst’s professional
knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final
products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note

State Impact: None
Municipal Impact:
Municipalities Effect FY 27 $ FY 28 $
Various Municipalities Potential
Cost
See Below See Below
Various Municipalities Potential
Savings
See Below See Below

Explanation
The bill (1) expands the types of affordable housing developments
that can be built under the affordable housing land use appeals
procedure, and (2) allows these types of developments to be awarded
housing unit equivalent points toward a moratorium.
This may result in a potential cost to municipalities beginning in FY
27 associated with legal fees to the extent more appeals associated with
this type of housing are brought forward.1
The bill may also result in a potential savings to municipalities
beginning in FY 27 for legal costs to the extent that more municipalities
are awarded a moratorium.2
The Out Years
The annualized ongoing fiscal impact identified above would

1 Several municipalities reported spending up to $215,000 on legal costs, appeals, and
litigation related to CGS 8-30g projects within the past few years.
2 As of August 2025, five municipalities have an active moratorium granted under CGS
8-30g.
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continue into the future subject to the number of appeals and
moratoriums that are awarded.

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OLR Bill Analysis
sHB 5364

AN ACT CONCERNING TIERED DEED RESTRICTIONS.

SUMMARY
This bill makes changes to CGS § 8-30g (the affordable housing land
use appeals procedure; see BACKGROUND — § 8-30g), specifically by
allowing certain affordable housing developments with shorter
affordability restrictions to qualify for the law’s protections and setting
new housing unit equivalent (HUE) point allocations for these
developments. HUE points are generally the measure used to determine
whether a municipality is eligible for a § 8 -30g moratorium (see
BACKGROUND — § 8-30g Moratoria).
Under current law, two types of proposed affordable housing
developments trigger § 8 -30g’s protections: (1) certain government -
assisted housing (“assisted housing”) and (2) developments in which,
for at least 40 years after initial occupancy, at least 30% of the dwelling
units are deed restricted for certain lower -income households (“set-
aside developments ”). The bill requires the duration of affordability
restrictions for set-aside developments to be for “a fixed period of time”
and establishes three categories of these developments that must have
affordability restrictions lasting for (1) at least 40 years (“40-year set-
aside development”), (2) 30-39 years (“30-year set-aside development”),
and (3) 20-29 years (“20-year set-aside development”). (Under the bill, it
is unclear whether a proposed set -aside development with an
affordability restriction of less than 20 years triggers § 8 -30g
protections.)
The bill correspondingly establishes HUE point allocations for
dwelling units in these set -aside development categories. The point
allocations for family units in 40-year set -aside developments remain
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unchanged (see BACKGROUND — HUE Point Allocations ). Point
allocations for family units in 30- and 20-year set-aside developments
are set at 70% and 40%, respectively, of the allocation for an equivalent
unit in a 40 -year set -aside development. (In modifying current HUE
point allocations, the bill makes ineligible for family unit HUE points
any such unit that is not located in a set -aside development. Under
current law, family units in assisted housing or that are newly subjected
to certain affordability restrictions may qualify for HUE points.)
EFFECTIVE DATE: October 1, 2026
BACKGROUND
§ 8-30g
The affordable housing land use appeals procedure is a set of rules
that allows developers to appeal to Superior Court local planning and
zoning commission decisions denying affordable housing
developments or approving them with costly conditions. In tradi tional
zoning appeals, the developer must convince the court that the
commission (municipality) acted illegally or arbitrarily, or abused its
discretion, by rejecting the proposed development. The § 8-30g appeals
procedure instead places the burden of proof on the municipality. Only
municipalities in which less than 10% of the housing stock is affordable,
and that have not qualified for a moratorium, are subject to the
procedure.
§ 8-30g Moratoria
Under existing law, a municipality is generally eligible for a four - or
five-year moratorium (temporary suspension) from appeals taken
under § 8 -30g each time it shows it has added a certain amount of
qualifying housing units to its housing stock, measured in HUE points
(since July 1, 1990, for a first moratorium). The number of points
required depends on certain factors, like the municipality’s size and
whether it adopted certain zoning regulations or has qualified for a
moratorium before.
HUE Point Allocations
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The table below shows HUE point allocations by unit type under
current law.
Table: Base and Bonus HUE Points Under Current Law

Unit Type
Base HUE Value
(per Unit)
Current Law
Owned family unit
restricted to
households earning
no more than:
80% of median income 1.00
60% of median income 1.50
40% of median income 2.00
Rented family unit
restricted to
households earning
no more than:
80% of median income 1.50
60% of median income 2.00
40% of median income 2.50
Market-rate unit in a set-aside development 0.25
Owned or rented elderly unit restricted to households
earning no more than 80% of the median income
0.50
Owned or rented homes in resident -owned mobile
manufactured home parks occupied by households
earning 80% or less of the median income
1.50
Owned or rented homes in resident -owned mobile
manufactured home parks occupied by households
earning 60% or less of the median income
2.00
Owned or rented homes in resident -owned mobile
manufactured home parks not otherwise eligible for points
0.25
Certain middle housing dwelling units built under local
option regulation
0.25
Unit Type
Bonus HUE
Value
Current Law
Rental family units in a set -aside development, if the
developer applied for local approval before July 6, 1995
Bonus equal to
22% of the total
points awarded to
the development
Unit that is eligible for a base HUE allocation, as described
above, and was constructed by (or with) a neighboring
municipality’s housing authority
0.25 per unit
*“Median income” is the lesser of the state or area median income, after family size adjustments
Related Bills
The Housing, Insurance and Real Estate, and Planning and
Development committees favorably reported several bills impacting §
8-30g, including: sSB 338 (prohibits the allocation of HUE points after §
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8-30g litigation, under certain circumstances); sHB 5362 (reduces the
required affordability period for set -aside developments on municipal
land, requires the court to stay appeals when a municipality applies for
a moratorium, extends moratoria to align with housing growth plans,
requires towns to report on affordable housin g applications, and
clarifies middle housing HUE point allocations); sHB 5365 (File 113)
(modifies HUE point allocations, including for accessory apartments
and certain deeply affordable housing); sHB 5376 (adds an additional
ground for a local commission to defend its decision on an affordable
housing application); and sHB 5395 (allocates HUE points to modular
and prefabricated homes that do not otherwise qualify for points).
COMMITTEE ACTION
Housing Committee
Joint Favorable
Yea 13 Nay 6 (03/10/2026)