AN ACT CONCERNING MUNICIPAL RIGHT OF FIRST REFUSAL.

LCO No. 2265 1 of 16

General Assembly Raised Bill No. 5366
February Session, 2026 LCO No. 2265

Referred to Committee on HOUSING

Introduced by:
(HSG)

AN ACT CONCERNING MUNICIPAL RIGHT OF FIRST REFUSAL.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

Section 1. Section 8-30g of the 2026 supplement to the general statutes 1
is repealed and the following is substituted in lieu thereof (Effective 2
October 1, 2026): 3
(a) As used in this section: 4
(1) "Affordable housing development" means a proposed housing 5
development [which] that 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] that is receiving, or 11
will receive, financial assistance under any governmental program for 12
the construction or substantial rehabilitation of low and moderate 13
income housing, and any housing occupied by persons receiving rental 14

Raised Bill No. 5366

LCO No. 2265 2 of 16

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] that shall require that, for 24
at least forty years after the initial occupation of the proposed 25
development, such dwelling units shall be sold or rented at, or below, 26
prices [which] that will preserve the units as housing for which persons 27
and families pay thirty per cent or less of their annual income, where 28
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
(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. 5366

LCO No. 2265 3 of 16

(b) (1) Any person filing an affordable housing application with a 45
commission shall submit, as part of the application, an affordability plan 46
[which] that shall include at least the following: (A) Designation of the 47
person, entity or agency that will be responsible for the duration of any 48
affordability restrictions, for the administration of the affordability plan 49
and its compliance with the income limits and sale price or rental 50
restrictions of this chapter; (B) an affirmative fair housing marketing 51
plan governing the sale or rental of all dwelling units; (C) a sample 52
calculation of the maximum sales prices or rents of the intended 53
affordable dwelling units; (D) a description of the projected sequence in 54
which, within a set -aside development, the affordable dwelling units 55
will be built and offered for occupancy and the general location of such 56
units within the proposed development; and (E) draft zoning 57
regulations, conditions of approvals, deeds, restrictive covenants or 58
lease provisions that will govern the affordable dwelling units. 59
(2) The commissioner shall, within available appropriations, adopt 60
regulations pursuant to chapter 54 regarding the affordability plan. 61
Such regulations may include additional criteria for preparing an 62
affordability plan and shall include: (A) A formula for determining rent 63
levels and sale prices, including establishing maximum allowable down 64
payments to be used in the calculation of maximum allowable sales 65
prices; (B) a clarification of the costs that are to be included when 66
calculating maximum allowed rents and sale prices; (C) a clarification 67
as to how family size and bedroom counts are to be equated in 68
establishing maximum rental and sale prices for the affordable units; 69
and (D) a listing of the considerations to be included in the computation 70
of income under this section. 71
(c) Any commission, by regulation, may require that an affordable 72
housing application seeking a change of zone include the submission of 73
a conceptual site plan describing the proposed development's total 74
number of residential units and their arrangement on the property and 75
the proposed development's roads and traffic circulation, sewage 76
disposal and water supply. 77

Raised Bill No. 5366

LCO No. 2265 4 of 16

(d) For any affordable dwelling unit that is rented as part of a set -78
aside development, if the maximum monthly housing cost, as calculated 79
in accordance with subdivision (6) of subsection (a) of this section, 80
would exceed one hundred per cent of the Section 8 fair market rent as 81
determined by the United States Department of Housing and Urban 82
Development, in the case of units set aside for persons and families 83
whose income is less than or equal to sixty per cent of the median 84
income, then such maximum monthly housing cost shall not exceed one 85
hundred per cent of said Section 8 fair market rent. If the maximum 86
monthly housing cost, as calculated in accordance with subdivision (6) 87
of subsection (a) of this section, would exceed one hundred twenty per 88
cent of the Section 8 fair market rent, as determined by the United States 89
Department of Housing and Urban Development, in the case of units set 90
aside for persons and families whose income is less than or equal to 91
eighty per cent of the median income, then such maximum monthly 92
housing cost shall not exceed one hundred twenty per cent of such 93
Section 8 fair market rent. 94
(e) For any affordable dwelling unit that is rented in order to comply 95
with the requirements of a set -aside development, no person shall 96
impose on a prospective tenant who is receiving governmental rental 97
assistance a maximum percentage -of-income-for-housing requirement 98
that is more restrictive than the requirement, if any, imposed by such 99
governmental assistance program. 100
(f) Except as provided in subsections (k) , [and] (l) and (m) of this 101
section, any person whose affordable housing application is denied, or 102
is approved with restrictions [which] that have a substantial adverse 103
impact on the viability of the affordable housing development or the 104
degree of affordability of the affordable dwelling units in a set -aside 105
development, may appeal such decision pursuant to the procedures of 106
this section. Such appeal shall be filed within the time period for filing 107
appeals as set forth in section 8 -8, 8-9, 8-28 or 8-30a, as applicable, and 108
shall be made returnable to the superior court for the judicial district 109
where the real property [which] that is the subject of the application is 110

Raised Bill No. 5366

LCO No. 2265 5 of 16

located. Affordable housing appeals, including pretrial motions, shall 111
be heard by a judge assigned by the Chief Court Administrator to hear 112
such appeals. To the extent practicable, efforts shall be made to assign 113
such cases to a small number of judges, sitting in geographically diverse 114
parts of the state, so that a consistent body of expertise can be developed. 115
Unless otherwise ordered by the Chief Court Administrator, such 116
appeals, including pretrial motions, shall be heard by such assigned 117
judges in the judicial district in which such judge is sitting. Appeals 118
taken pursuant to this subsection shall be privileged cases to be heard 119
by the court as soon after the return day as is practicable. Except as 120
otherwise provided in this section, appeals involving an affordable 121
housing application shall proceed in conformance with the provisions 122
of section 8-8, 8-9, 8-28 or 8-30a, as applicable. 123
(g) Upon an appeal taken under subsection (f) of this section, the 124
burden shall be on the commission to prove, based upon the evidence 125
in the record compiled before such commission, that the decision from 126
which such appeal is taken and the reasons cited for such decision are 127
supported by sufficient evidence in the record. The commission shall 128
also have the burden to prove, based upon the evidence in the record 129
compiled before such commission, that (1) (A) the decision is necessary 130
to protect substantial public interests in health, safety or other matters 131
[which] that the commission may legally consider; (B) such public 132
interests clearly outweigh the need for affordable housing; and (C) such 133
public interests cannot be protected by reasonable changes to the 134
affordable housing development, or (2) (A) the application [which] that 135
was the subject of the decision from which such appeal was taken would 136
locate affordable housing in an area [which] that is zoned for industrial 137
use and [which] that does not permit residential uses; and (B) the 138
development is not assisted housing. If the commission does not satisfy 139
its burden of proof under this subsection, the court shall wholly or 140
partly revise, modify, remand or reverse the decision from which the 141
appeal was taken in a manner consistent with the evidence in the record 142
before it. In addition, if the court finds, after a hearing, that the 143

Raised Bill No. 5366

LCO No. 2265 6 of 16

commission's decision to deny an affordable housing application or to 144
approve such application with restrictions that the court determines will 145
have a substantial adverse impact on the viability of the affordable 146
housing development or on the degree of affordability of the affordable 147
dwelling units in a set -aside development was made in bad faith or to 148
cause undue delay, the court may award reasonable attorney's fees to 149
the person who filed the appeal under subsection (f) of this section, 150
provided the total number of units in the affordable housing 151
development or affordable dwelling units in the set-aside development 152
ordered by the court to be built is at least ninety per cent of the units 153
proposed in the original application of such person to the commission. 154
(h) Following a decision by a commission to reject an affordable 155
housing application or to approve an application with restrictions 156
[which] that have a substantial adverse impact on the viability of the 157
affordable housing development or the degree of affordability of the 158
affordable dwelling units, the applicant may, within the period for filing 159
an appeal of such decision, submit to the commission a proposed 160
modification of its proposal responding to some or all of the objections 161
or restrictions articulated by the commission, which shall be treated as 162
an amendment to the original proposal. The day of receipt of such a 163
modification shall be determined in the same manner as the day of 164
receipt is determined for an original application. The filing of such a 165
proposed modification shall stay the period for filing an appeal from the 166
decision of the commission on the original application. The commission 167
shall hold a public hearing on the proposed modification if it held a 168
public hearing on the original application and may hold a public 169
hearing on the proposed modification if it did not hold a public hearing 170
on the original application. The commission shall render a decision on 171
the proposed modification not later than sixty-five days after the receipt 172
of such proposed modification, provided, if, in connection with a 173
modification submitted under this subsection, the applicant applies for 174
a permit for an activity regulated pursuant to sections 22a -36 to 22a-45, 175
inclusive, and the time for a decision by the commission on such 176

Raised Bill No. 5366

LCO No. 2265 7 of 16

modification under this subsection would lapse prior to the thirty -fifth 177
day after a decision by an inland wetlands and watercourses agency, the 178
time period for decision by the commission on the modification under 179
this subsection shall be extended to thirty-five days after the decision of 180
such agency. The commission shall issue notice of its decision as 181
provided by law. Failure of the commission to render a decision within 182
said sixty-five days or subsequent extension period permitted by this 183
subsection shall constitute a rejection of the proposed modification. 184
Within the time period for filing an appeal on the proposed modification 185
as set forth in section 8-8, 8-9, 8-28 or 8-30a, as applicable, the applicant 186
may appeal the commission's decision on the original application and 187
the proposed modification in the manner set forth in this section. 188
Nothing in this subsection shall be construed to limit the right of an 189
applicant to appeal the original decision of the commission in the 190
manner set forth in this section without submitting a proposed 191
modification or to limit the issues [which] that may be raised in any 192
appeal under this section. 193
(i) Nothing in this section shall be deemed to preclude any right of 194
appeal under the provisions of section 8-8, 8-9, 8-28 or 8-30a. 195
(j) A commission or its designated authority shall have, with respect 196
to compliance of an affordable housing development with the 197
provisions of this chapter, the same powers and remedies provided to 198
commissions by section 8-12. 199
(k) The affordable housing appeals procedure established under this 200
section shall not be available if the real property [which] that is the 201
subject of the application is located in a municipality in which at least 202
ten per cent of all dwelling units in the municipality are (1) assisted 203
housing, (2) currently financed by Connecticut Housing Finance 204
Authority mortgages, (3) subject to binding recorded deeds containing 205
covenants or restrictions [which] that require that such dwelling units 206
be sold or rented at, or below, prices which will preserve the units as 207
housing for which persons and families pay thirty per cent or less of 208

Raised Bill No. 5366

LCO No. 2265 8 of 16

income, where such income is less than or equal to eighty per cent of the 209
median income, (4) mobile manufactured homes located in mobile 210
manufactured home parks or legally approved accessory apartments, 211
which homes or apartments are subject to binding recorded deeds 212
containing covenants or restrictions [which] that require that such 213
dwelling units be sold or rented at, or below, prices [which] that will 214
preserve the units as housing for which, for a period of not less than ten 215
years, persons and families pay thirty per cent or less of income, where 216
such income is less than or equal to eighty per cent of the median 217
income, or (5) mobile manufactured homes located in resident -owned 218
mobile manufactured home parks. For the purposes of calculating the 219
total number of dwelling units in a municipality, accessory apartments 220
built or permitted after January 1, 2022, but that are not described in 221
subdivision (4) of this subsection, shall not be counted toward such total 222
number. The municipalities meeting the criteria set forth in this 223
subsection shall be listed in the report submitted under section 8-37qqq. 224
As used in this subsection, "accessory apartment" has the same meaning 225
as provided in section 8-1a, and "resident-owned mobile manufactured 226
home park" means a mobile manufactured home park consisting of 227
mobile manufactured homes located on land that is deed restricted, and, 228
at the time of issuance of a loan for the purchase of such land, such loan 229
required seventy-five per cent of the units to be leased to persons with 230
incomes equal to or less than eighty per cent of the median income, and 231
either (A) forty per cent of said seventy -five per cent to be leased to 232
persons with incomes equal to or less than sixty per cent of the median 233
income, or (B) twenty per cent of said seventy-five per cent to be leased 234
to persons with incomes equal to or less than fifty per cent of the median 235
income. 236
(l) (1) Except as provided in subdivision (2) of this subsection, the 237
affordable housing appeals procedure established under this section 238
shall not be applicable to an affordable housing application filed with a 239
commission during a moratorium, which shall commence after (A) a 240
certification of affordable housing project completion issued by the 241

Raised Bill No. 5366

LCO No. 2265 9 of 16

commissioner is published in the Connecticut Law Journal, or (B) notice 242
of a provisional approval is published pursuant to subdivision (4) of this 243
subsection. Any such moratorium shall be for a period of four years, 244
except that for any municipality that has (i) twenty thousand or more 245
dwelling units, as reported in the most recent United States decennial 246
census, and (ii) previously qualified for a moratorium in accordance 247
with this section, any subsequent moratorium shall be for a period of 248
five years. Any moratorium that is in effect on October 1, 2002, is 249
extended by one year. 250
(2) Such moratorium shall not apply to (A) affordable housing 251
applications for assisted housing in which ninety -five per cent of the 252
dwelling units are restricted to persons and families whose income is 253
less than or equal to sixty per cent of the median income, (B) other 254
affordable housing applications for assisted housing containing forty or 255
fewer dwelling units, or (C) affordable housing applications [which] 256
that were filed with a commission pursuant to this section prior to the 257
date upon [which] that the moratorium takes effect. 258
(3) Eligible units completed before a moratorium has begun, but that 259
were not counted toward establishing eligibility for such moratorium, 260
may be counted toward establishing eligibility for a subsequent 261
moratorium. Eligible units completed after a moratorium has begun 262
may be counted toward establishing eligibility for a subsequent 263
moratorium. 264
(4) (A) Except as provided in subparagraph (B) of this subdivision, 265
the commissioner shall issue a certificate of affordable housing project 266
completion for the purposes of this subsection upon finding that there 267
has been completed within the municipality one or more affordable 268
housing developments [which] that create housing unit -equivalent 269
points equal to (i) the greater of two per cent of all dwelling units in the 270
municipality, as reported in the most recent United States decennial 271
census, or seventy -five housing unit -equivalent points, or (ii) for any 272
municipality that has (I) adopted a municipal housing growth plan or 273

Raised Bill No. 5366

LCO No. 2265 10 of 16

has elected to comply with a regional housing growth plan in 274
accordance with the provisions of section 8 -13cc, (II) twenty thousand 275
or more dwelling units, as reported in the most recent United States 276
decennial census, and (III) previously qualified for a moratorium in 277
accordance with this section, one and one -half per cent of all dwelling 278
units in the municipality, as reported in the most recent United States 279
decennial census. 280
(B) If a municipality has received a final letter of eligibility from the 281
commissioner pursuant to section 8 -13gg, the commissioner shall issue 282
a certificate of affordable housing completion to such municipality at 283
such time as, upon application, the commissioner determines, in the 284
commissioner's discretion, that the municipality is in compliance with 285
the following conditions: The municipality remains in compliance with 286
all requirements for a final letter of eligibility, and there has been 287
completed within the municipality one or more affordable housing 288
developments that create housing unit-equivalent points equal to (i) the 289
greater of one and three -quarter per cent of all dwelling units in the 290
municipality, as reported in the most recent United States decennial 291
census, or sixty -five housing unit -equivalent points, or (ii) for any 292
municipality that (I) has adopted a municipal housing growth plan or 293
has elected to comply with a regional housing growth plan in 294
accordance with the provisions of section 8 -13bb, (II) has twenty 295
thousand or more dwelling units, as reported in the most recent United 296
States decennial census, and (III) previously qualified for a moratorium 297
in accordance with this section, one and one-half per cent of all dwelling 298
units in the municipality, as reported in the most recent United States 299
decennial census. 300
(C) A municipality may apply for a certificate of affordable housing 301
project completion pursuant to this subsection by applying in writing to 302
the commissioner, and including documentation showing that the 303
municipality has accumulated the required number of points within the 304
applicable time period. Such documentation shall include the location 305
of each dwelling unit being counted, the number of points each dwelling 306

Raised Bill No. 5366

LCO No. 2265 11 of 16

unit has been assigned, and the reason, pursuant to this subsection, for 307
assigning such points to such dwelling unit. Upon receipt of such 308
application, the commissioner shall promptly cause a notice of the filing 309
of the application to be published in the Connecticut Law Journal, 310
stating that public comment on such application shall be accepted by the 311
commissioner for a period of thirty days after the publication of such 312
notice. Not later than ninety days after the receipt of such application, 313
the commissioner shall either approve or reject such application. Such 314
approval or rejection shall be accompanied by a written statement of the 315
reasons for approval or rejection, pursuant to the provisions of this 316
subsection. If the application is approved, the commissioner shall 317
promptly cause a certificate of affordable housing project completion to 318
be published in the Connecticut Law Journal. If the commissioner fails 319
to either approve or reject the application within such ninety -day 320
period, such application shall be deemed provisionally approved, and 321
the municipality may cause notice of such provisional approval to be 322
published in a conspicuous manner in a daily newspaper having general 323
circulation in the municipality, in which case, such moratorium shall 324
take effect upon such publication. The municipality shall send a copy of 325
such notice to the commissioner. Such provisional approval shall 326
remain in effect unless the commissioner subsequently acts upon and 327
rejects the application, in which case the moratorium shall terminate 328
upon notice to the municipality by the commissioner. 329
(5) For the purposes of this subsection, "elderly units" are dwelling 330
units whose occupancy is restricted by age, "family units" are dwelling 331
units whose occupancy is not restricted by age, and "resident -owned 332
mobile manufactured home park" has the same meaning as provided in 333
subsection (k) of this section. 334
(6) For the purposes of this subsection, housing unit -equivalent 335
points shall be determined by the commissioner as follows: (A) No 336
points shall be awarded for a unit unless its occupancy is restricted to 337
persons and families whose income is equal to or less than eighty per 338
cent of the median income, except that (i) unrestricted units in a set -339

Raised Bill No. 5366

LCO No. 2265 12 of 16

aside development shall be awarded one -quarter point each, and (ii) 340
dwelling units in transit community middle housing developments 341
developed pursuant to subdivision (2) of subsection (a) of section 8 -2s 342
shall be awarded one -quarter point each; (B) family units restricted to 343
persons and families whose income is equal to or less than eighty per 344
cent of the median income shall be awarded one point if an ownership 345
unit and one and one -half points if a rental unit; (C) family units 346
restricted to persons and families whose income is equal to or less than 347
sixty per cent of the median income shall be awarded one and one -half 348
points if an ownership unit and two points if a rental unit; (D) family 349
units restricted to persons and families whose income is equal to or less 350
than forty per cent of the median income shall be awarded two points if 351
an ownership unit and two and one -half points if a rental unit; (E) 352
elderly units restricted to persons and families whose income is equal to 353
or less than eighty per cent of the median income shall be awarded one-354
half point; (F) a set -aside development containing family units [which] 355
that are rental units shall be awarded additional points equal to twenty-356
two per cent of the total points awarded to such development, provided 357
the application for such development was filed with the commission 358
prior to July 6, 1995; (G) a mobile manufactured home in a resident -359
owned mobile manufactured home park shall be awarded points as 360
follows: (i) One and one -half points when occupied by persons and 361
families with an income equal to or less than eighty per cent of the 362
median income, (ii) two points when occupied by persons and families 363
with an income equal to or less than sixty per cent of the median income, 364
and (iii) one -fourth point for the remaining units; and (H) any unit 365
described in subparagraphs (A) to (G), inclusive, of this subdivision 366
shall be awarded an additional one -quarter point, provided such unit 367
was constructed by or in conjunction with a housing authority, as 368
defined in section 8-40, of a neighboring municipality. 369
(7) Points shall be awarded only for dwelling units [which] that (A) 370
were newly-constructed units in an affordable housing development, as 371
that term was defined at the time of the affordable housing application, 372

Raised Bill No. 5366

LCO No. 2265 13 of 16

for which a certificate of occupancy was issued after July 1, 1990, (B) 373
were newly subjected after July 1, 1990, to deeds containing covenants 374
or restrictions [which] that require that, for at least the duration required 375
by subsection (a) of this section for set -aside developments on the date 376
when such covenants or restrictions took effect, such dwelling units 377
shall be sold or rented at, or below, prices [which] that will preserve the 378
units as affordable housing for persons or families whose income does 379
not exceed eighty per cent of the median income, or (C) are located in a 380
resident-owned mobile manufactured home park. 381
(8) Points shall be subtracted, applying the formula in subdivision (6) 382
of this subsection, for any affordable dwelling unit [which] that, on or 383
after July 1, 1990, was affected by any action taken by a municipality 384
[which] that caused such dwelling unit to cease being counted as an 385
affordable dwelling unit. 386
(9) A newly-constructed unit shall be counted toward a moratorium 387
when it receives a certificate of occupancy. A newly-restricted unit shall 388
be counted toward a moratorium when its deed restriction takes effect. 389
(10) The affordable housing appeals procedure shall be applicable to 390
affordable housing applications filed with a commission after a three -391
year moratorium expires, except (A) as otherwise provided in 392
subsection (k) of this section, or (B) when sufficient unit -equivalent 393
points have been created within the municipality during one 394
moratorium to qualify for a subsequent moratorium. 395
(11) The commissioner shall, within available appropriations, adopt 396
regulations in accordance with chapter 54 to carry out the purposes of 397
this subsection. Such regulations shall specify the procedure to be 398
followed by a municipality to obtain a moratorium, and shall include 399
the manner in which a municipality is to document the units to be 400
counted toward a moratorium. A municipality may apply for a 401
moratorium in accordance with the provisions of this subsection prior 402
to, as well as after, such regulations are adopted. 403

Raised Bill No. 5366

LCO No. 2265 14 of 16

(m) The affordable housing appeals procedure established under this 404
section shall not be applicable to an affordable housing application if the 405
municipality in which such application was filed has elected to purchase 406
the real property identified as an affordable housing development in 407
such application pursuant to the provisions of section 2 of this act. 408
[(m)] (n) The commissioner shall, pursuant to regulations adopted in 409
accordance with the provisions of chapter 54, promulgate model deed 410
restrictions [which] that satisfy the requirements of this section. A 411
municipality may waive any fee [which] that would otherwise be 412
required for the filing of any long-term affordability deed restriction on 413
the land records. 414
Sec. 2. (NEW) ( Effective October 1, 2026 ) (a) Upon the filing of an 415
affordable housing application pursuant to section 8-30g of the general 416
statutes, as amended by this act , the municipality in which such 417
application was filed shall have the option to purchase the real property 418
identified as an affordable housing development in such application, 419
provided the municipality (1) notifies the applicant of the municipality's 420
election to exercise its purchase option pursuant to this section in 421
writing by certified mail not later than forty -five days after the 422
submission of the affordable housing application by the applicant, (2) 423
agrees to pay to the applicant a purchase price equal to one hundred 424
two per cent of the purchase price the applicant paid when the applicant 425
acquired the real property, or if the applicant paid no consideration for 426
such real property or purchased such property more than five years 427
prior to the date of application , one hundred two per cent of the fair 428
market value for such real property established by the tax assessor of 429
the municipality for the assessment year in which such application was 430
filed, and (3) purchases and closes upon the sale of such real property 431
not later than one hundred twenty days after such municipality delivers 432
notice to the applicant pursuant to subdivision (1) of this subsection. 433
(b) Any municipality that elects to purchase real property identified 434
as an affordable housing development pursuant to this section shall 435

Raised Bill No. 5366

LCO No. 2265 15 of 16

issue certificates of occupancy for not less than seventy -five per cent of 436
the affordable housing units proposed in the affordable housing 437
application not more than eight years after such municipality acquires 438
such real property. 439
(c) If a municipality fails to complete the development of affordable 440
housing units required under subsection (b) of this section within the 441
time prescribed by said subsection, such municipality shall pay an 442
amount equal to five per cent of the purchase price such municipality 443
paid to the applicant to each of the following: (1) The applicant, and (2) 444
the Treasurer, for deposit into the Housing Trust Fund established 445
under section 8-336o of the general statutes, as amended by this act. 446
Sec. 3. Subsection (a) of section 8 -336o of the general statutes is 447
repealed and the following is substituted in lieu thereof (Effective October 448
1, 2026): 449
(a) There is established the "Housing Trust Fund" which shall be a 450
nonlapsing fund held by the Treasurer separate and apart from all other 451
moneys, funds and accounts. The following funds shall be deposited in 452
the fund: (1) Proceeds of bonds authorized by section 8 -336n; (2) all 453
moneys received in return for financial assistance awarded from the 454
Housing Trust Fund pursuant to the Housing Trust Fund program 455
established under section 8 -336p; (3) all private contributions received 456
pursuant to section 8 -336p; [and] (4) to the extent not otherwise 457
prohibited by state or federal law, any local, state or federal funds 458
received pursuant to section 8 -336p; and (5) any payments by a 459
municipality to the Treasurer pursuant to subsection (c) of section 2 of 460
this act . Investment earnings credited to the assets of said fund shall 461
become part of the assets of said fund. The Treasurer shall invest the 462
moneys held by the Housing Trust Fund subject to use for financial 463
assistance under the Housing Trust Fund program. 464
This act shall take effect as follows and shall amend the following
sections:

Raised Bill No. 5366

LCO No. 2265 16 of 16

Section 1 October 1, 2026 8-30g
Sec. 2 October 1, 2026 New section
Sec. 3 October 1, 2026 8-336o(a)

Statement of Purpose:
To permit municipalities to purchase and develop affordable housing
on real property identified in an affordable housing development
application.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
underlined.]