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sHB5395 / File No. 251 1
General Assembly File No. 251
February Session, 2026 Substitute House Bill No. 5395
House of Representatives, March 30, 2026
The Committee on Planning and Development reported
through REP. KAVROS DEGRAW of the 17th Dist.,
Chairperson of the Committee on the part of the House, that the
substitute bill ought to pass.
AN ACT CONCERNING MODULAR OR PREFABRICATED HOMES.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. (NEW) (Effective October 1, 2026) (a) As used in this section: 1
(1) "Modular or prefabricated home" or "unit" means a completely 2
assembled and erected building or structure containing one dwelling 3
unit, as defined in section 47a -1 of the general statutes, including 4
prefabricated unit service equipment, of which the structural parts 5
consist of prefabricated units or prefabricated subassemblies. "Modular 6
or prefabricated home" does not include any mobile manufactured 7
home, as defined in section 21-64 of the general statutes; 8
(2) "Prefabricated subassembly" means a built -up combination of 9
several structural elements designed and fabricated as an assembled 10
section of wall, ceiling, floor or roof to be incorporated into a building 11
or structure by on-site erection of two or more such subassemblies; 12
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(3) "Prefabricated unit" means a built -up section forming an 13
individual structural element of a building or structure, such as a beam, 14
girder, plank, strut, column or truss, the integrated parts of which are 15
prefabricated, including the necessary means for erection and 16
connection at the site to complete the structural frame; 17
(4) "Prefabricated unit service equipment" means mechanical units, 18
fixtures and accessories comprising a complete service unit of 19
mechanical equipment, including bathroom and kitchen plumbing 20
assemblies, unit heating and air conditioning systems and loop -wiring 21
assemblies of electric circuits which may be either prefabricated or 22
constructed on site; and 23
(5) "Prefabricated" means fabricated prior to erection or installation 24
in a building or structure. 25
(b) No zoning regulations adopted pursuant to section 8 -2 of the 26
general statutes or any special act shall impose conditions and 27
requirements on any modular or prefabricated home or on lots 28
containing any such home if those conditions and requirements are 29
substantially different from conditions and requirements imposed by 30
the municipality on (1) single -family dwellings, or (2) lots containing 31
single-family dwellings. 32
(c) Upon the adoption of zoning regulations that allow for the 33
development of a modular or prefabricated home as described in 34
subsection (b) of this section, a municipality shall be awarded one -35
quarter housing unit -equivalent point pursuant to subdivision (6) of 36
subsection (l) of section 8-30g of the general statutes, as amended by this 37
act, for each such unit for which a certificate of occupancy has been 38
issued by the municipality if such unit does not qualify for any other 39
housing unit-equivalent points pursuant to said subdivision. 40
Sec. 2. Subdivisions (6) and (7) of subsection (l) of section 8-30g of the 41
2026 supplement to the general statutes are repealed and the following 42
is substituted in lieu thereof (Effective October 1, 2026): 43
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(6) For the purposes of this subsection, housing unit -equivalent 44
points shall be determined by the commissioner as follows: (A) No 45
points shall be awarded for a unit unless its occupancy is restricted to 46
persons and families whose income is equal to or less than eighty per 47
cent of the median income, except that one-quarter point shall be 48
awarded for each (i) unrestricted [units] unit in a set-aside development, 49
[shall be awarded one-quarter point each, and] (ii) dwelling [units] unit 50
in a transit community middle housing [developments] development 51
developed pursuant to subdivision (2) of subsection (a) of section 8 -2s, 52
[shall be awarded one -quarter point each ] and (iii) modular or 53
prefabricated home unit, as specified in subsection (b) of section 1 of this 54
act; (B) family units restricted to persons and families whose income is 55
equal to or less than eighty per cent of the median income shall be 56
awarded one point if an ownership unit and one and one -half points if 57
a rental unit; (C) family units restricted to persons and families whose 58
income is equal to or less than sixty per cent of the median income shall 59
be awarded one and one-half points if an ownership unit and two points 60
if a rental unit; (D) family units restricted to persons and families whose 61
income is equal to or less than forty per cent of the median income shall 62
be awarded two points if an ownership unit and two and one-half points 63
if a rental unit; (E) elderly units restricted to persons and families whose 64
income is equal to or less than eighty per cent of the median income shall 65
be awarded one -half point; (F) a set -aside development containing 66
family units which are rental units shall be awarded additional points 67
equal to twenty -two per cent of the total points awarded to such 68
development, provided the application for such development was filed 69
with the commission prior to July 6, 1995; (G) a mobile manufactured 70
home in a resident -owned mobile manufactured home park shall be 71
awarded points as follows: (i) One and one -half points when occupied 72
by persons and families with an income equal to or less than eighty per 73
cent of the median income, (ii) two points when occupied by persons 74
and families with an income equal to or less than sixty per cent of the 75
median income, and (iii) one -fourth point for the remaining units; and 76
(H) any unit described in subparagraphs (A) to (G), inclusive, of this 77
subdivision shall be awarded an additional one-quarter point, provided 78
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such unit was constructed by or in conjunction with a housing authority, 79
as defined in section 8-40, of a neighboring municipality. 80
(7) [Points] Except as otherwise provided in subparagraph (A) of 81
subdivision (6) of this subsection, points shall be awarded only for 82
dwelling units which (A) were newly-constructed units in an affordable 83
housing development, as that term was defined at the time of the 84
affordable housing application, for which a certificate of occupancy was 85
issued after July 1, 1990, (B) were newly subjected after July 1, 1990, to 86
deeds containing covenants or restrictions which require that, for at 87
least the duration required by subsection (a) of this section for set-aside 88
developments on the date when such covenants or restrictions took 89
effect, such dwelling units shall be sold or rented at, or below, prices 90
which will preserve the units as affordable housing for persons or 91
families whose income does not exceed eighty per cent of the median 92
income, or (C) are located in a resident -owned mobile manufactured 93
home park. 94
This act shall take effect as follows and shall amend the following
sections:
Section 1 October 1, 2026 New section
Sec. 2 October 1, 2026 8-30g(l)(6) and (7)
PD Joint Favorable Subst.
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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
Savings
See Below See Below
Explanation
The bill expands the type of housing units that qualify for housing
unit-equivalent points toward a moratorium under the affordable
housing land use appeals procedure.1 This results 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 bill makes other various changes to zoning laws that do not result
in a fiscal impact as they do not impact the cost of administering zoning
laws.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to inflation and the number of
moratoriums that are awarded.
1 As of August 2025, five municipalities have an active moratorium granted under CGS
8-30g.
2 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.
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OLR Bill Analysis
sHB 5395
AN ACT CONCERNING MODULAR OR PREFABRICATED HOMES.
SUMMARY
This bill generally requires all municipal zoning regulations to treat
modular and prefabricated homes like traditionally built homes (“stick-
built homes”). Broadly, the bill defines these as single-family units that
are partially fabricated off -site but do not qualify as mobile
manufactured homes.
The bill also makes each of these dwellings eligible for a base value
of 0.25 HUE (housing unit equivalent) points toward an § 8 -30g
moratorium (see BACKGROUND — § 8-30g Moratoria). The 0.25 HUE
point is awarded only if the modular or prefabricated home does not
qualify for HUE points under another eligibility category.
Under the bill, a “modular or prefabricated home ” is a completely
assembled and erected building or structure with one dwelling unit. It
may include prefabricated unit service equipment made of
prefabricated units or prefabricated subassemblies. “Prefabricated unit
service equipment ” generally is a complete unit of mechanical
equipment and related fixtures and accessories, whether prefabricated
or assembled on -site (for example, bathroom and kitchen plumbing
assemblies and loop-wiring assemblies of electric circuits).
Broadly, a “prefabricated unit” is a built -up section forming an
individual structural element (for example, a beam, girder, plank, strut,
column, or truss ), with prefabricated integrated parts . Broadly, a
“prefabricated subassembly” is a combination of multiple structural
elements designed and fabricated as an assembled section of wall,
ceiling, floor, or roof that can be incorporated into a building or
structure on-site, by combining at least two subassemblies.
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The bill also makes technical and conforming changes.
EFFECTIVE DATE: October 1, 2026
ZONING REGULATIONS
The bill prohibits all zoning regulations from imposing conditions
and requirements on modular and prefabricated homes that are
substantially different from those imposed on other single -family
dwellings. It similarly prohibits regulations from treating lots on which
these homes are built substantially differently from other single -family
lots.
Existing law prohibits regulations adopted under statutory authority
from imposing on manufactured homes (including mobile homes) and
associated lots and mobile home parks conditions that are substantially
different from those imposed on single or multi -family dwellings and
associated lots, cluster developments, or planned unit developments.
This provision in existing law applies to manufactured homes built to
federal manufactured home construction and safety standards.
HUE POINTS FOR MODULAR AND PREFABRICATED HOMES
The bill awards each modular or prefabricated home a base value of
0.25 HUE points if it was built under a zoning regulation that conforms
to the bill’s requirements (see above). The bill specifies that the 0.25 HUE
point is not a bonus awarded in addition to other points a unit may
qualify for. Instead, it can only be awarded if a unit does not qualify for
any other HUE points (such as HUE points for being deed -restricted to
maintain affordability).
By law, unchanged by the bill, the 0.25 HUE points is the lowest point
allocation for any unit type. Other dwellings that are eligible for a base
value of 0.25 HUE points include market-rate units in a set -aside
development or resident-owned mobile home park, and certain middle
housing built under a local option summary review procedure.
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BACKGROUND
§ 8-30g
The affordable housing land use appeals procedure is a set of rules
requiring local land use commissions to defend their decisions denying
affordable housing developments or approving them with certain
conditions. In traditional zoning appeals, the developer must convince
the court that the municipality acted illegally or arbitrarily, or abused
its discretion by rejecting the proposed development. The procedure
instead places the burden of proof on municipalities.
By law, a developer cannot appeal under the procedure in a
municipality (1) in which the Department of Housing determines at
least 10% of the housing stock is affordable or (2) that obtains a
moratorium.
§ 8-30g Moratoria
By 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 poin ts. 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.
Generally, newly built affordable housing developments count
toward the moratorium, as do units subjected to certain deed
restrictions. But the law also awards HUE points to certain market -rate
units. The law awards HUE points to units based on various factors,
including how deeply affordable they are and whether they were built
in a municipality that adopted certain zoning regulations. By law, some
dwelling types are awarded “bonus” HUE points in addition to base
HUE points. This means that the law explicitly awards them a “bonus”
for falling into multiple eligibility categories.
Related Bills
sHB 5507, favorably reported by the Planning and Development
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Committee, among other things, requires the Department of Housing to
develop a program promoting standardized accessory dwelling unit
designs.
sHB 537 6, favorably reported by the Insurance and Real Estate
Committee, changes § 8-30g by adding an additional ground for a local
land use commission to defend its decision to reject or deem incomplete
an affordable housing application when the application uses
nonstandard, prefabricated, or proprietary construction assemblies, and
the applicant did not provide a preliminary life safety report.
The Housing and Planning and Development committees favorably
reported several other bills impacting § 8 -30g, including: sSB 338
(prohibits the allocation of HUE points after § 8 -30g litigation, under
certain circumstances); sHB 5362 (reduces 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 housing applications, and clarifies middle housing HUE
point allocations); sHB 5364 (redefines “set -aside development” to
reduce required affordability periods and aligns HUE point allocations
with them); and sHB 5365 (File 113) (modifies HUE point allocations,
including for accessory apartments and certain deeply affordable
housing).
COMMITTEE ACTION
Planning and Development Committee
Joint Favorable Substitute
Yea 21 Nay 0 (03/13/2026)