AN ACT CONCERNING HOUSING DEVELOPMENT ON CERTAIN LOTS ZONED FOR INDUSTRIAL USE OR PREVIOUSLY ZONED FOR RESIDENTIAL USE.

House of Representatives
sHB5502 / File No. 274 1

General Assembly File No. 274
February Session, 2026 Substitute House Bill No. 5502

House of Representatives, March 31, 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 HOUSING DEVELOPMENT ON CERTAIN
LOTS ZONED FOR INDUSTRIAL USE OR PREVIOUSLY ZONED FOR
RESIDENTIAL USE.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

Section 1. Section 8-2s of the 2026 supplement to the general statutes, 1
as amended by section 16 of public act 25 -1 of the November special 2
session, is repealed and the following is substituted in lieu thereof 3
(Effective July 1, 2026): 4
(a) On and after [July 1, 2026] January 1, 2027, any zoning regulations 5
adopted or amended pursuant to section 8-2 [(1)] or any special act shall 6
allow for the development of a transit community middle housing 7
development, as defined in section 8-13hh, or a mixed-use development, 8
on any lot that (1) is zoned for commercial or mixed -use development; 9
[, subject only to summary review, as defined in section 8-2r, and] (2) is 10
zoned for industrial use, provided such lot is not greater than one 11
thousand feet from (A) a transit station, as defined in section 8 -169hh, 12
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or (B) a highway, as defined in section 13a -123c; or (3) was previously 13
zoned for residential use at any time, subject only to summary review, 14
as defined in section 8-2r. 15
(b) On and after July 1, 2026, any zoning regulations adopted or 16
amended pursuant to section 8 -2 or any special act may allow for the 17
development of a transit community middle housing development on 18
any lot that allows for residential use , subject only to such summary 19
review. 20
[(b)] (c) Any municipality that adopts zoning regulations that allow 21
for the development of a transit community middle housing 22
development [as described in subdivision (2) of] pursuant to subsection 23
[(a)] (b) of this section shall be awarded one -quarter housing unit -24
equivalent point pursuant to subdivision (6) of subsection (l) of section 25
8-30g, as amended by this act, for each unit of such middle housing for 26
which a certificate of occupancy has been issued by the municipality. 27
[(c)] (d) No municipality that has (1) adopted zoning regulations that 28
allow for the development of a transit community middle housing 29
development [as described in subdivision (2) of] pursuant to subsection 30
[(a)] (b) of this section, (2) been awarded housing unit-equivalent points 31
pursuant to subsection [(b)] (c) of this section, and (3) qualified for a 32
moratorium from the affordable housing appeals procedure under 33
subsection (l) of section 8-30g, as amended by this act, based in part on 34
housing unit-equivalent points awarded pursuant to subsection [(b)] (c) 35
of this section shall repeal or substantially modify such zoning 36
regulations concerning such development of such middle housing 37
during the period of such moratorium. 38
Sec. 2. Subdivision (6) of subsection (l) of section 8 -30g of the 2026 39
supplement to the general statutes is repealed and the following is 40
substituted in lieu thereof (Effective July 1, 2026): 41
(6) For the purposes of this subsection, housing unit -equivalent 42
points shall be determined by the commissioner as follows: (A) No 43
points shall be awarded for a unit unless its occupancy is restricted to 44
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persons and families whose income is equal to or less than eighty per 45
cent of the median income, except that (i) unrestricted units in a set -46
aside development shall be awarded one -quarter point each, and (ii) 47
dwelling units in transit community middle housing developments 48
developed pursuant to [subdivision (2) of] subsection [(a)] (b) of section 49
8-2s, as amended by this act, shall be awarded one -quarter point each; 50
(B) family units restricted to persons and families whose income is equal 51
to or less than eighty per cent of the median income shall be awarded 52
one point if an ownership unit and one and one -half points if a rental 53
unit; (C) family units restricted to persons and families whose income is 54
equal to or less than sixty per cent of the median income shall be 55
awarded one and one-half points if an ownership unit and two points if 56
a rental unit; (D) family units restricted to persons and families whose 57
income is equal to or less than forty per cent of the median income shall 58
be awarded two points if an ownership unit and two and one-half points 59
if a rental unit; (E) elderly units restricted to persons and families whose 60
income is equal to or less than eighty per cent of the median income shall 61
be awarded one -half point; (F) a set -aside development containing 62
family units which are rental units shall be awarded additional points 63
equal to twenty -two per cent of the total points awarded to such 64
development, provided the application for such development was filed 65
with the commission prior to July 6, 1995; (G) a mobile manufactured 66
home in a resident -owned mobile manufactured home park shall be 67
awarded points as follows: (i) One and one -half points when occupied 68
by persons and families with an income equal to or less than eighty per 69
cent of the median income, (ii) two points when occupied by persons 70
and families with an income equal to or less than sixty per cent of the 71
median income, and (iii) one -fourth point for the remaining units; and 72
(H) any unit described in subparagraphs (A) to (G), inclusive, of this 73
subdivision shall be awarded an additional one-quarter point, provided 74
such unit was constructed by or in conjunction with a housing authority, 75
as defined in section 8-40, of a neighboring municipality. 76
This act shall take effect as follows and shall amend the following
sections:

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Section 1 July 1, 2026 8-2s
Sec. 2 July 1, 2026 8-30g(l)(6)

Statement of Legislative Commissioners:
The title was changed; and in Section 2, the effective date was changed
from October 1, 2026 to July 1, 2026, for consistency.

PD 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 $
All Municipalities Potential
Revenue
Loss
Minimal Minimal
All Municipalities Potential
Savings
Minimal Minimal
All Municipalities Potential
Grand List
Impact
See Below See Below

Explanation
The bill pushes out a provision from July 1, 2026, to January 1, 2027,
that requires municipalities to allow certain developments to be built on
parcels zoned for commercial or mixed-use development subject only to
summary review. This moves out any impact associated this the
provision by six months.
The bill also extends these provisions to certain middle housing and
mixed-use developments. This results in a grand list impact that is
dependent on how the land would have otherwise been used.
This may also result in a potential savings and potential revenue loss
to municipalities beginning in FY 27 to the extent fewer public hearings
are held and fewer permit fees are collected as summary review does
not require a public hearing or special permits.
The Out Years
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The annualized ongoing fiscal impact identified above would
continue into the future subject to inflation.

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OLR Bill Analysis
sHB 5502

AN ACT CONCERNING HOUSING DEVELOPMENT ON CERTAIN
LOTS ZONED FOR INDUSTRIAL USE OR PREVIOUSLY ZONED
FOR RESIDENTIAL USE.

SUMMARY
Currently, beginning July 1, 2026, municipal zoning regulations must
allow transit community middle housing developments and mixed-use
developments, subject only to a summary review, on any parcel zoned
for commercial or mixed-use development (see BACKGROUND). This
bill:
1. delays until January 1, 2027, the deadline for adopting
conforming regulations and
2. extends this law on approving middle housing and mixed -use
developments under a summary review process to proposed
developments on (a) lots that were previously zoned for
residential use and (b) certain lots zoned for industrial use.
(Unchanged by the bill, municipalities may allow transit community
middle housing developments, subject only to a summary review, on
any lot that allows for residential use and earn HUE ( housing unit
equivalent) points toward an § 8-30g moratorium for doing so.)
This bill also makes conforming changes, including incorporating a
provision from PA 25 -1, § 20, November Special Session , requiring
municipalities that zone under a special act to conform their regulations
to the law on summary review of transit community middle housing
and mixed-use developments.
EFFECTIVE DATE: July 1, 2026
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SUMMARY REVIEW OF PROPOSED DEVELOPMENTS ON
INDUSTRIAL OR FORMERLY RESIDENTIAL LOTS
Under the bill, beginning January 1, 2027, all municipal zoning
regulations must provide a summary review process for transit
community middle housing developments and mixed -use
developments proposed on lots that (1) were previously zoned for
residential use or (2) are zoned for industrial use and within 1,000 feet
of a transit station or highway. (As under current law, regulations must
also provide for summary review of these developments when they are
proposed on a lot zoned for commercial or mixed-use development.)
“Transit stations” are passenger railroad or bus rapid transit stations
that (1) are operational, (2) the Department of Transportation (DOT) is
planning, or (3) are included in DOT ’s statewide transportation
investment program (a document covering a four-year period that lists
transportation projects expected to receive federal funding).
“Highways” include the national highway system and state limited
access highways.
By law, under a “summary review” process, a project that complies
with local zoning regulations is approvable without a public hearing,
variance, special permit or exception, or other discretionary zoning
action (other than a review of a site plan for regulatory compliance and
a determination that public health and safety will not be substantially
impacted).
BACKGROUND
Transit Community Middle Housing & Mixed-Use Developments
A t ransit community middle housing development is a residential
building with two to nine units, such as a duplex, triplex, cottage cluster,
perfect six, or townhouse (CGS § 8-13hh).
A mixed -use development contains residential and nonresidential
uses in a single building (CGS § 8-1a).
Related Bills
sHB 5362, favorably reported by the Housing Committee, addresses
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how HUE points under § 8 -30g are allocated to units in a transit
community middle housing development (§§ 3 & 5).
sHB 5396, favorably reported by the Planning and Development
Committee, requires municipalities to provide a summary review
process for certain affordable housing developments that will be built
on a religious organization’s property.
COMMITTEE ACTION
Planning and Development Committee
Joint Favorable
Yea 12 Nay 8 (03/13/2026)