AN ACT CONCERNING HOUSING UNIT-EQUIVALENT POINTS FOR DEVELOPMENTS SUBJECT TO LITIGATION.

Senate
sSB338 / File No. 208 1

General Assembly File No. 208
February Session, 2026 Substitute Senate Bill No. 338

Senate, March 26, 2026

The Committee on Housing reported through SEN. MARX of
the 20th Dist., Chairperson of the Committee on the part of the
Senate, that the substitute bill ought to pass.

AN ACT CONCERNING HOUSING UNIT-EQUIVALENT POINTS FOR
DEVELOPMENTS SUBJECT TO LITIGATION.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

Section 1. Subsection (l) of section 8-30g of the 2026 supplement to the 1
general statutes is repealed and the following is substituted in lieu 2
thereof (Effective October 1, 2026): 3
(l) (1) Except as provided in subdivision (2) of this subsection, the 4
affordable housing appeals procedure established under this section 5
shall not be applicable to an affordable housing application filed with a 6
commission during a moratorium, which shall commence after (A) a 7
certification of affordable housing project completion issued by the 8
commissioner is published in the Connecticut Law Journal, or (B) notice 9
of a provisional approval is published pursuant to subdivision (4) of this 10
subsection. Any such moratorium shall be for a period of four years, 11
except that for any municipality that has (i) twenty thousand or more 12
dwelling units, as reported in the most recent United States decennial 13
census, and (ii) previously qualified for a moratorium in accordance 14
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with this section, any subsequent moratorium shall be for a period of 15
five years. Any moratorium that is in effect on October 1, 2002, is 16
extended by one year. 17
(2) Such moratorium shall not apply to (A) affordable housing 18
applications for assisted housing in which ninety -five per cent of the 19
dwelling units are restricted to persons and families whose income is 20
less than or equal to sixty per cent of the median income, (B) other 21
affordable housing applications for assisted housing containing forty or 22
fewer dwelling units, or (C) affordable housing applications which were 23
filed with a commission pursuant to this section prior to the date upon 24
which the moratorium takes effect. 25
(3) Eligible units completed before a moratorium has begun, but that 26
were not counted toward establishing eligibility for such moratorium, 27
may be counted toward establishing eligibility for a subsequent 28
moratorium. Eligible units completed after a moratorium has begun 29
may be counted toward establishing eligibility for a subsequent 30
moratorium. 31
(4) (A) Except as provided in subparagraph (B) of this subdivision, 32
the commissioner shall issue a certificate of affordable housing project 33
completion for the purposes of this subsection upon finding that there 34
has been completed within the municipality one or more affordable 35
housing developments which create housing unit -equivalent points 36
equal to (i) the greater of two per cent of all dwelling units in the 37
municipality, as reported in the most recent United States decennial 38
census, or seventy -five housing unit -equivalent points, or (ii) for any 39
municipality that has (I) adopted a municipal housing growth plan or 40
has elected to comply with a regional housing growth plan in 41
accordance with the provisions of section 8 -13cc, (II) twenty thousand 42
or more dwelling units, as reported in the most recent United States 43
decennial census, and (III) previously qualified for a moratorium in 44
accordance with this section, one and one -half per cent of all dwelling 45
units in the municipality, as reported in the most recent United States 46
decennial census. 47
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(B) If a municipality has received a final letter of eligibility from the 48
commissioner pursuant to section 8 -13gg, the commissioner shall issue 49
a certificate of affordable housing completion to such municipality at 50
such time as, upon application, the commissioner determines, in the 51
commissioner's discretion, that the municipality is in compliance with 52
the following conditions: The municipality remains in compliance with 53
all requirements for a final letter of eligibility, and there has been 54
completed within the municipality one or more affordable housing 55
developments that create housing unit-equivalent points equal to (i) the 56
greater of one and three -quarter per cent of all dwelling units in the 57
municipality, as reported in the most recent United States decennial 58
census, or sixty -five housing unit -equivalent points, or (ii) for any 59
municipality that (I) has adopted a municipal housing growth plan or 60
has elected to comply with a regional housing growth plan in 61
accordance with the provisions of section 8 -13bb, (II) has twenty 62
thousand or more dwelling units, as reported in the most recent United 63
States decennial census, and (III) previously qualified for a moratorium 64
in accordance with this section, one and one-half per cent of all dwelling 65
units in the municipality, as reported in the most recent United States 66
decennial census. 67
(C) A municipality may apply for a certificate of affordable housing 68
project completion pursuant to this subsection by applying in writing to 69
the commissioner, and including documentation showing that the 70
municipality has accumulated the required number of points within the 71
applicable time period. Such documentation shall include the location 72
of each dwelling unit being counted, the number of points each dwelling 73
unit has been assigned, and the reason, pursuant to this subsection, for 74
assigning such points to such dwelling unit. Upon receipt of such 75
application, the commissioner shall promptly cause a notice of the filing 76
of the application to be published in the Connecticut Law Journal, 77
stating that public comment on such application shall be accepted by the 78
commissioner for a period of thirty days after the publication of such 79
notice. Not later than ninety days after the receipt of such application, 80
the commissioner shall either approve or reject such application. Such 81
approval or rejection shall be accompanied by a written statement of the 82
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reasons for approval or rejection, pursuant to the provisions of this 83
subsection. If the application is approved, the commissioner shall 84
promptly cause a certificate of affordable housing project completion to 85
be published in the Connecticut Law Journal. If the commissioner fails 86
to either approve or reject the application within such ninety -day 87
period, such application shall be deemed provisionally approved, and 88
the municipality may cause notice of such provisional approval to be 89
published in a conspicuous manner in a daily newspaper having general 90
circulation in the municipality, in which case, such moratorium shall 91
take effect upon such publication. The municipality shall send a copy of 92
such notice to the commissioner. Such provisional approval shall 93
remain in effect unless the commissioner subsequently acts upon and 94
rejects the application, in which case the moratorium shall terminate 95
upon notice to the municipality by the commissioner. 96
(5) For the purposes of this subsection, "elderly units" are dwelling 97
units whose occupancy is restricted by age, "family units" are dwelling 98
units whose occupancy is not restricted by age, and "resident -owned 99
mobile manufactured home park" has the same meaning as provided in 100
subsection (k) of this section. 101
(6) For the purposes of this subsection, housing unit -equivalent 102
points shall be determined by the commissioner as follows: (A) No 103
points shall be awarded for a unit unless its occupancy is restricted to 104
persons and families whose income is equal to or less than eighty per 105
cent of the median income, except that (i) unrestricted units in a set -106
aside development shall be awarded one -quarter point each, and (ii) 107
dwelling units in transit community middle housing developments 108
developed pursuant to subdivision (2) of subsection (a) of section 8 -2s 109
shall be awarded one -quarter point each; (B) family units restricted to 110
persons and families whose income is equal to or less than eighty per 111
cent of the median income shall be awarded one point if an ownership 112
unit and one and one -half points if a rental unit; (C) family units 113
restricted to persons and families whose income is equal to or less than 114
sixty per cent of the median income shall be awarded one and one -half 115
points if an ownership unit and two points if a rental unit; (D) family 116
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units restricted to persons and families whose income is equal to or less 117
than forty per cent of the median income shall be awarded two points if 118
an ownership unit and two and one -half points if a rental unit; (E) 119
elderly units restricted to persons and families whose income is equal to 120
or less than eighty per cent of the median income shall be awarded one-121
half point; (F) a set -aside development containing family units which 122
are rental units shall be awarded additional points equal to twenty-two 123
per cent of the total points awarded to such development, provided the 124
application for such development was filed with the commission prior 125
to July 6, 1995; (G) a mobile manufactured home in a resident -owned 126
mobile manufactured home park shall be awarded points as follows: (i) 127
One and one -half points when occupied by persons and families with 128
an income equal to or less than eighty per cent of the median income, 129
(ii) two points when occupied by persons and families with an income 130
equal to or less than sixty per cent of the median income, and (iii) one -131
fourth point for the remaining units; and (H) any unit described in 132
subparagraphs (A) to (G), inclusive, of this subdivision shall be awarded 133
an additional one-quarter point, provided such unit was constructed by 134
or in conjunction with a housing authority, as defined in section 8-40, of 135
a neighboring municipality. 136
(7) (A) Points shall be awarded only for dwelling units which [(A)] (i) 137
were newly-constructed units in an affordable housing development, as 138
that term was defined at the time of the affordable housing application, 139
for which a certificate of occupancy was issued after July 1, 1990, [(B)] 140
(ii) were newly subjected after July 1, 1990, to deeds containing 141
covenants or restrictions which require that, for at least the duration 142
required by subsection (a) of this section for set-aside developments on 143
the date when such covenants or restrictions took effect, such dwelling 144
units shall be sold or rented at, or below, prices which will preserve the 145
units as affordable housing for persons or families whose income does 146
not exceed eighty per cent of the median income, or [(C)] (iii) are located 147
in a resident-owned mobile manufactured home park. 148
(B) No points shall be awarded for dwelling units in any set -aside 149
development that was the subject of an appeal filed in the Superior 150
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Court pursuant to subsection (f) of this section if such appeal process (i) 151
lasted for a period of greater than six months, and (ii) resulted in a 152
holding by a court that the commission failed to satisfy its burden of 153
proof under subsection (g) of this section. 154
(8) Points shall be subtracted, applying the formula in subdivision (6) 155
of this subsection, for any affordable dwelling unit which, on or after 156
July 1, 1990, was affected by any action taken by a municipality which 157
caused such dwelling unit to cease being counted as an affordable 158
dwelling unit. 159
(9) A newly-constructed unit shall be counted toward a moratorium 160
when it receives a certificate of occupancy. A newly-restricted unit shall 161
be counted toward a moratorium when its deed restriction takes effect. 162
(10) The affordable housing appeals procedure shall be applicable to 163
affordable housing applications filed with a commission after a three -164
year moratorium expires, except (A) as otherwise provided in 165
subsection (k) of this section, or (B) when sufficient unit -equivalent 166
points have been created within the municipality during one 167
moratorium to qualify for a subsequent moratorium. 168
(11) The commissioner shall, within available appropriations, adopt 169
regulations in accordance with chapter 54 to carry out the purposes of 170
this subsection. Such regulations shall specify the procedure to be 171
followed by a municipality to obtain a moratorium, and shall include 172
the manner in which a municipality is to document the units to be 173
counted toward a moratorium. A municipality may apply for a 174
moratorium in accordance with the provisions of this subsection prior 175
to, as well as after, such regulations are adopted. 176
This act shall take effect as follows and shall amend the following
sections:

Section 1 October 1, 2026 8-30g(l)
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Statement of Legislative Commissioners:
In Subsec. (l)(7)(B), a reference to " filed in the Superior Court " was
added for clarity, and "finding" was changed to "holding by a court" for
accuracy.

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

Explanation
The bill limits circumstances in which a municipality can earn
housing unit equivalent points toward qualifying for a moratorium
under the affordable housing land use appeals procedure. 1 This may
result in a potential cost to municipalities beginning in FY 27 for legal
costs to the extent fewer municipalities are awarded a moratorium.2
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
sSB 338

AN ACT CONCERNING HOUSING UNIT-EQUIVALENT POINTS FOR
DEVELOPMENTS SUBJECT TO LITIGATION.

SUMMARY
This bill amends the affordable housing land use appeals procedure
(§ 8-30g) by limiting the circumstances in which a municipality can earn
HUE (housing unit equivalent) points toward qualifying for a
temporary suspension of the procedure (moratorium). Broadly, the
limitation is based on whether dwellings that are eligible for HUE points
were built following a successful appeal under § 8-30g.
Generally, a municipality becomes eligible for a four - or five -year
moratorium from appeals taken under § 8-30g each time it shows it has
added a certain number of dwelling units to its housing stock, measured
in HUE points. The number of points required depends on factors such
as the municipality’s size and whether it adopted certain zoning
regulations or has qualified for a moratorium before.
The bill prohibits municipalities from earning HUE points for
dwelling units in a set -aside development (see Set-Aside Development ,
below) if:
1. the local land use commission reject ed the application for the
development or approved it with certain restrictions;
2. the developer appealed the decision to court under § 8-30g; and
3. the appeals process lasted more than six months and resulted in
the court holding that the local commission did not satisfy its
burden of proof (see Burden of Proof in § 8-30g Appeals, below).
(The bill does not specify what event triggers the beginning of the six-
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month period.)
EFFECTIVE DATE: October 1, 2026
BACKGROUND
Burden of Proof in § 8-30g Appeals
In traditional land use appeals brought by a developer, the developer
must convince the court that the municipality acted illegally or
arbitrarily or abused its discretion. However, for affordable housing
developments, § 8-30g instead places the burden of proof on
municipalities to defend their decisions to (1) reject affordable housing
development applications (such as for a set-aside development) or (2)
approve them with restrictions that would have a substantial adverse
impact on the project’s viability or the affordability of income-restricted
units.
Set-Aside Development
Generally, under § 8-30g, a “set-aside development” is a
development in which, at least 40 years after initial occupancy, at least
30% of the units are deed restricted for low - and moderate - income
families.
Related Bills
The Housing, Insurance and Real Estate, and Planning and
Development committees reported favorably several bills affecting § 8-
30g, including: HB 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 housing applications, and clarifies middle housing HUE
point allocations); HB 5364 (redefines “set -aside development” to
reduce required affordability periods and aligns HUE point allocations
with them); sHB 5365 (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
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points to modular and prefabricated homes that don’t otherwise qualify
for points).
COMMITTEE ACTION
Housing Committee
Joint Favorable
Yea 12 Nay 7 (03/10/2026)