Connecticut House Bill HB06357

Connecticut 2023 Regular Session

• Introduced: 1/20/23
• Refer: 1/20/23

Caption

An Act Redefining Set-aside Development.

Impact

The bill is expected to have a notable impact on state laws regarding housing development and affordability. By lowering the deed restriction period, it may encourage more property developers to participate in the creation of affordable housing options within Connecticut. This legislative shift could ultimately lead to an increase in the availability of affordable housing options, addressing a critical need in various communities across the state. However, it also invites scrutiny regarding long-term impacts on housing affordability, community stability, and the preservation of affordable units.

Summary

House Bill 6357 proposes to redefine the concept of 'set-aside development' by significantly reducing the required deed restriction time period from forty years to just ten years after the initial occupation of a new development. This change is intended to attract more developers to engage in projects that involve affordable housing, as the reduced commitment period may make such projects more appealing from a financial standpoint. By shortening the duration for which properties are bound by these restrictions, the bill aims to stimulate growth in the housing sector, particularly focusing on developments that serve lower-income residents.

Contention

Despite its intention to facilitate more housing development, HB 6357 has sparked discussions among stakeholders, including community advocacy groups, housing experts, and policymakers. Critics raise concerns that a shorter deed restriction period could undermine the stability of affordable housing initiatives, as properties may revert to market rates once the restrictions expire. This contention places the bill at a crossroads, forcing lawmakers to balance the immediate benefits of increased development against potential long-term consequences for housing equity and community integrity.