LCO 1 of 14 General Assembly Substitute Bill No. 6831 January Session, 2025 AN ACT CONCERNING TRANSIT -ORIENTED COMMUNITIES. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. (NEW) (Effective October 1, 2025) (a) As used in this section 1 and sections 2, 3 and 5 of this act: 2 (1) "Discretionary infrastructure funding" means any grant, loan or 3 other financial assistance program (A) administered by the state under 4 the provisions of sections 4-66c, 4-66g and 4-66h of the general statutes, 5 section 22a-477 of the general statutes to the extent said section provides 6 financial assistance for municipal drinking water or sewerage system 7 projects and sections 8-13m to 8-13x, inclusive, of the general statutes, 8 or (B) managed by the Secretary of the Office of Policy and Management, 9 the Commissioner of Economic and Community Development or the 10 Commissioner of Transportation for the purpose of transit-oriented 11 development, as defined in section 13b-79o of the general statutes; 12 (2) "Downtown area" means a central business district or other 13 commercial neighborhood area of a municipality that serves as a center 14 of socioeconomic interaction, characterized by a cohesive core of 15 commercial and mixed-use buildings, often interspersed with civic, 16 religious and residential buildings and public spaces, that are typically 17 arranged along a main street and intersecting side streets and served by 18 public infrastructure; 19 Substitute Bill No. 6831 LCO 2 of 14 (3) "Middle housing development" means a residential building 20 containing not less than two dwelling units but not more than nine such 21 units, including, but not limited to, townhomes, duplexes, triplexes, 22 perfect sixes and cottage clusters; 23 (4) "Perfect six" means a three-story residential building with a central 24 entrance containing two dwelling units per story; 25 (5) "Qualifying bus transit community" means any municipality that 26 contains not less than one regular bus service station operating not less 27 than five days a week within a transit-oriented district adopted by such 28 municipality, provided such transit-oriented district is of reasonable 29 size, as determined by the secretary, or the secretary's designee, in 30 accordance with the provisions of subsection (e) of this section, and 31 either (A) includes land of such municipality located within a one-half-32 mile radius of any such station, or (B) is located within a reasonable 33 distance, as determined by the secretary, or the secretary's designee, of 34 any other transit service, a commercial corridor or the downtown area 35 of such municipality; 36 (6) "Qualifying rapid transit community" means any municipality 37 that contains not less than one rapid transit station or a planned rapid 38 transit station, contained within a transit-oriented district adopted by 39 such municipality, provided such transit-oriented district is of 40 reasonable size, as determined by the secretary, or the secretary's 41 designee, in accordance with subsection (e) of this section, and either (A) 42 includes land of such municipality located within a one-half-mile radius 43 of any such station, or (B) is located within a reasonable distance, as 44 determined by the secretary, or the secretary's designee, of any other 45 transit service, a commercial corridor or the downtown area of such 46 municipality; 47 (7) "Qualifying transit-oriented community" means any municipality 48 that is a qualifying rapid transit community or qualifying bus transit 49 community; 50 (8) "Rapid transit station" means any public transportation station 51 Substitute Bill No. 6831 LCO 3 of 14 serving any rail or rapid bus route; 52 (9) "Regular bus service station" means any fixed location where a bus 53 regularly stops, not less than once every sixty minutes during peak 54 operating hours, for the loading or unloading of passengers along a 55 defined route operating on a fixed schedule; 56 (10) "Secretary" means the Secretary of the Office of Policy and 57 Management, or the secretary's designee; 58 (11) "Transit-oriented district" means a collection of parcels of land in 59 a municipality designated by such municipality and subject to zoning 60 criteria designed to encourage increased density of development, 61 including mixed-use development and a concentration of developments 62 utilizing discretionary infrastructure funding; and 63 (12) "Zoning commission" means any zoning commission, a planning 64 commission in a municipality that has adopted a planning commission 65 but not a zoning commission, or a combined planning and zoning 66 commission. 67 (b) A qualifying transit-oriented community or municipality that has 68 adopted a resolution pursuant to subsection (c) of this section shall be 69 eligible for the receipt of discretionary infrastructure funding on a 70 priority basis, provided such community meets the eligibility criteria for 71 the discretionary infrastructure funding. Any funding provided on a 72 priority basis pursuant to this section shall be used exclusively for the 73 development, renovation, expansion, management or maintenance of 74 improvements located in a transit-oriented district. To receive such 75 funding on a priority basis, any such community or municipality shall 76 submit an application for such funding to the secretary in a form 77 developed by the secretary. The secretary shall make recommendations 78 to the state agency responsible for administering or managing such 79 funding and, if priority funding is permitted for such funding, such 80 agency may prioritize such community or municipality for the receipt 81 of such funding over any municipality that is not a qualifying transit-82 oriented community or that has not adopted a resolution pursuant to 83 Substitute Bill No. 6831 LCO 4 of 14 subsection (c) of this section, based on the secretary's recommendations. 84 Nothing in this subsection shall be construed to limit the use of funding 85 received pursuant to this section if the use of such funding to develop, 86 renovate, expand, manage or maintain improvements within a transit-87 oriented district also benefits real property located outside of a transit-88 oriented district. 89 (c) A municipality that is not a qualifying transit-oriented community 90 shall be eligible for discretionary infrastructure funding on a priority 91 basis pursuant to this section if the legislative body of the municipality 92 adopts a resolution stating that such municipality intends to enact 93 zoning regulations that enable such municipality to become a qualifying 94 transit-oriented community. Such municipality shall enact such zoning 95 regulations not later than eighteen months after the adoption of such 96 resolution. If such municipality does not enact such regulations within 97 eighteen months after the adoption of such resolution, unless the 98 secretary grants an extension to such municipality at the secretary's 99 discretion, such municipality shall return any discretionary 100 infrastructure funding provided to such municipality on a priority basis 101 pursuant to this section and such municipality shall be ineligible for 102 discretionary infrastructure funding on a priority basis until such 103 municipality enacts zoning regulations that enable the municipality to 104 become a qualifying transit-oriented community. Nothing in this section 105 shall be construed to make a municipality that is not a qualifying transit-106 oriented community ineligible for discretionary infrastructure funding. 107 (d) The zoning commission of the municipality shall consult with the 108 inland wetlands agency of the municipality to establish the boundaries 109 of any proposed transit-oriented district within the municipality. If any 110 proposed activity in such proposed district may be a regulated activity, 111 as defined in section 22a-38 of the general statutes, such commission 112 shall collaborate with such agency to determine whether such proposed 113 activity would constitute a regulated activity for which a permit is 114 required. 115 (e) In determining whether a transit-oriented district is of reasonable 116 Substitute Bill No. 6831 LCO 5 of 14 size, the secretary, or the secretary's designee, in consultation with the 117 zoning commission of the municipality, shall (1) determine whether the 118 area of such district is adequate to support greater density of 119 development in an equitable manner, as determined by the secretary, or 120 the secretary's designee, considering the geographic characteristics of 121 the municipality; (2) consider municipal and regional housing needs; 122 and (3) not require the inclusion of the following lands in any such 123 district: (A) Special flood hazard areas designated on a flood insurance 124 rate map published by the National Flood Insurance Program, (B) 125 wetlands, as defined in section 22a-38 of the general statutes, (C) land 126 designated for use as a public park, (D) land subject to conservation or 127 preservation restrictions, as defined in section 47-42a of the general 128 statutes, (E) coastal resources, as defined in section 22a-93 of the general 129 statutes, (F) areas necessary for the protection of drinking water 130 supplies, and (G) areas designated as likely to be inundated during a 131 thirty-year flood event by the Marine Sciences Division of The 132 University of Connecticut pursuant to the division's responsibilities to 133 conduct sea level change scenarios pursuant to subsection (b) of section 134 25-68o of the general statutes. The zoning commission may consult with 135 any other agency of the municipality to determine whether a transit-136 oriented district is of reasonable size. 137 (f) (1) A qualifying transit-oriented community shall allow the 138 following developments as of right in any transit-oriented district: (A) 139 Middle housing developments, if such development contains nine or 140 fewer dwelling units; (B) developments that contain ten or more 141 dwelling units where not less than thirty per cent of such units qualify 142 as a set-aside development pursuant to section 8-30g of the general 143 statutes; and (C) developments on land owned by (i) the municipality in 144 which such land is located, (ii) the state, (iii) the public housing 145 authority of the municipality in which such district is located, (iv) any 146 not-for-profit entity, and (v) any religious organization, as defined in 147 section 49-31k of the general statutes, if such development is composed 148 entirely of units that are subject to a deed restriction that requires, for 149 not less than forty years after the initial occupation of the proposed 150 Substitute Bill No. 6831 LCO 6 of 14 development, that such units be sold or rented at, or below, a cost in rent 151 or mortgage payments equivalent to not more than thirty per cent of the 152 annual income of individuals and families earning sixty per cent of the 153 median income of the state or the area median income as determined by 154 the United States Department of Housing and Urban Development, 155 whichever is less. 156 (2) A qualifying transit-oriented community shall allow for mixed-157 use development, as defined in section 8-1a of the general statutes, on 158 any lot located in a transit-oriented district. 159 (3) Notwithstanding the provisions of this subsection, if a proposed 160 development is required to have a public hearing by the inland wetlands 161 agency of the municipality, such proposed development must receive 162 such public hearing prior to such development's approval. 163 (g) Each qualifying transit-oriented community shall require that any 164 proposed development within any transit-oriented district that contains 165 ten or more dwelling units that are not allowed as of right under 166 subsection (f) of this section be subject to (1) a deed restriction that 167 requires, for not less than forty years after the initial occupation of the 168 proposed development, that a percentage of dwelling units, as set forth 169 in subsection (h) of this section, be sold or rented at, or below, a cost in 170 rent or mortgage payments equivalent to not more than thirty per cent 171 of the annual income of individuals and families earning sixty per cent 172 of the median income of the state or the area median income as 173 determined by the United States Department of Housing and Urban 174 Development, whichever is less; or (2) a contribution agreement 175 pursuant to subsection (i) of this section. 176 (h) The percentage of deed-restricted dwelling units required 177 pursuant to subdivision (1) of subsection (g) of this section shall be 178 determined based upon sales market typologies as described in the most 179 recent Connecticut Housing Finance Authority Housing Needs 180 Assessment: 181 (1) Ten per cent for any municipality designated High 182 Substitute Bill No. 6831 LCO 7 of 14 Opportunity/Heating Market; 183 (2) Ten per cent for any municipality designated High 184 Opportunity/Cooling Market; and 185 (3) Five per cent for any municipality designated Low 186 Opportunity/Heating Market. 187 (i) Any municipality that adopts a transit-oriented district containing 188 a rapid transit station or regular bus service station on or before October 189 1, 2025, may apply, in a form and manner prescribed by the secretary, 190 for determination as a qualifying transit-oriented community. In 191 making such determination, the secretary, or the secretary's designee, 192 shall determine if such municipality is in compliance with the 193 requirements of this section. Nothing in this section shall be construed 194 to (1) require that a municipality that has adopted a transit-oriented 195 district be determined to be a qualifying transit-oriented community, or 196 (2) authorize the secretary to deem a municipality a qualifying transit-197 oriented community without the approval of such municipality. 198 (j) Each qualifying transit-oriented community shall be eligible for 199 additional funding pursuant to any program administered by the 200 secretary if such community implements additional zoning criteria, 201 including, but not limited to, higher density development, greater 202 affordability of housing units than is required in subsection (h) of this 203 section, the development of public land or public housing, the 204 implementation of programs to encourage homeownership 205 opportunities within such community and any additional criteria 206 determined by the secretary. 207 (k) (1) The secretary, in consultation with the interagency council on 208 housing development established pursuant to section 3 of this act, shall 209 develop guidelines concerning transit-oriented districts within transit-210 oriented communities, including, but not limited to, prioritizing mixed-211 use and mixed-income developments; increasing the availability of 212 affordable housing; ensuring appropriate environmental considerations 213 in the development of such districts, with an emphasis on the analysis 214 Substitute Bill No. 6831 LCO 8 of 14 of any potential impacts on environmental justice communities, as 215 defined in section 22a-20a of the general statutes; increasing ridership of 216 mass transit systems; increasing the feasibility of walking, biking and 217 utilizing other means of mobility other than motor vehicle travel; 218 reducing the need for motor vehicle travel; maximizing the availability 219 of developable land; increasing the economic viability of development 220 projects; reducing the length of time to approve applications for 221 development; parking requirements; lot size; lot coverage; setback 222 requirements; floor area ratio; height restrictions; and inclusionary 223 zoning requirements. Such guidelines may include model ordinances, 224 regulations or bylaws that may be adopted by a municipality pursuant 225 to section 8-2 of the general statutes. Except as provided in subdivision 226 (2) of this subsection, regulations developed by a qualifying transit-227 oriented community concerning transit-oriented districts within such 228 community shall substantially comply with the guidelines adopted by 229 the secretary. The secretary, or the secretary's designee, may offer 230 technical assistance to any qualifying transit-oriented community 231 concerning the adoption of such regulations. 232 (2) If a qualifying transit-oriented community seeks to adopt 233 regulations concerning a transit-oriented district that do not 234 substantially comply with the guidelines developed pursuant to 235 subdivision (1) of this subsection, or subsection (f) or (g) of this section, 236 such community shall seek an exemption by submitting an application, 237 in a form and manner prescribed by the secretary, that specifies the 238 reasons such community seeks to adopt regulations that do not 239 substantially comply with the guidelines developed by the secretary, or 240 subsection (f) or (g) of this section, except no community may seek an 241 exemption from the provisions of subsection (f) or (g) of this section 242 unless the secretary determines such community is a qualifying transit-243 oriented community pursuant to subsection (i) of this section. Not later 244 than sixty days after the receipt of any such application, the secretary 245 shall approve or deny such exemption in writing. The secretary shall not 246 unreasonably withhold approval for any such exemption. 247 (3) If an application submitted pursuant to subdivision (2) of this 248 Substitute Bill No. 6831 LCO 9 of 14 subsection is denied by the secretary, the transit-oriented community 249 that submitted such application may opt out of the provisions of this 250 section and no longer qualify for discretionary infrastructure funding 251 on a priority basis pursuant to this section, provided such community 252 shall return any discretionary infrastructure funding such community 253 received pursuant to this section. 254 (l) Notwithstanding the provisions of subsection (b) of this section, 255 any qualifying transit-oriented community with one or more transit-256 oriented districts located in an activity zone, as identified in the state 257 plan of conservation and development adopted under chapter 297 of the 258 general statutes for the years 2025 to 2030, inclusive, shall be awarded 259 discretionary infrastructure funding by the agency administering any 260 such funding at a higher priority than a qualifying transit-oriented 261 community without any such district located in any such zone. 262 (m) The secretary, or the secretary's designee, may provide a 263 municipality with an interpretation or written guidance concerning 264 whether zoning regulations adopted or proposed to be adopted by such 265 municipality, if such regulations apply to a transit-oriented district, 266 comply with the requirements of this section or section 2 of this act. 267 Nothing in this subsection shall be construed to allow the secretary to 268 impose any additional requirement upon any such district or 269 municipality that is not specified in this section or section 8-2 of the 270 general statutes. 271 Sec. 2. (NEW) (Effective October 1, 2025) (a) For the purposes of this 272 section, "qualifying transit-adjacent community" means a municipality 273 (1) without a rapid transit station, (2) that borders a municipality that 274 has one or more rapid transit stations or regular bus service stations, 275 and (3) that designates a transit-oriented district in or adjacent to a 276 downtown area located in such municipality; 277 (b) A municipality may, by resolution of the municipality's legislative 278 body, request that the State Responsible Growth Coordinator deem such 279 municipality a qualifying transit-adjacent community. The coordinator 280 Substitute Bill No. 6831 LCO 10 of 14 shall designate such municipality a qualifying transit-adjacent 281 community if the coordinator finds that such municipality (1) meets the 282 definition of such community provided in subsection (a) of this section, 283 and (2) is not a qualifying transit-oriented community. 284 (c) A municipality deemed by the coordinator to be a qualifying 285 transit-adjacent community shall be entitled to any discretionary 286 infrastructure funding available to a qualifying transit-oriented 287 community if such municipality adopts a transit-oriented district that 288 complies with the requirements concerning such districts provided in 289 section 1 of this act. 290 Sec. 3. (NEW) (Effective from passage) (a) There is established an 291 interagency council on housing development to advise and assist the 292 State Responsible Growth Coordinator in reviewing regulations, 293 developing guidelines and establishing programs concerning transit-294 oriented districts to support the responsible growth of housing in the 295 state. 296 (b) The council shall consist of the following regular members: (1) The 297 State Responsible Growth Coordinator; (2) the Secretary of the Office of 298 Policy and Management, or the secretary's designee; (3) the 299 Commissioner of Housing, or the commissioner's designee; (4) the 300 Commissioner of Economic and Community Development, or the 301 commissioner's designee; (5) the Commissioner of Energy and 302 Environmental Protection, or the commissioner's designee; (6) the 303 Commissioner of Public Health, or the commissioner's designee; (7) the 304 Commissioner of Transportation, or the commissioner's designee; (8) 305 the chief executive officer of the Connecticut Housing Finance 306 Authority, or the chief executive officer's designee; and (9) the chief 307 executive officer of the Municipal Redevelopment Authority, or the 308 chief executive officer's designee. 309 (c) In addition to the regular members set forth in subsection (b) of 310 this section, the council may consist of any ad hoc members that the 311 State Responsible Growth Coordinator determines are necessary to 312 Substitute Bill No. 6831 LCO 11 of 14 complete the work of the council. 313 (d) The chairperson of the council shall be the State Responsible 314 Growth Coordinator. 315 (e) The council shall convene not later than July 1, 2025, and meet not 316 less than once every six months and more often upon the call of the 317 chairperson, to: 318 (1) Review and evaluate the plans, programs, regulations and policies 319 of state or quasi-public agencies for opportunities to combine efforts and 320 resources of such agencies to increase housing development; 321 (2) Develop consistent reporting methods concerning data and 322 documentation related to housing development; 323 (3) Provide a forum to develop approaches to housing growth that 324 balance both needs for conservation and development, including the 325 need for additional housing and economic growth, the protection of 326 natural resources and the maintenance and support for existing 327 infrastructure; 328 (4) Review existing discretionary grant programs to make 329 recommendations to state or quasi-public agencies concerning the 330 adherence of such programs with the goals established in the state plan 331 of conservation and development adopted under chapter 297 of the 332 general statutes. Such recommendations shall include, but need not be 333 limited to, methods to increase the development of deed-restricted 334 housing in transit-oriented districts and middle housing, as defined in 335 section 8-1a of the general statutes; and 336 (5) Develop guidelines, in consultation with the Secretary of the 337 Office of Policy and Management and consistent with the requirements 338 of subsection (k) of section 1 of this act, concerning the adoption and 339 development of transit-oriented districts within qualifying transit-340 oriented communities. 341 (f) Not later than October 1, 2026, the council shall submit a report, in 342 Substitute Bill No. 6831 LCO 12 of 14 accordance with the provisions of section 11-4a of the general statutes, 343 to the joint standing committees of the General Assembly having 344 cognizance of matters relating to planning and development and 345 housing, concerning the recommendations and guidelines developed by 346 the council pursuant to subdivisions (4) and (5) of subsection (e) of this 347 section. The coordinator shall publish such recommendations and 348 guidelines on the Internet web site of the Office of Policy and 349 Management. 350 (g) Not later than October 1, 2026, and annually thereafter, the council 351 shall submit a report, in accordance with the provisions of section 11-4a 352 of the general statutes, to the joint standing committees of the General 353 Assembly having cognizance of matters relating to planning and 354 development and housing, concerning the recommendations of the 355 council. 356 Sec. 4. (NEW) (Effective October 1, 2025) The Secretary of the Office of 357 Policy and Management may establish, within available appropriations, 358 a program to provide grants to regional councils of governments for the 359 development of projects related to public transit infrastructure, bicycle 360 infrastructure or pedestrian infrastructure. 361 Sec. 5. (NEW) (Effective October 1, 2025) There is established an 362 account to be known as the "public water and sewer rehabilitation or 363 expansion account" which shall be a separate, nonlapsing account 364 within the General Fund. The account shall contain any moneys 365 required by law to be deposited in the account. Moneys in the account 366 shall be expended by the Commissioner of Public Health, or the 367 commissioner's designee, for the purposes of rehabilitating or 368 expanding public water and sewerage infrastructure for any transit-369 oriented district established by a municipality pursuant to section 1 of 370 this act. Proceeds from such account may be provided to any qualifying 371 rapid transit community, a qualifying bus transit community or any 372 owner of real property in a development approved for such funding at 373 the discretion of the Commissioner of Public Health located within a 374 transit-oriented district. 375 Substitute Bill No. 6831 LCO 13 of 14 Sec. 6. Subsection (a) of section 8-169tt of the general statutes is 376 repealed and the following is substituted in lieu thereof (Effective October 377 1, 2025): 378 (a) As used in this section, "housing growth zone" means (1) any area 379 within a municipality in which applicable zoning regulations adopted 380 pursuant to section 8-2 are designed to facilitate substantial 381 development of new dwelling units consistent with subsection (c) of this 382 section, or (2) any transit-oriented district established by a municipality 383 pursuant to section 1 of this act. Any housing growth zone shall 384 encompass an entire development district and may include areas 385 outside such district. 386 Sec. 7. Subsection (f) of section 8-2o of the general statutes is repealed 387 and the following is substituted in lieu thereof (Effective October 1, 2025): 388 (f) Notwithstanding the provisions of subsections (a) to (d), inclusive, 389 of this section, the zoning commission or combined planning and 390 zoning commission, as applicable, of a municipality, by a two-thirds 391 vote, may initiate the process by which such municipality opts out of 392 the provisions of said subsections regarding the allowance of accessory 393 apartments, provided such commission: (1) First holds a public hearing 394 in accordance with the provisions of section 8-7d on such proposed opt-395 out, (2) affirmatively decides to opt out of the provisions of said 396 subsections within the period of time permitted under section 8-7d, (3) 397 states [upon its] in the records of such commission the reasons for such 398 decision, and (4) publishes notice of such decision in a newspaper 399 having a substantial circulation in the municipality not later than fifteen 400 days after such decision has been rendered. Thereafter, the 401 municipality's legislative body or, in a municipality where the 402 legislative body is a town meeting, [its] such municipality's board of 403 selectmen, by a two-thirds vote, may complete the process by which 404 such municipality opts out of the provisions of subsections (a) to (d), 405 inclusive, of this section, except that, on and after January 1, 2023, no 406 municipality may opt out of the provisions of said subsections. 407 Substitute Bill No. 6831 LCO 14 of 14 Sec. 8. Section 8-2o of the general statutes is amended by adding 408 subsection (g) as follows (Effective October 1, 2025): 409 (NEW) (g) Notwithstanding any prior action of the municipality to 410 opt out of the provisions of subsections (a) to (d), inclusive, of this 411 section, pursuant to subsection (f) of this section, any owner of real 412 property located within a transit-oriented district, as defined in section 413 1 of this act, who has owned real property in the municipality for not 414 fewer than three years may construct an accessory apartment as of right 415 on such real property, provided such accessory apartment shall comply 416 with any structural or architectural requirements imposed by any 417 zoning regulations adopted pursuant to section 8-2. 418 This act shall take effect as follows and shall amend the following sections: Section 1 October 1, 2025 New section Sec. 2 October 1, 2025 New section Sec. 3 from passage New section Sec. 4 October 1, 2025 New section Sec. 5 October 1, 2025 New section Sec. 6 October 1, 2025 8-169tt(a) Sec. 7 October 1, 2025 8-2o(f) Sec. 8 October 1, 2025 8-2o(g) Statement of Legislative Commissioners: In Section 1(a)(1), a duplicate instance of "22a-477" was deleted for accuracy. PD Joint Favorable Subst.