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General Assembly Substitute Bill No. 12
January Session, 2025
AN ACT CONCERNING CONNECTICUT'S HOUSING NEEDS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. (Effective from passage) (a) There is established a working 1
group to study existing barriers at both the state and municipal level to 2
building additional starter homes in the state. Such study shall include, 3
but need not be limited to, an examination of zoning restrictions, 4
subdivision requirements, building and fire safety codes and common 5
interest community regulations. For purposes of this section, "starter 6
homes" means affordable single-family residential dwellings. 7
(b) The working group shall consist of the chairpersons of the joint 8
standing committee of the General Assembly having cognizance of 9
matters relating to housing, who shall serve as chairpersons of the 10
working group, and any individuals who such chairpersons believe 11
may serve as sources of information and data to accomplish the 12
purposes of this section, including, but not limited to, the Commissioner 13
of Housing, or the commissioner's designee, and any professionals with 14
expertise in the areas of housing and state, regional or local planning. 15
(c) The chairpersons shall schedule the first meeting of the working 16
group, which shall be held not later than sixty days after the effective 17
date of this section. 18
(d) The administrative staff of the joint standing committee of the 19 Substitute Bill No. 12
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General Assembly having cognizance of matters relating to housing 20
shall serve as the administrative staff of the working group. 21
(e) Not later than January 1, 2026, the working group shall submit a 22
report on its findings and recommendations to the joint standing 23
committee of the General Assembly having cognizance of matters 24
relating to housing, in accordance with the provisions of section 11-4a 25
of the general statutes. The working group shall terminate on the date 26
that it submits such report or January 1, 2026, whichever is later. 27
Sec. 2. Section 10-285a of the general statutes is amended by adding 28
subsection (l) as follows (Effective July 1, 2025): 29
(NEW) (l) On and after July 1, 2025, for applications submitted 30
pursuant to subsection (a) of section 10-283, the percentage of school 31
building project grant money a local board of education may be eligible 32
to receive shall be increased for a five-year period in accordance with 33
this subsection if, prior to December first of the year in which the board 34
submits an application for a grant, such board submits a written 35
determination issued by the Commissioner of Housing within such year 36
finding that the municipality in which the school building project is to 37
occur meets one of the thresholds of affordable housing, as provided in 38
section 8-30g, specified in subdivisions (1) to (3), inclusive, of this 39
subsection. A local board of education shall be eligible to receive the 40
following increase in such grant money: (1) Twenty per cent, if the 41
municipality for such board meets or exceeds a ten per cent threshold of 42
affordable housing, (2) eight per cent, if the municipality for such board 43
meets at least eight per cent but less than ten per cent of such threshold 44
of affordable housing, and (3) five per cent, if the municipality for such 45
board meets at least six per cent but less than eight per cent of such 46
threshold of affordable housing. 47
Sec. 3. (Effective July 1, 2025) (a) For the purposes described in 48
subsection (b) of this section, the State Bond Commission shall have the 49
power from time to time to authorize the issuance of bonds of the state 50
in one or more series and in principal amounts not exceeding in the 51 Substitute Bill No. 12
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aggregate fifty million dollars. 52
(b) The proceeds of the sale of such bonds, to the extent of the amount 53
stated in subsection (a) of this section, shall be used by the Department 54
of Housing for the purpose of financing approved projects to create 55
employment opportunities in the construction industry to develop 56
affordable housing pursuant to section 4 of this act. 57
(c) All provisions of section 3-20 of the general statutes, or the exercise 58
of any right or power granted thereby, that are not inconsistent with the 59
provisions of this section are hereby adopted and shall apply to all 60
bonds authorized by the State Bond Commission pursuant to this 61
section. Temporary notes in anticipation of the money to be derived 62
from the sale of any such bonds so authorized may be issued in 63
accordance with section 3-20 of the general statutes and from time to 64
time renewed. Such bonds shall mature at such time or times not 65
exceeding twenty years from their respective dates as may be provided 66
in or pursuant to the resolution or resolutions of the State Bond 67
Commission authorizing such bonds. None of such bonds shall be 68
authorized except upon a finding by the State Bond Commission that 69
there has been filed with it a request for such authorization that is signed 70
by or on behalf of the Secretary of the Office of Policy and Management 71
and states such terms and conditions as said commission, in its 72
discretion, may require. Such bonds issued pursuant to this section shall 73
be general obligations of the state and the full faith and credit of the state 74
of Connecticut are pledged for the payment of the principal of and 75
interest on such bonds as the same become due, and accordingly and as 76
part of the contract of the state with the holders of such bonds, 77
appropriation of all amounts necessary for punctual payment of such 78
principal and interest is hereby made, and the State Treasurer shall pay 79
such principal and interest as the same become due. 80
Sec. 4. (Effective July 1, 2025) (a) The Commissioner of Housing shall, 81
within available bond authorizations, develop and establish a four-year 82
pilot program to provide funding for proposed projects that create 83
employment opportunities in the construction industry to develop 84 Substitute Bill No. 12
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affordable housing. 85
(b) On and after July 1, 2025, a sponsor of a proposed project that is 86
eligible to receive funding under this section may submit an application, 87
in a form and manner provided by the commissioner, to receive funds 88
from the pilot program for such project. The commissioner shall 89
establish criteria for awarding funds pursuant to this section, including, 90
but not limited to, a requirement that (1) an applicant secure 91
coinvestment funding in the proposed project by a union pension fund 92
or comingled fund of union pension fund investments with a 93
demonstrated record of successful investment in the construction of 94
affordable housing, (2) the proposed project be covered by a project 95
labor agreement, and (3) an applicant be committed to workforce 96
training by adhering to state-registered apprenticeship standards and 97
apprenticeship readiness programs. 98
(c) All housing built with funds received from the pilot program 99
pursuant to this section shall remain affordable, through the use of 100
deeds containing covenants or restrictions that require such housing be 101
sold or rented at, or below, prices that will preserve the unit as housing, 102
for a period of not less than forty years, for which persons and families 103
pay thirty per cent or less of income, where such income is less than or 104
equal to eighty per cent of the median income or other means selected 105
by the commissioner. 106
(d) Not later than six months following the date of completion of the 107
pilot program, the Commissioner of Housing shall submit a report, in 108
accordance with the provisions of section 11-4a of the general statutes, 109
to the joint standing committee of the General Assembly having 110
cognizance of matters relating to housing. Such report shall include an 111
analysis of the efficacy of the pilot program administered pursuant to 112
this section and any recommendations for legislation to expand such 113
program or implement such program on a permanent basis. 114
Sec. 5. Section 47a-4 of the general statutes is repealed and the 115
following is substituted in lieu thereof (Effective July 1, 2025): 116 Substitute Bill No. 12
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(a) A rental agreement shall not provide that the tenant: (1) Agrees to 117
waive or forfeit rights or remedies under this chapter and sections 47a-118
21, 47a-23 to 47a-23b, inclusive, 47a-26 to 47a-26g, inclusive, 47a-35 to 119
47a-35b, inclusive, 47a-41a, 47a-43 and 47a-46, or under any section of 120
the general statutes or any municipal ordinance unless such section or 121
ordinance expressly states that such rights may be waived; (2) 122
authorizes the landlord to confess judgment on a claim arising out of the 123
rental agreement; (3) agrees to the exculpation or limitation of any 124
liability of the landlord arising under law or to indemnify the landlord 125
for that liability or the costs connected therewith; (4) agrees to waive 126
[his] such tenant's right to the interest on the security deposit pursuant 127
to section 47a-21; (5) agrees to permit the landlord to dispossess [him] 128
such tenant without resort to court order; (6) consents to the distraint of 129
[his] such tenant's property for rent; (7) agrees to pay the landlord's 130
attorney's fees in excess of fifteen per cent of any judgment against the 131
tenant in any action in which money damages are awarded; (8) agrees 132
to pay a late charge prior to the expiration of the grace period set forth 133
in section 47a-15a or to pay rent in a reduced amount if such rent is paid 134
prior to the expiration of such grace period; (9) agrees to pay a late 135
charge on rent payments made subsequent to such grace period in an 136
amount exceeding the amounts set forth in section 47a-15a; [or] (10) 137
agrees to pay a heat or utilities surcharge if heat or utilities is included 138
in the rental agreement; or (11) agrees to pay for utilities if no separate 139
meter for such utilities exists for such tenant's dwelling unit. 140
(b) A provision prohibited by subsection (a) of this section included 141
in a rental agreement is unenforceable. 142
Sec. 6. Section 7-148b of the general statutes is repealed and the 143
following is substituted in lieu thereof (Effective July 1, 2025): 144
(a) For purposes of this section and sections 7-148c to 7-148f, 145
inclusive, "seasonal basis" means housing accommodations rented for a 146
period or periods aggregating not more than one hundred twenty days 147
in any one calendar year and "rental charge" includes any fee or charge 148
in addition to rent that is imposed or sought to be imposed upon a 149 Substitute Bill No. 12
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tenant by a landlord. 150
(b) Any town, city or borough [may, and any town, city or borough 151
with a population of twenty-five thousand or more, as determined by 152
the most recent decennial census,] shall, through its legislative body, 153
adopt an ordinance that creates a (1) fair rent commission, (2) joint fair 154
rent commission, pursuant to subsection (d) of this section, or (3) 155
regional fair rent commission, pursuant to subsection (e) of this section. 156
Any such commission shall make studies and investigations, conduct 157
hearings and receive complaints relative to rental charges on housing 158
accommodations, except those accommodations rented on a seasonal 159
basis, within its jurisdiction, which term shall include mobile 160
manufactured homes and mobile manufactured home park lots, in 161
order to control and eliminate excessive rental charges on such 162
accommodations, and to carry out the provisions of sections 7-148b to 163
7-148f, inclusive, as amended by this act, section 47a-20 and subsection 164
(b) of section 47a-23c. The commission, for such purposes, may compel 165
the attendance of persons at hearings, issue subpoenas and administer 166
oaths, issue orders and continue, review, amend, terminate or suspend 167
any of its orders and decisions. The commission may be empowered to 168
retain legal counsel to advise it. 169
(c) Any town, city or borough [required to create a fair rent 170
commission pursuant to subsection (b) of this section] shall adopt an 171
ordinance creating such fair rent commission on or before [July 1, 2023] 172
January 1, 2028. Not later than thirty days after the adoption of such 173
ordinance, the chief executive officer of such town, city or borough shall 174
(1) notify the Commissioner of Housing that such commission has been 175
created, and (2) transmit a copy of the ordinance adopted by the town, 176
city or borough to the commissioner. 177
(d) Any two or more towns, cities or boroughs [not subject to the 178
requirements of subsection (b) of this section] may, through their 179
legislative bodies, create a joint fair rent commission. 180
(e) Any towns, cities or boroughs that are members of a regional 181 Substitute Bill No. 12
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council of governments formed pursuant to section 4-124j may, through 182
their legislative bodies and such regional council of governments, create 183
a regional fair rent commission. 184
Sec. 7. (NEW) (Effective July 1, 2025) (a) As used in this section: 185
(1) "As of right" has the same meaning as provided in section 8-1a of 186
the general statutes; 187
(2) "Commercial building" means a structure primarily designed or 188
used for nonresidential purposes, including, but not limited to, hotels, 189
retail space and office space. "Commercial building" does not include an 190
industrial building; 191
(3) "Dwelling unit" has the same meaning as provided in section 47a-192
1 of the general statutes; 193
(4) "Industrial building" means a structure that is used primarily for 194
industrial activity and is generally not open to the public, including, but 195
not limited to, warehouses, factories and storage facilities; and 196
(5) "Residential development" means a structure or structures, or a 197
portion of a structure, that contains one or more dwelling units. 198
(b) Any zoning regulations adopted pursuant to section 8-2 of the 199
general statutes shall allow the conversion or partial conversion of any 200
commercial building into a residential development as of right. 201
(c) No municipality shall condition the approval of the conversion or 202
partial conversion of a commercial building into a residential 203
development on the correction of a nonconforming use, structure or lot. 204
(d) Nothing in this section shall be interpreted or enforced to exempt 205
the conversion or partial conversion of a commercial building into a 206
residential development from the requirements of any applicable 207
building code, fire safety code or fire prevention code. No municipality 208
shall unreasonably delay any inspection required in connection with 209
such conversion or partial conversion. 210 Substitute Bill No. 12
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(e) The as-of-right permit application and review process for 211
approval of the conversion or partial conversion of a commercial 212
building into a residential development shall require that a decision on 213
any such application be rendered not later than sixty-five days after 214
receipt of such application by the applicable zoning commission, except 215
that an applicant may consent to one or more extensions of not more 216
than an additional sixty-five days or may withdraw such application. 217
(f) Notwithstanding the provisions of section 12-62 of the general 218
statutes, no municipality shall subject a commercial building that has 219
been converted or partially converted under this section to a 220
revaluation, as defined in section 12-62 of the general statutes, for a 221
period of not less than three years after a certificate of occupancy is 222
issued in connection with such conversion or partial conversion. 223
Sec. 8. (NEW) (Effective July 1, 2025) (a) The Connecticut Housing 224
Finance Authority shall, as part of the homeownership loan program 225
established pursuant to section 8-286 of the general statutes, and within 226
the resources allocated by the State Bond Commission to the 227
Department of Housing for the purposes of said program, develop and 228
administer a pilot program for certain mortgage borrowers with unpaid 229
student loan debt. Such program shall authorize the authority to 230
provide a rate reduction to eligible mortgage holders in the amount of 231
up to one and one hundred twenty-five thousandths per cent. 232
(b) The Connecticut Housing Finance Authority shall establish 233
guidelines for the program established pursuant to subsection (a) of this 234
section. Such guidelines shall include the eligibility requirements for 235
program participants and other guidelines as deemed necessary by the 236
authority. 237
(c) To be eligible for the program, a borrower shall: 238
(1) Be a first-time homebuyer or have not owned a home in the past 239
three years unless purchasing in a targeted area, as defined in Section 240
143 of the Internal Revenue Code of 1986, or any subsequent 241
corresponding internal revenue code of the United States, as amended 242 Substitute Bill No. 12
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from time to time; 243
(2) Meet the income guidelines as established by the authority's 244
income limits based on household size and have a gross income at or 245
below one hundred per cent of the area median income; 246
(3) Have a combined student loan debt with at least a fifteen-247
thousand-dollar unpaid principal balance, provided such loan is in 248
good standing with no past due amounts and may be in repayment or 249
deferment status; and 250
(4) Meet other eligibility requirements as deemed necessary by the 251
authority. 252
Sec. 9. (Effective July 1, 2025) The sum of four million two hundred 253
thousand dollars is appropriated to the Department of Housing from 254
the General Fund, for the fiscal year ending June 30, 2026, to increase 255
rental assistance certificates issued to elderly or disabled persons 256
pursuant to section 8-119kk of the general statutes by at least four 257
hundred twenty-five certificates. 258
Sec. 10. (Effective July 1, 2025) The sum of four million five hundred 259
thousand dollars is appropriated to the Department of Housing from 260
the General Fund, for the fiscal year ending June 30, 2026, to provide a 261
grant-in-aid to the Head Start on Housing Program in order to increase 262
rental assistance program certificates issued to families participating in 263
Head Start by at least two hundred seventy-five certificates. 264
This act shall take effect as follows and shall amend the following
sections:
Section 1 from passage New section
Sec. 2 July 1, 2025 10-285a(l)
Sec. 3 July 1, 2025 New section
Sec. 4 July 1, 2025 New section
Sec. 5 July 1, 2025 47a-4
Sec. 6 July 1, 2025 7-148b
Sec. 7 July 1, 2025 New section Substitute Bill No. 12
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Sec. 8 July 1, 2025 New section
Sec. 9 July 1, 2025 New section
Sec. 10 July 1, 2025 New section
Statement of Legislative Commissioners:
Sections 1(a) and 4(b) were rewritten for clarity, and in Section 7(f),
"not less than" was added for clarity.
HSG Joint Favorable Subst. -LCO