General Assembly Substitute Bill No. 12 seeks to address Connecticut's housing challenges by establishing a working group tasked with studying barriers to the construction of starter homes, which are defined as affordable single-family residences. This group will include key stakeholders such as the chairpersons of the housing committee and the Commissioner of Housing, and is required to submit a report with findings and recommendations by January 1, 2026. The bill also amends existing statutes to enhance funding for school building projects in municipalities that meet specific affordable housing thresholds, allowing for increased grant percentages based on the availability of affordable housing. Additionally, it authorizes the State Bond Commission to issue up to $50 million in bonds to finance projects aimed at creating construction jobs and developing affordable housing, with a four-year pilot program established to support these initiatives.

The bill introduces several amendments to rental and housing laws, including prohibiting certain provisions in rental agreements that waive tenant rights or limit landlord liability, and ensuring gender-neutral language by replacing "his" with "such tenant's." It mandates the creation of fair rent commissions in all towns by January 1, 2028, and facilitates the conversion of commercial buildings into residential units without correcting nonconforming uses. Furthermore, it establishes new eligibility criteria for housing assistance programs targeting individuals with student loan debt, requiring applicants to meet specific income guidelines and have a minimum unpaid student loan balance. The bill also allocates significant funding to the Department of Housing, including $4.2 million for rental assistance certificates for elderly or disabled persons and $4.5 million for the Head Start on Housing Program, with various sections of the general statutes being amended to support these initiatives.

Statutes affected:
Committee Bill: 10-285a, 7-148b
HSG Joint Favorable: 10-285a, 7-148b
File No. 251: 10-285a, 7-148b
FIN Joint Favorable: 10-285a, 7-148b
APP Joint Favorable: 10-285a, 7-148b