The proposed General Assembly Substitute Bill No. 12 aims to enhance Connecticut's housing landscape by establishing a working group tasked with studying barriers to the construction of starter homes, which are defined as affordable single-family residential dwellings. 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 introduces measures to increase funding for affordable housing projects, including amendments to Section 10-285a to raise the percentage of school building project grant money available based on a municipality's affordable housing threshold, and authorizes the State Bond Commission to issue up to $50 million in bonds for projects that create construction jobs and develop affordable housing.

Additionally, the bill implements significant changes to rental agreements and housing regulations, prohibiting clauses that waive tenant rights or limit landlord liability, while ensuring gender-neutral language by replacing "his" with "such tenant's." It mandates the creation of fair rent commissions in towns to address excessive rental charges, with a compliance deadline extended to January 1, 2028. The bill also facilitates the conversion of commercial buildings into residential developments, establishes a pilot program for mortgage rate reductions for first-time homebuyers with student loan debt, and introduces new eligibility criteria for rental assistance. The bill appropriates funds to enhance rental assistance programs, including $4.2 million for elderly or disabled persons and $4.5 million for the Head Start on Housing Program. The provisions of the bill will take effect on July 1, 2025.

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