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 enhances funding for affordable housing projects by amending Section 10-285a to increase 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 affordable housing. A new four-year pilot program will be established to fund eligible projects, ensuring that all housing developed remains affordable for at least 40 years.

Additionally, the bill introduces amendments to existing rental and housing laws, prohibiting rental agreements from including clauses that waive tenant rights or impose excessive fees, while ensuring gender-neutral language. It expands the definition of rental charges to include all landlord-imposed fees and mandates towns to create fair rent commissions by January 1, 2028. The legislation facilitates the conversion of commercial buildings into residential developments without municipal conditions related to nonconforming uses and establishes a timeline for permit applications. It also introduces a pilot program to assist first-time homebuyers with student loan debt through mortgage rate reductions. Significant appropriations are made 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. The act is set to take effect on July 1, 2025, and includes various amendments to existing statutes.

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