House Bill No. 6950 seeks to amend the definition of "set-aside development" within the affordable housing land use appeals procedure. The bill stipulates that a set-aside development must include at least thirty percent of dwelling units that are sold or rented at prices affordable to households earning thirty percent or less of their annual income, with income thresholds set at eighty percent of the median income. A significant addition to the bill is the provision that allows tenants whose income exceeds the specified limits to continue renting their units for up to three years, thereby enhancing housing stability for families transitioning out of income-restricted status. The bill also repeals and replaces existing language in subsection (d) of section 8-30g, clarifying the conditions under which these tenants can remain in their units, ensuring that landlords must allow continued rental for a maximum of three years while adhering to specific cost thresholds related to Section 8 fair market rent.

Furthermore, the bill introduces new requirements for government-assisted housing, mandating that for a minimum of 40 years after initial occupancy, at least 30% of the units in such developments must be deed-restricted according to specified household income limits. The Department of Housing is tasked with establishing regulations to determine the maximum housing payment for these deed-restricted units, calculated based on median income restrictions adjusted for family size. The bill also aligns with sHB 7031, which aims to expand the types of units eligible for municipal exemptions from existing housing regulations. The Housing Committee has favorably reported HB6950 with a vote of 17 in favor and 1 against, reflecting a commitment to enhancing affordable housing options while maintaining regulatory oversight. The bill is set to take effect on July 1, 2025, and is projected to have no fiscal impact on the state or municipalities.