House Bill No. 6950 amends the definition of "set-aside development" within the affordable housing land use appeals procedure, requiring that at least thirty percent of dwelling units be sold or rented at prices affordable to households earning thirty percent or less of their annual income, with income limits set at eighty percent of the median income. The bill introduces new provisions allowing tenants whose income exceeds these thresholds to continue renting their units for up to three years, enhancing housing stability for families. It also repeals existing language in subsection (d) and replaces it with clearer conditions for tenant retention despite exceeding income eligibility, while ensuring that maximum monthly housing costs do not exceed specified percentages of the Section 8 fair market rent.

Furthermore, the bill establishes that for a development to qualify as a set-aside, at least 30% of the units must be deed-restricted based on specified household income limits for a minimum of 40 years after initial occupancy. It outlines a formula for the Department of Housing to determine maximum housing payments for these deed-restricted units, which involves calculating a percentage of the applicable median income adjusted for family size. The bill maintains existing legal thresholds for maximum monthly payments as specified in CGS § 8-30g(d) and has received favorable support from the Housing Committee, reflecting a strong endorsement for its provisions. The effective date for these changes is set for July 1, 2025.