Substitute Bill No. 7112 is a comprehensive legislative proposal aimed at addressing housing and homelessness issues in Connecticut. The bill establishes a study and task force focused on affordable housing initiatives, requiring the majority leaders' roundtable group to assess the feasibility of creating an Affordable Housing Real Estate Investment Trust. This trust would acquire housing units for long-term affordability through deed restrictions, with a report due by January 1, 2026. Additionally, the bill proposes a housing opportunity tax credit for landlords who rent to formerly incarcerated individuals, offering a 25% credit on rental income, and mandates the formation of a task force to evaluate the impact of this credit. The bill also repeals Section 7-246 of the general statutes, replacing it with new provisions related to municipal water pollution control authorities.

Furthermore, the bill enhances municipal water pollution control plans, particularly in areas with a high percentage of single-family homes, by requiring strategies for sewer services that support multifamily housing development. It introduces a sustainable infrastructure support program to provide grants for sewer system connections and infrastructure improvements. The bill also modifies land use regulations, prohibiting excessive restrictions on nonconforming uses and establishing guidelines for residential construction. It allocates significant funding for affordable housing projects, including a pilot program for direct rental assistance and portable facilities for the homeless. The bill emphasizes equitable development and community investment, with a focus on supporting underserved populations, and includes provisions for annual reporting and biennial audits of funded projects.

Statutes affected:
Raised Bill: 7-246, 8-2, 8-345, 32-285a
HSG Joint Favorable Substitute: 7-246, 8-2, 32-285a
File No. 274: 7-246, 8-2, 32-285a
FIN Joint Favorable: 7-246, 8-2, 32-285a