Substitute House Bill No. 7281 amends a prior conveyance of a parcel of state land to the town of Southbury, specifically altering the restrictions on its use, ownership, and leasing. The bill stipulates that the town must use the approximately 45-acre parcel for housing purposes, with new provisions requiring that at least 30% of the housing units constructed must be affordable, meaning they are sold or rented at prices that allow individuals and families to pay no more than 30% of their annual income, provided that income does not exceed 80% of the area or state median income. Additionally, if the town fails to use the parcel for housing or does not retain ownership, the land will revert to the state.

The bill also introduces several new requirements and clarifications regarding the leasing and sale of the parcel. It allows for the sale or transfer of the land to a third party for housing purposes, subject to the same affordability restrictions. Furthermore, any funds received from such transactions must be deposited into a trust fund established by the town to support infrastructure costs related to the affordable housing. The bill mandates an environmental impact evaluation prior to the transfer of the property and outlines the responsibilities of various state departments in the conveyance process.