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 that allow for the sale or transfer of the parcel to a third party for housing, provided it adheres to specific conditions. If the town fails to use the land for housing, does not retain ownership, or leases it without meeting the outlined criteria, the parcel will revert to the state. Additionally, any funds received from the sale or lease must be deposited into a trust fund for infrastructure costs related to affordable housing.

The bill introduces several new requirements, including that at least 30% of the housing units constructed on the parcel must be affordable for individuals and families earning 80% or less of the area or state median income, with these affordability restrictions lasting for a minimum of 40 years. It also mandates an environmental impact evaluation to be conducted by the town prior to the transfer of the property, with the results submitted to the Secretary of the Office of Policy and Management. The State Properties Review Board is tasked with reviewing the conveyance within 30 days of receiving the proposed agreement, and the land will remain under the control of the Department of Developmental Services until the conveyance is finalized.