Substitute House Bill No. 5365 seeks to amend Connecticut's affordable housing appeals procedure by increasing the criteria for housing unit-equivalent (HUE) points that municipalities must meet to qualify for a moratorium on affordable housing applications. The bill repeals and replaces subsection (l) of section 8-30g, establishing a four-year moratorium, extendable to five years for municipalities with over 20,000 dwelling units that have previously qualified. It also specifies that certain affordable housing applications, particularly those for assisted housing with a significant percentage of units reserved for low-income families, will not be subject to this moratorium.

The bill introduces new criteria for HUE points, allowing unrestricted accessory apartments developed as of right to count towards these points, while adjusting point values for family units based on income restrictions. For example, family units with incomes at or below 20% of the median income will receive higher point allocations. The bill also includes several deletions and insertions in legal language, such as changing point allocations for ownership units and clarifying definitions related to accessory apartments. Additionally, it streamlines the approval process for certain projects, allowing them to be approved "as-of-right," thereby potentially reducing legal costs for municipalities. The effective date for these changes is set for October 1, 2026.