The proposed legislation, General Assembly Raised Bill No. 5363, aims to amend the income threshold regulations for tenants renting dwelling units in set-aside developments. The bill introduces new definitions and provisions regarding "affordable housing development," "set-aside development," and the income limits for tenants. Specifically, it stipulates that at least thirty percent of the units in a set-aside development must be sold or rented to individuals and families earning less than or equal to eighty percent of the median income, with a minimum of fifteen percent allocated to those earning less than or equal to sixty percent of the median income. Additionally, it allows tenants whose income exceeds these thresholds to continue renting their units at the affordable rate for up to three years, provided the development has not received federal low-income housing tax credits.

The bill also modifies existing legal language by repealing and substituting certain subsections of section 8-30g of the general statutes, effective October 1, 2026. Notably, it deletes the previous subsection (d) and replaces it with new provisions that clarify the rights of tenants in set-aside developments regarding rental agreements and the calculation of maximum monthly housing costs in relation to Section 8 fair market rent. The intent of the bill is to provide greater stability for tenants who may experience a rise in income while still ensuring that affordable housing remains accessible to low- and moderate-income families.