Substitute Senate Bill No. 338 seeks to amend the affordable housing appeals procedure in Connecticut by introducing new criteria and processes for affordable housing applications during moratorium periods. The bill repeals and replaces subsection (l) of section 8-30g, establishing that the moratorium, which can last four to five years, will not apply to certain applications, such as those for assisted housing with a significant percentage of units designated for low-income families. It also allows municipalities to count eligible housing units completed before or during a moratorium towards future eligibility. Additionally, the bill introduces a new process for obtaining a certificate of affordable housing project completion based on housing unit-equivalent (HUE) points, which are determined by the commissioner and require public notice for comment.

Furthermore, the bill modifies the conditions under which municipalities can earn HUE points, specifying that points will not be awarded for units in a set-aside development if the local land use commission rejected the application or approved it with restrictions, and if the developer appealed the decision. The burden of proof in land use appeals is shifted from developers to municipalities, requiring them to justify their decisions to reject or impose restrictions on affordable housing applications. The bill also defines "set-aside development" and clarifies that points will only be awarded for newly constructed units or those newly subjected to deed restrictions after July 1, 1990. These changes are intended to streamline the moratorium process and potentially reduce legal costs associated with appeals, with an effective date set for October 1, 2026.