Substitute House Bill No. 5395 seeks to regulate modular or prefabricated homes by establishing clear definitions and guidelines for their development. The bill defines a "modular or prefabricated home" as a fully assembled structure containing one dwelling unit, explicitly excluding mobile manufactured homes. It prohibits zoning regulations from imposing conditions on these homes that differ significantly from those applied to single-family dwellings. Additionally, municipalities that adopt zoning regulations allowing for modular or prefabricated homes will earn housing unit-equivalent points for each unit that receives a certificate of occupancy, provided it does not qualify for other points.

The bill also amends existing statutes regarding housing unit-equivalent points, allowing for a quarter point to be awarded for each modular or prefabricated home unit. It repeals and replaces certain provisions in section 8-30g of the general statutes to clarify the criteria for awarding points based on income restrictions and the type of housing units. The changes aim to reduce legal costs for municipalities related to affordable housing appeals, as more municipalities may qualify for a moratorium under the affordable housing land use appeals procedure. The effective date for this legislation is set for October 1, 2026.