HB 5284 — AN ACT CONCERNING PROPERTY TAX ABATEMENT FOR CERTAIN FIRST-TIME HOMEBUYERS.

House of Representatives General Assembly RaisedFile Bill No.

5284135 February Session, 2026 LCOSubstitute House Bill No.

12535284 ReferredHouse toof Representatives, March 24, 2026 The Committee on PLANNINGPlanning ANDand DEVELOPMENTDevelopment Introducedreported by:through REP.

(PD)KAVROS ANDEGRAW ACTof CONCERNINGthe PROPERTY17th TAXDist., ABATEMENTChairperson FORof CERTAINthe FIRST-TIMECommittee HOMEBUYERS.on the part of the House, that the substitute bill ought to pass.

AN ACT CONCERNING PROPERTY TAX ABATEMENT FOR CERTAIN FIRST-TIME HOMEBUYERS.

(NEW) (Effective October 1, 2026, and applicable to assessment years commencing on or after October 1,2026) Any municipality may,upon approval by its legislative body or, in any town in which the legislative body is a town meeting, by the board of selectmen, abateadopt an ordinance allowing for the abatement of up to five hundred dollars, for a period not exceeding five assessment years, of the real property taxes due upon aany residential property owned by a person who purchased such property with funds provided to qualified first-first-time time homebuyers by the Connecticut Housing Finance Authority and which property is encumbered by a mortgage infinanced, favordirectly ofor indirectly, by the Connecticut Housing Finance Authority.

ThissHB5284 act/ shallFile takeNo. effect as follows and shall amend the following sections:

LCO135 1 sHB5284 File No.

1253135 1This ofact 2shall Raisedtake Billeffect No.as follows and shall amend the following sections:

5284 Section 1 October 1, 2026, and New section applicable to assessment years commencing on or after October 1, 2026 StatementPD ofJoint Purpose:Favorable Subst.

TosHB5284 authorize/ municipalitiesFile toNo. abate up to five hundred dollars per assessment yearofpropertytaxesfor certainfirst-time homebuyerswho obtain a loan from the Connecticut Housing Finance Authority.

[Proposed135 deletions2 aresHB5284 enclosedFile inNo. brackets.

Proposed135 additionsThe following Fiscal Impact Statement and Bill Analysis are indicatedprepared byfor underline,the exceptbenefit thatof whenthe members of the entireGeneral textAssembly, solely for purposes of ainformation, billsummarization orand resolutionexplanation orand ado sectionnot ofrepresent athe billintent orof resolutionthe isGeneral new,Assembly itor iseither notchamber underlined.]thereof LCOfor No.any purpose.

1253In 2general, fiscal impacts are based upon a variety of 2informational sources, including the analyst’s professional knowledge.

Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note State Impact:

None Municipal Impact:

Municipalities Effect FY 27 $ FY 28 $ All Municipalities Potential See Below See Below Revenue Loss Explanation The bill results in a potential revenue loss beginning in FY 27 to any municipality that chooses to abate up to $500 in property taxes, for up to five years, for homeowners with a first-time home buyer mortgage purchased via the Connecticut Housing Finance Authority (CHFA).

The revenue lossfor eachmunicipality willvary based ontheamount oftheabatement andthenumber ofeligible homeowners.It isestimated that there are approximately 30,180 homeowners across the state with the specific type of CHFA mortgage.

If all municipalities implemented a maximum $500 abatement, the revenue loss cumulatively to all municipalities would be approximately $15.09 million annually.

If any municipality chooses not to offer the abatement, it will have no revenue loss associated with the bill, and the total revenue loss among municipalities will be lower.

The Out Years 1CHFA has 30,180 outstanding first-time home buyer mortgages as of June 30 , 2025.

It is assumed that each of those people would be eligible for the abatement established by the bill if their municipality chose to offer it.

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135 The annualized ongoing fiscal impact identified above would continue into the future subject to the number of municipalities that implement the abatement, the amount of abatement, and the number of CHFA first-time homebuyers in such municipalities.

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135 OLR Bill Analysis sHB 5284 AN ACT CONCERNING PROPERTY TAX ABATEMENT FOR CERTAIN FIRST-TIME HOMEBUYERS.

SUMMARY This bill allows municipalities to establish, by ordinance, a property tax abatement for certain first-time homebuyers.

Municipalities may set the abatement amount at up to $500 per year, for up to five assessment years.

To qualify, the homebuyer must have purchased the residential property with funds from the Connecticut Housing Finance Authority (CHFA) for first-time homebuyers and the property must be encumbered by a CHFA financed mortgage.

The ordinance establishing the abatement must be adopted by the municipality’s legislative body or, in a town where the legislative body isatownmeeting,bytheboardofselectmen.

Underthebill,aresidential property is a single-family dwelling that is the owner’s principal residence.

EFFECTIVE DATE:

October 1, 2026, and applies to assessment years beginning on or after that date.

COMMITTEE ACTION Planning and Development Committee Joint Favorable Substitute Yea 20 Nay 0 (03/06/2026) sHB5284 / File No.

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