HB 5396 — AN ACT CONCERNING AFFORDABLE HOUSING DEVELOPMENT ON CERTAIN LAND OWNED BY A RELIGIOUS ORGANIZATION.

House of Representatives General Assembly RaisedFile Bill No.

5396264 February Session, 2026 LCOSubstitute House Bill No.

22315396 ReferredHouse toof Representatives, March 31, 2026 The Committee on PLANNINGPlanning ANDand DEVELOPMENTDevelopment Introducedreported by:through REP.

(PD)KAVROS ANDEGRAW ACTof CONCERNINGthe AFFORDABLE17th HOUSINGDist., DEVELOPMENTChairperson ONof CERTAINthe LANDCommittee OWNEDon BYthe Apart RELIGIOUSof ORGANIZATION.the House, that the substitute bill ought to pass.

AN ACT CONCERNING AFFORDABLE HOUSING DEVELOPMENT ON CERTAIN LAND OWNED BY A RELIGIOUS ORGANIZATION.

(1) "Religious organization affordable housing development" means a development proposed by a religious institution or jointly proposed by a religious institution and any other developer that is located on real property owned by such religious organization where not less than thirtytwenty per cent of the proposed dwelling units are subject to aaffordable housing deed restrictionrestrictions; that requires, for not less than forty years after the initial occupation of the proposed development, that such units be sold or rented at, or below, a cost in rent or mortgage payments equivalent to not more than thirty per cent of the annual income of individuals and families earning sixty per cent of the median income of the state or the area median income as determined by the United States Department of Housing and Urban Development, whichever is less;

LCO(3) No."Religious organization" has the same meaning as provided in section 49-31k of the general statutes;

2231sHB5396 1/ ofFile 3No. Raised Bill No.5396 (3) "Religious organization" has the same meaning as provided in section 49-31k of the general statutes;

and264 (4)1 "SummarysHB5396 review"File hasNo. the same meaning as provided in section 8-2r of the general statutes.

(b)264 Notwithstanding(4) "Affordable housing deed restriction" means a deed restriction contained in an instrument filed on the provisionsland records of anythe zoningmunicipality regulationsin adoptedwhich pursuantthe todevelopment section8-2ofthegeneralstatutesoris anylocated specialact,that exceptrequires, asfor providednot inless subsectionthan (c)forty years after the initial occupation of thisthe section,development, anythat proposedcertain religiousdwelling organizationunits housingin the development shall be allowedsold subjector onlyrented toat, summaryor review,below, provideda suchcost summaryin reviewrent processor shallmortgage payments equivalent to not considermore anythan zoningthirty regulationsper thatcent imposeof restrictionsthe onannual income of individuals and families earning sixty per cent of the densitymedian income of developmentthe state or the heightarea median income as determined by the United States Department of anyHousing structure.and Urban Development, whichever is less;

(c)and The(5) provisions"Summary ofreview" subsectionhas (b)the ofsame thismeaning sectionas shallprovided notin applysection to8-2r anyof realthe property:general statutes.

(b) Notwithstanding the provisions of any zoning regulations adopted pursuant to section8-2ofthegeneralstatutesor any specialact, except as provided in subsection (c) of this section, any proposed religious organization housing development shall be allowed subject only to summary review.

(c) Any zoning regulations adopted pursuant to section 8-2 of the general statutes or any special act may require that a religious organization housing development have:

(1) A gross density of (A) thirty or fewer dwelling units per acre if less than twenty-five per cent ofthe dwelling units in such development are subject to an affordable housing deed restriction, or (B) fifty or fewer dwelling units per acre if twenty-five per cent or greater of the dwelling units in such development are subject to an affordable housing deed restriction;

(2) A height not greater than the maximum allowable height for a residential development in the municipality;

(3) Side and rear setbacks of not less than fifteen feet;

and (4) Notwithstanding the provisions of section 8-3n of the general statutes, off-street motor vehicle parking if the development is greater sHB5396 / File No.

264 2 sHB5396 File No.

264 than one-half mile from any public transit station, provided such parking requirements shall not exceed one parking space per dwelling unit.

(d) The provisions of subsection (b) of this section shall not apply to any real property:

(d)(e) The provisions of subsection (b) of this section shall not apply to any development that would require the demolition of any property listed in the (1) National Register of Historic Places, or (2) State Register of Historic Places, provided such demolition may occur for property listed in said state register if such demolition has been approvedapproved, in writingwriting, by the State Historic Preservation Officer.

(e)(f) The summary review process specified in subsection (b) of this LCOsection No.shall require that a decision on any application be rendered not later than ninety days after receipt of such application by the planning commission, zoning commission or combined planning and zoning commission, except an applicant may consent to one or more extensions of not more than an additional ninety days or may withdraw such application.

2231(g) 2The provisions of 3this Raisedsection Billshall not be construed to make any portion of real property used for a religious organization affordable housing development exempt from taxation pursuant to section 12-81 of the general statutes unless such development meets the requirements sHB5396 / File No.

5396264 section3 shallsHB5396 requireFile thatNo. a decision on any application be rendered not later than ninety days after receipt of such application by the planning commission, zoning commission or combined planning and zoning commission, except an applicant may consent to one or more extensions of not more than an additional ninety days or may withdraw such application.

264 of said section.

Section 1 October 1, 2026 New section Statement of Purpose:Legislative Commissioners:

ToInSubdiv.(c)(1),"iftwentypercent"waschangedto"iflessthan allowtwenty- thefive constructionper ofcent", religiousfor organizationaccuracy. affordable housing developments subject to summary review.

thatPD whenJoint theFavorable entireSubst. text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.] LCO No.

2231sHB5396 3/ ofFile 3No.

264 4 sHB5396 File No.

264 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.

In general, fiscal impacts are based upon a variety of informational 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 Minimal Minimal Revenue Loss All Municipalities Potential Minimal Minimal Savings Explanation The bill requires municipalities to consider certain proposed affordable housing developments under summary review process.

This results to a potential revenue loss to municipalities beginning in FY 27 to the extent fewer special permit fees are paid and a potential savings beginning in FY 27 to the extent fewer public hearings are held.

It is anticipated any impact will be minimal as this bill only applies to affordable housing developments that a religious organization wants to build.

The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to the number of affordable housing developments that are built.

sHB5396 / File No.