SB 1444 — AN ACT CONCERNING THE CONVERSION OF COMMERCIAL REAL PROPERTY FOR RESIDENTIAL USE.

Senate GeneralBill Assembly File No.

5801444 JanuaryPublic Session,Act 2025 Senate Bill No.

144425-164 Senate,AN AprilACT 8,CONCERNING 2025THE TheCONVERSION CommitteeOF onCOMMERCIAL PlanningREAL andPROPERTY DevelopmentFOR reportedRESIDENTIAL throughUSE. SEN.

RAHMAN of the 4th Dist., Chairperson of the Committee on the part of the Senate, that the bill ought to pass.

AN ACT CONCERNING THE CONVERSION OF COMMERCIAL REAL PROPERTY FOR RESIDENTIAL USE.

(1) "As"Summary ofreview" right" has the same meaning as provided in section 8-1a8-2r of the general statutes;

(3) "Dwelling unit" has the same meaning as provided in section 47a- 1 of the general statutes;

and SB1444(5) /"Residential Filedevelopment" No.means a structure or structures, or a portion of a structure, that contains one or more dwelling units.

580(b) 1Any SB1444zoning Fileregulations adopted pursuant to section 8-2 of the Senate Bill No.

5801444 (5)general "Residentialstatutes development"may meansallow athe structureconversion or structures,partial orconversion of any commercial building into a portionresidential development subject only to summary review if the owner of such building certifies in writing to the municipality, in a structure,form and manner prescribed by the municipality, that containssuch onebuilding has (1) been vacant, or more(2) dwellinghad units.an average occupancy rate of less than fifty per cent, over the one-year period immediately preceding the application for such conversion or partial conversion.

(b) Any zoning regulations adopted pursuant to section 8-2 of the general statutes shall allow the conversion or partial conversion of any commercial building into a residential development as of right.

(e) The as-of-rightsummary permitreview application and review process for approval of the conversion or partial conversion of a commercial building into a residential development shall require that a decision on any such application be rendered not later than sixty-five days after receipt of such application by the applicable planning commission, zoning commission or combined planning and zoning commission, except that an applicant may consent to one or more extensions of not more than an additional sixty-five days or may withdraw such application.

ThisPublic actAct shallNo. take effect as follows and shall amend the following sections:

Section25-164 12 Octoberof 1,3 2025Senate NewBill section SB1444 / File No.

5801444 2(g) SB1444A Filemunicipality No.that adopts zoning regulations pursuant to section 8-2 of the general statutes that allow for the conversion or partial conversion of any commercial building into a residential development pursuant to this section shall be given priority funding by the Commissioner of Economic and Community Development under the greyfield revitalization program established pursuant to section 99 of senate bill 1247 of the current session.

580Governor's PDAction: Joint Favorable SB1444 / File No.

580Approved 3July SB14448, File2025 Public Act No.

58025-164 The3 following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the3 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:

See below Explanation The bill requires (1) municipalities that exercise their zoning powers under the statutes to allow developers to convert commercial buildings into residential developments as of right, and (2) prohibits municipalities from conducting a revaluation of a conversion or partial conversion for at least a three-year period.

This may result in a grand list increase or decrease.

Any impact to municipalities is dependent on how these buildings would have otherwise been valued.

The Out Years State Impact:

None Municipal Impact:

None SB1444 / File No.

580 4 SB1444 File No.

580 OLR Bill Analysis SB 1444 AN ACT CONCERNING THE CONVERSION OF COMMERCIAL REAL PROPERTY FOR RESIDENTIAL USE.

SUMMARY This bill requires municipalities that exercise zoning powers under the statutes (i.e.

CGS § 8-2) to adopt regulations allowing the conversion (or partial conversion) of commercial buildings into residential developments as of right.

As under existing law, “as of right” means able to be approved without requiring (1) a public hearing;

(2) a variance, special permit, or special exception;

or (3) other discretionary zoning action, other than a determination that a site plan conforms with applicable zoning regulations.

The bill also sets related requirementsfor the as-of-right permit application and review process (see below).

Additionally, the bill prohibits municipalities from conducting a revaluation of a conversion or partial conversion for at least a three-year period beginning after a certificate of occupancy is issued in connection with the conversion.

This prohibition applies regardless of existing law on municipal property revaluations, which requires municipalities to perform revaluations every five years based on a rotating schedule the Office of Policy and Management prescribes.

Under the bill, commercial buildings are those designed or used primarily for non-residential purposes, including hotels, retail space, and office space.

They do not include industrial buildings, meaning thoseused primarily for industrialactivity andgenerally not opentothe public, including warehouses, factories, and storage facilities.