SSPA 25-1: An Act concerning housing Growth

Housing Growth Plans

The Housing Growth Plan Requirement

Housing Growth Plans (HGPs) outline how municipalities and regions will address housing needs across income levels, including recommended affordable housing goals set by each Council of Governments. By June 1, 2028, and every five years after, SECOG must adopt a regional HGP. Each municipality must either adopt its own HGP or join the regional plan.

SECOG will lead the regional HGP drafting process in collaboration with Planning and Zoning Commissions, municipal leadership, and the public, ensuring opportunities for local input within the parameters set by the statute. For example, local stakeholders will develop action items and implementation strategies for achieving Affordable Housing Goals. Each municipality retains control over its own Chapter of the plan, allowing it to reflect community-specific priorities and interests.

Once approved, municipalities must implement the plan’s policies and submit annual progress reports. Plans must address affordable housing goals, including zoning, supportive housing, fair housing, and infrastructure needs, while also considering broader local housing challenges. Municipalities without a HGP will lose eligibility for 8-30g moratoria, while participating towns with populations under 50,000 may qualify for a new low-interest sewer infrastructure loan program.

Special requirements apply to certain AENGLC (“angel”) communities, where plans place greater emphasis on rehabilitation, preservation, and anti-displacement strategies. The AENGLC ranking system is based on the Adjusted Equalized Net Grant List per Capita (AENGLC) pursuant to Section 10-261(a)(5) of the Connecticut General Statutes. AENGLC combines measures of property tax base per person and income per person and is used in determining the state support percentages for reimbursement for certain municipal projects. The designated “angel” communities in the SECOG region are: New London, Norwich, Sprague, and Windham.

Establishing Housing Needs and Recommended Affordable Housing Goals

The Act creates a process for identifying housing needs and setting growth targets at the state, regional, and local levels. The Office of Policy and Management (OPM) will first evaluate statewide housing needs over a ten-year period, focusing on housing adequacy, accessibility, and affordability across all income levels. Regional and local planning is expected to build on that state analysis.

By June 1, 2027, SECOG must complete a regional housing needs assessment and establish a Recommended Affordable Housing Goal for each municipality, except AENGLC communities. These recommendations set a goal for how many homes a municipality should enable through supportive zoning or other strategies. SECOG staff aim to complete this process early, by March 1, 2027, to provide a wider timeframe for communicating the recommended affordable goal setting process to each town before the deadline by which towns will need to decide on opting in to the regional HGP or taking an independent approach.

In setting local goals, SECOG must by statute consider factors such as access to transportation, jobs, downtowns, developable land, and existing multifamily housing, and also set higher goals for municipalities with greater local wealth and lower existing levels of multifamily housing. SECOG is currently meeting with local elected officials and planners, who are overseeing and guiding SECOG staff’s work throughout the affordable housing goal recommendation development process.

SECOG’s engagement Approach and Timeline

The Act sets deadlines for specific activities. July 1, 2026 is the deadline for municipalities to adopt mandatory zoning changes (further described below). SECOG has until June 1, 2027 to finalize the Regional Housing Needs Assessment / Recommended Municipal Affordable Housing Goals. Towns must decide to opt-in to the regional HGP or pursue a stand-alone local HGP by July 1, 2027. All HGPs in the SECOG region are due June 1, 2028. SECOG aims to complete the goals-setting process by March 2027 to provide municipalities more time to deliberate on opting in to the regional HGP process. 

In addition, SECOG has a plan for points of engagement with member municipalities throughout this first HGP process. In spring and summer 2026, SECOG had introductory meetings on the Act in each town with the Planning and Zoning Commission and Chief Executive Officer. Next, SECOG will ask to return to each town two more times for decision makers opt in to the regional plan or pursue an independent path. For towns that opt in to the regional plan, SECOG staff are planning three additional points of engagement.

Zoning Changes

Middle Housing Project Approvals via Summary Review

Effective July 1, 2026, municipalities must now allow “transit community middle housing” (buildings with two to nine dwelling units) or mixed-use development on any lot zoned for commercial or mixed-use development. These projects are subject only to summary review.

Per summary review, if proposed subjects (1) comply with applicable zoning regulations, and (2) do not substantially impact public health or safety, municipalities must approve projects and may not require a public hearing or other discretionary approval for such developments.

Parking Requirements

SSPA 25-1 amends the zoning enabling statute to generally prohibit land use commissions from regulating parking minimums, except for:

1. Developments of 17 or more units: Municipalities may require minimum off‑street parking for developments containing 17 or more dwelling units at a rate of 1 space for studios and one-bedroom units and 2 spaces for units with two or more bedrooms. 
2. Conservation and Traffic Mitigation Districts: Municipalities may designate up to two Conservation and Traffic Mitigation Districts and require minimum off-street parking for developments of all unit counts (including 16 units or fewer). Each district may not exceed 4% of the municipality’s land area, although the districts may be contiguous. 

In all cases and even within these exceptions, developers must also be allowed to submit a Parking Needs Assessment to demonstrate that fewer spaces are necessary. For developments of 17 or more units and commercial developments, developers may pay a fee in lieu of constructing the required parking. A municipality may only accept such a fee only if the required parking would result in an excess of unnecessary spaces or cannot physically be accommodated on the property, and any fees collected must be used solely for specific, transportation-related services.

Mobile Manufactured Homes

The Act eliminates the former 22‑foot width requirement for manufactured homes. Municipalities may not impose conditions or requirements on manufactured housing that substantially differ from those applied to other residential uses, provided the homes are constructed in compliance with applicable federal standards. 

Other Provisions

Sections 1-3: First-Time Homebuyer Savings Program

Sections 1-3 of the legislation establish a First-Time Homebuyer Savings Program. It defines a first-time homeowner as “an individual who did not own or purchase, individually or jointly with another person, a one-to-four family residence prior to the closing date of a real estate transaction involving the purchase of a one-to-four family residence in this state by the individual.” Eligible individuals can open first-time homeowner savings accounts, which the individual and their employer may contribute to. Funds from this account may be used for the down payment and closing costs for a one-to-four family primary residence. 

Sections 32 & 35: Renter Protections and Assistance

Section 35 expands the list of municipalities that must establish or join a Fair Rent Commission from municipalities with 25,000 residents to 15,000. Municipalities with a population of 15,000 or more must participate in either a Municipal Fair Rent Commission, Joint Fair Rent Commission (consisting of two or more bordering municipalities), or a Regional Fair Rent Commission (established by the COG). New SECOG municipalities impacted by this legislation are Colchester, East Lyme, Ledyard, Montville, Stonington, Waterford, and Windham. These communities must establish participation by January 1, 2028. 

To further support renters, the act also bans the use of rent-setting technology by landlords. 

Sections 11-13: Transit-Oriented Development

Sections 11-13 state that municipalities may decide to become a transit-oriented community (TOC) by adopting a Transit Oriented District (TOD) and meeting certain transit requirements (Ex. Rapid transit station, bus services, etc.). TOCs may be eligible for financial incentives through PA 25-1, including Housing Growth Program funds, sewer improvement loans, etc. It is important to note that municipalities may adopt a TOD, while not being recognized as a TOC. 

TODs must meet certain requirements and permit certain residential uses as of right. The areas must support higher density, meet community housing needs, allow for conversion of commercial to residential use as or right, and more. If a municipality establishes a TOD, property owners within the district who have owned their property for three or more years are permitted to build an accessory apartment as of right. These requirements are designed to increase housing stock adjacent to public transportation to facilitate its use, reduce car dependence, improve accessibility, and encourage mixed-use development. 

Section 26: Addressing Homelessness

PA 25-1 Section 26 prohibits municipalities from installing new Hostile Architecture; design features used to prevent homeless individuals from sitting or lying in a public space. Existing hostile architecture must be removed if the municipality receives a written complaint.  

A new pilot program was also established to support individuals experiencing homelessness. The state will provide portable shower and laundry facilities to a minimum of three municipalities. In January 2027, a report will be submitted to the General Assembly on the program’s success. 

State Funding for Housing Related Development

Under this act, the Office of Policy and Management (OPM) must establish a housing growth program no later than July 1, 2028. The program will provide grants-in-aid to municipalities to support housing-related costs such as construction and public infrastructure projects. Additional state funding will be provided to municipalities for school construction and water quality projects for sewer or conveyance system improvements. These funding programs are unlocked with various required provisions (e.g. Housing Growth Plans) and/or optional provisions (e.g. designation as a Transit-Oriented Community or having a CDMA Development District).

Additional grants are authorized to COGs, housing authorities, and municipalities to advance middle (medium-density) housing, the revitalization of vacant commercial property, public transportation infrastructure, and other development initiatives. Moreover, starting June 1, 2026, the open choice school program will be applicable to all districts, rather than only Hartford.