CT SB01361

Establishes a Housing Growth Fund administered by the Commissioner of Economic and Community Development, with $50 million allocated annually to provide grants to eligible municipalities for affordable housing production and transit-oriented development.

Requires the Commissioner to calculate an annual housing growth score for each municipality by March 1st, based on dwelling units approved for construction, with points weighted by development type (1 point for basic units, up to 3 points for deeply affordable or set-aside developments).

Awards bonus points for housing in mixed-use developments (1.5 points), mixed-income developments (1.5 points), transit-oriented developments (2 points), multifamily housing (2 points), and housing authority developments (2 points).

Municipalities must submit required documentation by December 1st annually and meet eligibility thresholds: approve at least 2% of statewide housing permits (or have above-average poverty rate), approve 3x more housing permits than demolition permits, and approve at least 10% of permits for deeply affordable units (≤30% AMI).

Grant amounts are calculated proportionally based on each municipality's share of the total statewide housing growth score, with regulations to be posted on the DECD website. Effective October 1, 2025.