Each legislative session tells us something about where housing stands among Connecticut’s public priorities. This year, the message was mixed.
The 2026 session included continued investment in subsidized housing construction, additional funding to help maintain the Rental Assistance Program in the face of rising rents, and a number of modest housing-related policy changes. These actions reflect continued recognition that housing affordability and stability require public investment.
At the same time, the action taken this session did not match the urgency of Connecticut’s housing needs. Many of the housing provisions that passed were narrow, technical, or included as smaller pieces of larger legislation. Many proposals that would have more directly addressed affordability, housing stability, housing choice, and housing creation did not advance.
Connecticut’s housing challenges are the result of decades of underproduction, restrictive local land use decisions, rising development costs, limited rental availability, and a severe mismatch between what residents earn and what homes cost. The consequences are visible across the state: half of Connecticut’s renters cannot afford their homes; a record number of young adults are still living with their parents because they cannot afford to live on their own; and last year alone, 17,000 tenants received eviction notices. At the same time, many towns continue to fall short of their obligation to allow more affordable homes to be built.
Public funding is necessary, but it cannot carry the full weight of the crisis on its own. Connecticut also needs policy changes that make it easier to create homes, expand housing choice, protect renters, and ensure that affordability is not limited to a few communities or a few programs.
This update provides a full look at what happened during the 2026 legislative session, including housing-related budget adjustments, policy changes that passed, and key missed opportunities that would have made a meaningful difference for residents across the state.
For more in-depth analysis and discussion, register for our 2026 Legislative Session Debrief Friday, May 15 at 10 a.m.
Stay tuned for our 2026 Bill Tracker which will break down the legislative path and final status of all bills related to housing in this session. You can sign up here to receive it directly to your inbox!
FY27 Housing-Related Budget Adjustments
S.B. 1 “An Act Concerning Affordability” functioned as the legislature’s omnibus budget bill. It includes the following housing-related budget adjustments for FY27, organized by state agency.
Department of Housing (DOH)
Overall a $13M increase to the FY27 DOH budget, a 9% increase over the initial biennial allotment
- Rental Assistance Program- $94.1M for FY27
- The final budget creates a new dedicated RAP line item with $94.1 million for FY27. Previously, RAP was included in the broader “Housing/Homeless Services” line item.
- This shift gives RAP greater visibility in the state budget and will help advocates track funding levels over time. However, because these funds are legally directed to a specific line item, DOH may have less flexibility to move resources in response to rapidly changing needs.
- The budget includes an estimated $9.14 million increase for FY27 to help maintain existing voucher service levels as rents rise. This is a modest reduction from the Governor/Appropriations Committee proposals which included $10M for RAP maintenance. This maintains the program but does not represent the broader RAP expansion advocates sought.
- $250,000 will go towards contracting for additional housing inspectors to facilitate timely placement of RAP voucher recipients into housing. (Sec 463) – a Partnership policy recommendation from “Best Practices: Effective Long-Term Tenant Based Rental Assistance Programs.”
- The budget also includes $17 million in FY26 deficiency funding (Sec 471, originally H.B. 5031) to maintain existing service levels for the remainder of the current fiscal year in the face of rising rents. The Governor and Appropriations Committee proposals initially included a $14.5M request for FY26.
- Various Grants
- New line item created with $2.88M for FY27. Following this year’s focus on earmark transparency, DOH now has a “Various Grants” line item for specific legislative grant priorities, which will permit more visibility on grant funding over time.
- Personal Services
- Increase of $750K in FY27. The Governor initially proposed +$1M for 12 new staff positions, 6 for fiscal monitoring and 6 for H.B. 8002 implementation). The Appropriations Committee reduced this to +$250K for 3 new staff positions for fiscal monitoring only. We believe this compromise budget fully funds 6 additional staff for HB 8002 implementation and 3 staff for fiscal monitoring (see Governor’s Press Release)
- Other budget items:
- Reduction of $20K in the “Other Expenses” line item.
- Transfer $250K from DCF to DOH for the Thames River Community Services (youth housing outreach program) under the “Outreach Services for Norwich” line item.
- The “Housing/Homeless Services” line item now has a $29.5M balance, down from $114.4M now that RAP has its own line item.
Other Agencies
- Department of Veterans Affairs (DVA)
- Increase of $480K under “Personal Services” and “Other Expenses” for Housing and Support Services for Veterans in Rocky Hill
- Department of Mental Health and Addiction Services (DMHAS)
- Increase of $1M to DMHAS under “Housing Supports and Services” to transition CHESS participants from a federally funded supportive housing program under Medicaid to the state’s permanent supporting housing program, utilizing RAP vouchers
- Department of Social Services (DSS)
- Reduction of $375K from DSS under “Medicaid” to facilitate transfer of CHESS participants
- Department of Transportation (DOT)
- Increase of $500K under “Other Expenses” for homeless encampment removal. In a separate bill, the legislature also passed a requirement that DOT provide at least 14 days’ notice before clearing any homeless encampments, and requires DOT and DMHAS to release a study by January 2027 on best practices for humane and dignified treatment of those living in said encampments. (see H.B. 5464, Sec 26-27)
- Department of Economic and Community Development (DECD)
- Increase of $120K under “Connecticut Municipal Redevelopment Authority (CMDA),” for staff and operations for the quasi-governmental agency tasked with providing technical assistance to municipalities with housing and economic development.
- Increase of $25M in bonding authorizations for CMDA, bringing FY27 authorizations to $50M total (Sec 323)
- Judicial Department
- Biennial budget allocations for the Right to Counsel Program ($1.75M in FY26 and $2.5M in FY27) can now carryforward into FY27 and FY28, giving the agency longer to expend the existing funds. The Right to Counsel program provides free legal assistance for those facing unjust evictions. (Sec 27)
- Municipalities (Sec 178)
- Municipalities received $100M total as one-time budget support to allow towns to temporarily lower their mill rates for property tax relief for homeowners. See a list of aid by town.
- Federal Cuts Response Fund (Sec 457, 259, 490)
- Increase of $50M to the Federal Cuts Response Fund (joined to the $330M currently remaining) in anticipation of increased uncertainty due to federal policy changes (Sec 259 and Sec 490)
- Establishes the Safety Net Mitigation Working Group to respond to federal policy changes affecting Medicaid, SNAP, and other programs. The working group includes OPM, various commissioners, and legislators. Given the potential impact of federal policy changes on supportive housing and rental assistance programs, the working group notably does not include the Department of Housing or housing-specific programs; only the Housing Committee chairs and ranking members are eligible to participate. A similar bill that did not pass, (S.B. 401), specifically included supportive housing and DOH in its scope of work. Their absence from the final working group (Sec 457) is concerning given the potential impact of federal policy changes on rental assistance and supportive housing programs.
Housing-Related Policy Changes That Passed During the 2026 Legislative Session
This section provides a detailed look at all the housing-related legislation that was included in S.B. 1, “An Act Concerning Affordability,” or as sections in other large non-housing bills. Stay tuned for our 2026 Bill Tracker which will break down the legislative path and final status of all bills related to housing in this session. You can sign up here to receive it directly to your inbox!
Housing Affordability: Homeownership Assistance
- S.B. 1, Sec 224-225 – Homestead Property Tax Exemption (originally S.B. 447)
- Under current law, municipalities may exempt between 5-35% of homeowner’s principal residence’s assessed value from property tax; in practice, this has only been adopted by New Milford with a 10% exemption.
- This section creates a municipal opt-in to a $50K homestead exemption on a homeowner’s assessed value (depending on where you live in Connecticut, this could range from 3% to 26% of the average home’s market value)
- Municipalities can also require a term of residency (details unspecified) to be eligible; households must complete an affidavit by November 1st each year to be eligible.
- H.B. 5003, Sec 65-73 – Down Payment Assistance Program for First Responders
- Creates a CHFA down payment assistance program, within available appropriations and bonding for emergency medical technicians, firefighters, paramedics, or police officers to assist in purchasing a home in the community they serve.
- S.B. 218, Sec 2 – Mortgage Prepayment
- The banking omnibus bill requires banks to accept prepayment of mortgage loans
Housing Creation: Financing, Permitting, and Development Tools
- H.B. 5240 – DDS Supportive Housing Reforms
- Revises elements of DDS’s supportive housing program for adults with intellectual disabilities. Section 1 allows DDS to pay providers for rent directly, rather than paying individuals who then pay the providers. Sections 2-5 reform the Community Residential Facility Revolving Loan Fund Program to allow for easier housing financing for the construction and rehabilitation of supportive housing units.
- H.B. 5153, Sec 10 – DEEP Permitting Streamlining
- Expands DEEP’s authority to issue general permits, reducing some procedural requirements without sacrificing environmental review to reduce costs and timelines associated with new housing construction.
- S.B. 1, Sec 261 – Paused Revenue for Housing Trust Fund
- Under current law, any conveyance tax revenue exceeding $300M must be deposited into the Housing Trust Fund. This section suspends that requirement in FY26 and FY27 only.
- In the past six years (FY20–FY25), revenue has only exceeded $300M twice, in FY21 and FY22; however, FY25 approached the limit with $290M in conveyance tax revenue.
- S.B. 1, Sec 309 – CHFA Bond Authorization Allowable Use (originally H.B. 5162)
- Repurposes existing bond authorizations for the Emergency Mortgage Assistance Program (EMAP) to the Down Payment Assistance Program (DAP). Approximately $5M remained in outstanding EMAP bond authorizations, making this a relatively minor change.
- Provides details for the 2025 $5M “Aging in Place” bond authorization. The program will help elderly or disabled homeowners making less than 60% of Area Median Income (AMI) by providing grants of up to $10K per homeowner to make accessibility modifications that allow them to remain safely in their homes.
- Under current law, loans through the new “Homes for CT” program use the rate of the New England Fund program through the Federal Home Loan Bank of Boston. “Homes for CT” helps facilitate the development of smaller “starter homes” through guarantees and loans.
- This section updates the interest rate benchmark to the prime rate published by the Wall Street Journal, a more transparent and commonly used standard. It also expands the program to allow grants in addition to loans, and loans may now be amortizing, deferred, or forgivable.
- S.B. 1, Sec 350 – Bonding Program for High Poverty-Low Opportunity Census Tracts and CDCs
- Under current law, bonding authorizations set aside for the high poverty-low opportunity census tract program are only available to municipalities. This section expands eligibility to include Community Development Corporations (CDCs).
- The Lamont administration had proposed eliminating both the Concentrated Poverty Grant Program ($300M over 4 years) and bonding for CDCs ($100M over 2 years) in S.B. 307.
- S.B. 1, Sec 351 – Health Care Workforce Housing Options
- Requires DOH and CHFA to seek a partnership with at least one municipality or hospital in the state to increase workforce housing options for healthcare workers. The agencies must report on progress and plans to the Finance, Revenue, and Bonding Committee by January 2028.
- The legislature authorized $20M in 2022 in bonds to DOH for housing for healthcare workers; $5.5M was allocated in the most recent State Bond Commission meeting, leaving $14.6M unallocate
- The legislature authorized $20M in 2022 in bonds to DOH for housing for healthcare workers; $5.5M was allocated in the most recent State Bond Commission meeting, leaving $14.6M unallocate
Housing Choice: Transparency, DOH Authority, and CMDA
- S.B. 340, Sec 32 – Transparency in Real Estate Listings
- Requires agents representing a home-seller or landlord to make the property available to the general public on a fair, nondiscriminatory, and publicly accessible listing platform – allowing more prospective homebuyers and tenants public awareness of existing housing options.
- S.B. 1, Sec 58 – Clarifying Housing Commissioner Responsibilities
- Expands the Housing Commissioner’s responsibilities to include planning and construction of housing projects, a technical adjustment which allows DOH to implement its new authority under H.B. 8002 (Sec 48) to act as a state Public Housing Authority.
- S.B. 1, Sec 56-57 – CMDA Agreements with Private Developers
- Under current law, CMDA has the authority, with OPM approval, to negotiate with a private developer within a development district to pay CMDA in lieu of real property taxes as a condition of their development
- This section requires CMDA to get approval from a municipality’s legislative body, in addition to OPM, to enter into a payment-in-lieu-of-taxes agreement; this type of agreement is now optional, instead of required, for the developer.
Housing Stability: Tenant Protections
- H.B. 5464, Sec 26-27 – Homeless Encampment Removal Reform
- Under this bill, the Department of Transportation must provide at least 14 days notice before clearing any homeless encampments, and requires DOT and DMHAS to release a study by January 2027 on best practices for humane and dignified treatment of those living in said encampments.
- S.B. 1, Sec 59 – Extending Landlord-Tenant Laws to Third Party Agents
- Under current law, landlords cannot require payments, fees, or charges associated with applying for a rental home, outside of specific listed situations (security deposit, first month’s rent, key deposit, $50 for a tenant screening report). Landlords are also required to provide applicants with a copy of their tenant screening report.
- This section closes a loophole by ensuring that these same requirements now exist for third parties acting on behalf of a landlord.
- S.B. 218, Sec 3 – Security Deposit Protections
- This omnibus banking bill clarifies existing penalties of up to $100,000 per violation for a landlord’s failure to follow legal requirements for depositing and returning a tenant’s security deposit.
- S.B. 413, Sec 29 – 43 – Towing Reform
- This transportation bill is a follow up to last year’s towing protection bill to provide stronger implementation structures, including the creation of a DMV towed vehicle portal and the creation of a towing bill of rights. Investigative reporting highlighted that abuses of towing laws are one method of tenant retribution by some landlords, and strong towing protection structures provide additional tenant protections.
- S.B. 369 – Elevator Maintenance and Repair
- This bill imposes elevator-related maintenance, repair, and notice provisions for owners of multifamily residential buildings with elevators. Many tenants, including elderly and disabled tenants, rely on functioning elevators for daily living and this bill provides for additional enforcement of maintenance efforts. Unfortunately, the final bill removed important requirements for the property owner to notify tenants of their rights under this bill.
- This provision creates a working group and pilot program to develop new risk-based standards for residential fire inspection procedures, ensuring that the most high-risk homes – often old multifamily buildings, housing lower-income tenants – are appropriately prioritized in municipal fire inspection schedules.
Missed Opportunities During the 2026 Legislative Session
The bills below represent some of the clearest missed opportunities of the 2026 legislative session. Each would have addressed a different part of Connecticut’s housing challenge: affordability, creation, choice, or stability. While no single bill would solve the housing crisis on its own, together these proposals would have moved the state closer to a housing system where more residents can find and keep homes they can afford.
Housing Affordability – Rental Assistance, Rent Relief, and Family Tax Credits
- S.B. 1 “An Act Concerning Affordability” functioned as the legislature’s omnibus budget bill. The Partnership – along with many of you – testified in support of a $50M expansion to the Rental Assistance Program to create 3,400 new housing vouchers. The final budget included an additional $17M in FY26 and $9.1M in FY27 to maintain existing voucher service levels in the face of rising rental costs. Expanding RAP remains one of the most direct ways the state can help close the gap between household income and housing costs, prevent evictions and homelessness, and support housing stability for Connecticut families.
- H.B. 5114 “An Act Establishing a Refundable Tax Credit Against the Personal Income Tax for a Portion of Rent Payments Made for a Primary Residence” proposed a renters’ tax credit to help renters facing rising rents, which would have provided up to $2,500 (depending on income and monthly rent) to individuals making less than $75,000 and couples making less than $150,000. The legislature negotiated a compromise budget to provide towns with $100M in direct aid that could be used to reduce their mill rates and resident property taxes – a benefit that protects homeowners from rising housing costs but leaves out the one in three Connecticut families who rent their home.
- S.B. 6 “An Act Concerning Supports For Children And Families” proposed a fully refundable child tax credit of up to $600 per child. Despite having deep support among Democratic legislators, it was not included in the FY27 budget adjustment. A child tax credit would broadly target the same families that most face housing instability.
Housing Creation and Choice – YIGBY, Zoning Reform, and “Golden Girls”
- S.B. 151 “An Act Prohibiting Certain Land Use and Zoning Limitations On Housing” proposed common sense changes to statewide zoning laws to make homeownership more affordable, including reducing minimum lot size requirements and allowing townhomes as-of-right where single-family homes are allowed. Despite being favorably voted out of the Housing committee, this bill was not given a floor vote. See our factsheet for more info on how Connecticut’s zoning laws compare to the national standard.
- H.B. 5396 “An Act Concerning Affordable Housing Development on Certain Land Owned by a Religious Organization,” or “YIGBY” would have allowed churches to build affordable housing on their own property subject to a streamlined review process. Despite strong grassroots support from religious coalitions, including GHIAA and CONECT, as well as the addition of significant compromise provisions in the committee’s substitute bill, this proposal was not given a floor vote.
- S.B. 339 “An Act Allowing Long-Term Rental of Bedrooms in a Single-Family Home as of Right,” or the “Golden Girls” bill, this proposal would have allowed homeowners to rent out up to three rooms in their home without requiring special zoning approval, providing affordable housing options for community renters and homeowners alike. Despite overwhelming bipartisan committee support (with only a single nay vote) and successful bipartisan passage in the Senate, this bill was not given a floor vote in the House.
Housing Stability – Just Cause and Tenant Protections
- S.B. 257, “An Act Concerning Evictions for Cause,” would have expanded existing just cause eviction protections for elderly and disabled renters to all tenants in buildings with 5+ units who have lived there over a year and are in good standing. Despite public backing from Governor Lamont and co-sponsors representing more than 50% of the Democratic caucus in both chambers (58 co-sponsors in the House and 14 in the Senate), the legislature failed to bring this bill to a vote for the third consecutive year. Legislative leadership did not advance the bill for a public vote, limiting transparency and accountability on an issue affecting the roughly one-third of Connecticut families who rent their home.
- S.B. 274, “An Act Concerning Nonresident Landlord Registration And Increasing Penalties For Repeat Building And Fire Code Violations,” would have created a municipal-managed rental registry for nonresident landlords that would have required contact information on file for property owners to be used as contact in the event of an emergency or code violation, and would have increased penalties on landlords with multiple building and fire code violations. This bill passed the Senate over a week before the end of session but was never brought to a vote by the House.
- S.B. 272, “An Act Authorizing Municipalities To Enforce Certain Blight Regulations Without Providing Notice Or An Opportunity To Remediate,” would have permitted municipalities to take accelerated enforcement action against blighted properties after their second violation within a single year. This bill passed the Senate over a week before the end of session but was never brought to a vote by the House.
