After a surprising gubernatorial veto derailed a major housing reform bill this summer, Connecticut lawmakers regrouped. Now, they are close to hammering out a compromise in a second attempt to tackle the state's housing crisis.

With hopes of passing legislation in an upcoming special session, the renewed effort comes amidst a surge in similar housing reforms sweeping the nation.​

The push for a special session, scheduled for Nov. 12-13, comes after Gov. Ned Lamont vetoed House Bill 5002 in late June. The move stunned housing advocates who saw the legislation as a crucial step toward addressing Connecticut's estimated 100,000-unit housing shortage.​​

Lamont's veto sided with suburban leaders who fiercely opposed the bill's most contentious provision: a "Fair Share" policy that would have required municipalities to plan for and zone enough affordable housing to meet specific regional targets.​

Critics, particularly in wealthy Fairfield County, blasted the measure as a heavy-handed state mandate that infringed on local control.​

In his veto announcement, Lamont expressed a desire for a bill with broader local support.​

The original bill was built on legislation passed in 2024 that incentivized "middle housing" like duplexes and townhomes, and required greater transparency for rent hikes. In the 2025 version, lawmakers sought to raise the stakes by tying priority for state infrastructure funding to compliance with housing goals and streamlining approvals for denser development near transit hubs.​​

It also included widespread parking reforms that would have eliminated minimum parking requirements for some residential projects, a tactic successfully used in states like California to lower construction costs.​

Compromise Emerging

Now that lawmakers and the governor are working toward a compromise, details of a revised bill are emerging. The new approach appears to soften the mandatory elements that sparked the most opposition.​

Discussions at a late October Connecticut Housing Conference revealed that the "Fair Share" mandates are likely to be replaced with a "pre-zoning" strategy. This would involve towns proactively designating specific areas—particularly near transit—for denser housing development.​

The strategy mirrors legislation in other states. California Gov. Gavin Newsom recently signed into law Senate Bill 79, a landmark measure that overrides local zoning rules to permit taller and denser housing developments within a half-mile of major transit stops. The law applies to urban counties with significant transit infrastructure, including Los Angeles, San Diego, Sacramento, and the Bay Area.​

In California, we talk a lot about where we don't want to build homes, but rarely about where we do—until now," California State Sen. Scott Weiner, who sponsored the bill, said in a statement.​

Other key elements expected in the revised Connecticut bill include measures to facilitate the conversion of underused commercial properties into residential units and state funding to help towns pay for the infrastructure upgrades needed to support new housing.

This pivot from mandates to incentives reflects a strategic shift to win over reluctant municipalities, echoing Lamont's sentiment that a collaborative approach is necessary.​

Riding the Legislative Trend

Connecticut's struggle is not happening in a vacuum. It is part of a nationwide trend of state-level intervention in local zoning.​

In 2025 alone, states like Texas, Florida, and California have passed significant reforms. Florida expanded its Live Local Act, which overrides local zoning to fast-track affordable housing in commercial areas. Texas passed bills to reduce minimum lot sizes and allow apartments "by right" on commercial land.​

As the special session approaches, the pro-housing movement is keeping up the pressure. Coincidentally, the national YIMBYtown conference, a significant gathering of pro-housing activists and policymakers, was held in New Haven in mid-September, which was viewed as a "good omen" for the revised bill's prospects.​​

The legislation was a topic of conversation at the Oct. 23 Connecticut Housing Summit, which brought together lawmakers and housing industry professionals.​

We are actually disagreeing about 15 pages of the 100 pages," State Rep. Jason Rojas said during the conference. "So, 85 pages, nobody actually has an issue with those."​​

All eyes are now on Hartford to see if lawmakers can craft a bill that both tackles the affordability crisis and secures the governor's signature.