Zoning Reform Wave Builds Momentum From Coast to Coast

As of late May, Connecticut joined the growing number of states enacting sweeping housing reforms. State legislators are racing to catch up to a worsening undersupply of new homes and neighborhoods, which has driven up costs further and left tens of thousands frozen out of access to a decent home.

The latest legislation is designed to spur the construction of family-sized and income-restricted homes in communities that have long resisted change. Towns that comply will get priority for state infrastructure funding, which supporters say will help break the logjam that has kept new housing out of reach for many.

This is an important bill that will finally make a down payment on reducing housing costs in Connecticut,” Connecticut U.S. Sen. Chris Murphy wrote in a social media post.

Yet, as in other states, the battle over the bill isn’t over. The legislation could die on Gov. Ned Lamont’s desk with a veto, an outcome that befell the “Arizona Starter Homes Act” in 2024.

The crucial sticking point requires that municipalities plan for and zone enough affordable housing to meet data targets tailored to each state region.

Lamont has until June 24 to decide.

We’ll be talking to (legislative) leadership about the changes that I think will accomplish the job without aggravating people,” the governor told local media.

Following a National Trend

With the passage of House Bill 5002, the state is following the lead of other states, where lawmakers have purposefully moved to shed decades-old zoning restrictions and clear the way for more ground-up home production.

In Texas, for example, lawmakers recently passed a package of bills to boost housing supply in the state’s rapidly growing cities.

A centerpiece of the effort prevents cities from requiring new homes to be built on lots larger than 3,000 square feet, down from the 5,000 to 7,500 square feet standard in many suburbs. Another measure allows apartments and mixed-use housing “by right” on commercial land, bypassing lengthy rezoning battles.

Florida is on its third iteration of the Live Local Act. Passed in 2023, it requires local governments to approve affordable and workforce housing in commercial and mixed-use zones, overriding local zoning restrictions and offering tax and regulatory incentives if at least 40% of units are affordable for 30 years. The 2024 and 2025 amendments expanded tax breaks, streamlined approvals, reduced parking requirements, clarified definitions, and strengthened legal protections for developers to accelerate affordable housing further statewide.

Building on Last Year’s Law

Connecticut follows legislation passed last year and signed by Lamont, laying the groundwork for this year’s overhaul to strengthen efforts to slash an estimated 100,000-unit housing shortage.

House Bill 5474 requires towns to report annually on building permits, makes it easier to convert vacant nursing homes into housing, and gives municipalities new authority to regulate short-term rentals.

Under the law, towns can earn one-quarter of a point toward a temporary exemption from the state’s 8-30g affordable housing law for each unit of "middle housing"—duplexes, triplexes, and townhomes—built as-of-right, meaning without a special zoning hearing.

The 8-30g law allows developers to bypass local zoning restrictions and build affordable housing in towns where less than 10% of the housing stock is deemed affordable, unless the city can prove that rejecting a proposed development is necessary to address significant health or safety concerns that outweigh the need for affordable housing.

This encourages municipalities to allow diverse housing types and increase overall housing supply, even if these units are not deed-restricted affordable housing.

The law also mandated more notice for rent hikes and offered tax breaks for 100% affordable developments. While the 2024 measures increased transparency and incentives, they stopped short of setting enforceable targets or requiring zoning changes.

Raising the Stakes

This year’s legislation also expands tenant protections, requiring towns with more than 15,000 residents to set up fair rent commissions with the power to resolve disputes and cap rent increases. It streamlines the conversion of commercial spaces into apartments and encourages denser development near transit.

With affordable housing, each municipality was assigned a specific goal based on regional needs. Local zoning would need to be updated to enable the construction of those units. While technically opt-in, towns that failed to comply risked losing priority for state infrastructure funding, creating a strong incentive to participate.

This is the provision that prompted pushback from local governments.

“It’s so important that we get more housing here, and regulation is one of the things that slows it down,” he said during a press conference.

He noted, however, that Fairfield County, one of the wealthiest counties in the country, has called it a heavy-handed state mandate.

I think that is a gross misrepresentation,” Lamon said. ”I know it’s supposed to be a north star and just a goal and a planning document, but everybody’s hair is on fire.”

He added, however, that he is sympathetic to concerns he’s heard and why he’s working with lawmakers to ease local government discontent with the legislation.

I think it was kind of dumb to put this big number that some Ph.D said, ‘Hey Westport, you’re responsible for this number of units,’” he said. “Don’t know if that accomplished much.”