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--- version:Public Act No. 26-7
+++ version:(document, no version)
@@ -1,442 +1,40 @@
-Substitute House Bill No. 5288
+OFFICE OF FISCAL ANALYSIS
+Legislative Office Building, Room 5200
+Hartford, CT 06106  (860) 240-0200
+http://www.cga.ct.gov/ofa
+sHB-5288
+AN ACT CONCERNING UTILITY CONNECTIONS FOR
+ACCESSORY DWELLING UNITS.
 
-Public Act No. 26-7
+Primary Analyst: LG 3/23/26
+Contributing Analyst(s): BP
+Reviewer: RW
 
-AN ACT CONCERNING UTILITY CONNECTIONS FOR ACCESSORY
-DWELLING UNITS.
-Be it enacted by the Senate and House of Representatives in General
-Assembly convened:
+OFA Fiscal Note
 
-Section 1. Subdivisions (1) and (2) of subsection (b) of section 8 -1a of
-the 2026 supplement to the general statutes are repealed and the
-following is substituted in lieu thereof (Effective October 1, 2026):
-(1) ["Accessory apartment" ] "Accessory dwelling unit " means a
-separate dwelling unit that (A) is located on the same lot as a principal
-dwelling unit of greater square footage, (B) has cooking facilities, and
-(C) complies with or is otherwise exempt from any applicable building
-code, fire code and health and safety regulations;
-(2) ["Affordable accessory apartment" ] "Affordable accessory
-dwelling unit " means an accessory [apartment] dwelling unit  that is
-subject to binding recorded deeds which contain covenants or
-restrictions that require such accessory [apartment] dwelling unit  be
-sold or rented at, or below, prices that will preserve the unit as housing
-for which, for a period of not less than ten years, persons and families
-pay thirty per cent or less of income, where such income is less than or
-equal to eighty per cent of the median income;
-Sec. 2. Section 8 -2o of the 2026 supplement to the general statutes is
-Substitute House Bill No. 5288
+State Impact: None
+Municipal Impact:
+Municipalities Effect FY 27 $ FY 28 $
+Municipal Water Companies;
+Various Municipalities
+Potential
+Revenue
+Loss
+See Below See Below
 
-Public Act No. 26-7 2 of 13
+Explanation
+The bill extends provisions on zoning regulations' treatment of as-of-
+right accessory dwelling units (AUDs) to municipalities that exercise
+zoning authority under a special act. 1 This may result in a revenue loss
+associated with fewer connection fees to various municipalities and
+municipal water companies beginning in FY 27 as these ADUs cannot
+be treated as new residential use when calculating connections fees or
+capacity charges.
+The bill makes other changes to zoning laws that do not result in a
+fiscal impact.
+The Out Years
+The annualized ongoing fiscal impact identified above would
+continue into the future subject to the number of connection fees.
 
-repealed and the following is substituted in lieu thereof (Effective October
-1, 2026):
-(a) Any zoning regulations adopted pursuant to section 8 -2 or any
-special act shall:
-(1) Designate locations or zoning districts within the municipality in
-which accessory [apartments] dwelling units are allowed, provided at
-least one accessory [apartment] dwelling unit  shall be allowed as of
-right on each lot that contains a single -family dwelling and no such
-accessory [apartment] dwelling unit  shall be required to be an
-affordable accessory [apartment] dwelling unit;
-(2) Allow accessory [apartments] dwelling units to be attached to or
-located within the proposed or existing principal dwelling, or detached
-from the proposed or existing principal dwelling and located on the
-same lot as such dwelling;
-(3) Set a maximum net floor area for an accessory [apartment]
-dwelling unit of not less than thirty per cent of the net floor area of the
-principal dwelling, or one thousand square feet, whichever is less,
-except that such regulations may allow a larger net floor area for such
-[apartments] accessory dwelling units;
-(4) Require setbacks, lot size and building frontage less than or equal
-to that which is required for the principal dwelling, and require lot
-coverage greater than or equal to that which is required for the principal
-dwelling;
-(5) [Provide for ] Not require  height, landscaping [and] or
-architectural design standards that [do not] exceed any such standards
-[as they are applied ] applicable to single -family dwellings in the
-municipality;
-(6) [Be prohibited from requiring ] Not require  (A) a passageway
-Substitute House Bill No. 5288
-
-Public Act No. 26-7 3 of 13
-
-between any such accessory [apartment] dwelling unit and any such
-principal dwelling, (B) an exterior door for any such accessory
-[apartment] dwelling unit, except as required by the applicable building
-or fire code, (C) any more than one parking space for any such accessory
-[apartment] dwelling unit, or fees in lieu of parking otherwise allowed
-by section 8 -2c, (D) a familial, marital or employment relationship
-between occupants of the principal dwelling and the accessory
-[apartment] dwelling unit , (E) a m inimum age for occupants of the
-accessory [apartment] dwelling unit , (F) separate billing of utilities
-otherwise connected to, or used by, the principal dwelling unit, or (G)
-periodic renewals for permits for such accessory [apartments] dwelling
-units; and
-(7) Be interpreted and enforced such that nothing in this section shall
-be in derogation of (A) applicable building code requirements, (B) the
-ability of a municipality to prohibit or limit the use of accessory
-[apartments] dwelling units for short-term rentals or vacation stays, or
-(C) other requirements where a well or private sewerage system is being
-used, provided approval for any such accessory [apartment] dwelling
-unit shall not be unreasonably withheld.
-(b) The [as of right] as-of-right permit application and review process
-for approval of an accessory [apartments] dwelling unit shall require
-that a decision on any such application be rendered not later than sixty-
-five days after receipt of such application by the applicable zoning
-commission, except that an applicant may consent to one or more
-extensions of not more than an addi tional sixty -five days or may
-withdraw such application.
-(c) A municipality shall not (1) condition the approval of an accessory
-[apartment] dwelling unit  on the correction of a nonconforming use,
-structure or lot, or (2) require the installation of fire sprinklers in an
-accessory [apartment] dwelling unit if such sprinklers are not required
-for the principal dwelling located on the same lot or otherwise required
-Substitute House Bill No. 5288
-
-Public Act No. 26-7 4 of 13
-
-by the fire code.
-(d) [A] No municipality, special district, sewer or water authority or
-water company, as defined in section 16 -1, shall [not] (1) consider an
-accessory [apartment] dwelling unit to be a new residential use for the
-purposes of calculating connection fees or capacity charges for utilities,
-including water and sewer service, unless such accessory [apartment]
-dwelling unit was constructed with a new single-family dwelling on the
-same lot, or (2) require the installation of a new or separate utility
-connection directly to an accessory [apartment] dwelling unit or impose
-a related connection fee or capacity charge.
-(e) If a municipality fails to adopt new regulations or amend existing
-regulations by January 1, 2023, for the purpose of complying with the
-provisions of subsections (a) to (d), inclusive, of this section, and unless
-such municipality opts out of the provisio ns of said subsections in
-accordance with the provisions of subsection (f) of this section, any
-noncompliant existing regulation shall become [null and] void and such
-municipality shall approve or deny applications for accessory
-[apartments] dwelling u nits in accordance with the requirements for
-regulations set forth in the provisions of subsections (a) to (d), inclusive,
-of this section until such municipality adopts or amends a regulation in
-compliance with said subsections. A municipality may not use or
-impose additional standards beyond those set forth in subsections (a) to
-(d), inclusive, of this section.
-(f) Notwithstanding the provisions of subsections (a) to (d), inclusive,
-of this section, the zoning commission or combined planning and
-zoning commission, as applicable, of a municipality, by a two -thirds
-vote, may initiate the process by which such municipal ity opts out of
-the provisions of said subsections regarding the allowance of accessory
-[apartments] dwelling units, provided such commission: (1) First holds
-a public hearing in accordance with the provisions of section 8 -7d on
-such proposed opt -out, (2) affirmatively decides to opt out of the
-Substitute House Bill No. 5288
-
-Public Act No. 26-7 5 of 13
-
-provisions of said subsections within the period of time permitted under
-section 8-7d, (3) states in the records of such commission the reasons for
-such decision, and (4) publishes notice of such decision in a newspaper
-having a substantial circulation in the municipality not later than fifteen
-days after such decision has been rendered. Thereafter, the
-municipality's legislative body or, in a municipality where the
-legislative body is a town meeting, such municipality's board of
-selectmen, by a two -thirds vote, may complete the process by which
-such municipality opts out of the provisions of subsections (a) to (d),
-inclusive, of this section, except that, on and after January 1, 2023, no
-municipality may opt out of the provisions of said subsections.
-(g) Notwithstanding any prior action of the municipality to opt out
-of the provisions of subsections (a) to (d), inclusive, of this section,
-pursuant to subsection (f) of this section, any owner of real property
-located within a transit -oriented district, as d efined in section 8 -13hh,
-who has owned such real property located within a transit -oriented
-district in the municipality for not fewer than three years, may construct
-an accessory [apartment] dwelling unit on such real property as of right,
-provided such accessory [apartment] dwelling unit complies with any
-structural or architectural requirements imposed by any zoning
-regulations adopted pursuant to section 8-2.
-Sec. 3. Section 7 -245 of the general statutes is repealed and the
-following is substituted in lieu thereof (Effective October 1, 2026):
-For the purposes of this chapter: (1) "Acquire a sewerage system"
-means obtain title to all or any part of a sewerage system or any interest
-therein by purchase, condemnation, grant, gift, lease, rental or
-otherwise; (2) "alternative sewage treatment syste m" means a sewage
-treatment system serving one or more buildings that utilizes a method
-of treatment other than a subsurface sewage disposal system and that
-involves a discharge to the groundwaters of the state; (3) "community
-sewerage system" means any se werage system serving two or more
-Substitute House Bill No. 5288
-
-Public Act No. 26-7 6 of 13
-
-residences in separate structures which is not connected to a municipal
-sewerage system or which is connected to a municipal sewerage system
-as a distinct and separately managed district or segment of such system,
-but does not include any sewerage system s erving only a principal
-dwelling unit and an accessory [apartment] dwelling unit, as defined in
-section 8 -1a, as amended by this act , located on the same lot; (4)
-"construct a sewerage system" means to acquire land, easements, rights-
-of-way or any other re al or personal property or any interest therein,
-plan, construct, reconstruct, equip, extend and enlarge all or any part of
-a sewerage system; (5) "decentralized system" means managed
-subsurface sewage disposal systems, managed alternative sewage
-treatment systems or community sewerage systems that discharge
-sewage flows of less than five thousand gallons per day, are used to
-collect and treat domestic sewage, and involve a discharge to the
-groundwaters of the state from areas of a municipality; (6)
-"decentralized wastewater management district" means areas of a
-municipality designated by the municipality through a municipal
-ordinance when an engineering report has determined that the existing
-subsurface sewage disposal systems may be detrimental to public health
-or the environment and that decentralized systems are required and
-such report is approved by the Commissioner of Energy and
-Environmental Protection with concurring approval by the
-Commissioner of Public Health, after consultation with the local
-director of health; (7) "electronic equipment" means any technology that
-facilitates real-time communication between two or more individuals,
-including, but not limited to, telephonic, video and other conferencing
-platforms; (8) "municipality" means any metro politan district, town,
-consolidated town and city, consolidated town and borough, city,
-borough, village, fire and sewer district, sewer district and each
-municipal organization having authority to levy and collect taxes; (9)
-"operate a sewerage system" m eans own, use, equip, reequip, repair,
-maintain, supervise, manage, operate and perform any act pertinent to
-the collection, transportation and disposal of sewage; (10) "person"
-Substitute House Bill No. 5288
-
-Public Act No. 26-7 7 of 13
-
-means any person, partnership, corporation, limited liability company,
-association or public agency; (11) "remediation standards" means
-pollutant limits, performance requirements, design parameters or
-technical standards for application to existing sewage discharges in a
-decentralized wastewater management district for the improvement of
-wastewater treatment to protect public health and the environment; (12)
-"sewage" means any substance, liquid or solid, which may contaminate
-or pollute or affect the cleanl iness or purity of any water; and (13)
-"sewerage system" means any device, equipment, appurtenance, facility
-and method for collecting, transporting, receiving, treating, disposing of
-or discharging sewage, including, but not limited to, decentralized
-systems within a decentralized wastewater management district when
-such district is established by municipal ordinance pursuant to section
-7-247.
-Sec. 4. Subdivisions (1) and (2) of subsection (e) of section 8-23 of the
-2026 supplement to the general statutes are repealed and the following
-is substituted in lieu thereof (Effective October 1, 2026):
-(e) (1) Any such plan of conservation and development adopted prior
-to October 1, 2027, shall (A) be a statement of policies, goals and
-standards for the physical and economic development of the
-municipality, (B) provide for a system of principal thoroughfares,
-parkways, bridges, streets, sidewalks, multipurpose trails and other
-public ways as appropriate, (C) be designed to promote, with the
-greatest efficiency and economy, the coordinated development of the
-municipality and the general welfare and prosper ity of its people and
-identify areas where it is feasible and prudent (i) to have compact,
-transit accessible, pedestrian-oriented mixed use development patterns
-and land reuse, and (ii) to promote such development patterns and land
-reuse, (D) recommend th e most desirable use of land within the
-municipality for residential, recreational, commercial, industrial,
-conservation, agricultural and other purposes and include a map
-Substitute House Bill No. 5288
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-Public Act No. 26-7 8 of 13
-
-showing such proposed land uses, (E) recommend the most desirable
-density of population in the several parts of the municipality, (F) note
-any inconsistencies with the following growth management principles:
-(i) Redevelopment and revitalization of commercial centers and areas of
-mixed land uses with existing or planned physical infrastructure; (ii)
-expansion of housing opportunities and design choices to accommodate
-a variety of household types and needs; (iii) concentration of
-development around transporta tion nodes and along major
-transportation corridors to support the viability of transportation
-options and land reuse; (iv) conservation and restoration of the natural
-environment, cultural and historical resources and existing farmlands;
-(v) protection of  environmental assets critical to public health and
-safety; and (vi) integration of planning across all levels of government
-to address issues on a local, regional and state -wide basis, (G) make
-provision for the development of housing opportunities, inclu ding
-opportunities for multifamily dwellings, consistent with soil types,
-terrain and infrastructure capacity, for all residents of the municipality
-and the planning region in which the municipality is located, as
-designated by the Secretary of the Office of Policy and Management
-under section 16a -4a, (H) promote housing choice and economic
-diversity in housing, including housing for both low and moderate
-income households, and encourage the development of housing which
-will meet the housing needs identifie d in the state's consolidated plan
-for housing and community development prepared pursuant to section
-8-37t and in the housing component and the other components of the
-state plan of conservation and development prepared pursuant to
-chapter 297, and (I) co nsider allowing older adults and persons with a
-disability the ability to live in their homes and communities whenever
-possible. Such plan may: (i) Permit home sharing in single-family zones
-between up to four adult persons of any age with a disability or who are
-sixty years of age or older, whether or not related, who receive
-supportive services in the home; (ii) allow accessory [apartments]
-dwelling units for persons with a disability or persons sixty years of age
-Substitute House Bill No. 5288
-
-Public Act No. 26-7 9 of 13
-
-or older, or their caregivers, in all residential zones, subject to municipal
-zoning regulations concerning design and long-term use of the principal
-property after it is no longer in use by such persons; and (iii) expand the
-definition of "family" in sing le-family zones to allow for accessory
-[apartments] dwelling units  for persons sixty years of age or older,
-persons with a disability or their caregivers. In preparing such plan the
-commission shall consider focusing development and revitalization in
-areas with existing or planned physical infrastructure.
-(2) Any such plan of conservation and development adopted on or
-after October 1, 2027, shall (A) be a statement of policies, goals and
-standards for the physical and economic development of the
-municipality; (B) provide for a system of principal thoroughfares,
-parkways, bridges, streets, sidewalks, multipurpose trails and other
-public ways as appropriate; (C) be designed to promote, with the
-greatest efficiency and economy, the coordinated development of the
-municipality and the general welfare and prosperi ty of its people and
-identify areas where it is feasible and prudent (i) to have compact,
-transit-accessible, pedestrian-oriented mixed use development patterns
-and land reuse, and (ii) to promote such development patterns and land
-reuse; (D) (i) include a  climate change vulnerability assessment, based
-on information from considerations described in subsection (d) of this
-section, which shall consist of an assessment of existing and anticipated
-threats to and vulnerabilities of the municipality that are associated with
-natural disasters, hazards and climate change, including, but not limited
-to, increased temperatures, drought, flooding, wildfire, storm damage
-and sea level rise, saltwater intrusion and the impacts such disasters and
-hazards may have on indi viduals, communities, institutions,
-businesses, economic development, public infrastructure and facilities,
-public health, safety and welfare, (ii) identify goals, policies and
-techniques to avoid or reduce such threats, vulnerabilities and impacts,
-and (i ii) include a statement describing any consistencies and
-inconsistencies identified between such assessment and any existing or
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-Public Act No. 26-7 10 of 13
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-proposed municipal natural hazard mitigation plan, floodplain
-management plan, comprehensive emergency operations plan,
-emergency response plan, post -disaster recovery plan, long -range
-transportation plan or capital improvement plan in the municipality,
-and identify and recommend, where necessary, the integration of data
-from such assessment into any such plans and any actions necessary to
-achieve consistency and coordination between such assessment and any
-such plans; (E) recommend the most desirable use o f land within the
-municipality for residential, recreational, commercial, industrial,
-conservation, agricultural and other purposes and include a map
-showing such proposed land uses which considers the threats,
-vulnerabilities and impacts identified in the  climate change
-vulnerability assessment conducted pursuant to subparagraph (D)(i) of
-this subdivision; (F) recommend the most desirable density of
-population in the several parts of the municipality; (G) note any
-inconsistencies with the following growth management principles: (i)
-Redevelopment and revitalization of commercial centers and areas of
-mixed land uses with existing or planned physical infrastructure; (ii)
-expansion of housing opportunities and design choices to accommodate
-a variety of househol d types and needs; (iii) concentration of
-development around transportation nodes and along major
-transportation corridors to support the viability of transportation
-options and land reuse and reduction of vehicle mileage; (iv)
-conservation and restoration  of the natural environment, cultural and
-historical resources and existing farmlands; (v) protection of
-environmental assets critical to public health and safety; and (vi)
-integration of planning across all levels of government to address issues
-on a loca l, regional and state -wide basis; (H) make provision for the
-development of housing opportunities, including opportunities for
-multifamily dwellings, consistent with soil types, terrain and
-infrastructure capacity, for all residents of the municipality and  the
-planning region in which the municipality is located, as designated by
-the Secretary of the Office of Policy and Management pursuant to
-Substitute House Bill No. 5288
-
-Public Act No. 26-7 11 of 13
-
-section 16a -4a; (I) promote housing choice and economic diversity in
-housing, including housing for both low and moderate income
-households, and encourage the development of housing which will
-meet the housing needs identified in the state's consolidated p lan for
-housing and community development prepared pursuant to section 8 -
-37t and in the housing component and the other components of the state
-plan of conservation and development prepared pursuant to chapter
-297; (J) consider allowing older adults and pe rsons with disabilities the
-ability to live in their homes and communities whenever possible; (K)
-identify infrastructure, including, but not limited to, facilities, public
-utilities and roadways, that is critical for evacuation purposes and
-sustaining qua lity of life during a natural disaster, and that shall be
-maintained at all times in an operational state; (L) identify strategies and
-design standards that may be implemented to avoid or reduce risks
-associated with natural disasters, hazards and climate change; and (M)
-include geospatial data utilized in preparing such plan or that is
-necessary to convey information in such plan. Any such plan may: (i)
-Permit home sharing in single -family zones between up to four adult
-persons of any age with a disability  or who are sixty years of age or
-older, whether or not related, who receive supportive services in the
-home; (ii) allow accessory [apartments] dwelling units for persons with
-a disability or persons sixty years of age or older, or their caregivers, in
-all residential zones, subject to municipal zoning regulations concerning
-design and long-term use of the principal property after it is no longer
-in use by such persons; (iii) expand the definition of "family" in single -
-family zones to allow for accessory [apartments] dwelling units  for
-persons sixty years of age or older, persons with a disability or their
-caregivers; and (iv) identify one or more areas that are vulnerable to the
-impacts of climate change for the purpose of prioritizing funding for
-infrastructure needs and resiliency planning. In preparing such plan the
-commission shall consider focusing development and revitalization in
-areas with existing or planned physical infrastructure. The commission
-or any special committee may utilize information and  data from any
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-Public Act No. 26-7 12 of 13
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-natural hazard mitigation plan, floodplain management plan,
-comprehensive emergency operations plan, emergency response plan,
-post-disaster recovery plan, long -range transportation plan, climate
-vulnerability assessment or resilience plan in the preparatio n of such
-plan of conservation and development, including a document
-coordinated by the applicable regional council of governments,
-provided such information and data shall not be incorporated by
-reference, but summarized and applied in such plan to the sp ecific
-policies, goals and standards of the subject municipality.
-Sec. 5. Subsection (k) of section 8 -30g of the 2026 supplement to the
-general statutes is repealed and the following is substituted in lieu
-thereof (Effective October 1, 2026):
-(k) The affordable housing appeals procedure established under this
-section shall not be available if the real property which is the subject of
-the application is located in a municipality in which at least ten per cent
-of all dwelling units in the municipality a re (1) assisted housing, (2)
-currently financed by Connecticut Housing Finance Authority
-mortgages, (3) subject to binding recorded deeds containing covenants
-or restrictions which require that such dwelling units be sold or rented
-at, or below, prices whi ch will preserve the units as housing for which
-persons and families pay thirty per cent or less of income, where such
-income is less than or equal to eighty per cent of the median income, (4)
-mobile manufactured homes located in mobile manufactured home
-parks or legally approved accessory [apartments] dwelling units, which
-homes or [apartments] units are subject to binding recorded deeds
-containing covenants or restrictions which require that such dwelling
-units be sold or rented at, or below, prices which will preserve the units
-as housing for which, for a period of not less than ten years, persons and
-families pay thirty per cent or less of income, where such income is less
-than or equal to eighty per cent of the median income, or (5) mobile
-manufactured homes located in resident -owned mobile manufactured
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-Public Act No. 26-7 13 of 13
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-home parks. For the purposes of calculating the total number of
-dwelling units in a municipality, accessory [apartments] dwelling units
-built or permitted after January 1, 2022, but that are not described in
-subdivision (4) of this subsection, shall not be counted toward such total
-number. The municipalities meeting the criteria set forth in this
-subsection shall be listed in the report submitted under section 8-37qqq.
-As used in this subsection, ["accessory apartment"] "accessory dwelling
-unit" has the same meaning as provided in section 8-1a, as amended by
-this act, and "resident-owned mobile manufactured home park" means
-a mobile manufactured home park consisting of mobile manufactured
-homes located on land that is deed restricted, and, at the time of issuance
-of a loan for the purchase of such land, such loan requi red seventy-five
-per cent of the units to be leased to persons with incomes equal to or less
-than eighty per cent of the median income, and either (A) forty per cent
-of said seventy-five per cent to be leased to persons with incomes equal
-to or less than sixty per cent of the median income, or (B) twenty per
-cent of said seventy -five per cent to be leased to persons with incomes
-equal to or less than fifty per cent of the median income.
-
-Governor's Action:
-Approved May 7, 2026
+1 Currently these provisions only apply to municipalities that exercise zoning authority
+under the statues (CGS 8-2).