The Connecticut State Legislature convened on February 27, 2025, to introduce House Bill 7112, aimed at addressing the pressing issues of housing affordability and homelessness in the state. The bill, referred to the Committee on Housing, proposes significant measures to enhance the availability of affordable housing and support rental assistance programs.

The primary focus of House Bill 7112 is the establishment of an Affordable Housing Real Estate Investment Trust (REIT). This initiative seeks to acquire housing units for long-term retention as affordable housing through deed restrictions, thereby reducing the cost of deed-restricted units across Connecticut. The bill mandates that the majority leaders' roundtable group on affordable housing conduct a comprehensive study on the feasibility and potential benefits of this REIT, with a report due by January 1, 2026.

In addition to the REIT, the bill proposes the creation of a task force to explore the feasibility of a housing opportunity tax credit for landlords who provide affordable housing options. This tax incentive aims to encourage landlords to participate in the affordable housing market, potentially increasing the availability of rental units for low-income residents.

Debate surrounding House Bill 7112 has highlighted concerns regarding the effectiveness of tax credits and the long-term sustainability of the proposed REIT. Some lawmakers express skepticism about whether these measures will sufficiently address the state's housing crisis, while others advocate for the bill as a necessary step toward improving housing accessibility.

The implications of this legislation are significant, as Connecticut grapples with rising housing costs and increasing homelessness rates. Experts suggest that if implemented effectively, the measures outlined in House Bill 7112 could lead to a more stable housing market and provide much-needed relief for vulnerable populations.

As the bill progresses through the legislative process, stakeholders will be closely monitoring its developments, particularly the findings of the roundtable group and the task force. The outcomes of these studies will play a crucial role in shaping Connecticut's approach to housing and homelessness in the coming years.