The Connecticut State Legislature introduced Senate Bill 12 on March 26, 2025, aiming to address the pressing issue of affordable housing in the state. The bill proposes the establishment of a working group tasked with evaluating housing needs and making recommendations to improve access to affordable housing. This group is expected to submit its findings by January 1, 2026.

One of the key provisions of Senate Bill 12 is the amendment to Section 10-285a of the general statutes, which will increase the percentage of school building project grant money available to local boards of education based on the municipality's affordable housing status. Starting July 1, 2025, municipalities that meet certain thresholds of affordable housing will be eligible for increased grant funding, incentivizing local governments to enhance their affordable housing stock. Specifically, municipalities with at least 10% affordable housing will receive a 20% increase in grant money, while those with lower percentages will receive smaller increments.

The bill has sparked notable discussions among lawmakers and stakeholders. Proponents argue that it is a crucial step toward addressing the housing crisis, which has been exacerbated by rising costs and limited availability. Critics, however, express concerns about the feasibility of meeting the proposed thresholds and the potential financial implications for municipalities that may struggle to comply.

The economic implications of Senate Bill 12 are significant, as it seeks to stimulate local economies through increased funding for school projects tied to affordable housing initiatives. Socially, the bill aims to create more equitable housing opportunities, which could lead to improved community stability and access to education.

As the bill progresses through the legislative process, its outcomes could reshape Connecticut's approach to housing and education funding, making it a pivotal piece of legislation for the state's future. The working group's recommendations will be closely watched, as they may influence further legislative actions and funding strategies in the coming years.