Land Use Bill Promotes Housing Options

03.12.2026
Issues & Policies

Connecticut small businesses continue to face one of the most persistent challenges in today’s economy: finding and keeping workers.

With housing costs climbing and availability shrinking, many employees struggle to live near their jobs.

HB 5502 tackles this issues by opening new pathways for housing development in areas critical to the state’s workforce. 

The bill, which received a public hearing March 11 in the Planning and Development Committee, allows new middle‑housing and mixed‑use development on two types of properties: 

  • Industrial lots within 1,000 feet of a transit station or highway, and 
  • Lots that were previously zoned residential  

Local Economies

Projects built under this policy would move through a summary review process, meaning decisions are made more quickly and with less local procedural oversight. 

HB 5502 encourages housing development closer to job centers and transit, making it easier for employees to live near where they work. 

For businesses, that could mean: 

  • A larger, more reliable hiring pool 
  • Shorter commutes and fewer transportation‑related absences 
  • Greater employee retention 
  • Stronger local economies built around stable workers 

Safeguards

While the bill’s potential benefits are clear, the current language removes several important local safeguards—including public hearings, municipal planning input, and opportunities for collaborative problem‑solving with residents and stakeholders. 

These elements often help shape well‑designed projects, address infrastructure constraints, and maintain trust between businesses and communities. 

To ensure the policy works for both employers and communities, CBIA recommends giving municipalities the ability to opt-in to these provisions through a legislative vote or referendum. 

CBIA recommends giving municipalities the ability to opt-in to these provisions.

This approach preserves local voices while still creating a pathway for much‑needed workforce housing—particularly near major job hubs. 

With thoughtful adjustments—especially around municipal involvement—HB 5502 has the potential to support both business growth and community stability. 

“The bill’s current framework has real potential to expand workforce housing near major job hubs, and giving municipalities a clear way to opt in would help channel that momentum while keeping communities engaged and supportive,” CBIA’s Grace Brangwynne told the committee.  


For more information, contact CBIA’s Grace Brangwynne (860.244.1163).

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