LCO No. 5172 1 of 7 General Assembly Committee Bill No. 6476 January Session, 2019 LCO No. 5172 Referred to Committee on HOUSING Introduced by: (HSG) AN ACT ALLOWING A DEDUCTION FOR THE CO ST OF SERVICE ANIMALS FROM RENTAL PAYMENTS FOR SUBSIDI ZED HOUSING. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. (NEW) (Effective October 1, 2019) In the cases of any tenant 1 who is blind, physically disabled or has a mental or intellectual 2 disability, as those terms are defined in section 46a-51 of the general 3 statutes, and living with a service animal in assisted housing, as 4 defined in section 8-30g of the general statutes, the cost of food and 5 veterinary care for the service animal shall be considered a medical 6 expense deductible from gross family income when calculating the 7 tenant's rent. As used in this section, "service animal" means a dog that 8 is individually trained to do work or perform tasks for a person who 9 has a disability. 10 Sec. 2. Section 8-72 of the general statutes is repealed and the 11 following is substituted in lieu thereof (Effective October 1, 2019): 12 (a) Each developer or housing authority shall manage and operate 13 its housing projects in an efficient manner so as to enable it to fix the 14 rentals for dwelling accommodations at the lowest possible rates 15 Committee Bill No. 6476 LCO No. 5172 2 of 7 consistent with providing decent, safe and sanitary dwelling 16 accommodations, and no housing authority or nonprofit corporation 17 shall construct or operate any such project for profit. To this end, an 18 authority or a nonprofit corporation shall fix the rentals for dwelling in 19 its projects at no higher rates than it finds to be necessary in order to 20 produce revenues which, together with all other available money, 21 revenues, income and receipts of the authority or nonprofit 22 corporation from whatever sources derived, will be sufficient [(a)] (1) 23 to pay, as the same become due, the principal and interest on the 24 bonds of the authority or nonprofit corporation; [(b)] and (2) to meet 25 the cost of, and to provide for, maintaining and operating the projects, 26 including the cost of any insurance, and the administrative expenses of 27 the authority or nonprofit corporation; provided nothing in this section 28 shall be construed as prohibiting any authority or nonprofit 29 corporation from providing for variable rentals based on family 30 income. In the operation or management of housing projects an 31 authority or nonprofit corporation shall, at all times, rent or lease the 32 dwelling accommodations therein at rentals within the financial reach 33 of families of low income. 34 (b) The Commissioner of Housing may establish maximum income 35 limits for admission and continued occupancy of tenants, provided 36 such maximum income limits and all revisions thereof for housing 37 projects operated pursuant to any contract with any agency of the 38 federal government shall be subject to the prior approval of such 39 federal agency. The Commissioner of Housing shall define the income 40 of a family to provide the basis for determining eligibility for the 41 admission, rentals and for the continued occupancy of families under 42 the maximum income limits fixed and approved. The definition of 43 family income, by the Commissioner of Housing, may provide for the 44 exclusion of all or part of the income of family members which, in the 45 judgment of said commissioner, is not generally available to meet the 46 cost of basic living needs of the family, and, in the case where a family 47 member has a disability, shall provide for the exclusion of any 48 maintenance costs for a service animal, as provided in section 1 of this 49 Committee Bill No. 6476 LCO No. 5172 3 of 7 act. 50 (c) No housing authority or developer shall refuse to rent any 51 dwelling accommodation to an otherwise qualified applicant on the 52 ground that one or more of the proposed occupants are children born 53 out of wedlock. 54 (d) Each housing authority and developer shall provide a receipt to 55 each applicant for admission to its housing projects stating the time 56 and date of application and shall maintain a list of such applications, 57 which shall be a public record as defined in section 1-200. The 58 Commissioner of Housing shall, by regulation adopted in accordance 59 with the provisions of chapter 54, provide for the manner in which 60 such list shall be created, maintained and revised. 61 (e) No provision of this part shall be construed as limiting the right 62 of the authority to vest in an obligee the right, in the event of a default 63 by such authority, to take possession of a housing project or cause the 64 appointment of a receiver thereof or acquire title thereto through 65 foreclosure proceedings, free from all the restrictions imposed by this 66 chapter with respect to rental rates and tenant selection. The 67 Commissioner of Housing shall approve an operation or management 68 plan of each housing project, which shall provide an income adequate 69 for debt service, if any, administration, including a state service charge, 70 other operating costs and establishment of reasonable reserves for 71 repairs, maintenance and replacements, vacancy and collection losses. 72 Said commissioner shall have the right of inspection of any housing 73 during the period between the date on which construction thereof 74 begins and the date the state loan is fully paid or, in the case of a grant, 75 during the period for which any housing project built pursuant to such 76 grant is used for housing for families of low and moderate income. An 77 authority or developer shall semiannually submit to said 78 commissioner a sworn statement setting forth such information with 79 respect to the tenants and rentals for each housing project hereunder 80 and the costs of operating each housing project under its jurisdiction as 81 Committee Bill No. 6476 LCO No. 5172 4 of 7 said commissioner requires. 82 (f) Any person who makes a false statement concerning the income 83 of the family for which application for admission to or continued 84 occupancy of housing projects is made may be fined not more than 85 five hundred dollars or imprisoned not more than six months or both. 86 With regard to a family who, since the last annual recertification, 87 received any public assistance or state-administered general assistance 88 and received earnings from employment, the authority or developer 89 shall not require any interim recertification due to an earnings 90 increase. At the annual recertification, the authority or developer shall 91 base rent levels on such family's average income throughout the 92 preceding twelve months. During the subsequent twelve-month 93 period, the authority or developer shall not require any interim 94 recertifications due to increased earnings from employment. However, 95 if a family's income has decreased, nothing in this section shall 96 preclude an interim recertification or recertification based on the 97 reduced income level. 98 Sec. 3. Section 8-45 of the general statutes is repealed and the 99 following is substituted in lieu thereof (Effective October 1, 2019): 100 (a) Each housing authority shall manage and operate its housing 101 projects in an efficient manner so as to enable it to fix the rentals for 102 dwelling accommodations at the lowest possible rates consistent with 103 providing decent, safe and sanitary dwelling accommodations, and no 104 housing authority shall construct or operate any such project for profit 105 or as a source of revenue to the municipality. To this end, an authority 106 shall fix the rentals for dwelling in its projects at no higher rates than it 107 finds to be necessary in order to produce revenues which, together 108 with all other available money, revenues, income and receipts of the 109 authority from whatever sources derived, will be sufficient [(a)] (1) to 110 pay, as the same become due, the principal and interest on the bonds 111 of the authority; [(b)] (2) to meet the cost of, and to provide for, 112 maintaining and operating the projects, including the cost of any 113 Committee Bill No. 6476 LCO No. 5172 5 of 7 insurance, and the administrative expenses of the authority; and [(c)] 114 (3) to create, during not less than six years immediately succeeding its 115 issuance of any bonds, a reserve sufficient to meet the largest principal 116 and interest payments which will be due on such bonds in any one 117 year thereafter and to maintain such reserve. 118 (b) In the operation or management of housing projects, an 119 authority shall, at all times, rent or lease the dwelling accommodations 120 therein at rentals within the financial reach of families of low income. 121 The authority, subject to approval by the Commissioner of Housing, 122 shall fix maximum income limits for the admission and for the 123 continued occupancy of families in such housing, provided such 124 maximum income limits and all revisions thereof for housing projects 125 operated pursuant to any contract with any agency of the federal 126 government shall be subject to the prior approval of such federal 127 agency. The Commissioner of Housing shall define the income of a 128 family to provide the basis for determining eligibility for the admission 129 and for the continued occupancy of families under the maximum 130 income limits fixed and approved. The definition of family income, by 131 the Commissioner of Housing, may provide for the exclusion of all or 132 part of the income of family members which, in the judgment of said 133 commissioner, is not generally available to meet the cost of basic living 134 needs of the family, and, in the case where a family member has a 135 disability, shall provide for the exclusion of any maintenance costs for 136 a service animal, as provided in section 1 of this act. 137 (c) No housing authority shall refuse to rent any dwelling 138 accommodation to an otherwise qualified applicant on the ground that 139 one or more of the proposed occupants are children born out of 140 wedlock. Each housing authority shall provide a receipt to each 141 applicant for admission to its housing projects stating the time and 142 date of application and shall maintain a list of such applications which 143 shall be a public record as defined in section 1-200. The Commissioner 144 of Housing shall, by regulation adopted under the provisions of 145 chapter 54, provide for the manner in which such list shall be created, 146 Committee Bill No. 6476 LCO No. 5172 6 of 7 maintained and revised. 147 (d) No provision of this chapter shall be construed as limiting the 148 right of the authority to vest in an obligee the right, in the event of a 149 default by such authority, to take possession of a housing project or 150 cause the appointment of a receiver thereof or acquire title thereto 151 through foreclosure proceedings, free from all the restrictions imposed 152 by this chapter with respect to rental rates and tenant selection. 153 Sec. 4. Section 8-48 of the general statutes is repealed and the 154 following is substituted in lieu thereof (Effective October 1, 2019): 155 In the cases of any tenants who are the recipients of one hundred 156 per cent social services aid from the Department of Social Services of 157 the state or any municipality and who have no income from any other 158 source, rentals shall be fixed by each housing authority for the ensuing 159 rental year established by the authority based on one-half of the costs 160 and expenses set forth in subdivision (1) of subsection (a) of section 8-161 45, as amended by this act, plus the full amount of costs and expenses 162 set forth in [subsections (b) and (c)] subdivisions (2) and (3) of said 163 [section] subsection, as set forth in the operating statements of the 164 authority for the preceding fiscal year, which total amount shall be 165 divided by the total number of rooms contained in all low-rent 166 housing projects operated by such housing authority to establish the 167 rental cost per room per annum for such tenants, from which figure 168 shall be computed the rent per month per room. [Said] Such rentals 169 shall govern for [said] such rental year. 170 This act shall take effect as follows and shall amend the following sections: Section 1 October 1, 2019 New section Sec. 2 October 1, 2019 8-72 Sec. 3 October 1, 2019 8-45 Sec. 4 October 1, 2019 8-48 Committee Bill No. 6476 LCO No. 5172 7 of 7 Statement of Purpose: To allow a person with a disability in subsidized housing to deduct the cost of maintenance of service animals as a medical deduction from their rental costs. [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.] Co-Sponsors: REP. SANTIAGO H., 84th Dist.; REP. HAMPTON, 16th Dist. H.B. 6476