Researcher: JM Page 1 3/29/21
OLR Bill Analysis
HB 5681
AN ACT CONCERNING MUNICIPAL OPPORTUNITY
REIMBURSEMENT AND EDUCATIONAL EQUITY.
SUMMARY
This bill increases the rate at which the state reimburses certain
towns for school building projects. Specifically, it increases a town’s
reimbursement rate by 10 percentage points for projects approved on
or after July 1, 2023, if the Department of Housing (DOH) deems the
town an “inclusive municipality” (e.g., a project that would normally
receive a 50% reimbursement rate for eligible project costs would
instead receive 60%). The bill establishes criteria for DOH to use in
determining whether a town is an inclusive municipality but does not
appear to establish any deadlines or frequency for DOH to make this
determination.
By law, the Department of Administrative Services (DAS) provides
towns and regional school districts with reimbursement grants for
school building projects on a sliding scale depending on the town’s
property wealth (wealthy towns receive a lower reimbursement rate,
while poorer towns receive a higher rate). Generally, for new
construction, these rates range from 10% to 70% of eligible costs (CGS §
10-285a(a)). However, it is unclear how DAS would know that a town
is considered an inclusive municipality, since the bill does not require
DOH to notify DAS about eligible towns.
EFFECTIVE DATE: Upon passage
INCLUSIVE MUNICIPALITY
The bill defines an inclusive municipality as a town that has:
1. a population exceeding 6,000 people;
2. fewer than 10% of its housing units deemed affordable by DOH; 2021HB-05681-R000148-BA.DOCX
Researcher: JM Page 2 3/29/21
3. adopted and maintained zoning regulations that (a) promote
fair housing, as determined by DOH, (b) provide a streamlined
process for multifamily housing of at least three units, (c) permit
mixed-use development, and (d) allow accessory dwelling
units; and
4. constructed new affordable housing units (deed-restricted for
households earning 80% of the state’s median income or less)
that equal at least 1% of the municipality’s total housing units
over the three years immediately preceding the municipality’s
application.
COMMITTEE ACTION
Housing Committee
Joint Favorable
Yea 15 Nay 0 (03/11/2021)