LCO No. 3048 1 of 7 General Assembly Raised Bill No. 6432 January Session, 2021 LCO No. 3048 Referred to Committee on HOUSING Introduced by: (HSG) AN ACT CONCERNING HO USING AUTHORITY APPL ICATION PROCEDURES. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. Section 8-45 of the general statutes is repealed and the 1 following is substituted in lieu thereof (Effective October 1, 2021): 2 (a) Each housing authority shall manage and operate its housing 3 projects in an efficient manner so as to enable it to fix the rentals for 4 dwelling accommodations at the lowest possible rates consistent with 5 providing decent, safe and sanitary dwelling accommodations, and no 6 housing authority shall construct or operate any such project for profit 7 or as a source of revenue to the municipality. To this end an authority 8 shall fix the rentals for dwelling in its projects at no higher rates than it 9 finds to be necessary in order to produce revenues which, together with 10 all other available money, revenues, income and receipts of the 11 authority from whatever sources derived, will be sufficient [(a)] (1) to 12 pay, as the same become due, the principal and interest on the bonds of 13 the authority; [(b)] (2) to meet the cost of, and to provide for, 14 maintaining and operating the projects, including the cost of any 15 Raised Bill No. 6432 LCO No. 3048 2 of 7 insurance, and the administrative expenses of the authority; and [(c)] (3) 16 to create, during not less than six years immediately succeeding its 17 issuance of any bonds, a reserve sufficient to meet the largest principal 18 and interest payments which will be due on such bonds in any one year 19 thereafter and to maintain such reserve. 20 (b) In the operation or management of housing projects an authority 21 shall, at all times, rent or lease the dwelling accommodations therein at 22 rentals within the financial reach of families of low income. The 23 authority, subject to approval by the Commissioner of Housing, shall fix 24 maximum income limits for the admission and for the continued 25 occupancy of families in such housing, provided such maximum income 26 limits and all revisions thereof for housing projects operated pursuant 27 to any contract with any agency of the federal government shall be 28 subject to the prior approval of such federal agency. The Commissioner 29 of Housing shall define the income of a family to provide the basis for 30 determining eligibility for the admission and for the continued 31 occupancy of families under the maximum income limits fixed and 32 approved. The definition of family income, by the Commissioner of 33 Housing, may provide for the exclusion of all or part of the income of 34 family members which, in the judgment of said commissioner, is not 35 generally available to meet the cost of basic living needs of the family. 36 No housing authority shall refuse to rent any dwelling accommodation 37 to an otherwise qualified applicant on the ground that one or more of 38 the proposed occupants are children born out of wedlock. 39 (c) Each housing authority shall provide its application to prospective 40 residents in person, or by mail or electronic mail when requested, and 41 make such application available on its Internet web site for download 42 by prospective residents. Each housing authority shall provide a receipt 43 to each applicant for admission to its housing projects stating the time 44 and date of application and shall maintain a list of such applications 45 which shall be a public record as defined in section 1-200. The 46 Commissioner of Housing shall, by regulation adopted in accordance 47 with the provisions of chapter 54, provide for the manner in which such 48 list shall be created, maintained and revised. 49 Raised Bill No. 6432 LCO No. 3048 3 of 7 (d) No provision of this chapter shall be construed as limiting the 50 right of the authority to vest in an obligee the right, in the event of a 51 default by such authority, to take possession of a housing project or 52 cause the appointment of a receiver thereof or acquire title thereto 53 through foreclosure proceedings, free from all the restrictions imposed 54 by this chapter with respect to rental rates and tenant selection. 55 Sec. 2. Section 8-48 of the general statutes is repealed and the 56 following is substituted in lieu thereof (Effective October 1, 2021): 57 In the cases of any tenants who are the recipients of one hundred per 58 cent social services aid from the Department of Social Services of the 59 state or any municipality and who have no income from any other 60 source, rentals shall be fixed by each housing authority for the ensuing 61 rental year established by the authority based on one-half of the costs 62 and expenses set forth in subdivision (1) of subsection (a) of section 8-63 45, as amended by this act, plus the full amount of costs and expenses 64 set forth in [subsections (b) and (c)] subdivisions (2) and (3) of said 65 [section] subsection as set forth in the operating statements of the 66 authority for the preceding fiscal year, which total amount shall be 67 divided by the total number of rooms contained in all low-rent housing 68 projects operated by such housing authority to establish the rental cost 69 per room per annum for such tenants, from which figure shall be 70 computed the rent per month per room. [Said] Such rentals shall govern 71 for [said] such rental year. 72 Sec. 3. Section 8-72 of the general statutes is repealed and the 73 following is substituted in lieu thereof (Effective October 1, 2021): 74 (a) Each developer or housing authority shall manage and operate its 75 housing projects in an efficient manner so as to enable it to fix the rentals 76 for dwelling accommodations at the lowest possible rates consistent 77 with providing decent, safe and sanitary dwelling accommodations, 78 and no housing authority or nonprofit corporation shall construct or 79 operate any such project for profit. To this end an authority or a 80 nonprofit corporation shall fix the rentals for dwelling in its projects at 81 Raised Bill No. 6432 LCO No. 3048 4 of 7 no higher rates than it finds to be necessary in order to produce revenues 82 which, together with all other available money, revenues, income and 83 receipts of the authority or nonprofit corporation from whatever sources 84 derived, will be sufficient [(a)] (1) to pay, as the same become due, the 85 principal and interest on the bonds of the authority or nonprofit 86 corporation; [(b)] and (2) to meet the cost of, and to provide for, 87 maintaining and operating the projects, including the cost of any 88 insurance, and the administrative expenses of the authority or nonprofit 89 corporation; provided nothing in this section shall be construed as 90 prohibiting any authority or nonprofit corporation from providing for 91 variable rentals based on family income. 92 (b) In the operation or management of housing projects an authority 93 or nonprofit corporation shall, at all times, rent or lease the dwelling 94 accommodations therein at rentals within the financial reach of families 95 of low income. The Commissioner of Housing may establish maximum 96 income limits for admission and continued occupancy of tenants, 97 provided such maximum income limits and all revisions thereof for 98 housing projects operated pursuant to any contract with any agency of 99 the federal government shall be subject to the prior approval of such 100 federal agency. The Commissioner of Housing shall define the income 101 of a family to provide the basis for determining eligibility for the 102 admission, rentals and for the continued occupancy of families under 103 the maximum income limits fixed and approved. The definition of 104 family income, by the Commissioner of Housing, may provide for the 105 exclusion of all or part of the income of family members which, in the 106 judgment of said commissioner, is not generally available to meet the 107 cost of basic living needs of the family. No housing authority or 108 developer shall refuse to rent any dwelling accommodation to an 109 otherwise qualified applicant on the ground that one or more of the 110 proposed occupants are children born out of wedlock. 111 (c) Each housing authority and developer shall provide its 112 application to prospective residents in person, or by mail or electronic 113 mail when requested, and make such application available on its 114 Internet web site for download by prospective residents. Each housing 115 Raised Bill No. 6432 LCO No. 3048 5 of 7 authority and developer shall provide a receipt to each applicant for 116 admission to its housing projects stating the time and date of application 117 and shall maintain a list of such applications, which shall be a public 118 record as defined in section 1-200. The Commissioner of Housing shall, 119 by regulation adopted in accordance with the provisions of chapter 54, 120 provide for the manner in which such list shall be created, maintained 121 and revised. 122 (d) No provision of this part shall be construed as limiting the right 123 of the authority to vest in an obligee the right, in the event of a default 124 by such authority, to take possession of a housing project or cause the 125 appointment of a receiver thereof or acquire title thereto through 126 foreclosure proceedings, free from all the restrictions imposed by this 127 chapter with respect to rental rates and tenant selection. 128 (e) The Commissioner of Housing shall approve an operation or 129 management plan of each housing project, which shall provide an 130 income adequate for debt service, if any, administration, including a 131 state service charge, other operating costs and establishment of 132 reasonable reserves for repairs, maintenance and replacements, vacancy 133 and collection losses. Said commissioner shall have the right of 134 inspection of any housing during the period between the date on which 135 construction thereof begins and the date the state loan is fully paid or, 136 in the case of a grant, during the period for which any housing project 137 built pursuant to such grant is used for housing for families of low and 138 moderate income. 139 (f) An authority or developer shall semiannually submit to said 140 commissioner a sworn statement setting forth such information with 141 respect to the tenants and rentals for each housing project [hereunder] 142 in accordance with this section and the costs of operating each housing 143 project under its jurisdiction as said commissioner requires. Any person 144 who makes a false statement concerning the income of the family for 145 which application for admission to or continued occupancy of housing 146 projects is made may be fined not more than five hundred dollars or 147 imprisoned not more than six months or both. 148 Raised Bill No. 6432 LCO No. 3048 6 of 7 (g) With regard to a family who, since the last annual recertification, 149 received any public assistance or state-administered general assistance 150 and received earnings from employment, the authority or developer 151 shall not require any interim recertification due to an earnings increase. 152 At the annual recertification, the authority or developer shall base rent 153 levels on such family's average income throughout the preceding twelve 154 months. During the subsequent twelve-month period, the authority or 155 developer shall not require any interim recertifications due to increased 156 earnings from employment. However, if a family's income has 157 decreased, nothing in this section shall preclude an interim 158 recertification or recertification based on the reduced income level. 159 Sec. 4. Section 8-116a of the general statutes is repealed and the 160 following is substituted in lieu thereof (Effective October 1, 2021): 161 The following provisions shall be applicable to housing for elderly 162 persons: (1) There shall be no requirement that the occupants of such 163 housing constitute families and housing may be provided in separate 164 dwelling units for elderly persons living alone; (2) housing for elderly 165 persons shall conform to standards established by the Commissioner of 166 Housing and shall be designed so as to alleviate the infirmities 167 characteristic of the elderly; (3) the authority, municipal developer, 168 nonprofit corporation or housing partnership, subject to approval by the 169 Commissioner of Housing, shall fix maximum standard income and 170 asset limits for admission to such housing; (4) each housing authority, 171 municipal developer, nonprofit corporation or housing partnership 172 shall provide its application to prospective residents in person, or by 173 mail or electronic mail when requested, and make such application 174 available on its Internet web site for download by prospective residents; 175 (5) each housing authority, municipal developer, nonprofit corporation 176 or housing partnership shall provide a receipt to each applicant for 177 admission to its housing projects stating the time and date of application 178 and shall maintain a list of such applications, which shall be a public 179 record, as defined in section 1-200 and which shall be created, 180 maintained and revised in a manner which the Commissioner of 181 Housing shall, by regulation adopted in accordance with the provisions 182 Raised Bill No. 6432 LCO No. 3048 7 of 7 of chapter 54, provide; and [(5)] (6) any person who makes a false 183 statement concerning the income of the elderly person for whom 184 application for admission to a project under this part is made may be 185 fined not more than five hundred dollars or imprisoned not more than 186 six months, or both. 187 Sec. 5. (Effective October 1, 2021) The Commissioner of Housing shall 188 adopt regulations, in accordance with the provisions of chapter 54 of the 189 general statutes, to implement the provisions of sections 8-45, 8-72 and 190 8-116a of the general statutes, as amended by this act.191 This act shall take effect as follows and shall amend the following sections: Section 1 October 1, 2021 8-45 Sec. 2 October 1, 2021 8-48 Sec. 3 October 1, 2021 8-72 Sec. 4 October 1, 2021 8-116a Sec. 5 October 1, 202 New section Statement of Purpose: To simplify the application process for assisted housing. [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.]