Connecticut 2021 2021 Regular Session

Connecticut House Bill HB06432 Introduced / Bill

Filed 02/09/2021

                        
 
 
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 Section 8-45 of the general statutes is repealed and the 1 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.]