OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
SB-876
AN ACT CONCERNING BONDS OF BOARD MEMBERS AND
OTHER EMPLOYEES OF THE CONNECTICUT HOUSING FINANCE
AUTHORITY.
Primary Analyst: MP 3/17/21
Contributing Analyst(s):
Reviewer: PR
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 22 $ FY 23 $
CHFA Other Fund -
Savings
approx.
3,000
approx.
3,000
Municipal Impact: None
Explanation
The bill is anticipated to result in savings to the Connecticut
Housing Finance Authority (CHFA) of approximately $3,000 per year.
Currently, CHFA purchases both the minimum surety bond required
under current law and a more comprehensive liability insurance
policy. Under the bill CHFA could eliminate most, if not all, of the
$3,650 annual cost for the surety bond by exclusively relying on more
cost-effective insurance.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to inflation.
Sources: Connecticut Housing Finance Authority