OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
HB-5204
AN ACT CONCERNING A NEEDS ASSESSMENT AND FAIR
SHARE PLANS FOR MUNICIPALITIES TO INCREASE
AFFORDABLE HOUSING.
Primary Analyst: DD 4/1/22
Contributing Analyst(s): MP
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 23 $ FY 24 $
State Comptroller - Fringe
Benefits
1
GF - Cost Up to
70,566
Up to
141,112
Policy & Mgmt., Off. GF - Cost Up to
374,083
Up to
$348,166
Note: GF=General Fund
Municipal Impact:
Municipalities Effect FY 23 $ FY 24 $
Various Municipalities STATE
MANDATE
2
- Cost
See Below See Below
Explanation
The bill requires the Office of Policy and Management (OPM), in
consultation with the Department of Housing (DOH), to establish and
administer a program of new affordable housing goals statewide.
The bill requires OPM to 1) establish a methodology for determining
1
The fringe benefit costs for most state employees are budgeted centrally in accounts
administered by the Comptroller. The estimated active employee fringe benefit cost
associated with most personnel changes is 40.53% of payroll in FY 23.
2
State mandate is defined in Sec. 2-32b(2) of the Connecticut General Statutes, "state
mandate" means any state initiated constitutional, statutory or executive action that
requires a local government to establish, expand or modify its activities in such a way
as to necessitate additional expenditures from local revenues. 2022HB-05204-R000286-FN.DOCX Page 2 of 2
each municipality's fair share of affordable housing units; 2) establish a
process for municipalities to create and submit plans for attaining their
fair share, and; 3) provide assistance and training to municipalities to
assist them in complying with the bill's requirements.
It is anticipated that OPM will need to hire a community
development director, staff attorney and planning specialist, for an
annual cost of $489,278 ($348,166 in salary and $141,122 in fringe). It is
anticipated that annualized costs would first occur in FY 24. Costs of up
to $244,639 could be incurred in FY 23, depending on the timing of
hiring.
The bill additionally results in up to $200,000 in FY 23 consulting costs
associated with initial development of the fair share housing
methodology.
The bill requires municipalities to develop plans for achieving its fair
share housing goals. Small municipalities with limited administrative
capacity may need to hire additional staff to develop these plans.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to implementation of municipal fair
share housing plans.