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.