LCO 1660 \\PRDFS1\HCOUSERS\BARRYJN\WS\2022HB-05204-R01- HB.docx 1 of 5 General Assembly Raised Bill No. 5204 February Session, 2022 LCO No. 1660 Referred to Committee on HOUSING Introduced by: (HSG) AN ACT CONCERNING A NEEDS ASSESSMENT AND FAIR SHARE PLANS FOR MUNICIPALITIES TO INCREASE AFFORDABLE HOUSING. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. (NEW) (Effective July 1, 2022) (a) As used in this section: 1 (1) "Affordable housing unit" means a dwelling unit conveyed by an 2 instrument containing a covenant or restriction that requires such 3 dwelling unit be sold or rented at or below a price intended to preserve 4 such unit as housing for a low income household for the municipality in 5 which such dwelling unit is located; 6 (2) "Commissioner" means the Commissioner of Housing; 7 (3) "Dwelling unit" means any house or building, or portion thereof, 8 which is occupied, is designed to be occupied, or is rented, leased or 9 hired out to be occupied, as a home or residence of one or more persons; 10 (4) "Low income household" means a person or family with an annual 11 income less than or equal to eighty per cent of the lesser of the state 12 Raised Bill No. 5204 LCO 1660 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2022HB-05204- R01-HB.docx } 2 of 5 median income or area median income, as determined by the United 13 States Department of Housing and Urban Development; 14 (5) "Very low income household" means a person or family whose 15 income is less than or equal to fifty per cent of the lesser of the state 16 median income or area median income, as determined by the United 17 States Department of Housing and Urban Development; 18 (6) "Extremely low income household" means a person or family with 19 an annual income less than or equal to thirty per cent of the lesser of the 20 state median income or area median income, as determined by the 21 United States Department of Housing and Urban Development; 22 (7) "Multifamily housing" means a residential building that contains 23 three or more dwelling units; 24 (8) "Municipal fair share goal" means the portion of the minimum 25 need for affordable housing units in a planning region, as determined 26 pursuant to subsection (b) of this section, that is allocated to a 27 municipality located within such planning region; 28 (9) "Municipal fair share plan" means a municipality's plan to achieve 29 its municipal fair share goal; 30 (10) "Planning region" means a planning region of the state, as 31 defined or redefined by the Secretary of the Office of Policy and 32 Management or the secretary's designee under the provisions of section 33 16a-4a of the general statutes; 34 (11) "Secretary" means the Secretary of the Office of Policy and 35 Management; and 36 (12) "Supportive housing" means affordable housing units available 37 to persons or families who qualify for assistance in accordance with 38 section 17a-485c of the general statutes. 39 (b) (1) Not later than July 1, 2024, the secretary, in consultation with 40 Raised Bill No. 5204 LCO 1660 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2022HB-05204- R01-HB.docx } 3 of 5 the commissioner and, as may be determined by the secretary, experts, 41 advocates and organizations with expertise in affordable housing, fair 42 housing and planning and zoning, shall establish a methodology for (A) 43 determining the minimum need for affordable housing units in each 44 planning region; and (B) fairly allocating such need to the municipalities 45 in each planning region to ensure adequate housing choice. Such 46 methodology shall rely on figures from the Comprehensive Housing 47 Affordability Strategy data set published by the United States 48 Department of Housing and Urban Development, or from a similar 49 source as may be determined by the secretary. 50 (2) In developing the methodology described in subdivision (1) of this 51 subsection, the secretary shall consider (A) appropriate metrics of the 52 minimum need for affordable housing units in a planning region to 53 ensure adequate housing choice, including the number of extremely low 54 income households in the planning region; and (B) appropriate factors 55 for fairly allocating such need to the municipalities within each planning 56 region, including the municipality's compliance with the requirements 57 of sections 8-2 and 8-23 of the general statutes with regard to ensuring 58 housing diversity and opportunities for multifamily housing and 59 housing affordable to low and moderate income households. 60 (3) The methodology established by the secretary pursuant to 61 subdivision (1) of this subsection shall increase the municipal fair share 62 goal of a municipality if such municipality, when compared to other 63 municipalities in the same planning region, has (A) more ratable real 64 and personal property, as reflected by its equalized net grand list, 65 calculated in accordance with the provisions of section 10-261a of the 66 general statutes, for residential, commercial, industrial, public utility 67 and vacant land; (B) a higher median income, based on data reported in 68 the most recent United States decennial census or a similar source; (C) a 69 lower percentage of its population that is below the federal poverty 70 threshold, based on data reported in such census or similar source; or 71 (D) a lower percentage of its population that lives in multifamily 72 housing, based on data reported in such census or similar source. 73 Raised Bill No. 5204 LCO 1660 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2022HB-05204- R01-HB.docx } 4 of 5 (4) (A) Not later than July 1, 2024, and every ten years thereafter, the 74 secretary, in consultation with the commissioner, shall, using the 75 methodology established pursuant to this subsection, determine the 76 minimum need for affordable housing units for each planning region 77 and a municipal fair share goal for each municipality within each 78 planning region. 79 (B) No municipal fair share goal determined pursuant to 80 subparagraph (A) of this subdivision shall exceed twenty per cent of the 81 occupied dwelling units in such municipality. 82 (c) (1) Not later than July 1, 2024, the secretary, in consultation with 83 the commissioner and, as may be determined by the secretary, experts, 84 advocates and organizations with expertise in affordable housing, fair 85 housing and planning and zoning, shall establish (A) a process by which 86 municipalities shall be required to develop, adopt, and submit to the 87 secretary and the commissioner municipal fair share plans setting forth 88 the actions the municipality will take to achieve its municipal fair share 89 goal; (B) the required contents and timing for submission of such plans; 90 (C) requirements to ensure that each municipal fair share plan provides 91 for the creation of a sufficient supply of the different types of deed-92 restricted affordable housing required for meeting the minimum need 93 for affordable housing units to ensure adequate housing choice, 94 including sufficient allocations of (i) rental units, (ii) units that will be 95 available to families, including units with two or three, or more 96 bedrooms, (iii) units that will be affordable to very low income 97 households and extremely low income households, and (iv) supportive 98 housing units; and (D) policies ensuring that no municipal fair share 99 plan creates, in the determination of the secretary, undue concentrations 100 of households below the federal poverty threshold in the applicable 101 planning region. 102 (2) Not later than July 1, 2024, and every ten years thereafter, the 103 secretary, in consultation with the commissioner and, as may be 104 determined by the secretary, experts, advocates and organizations with 105 expertise in affordable housing, fair housing and planning and zoning, 106 Raised Bill No. 5204 LCO 1660 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2022HB-05204- R01-HB.docx } 5 of 5 shall publish and appropriately disseminate technical assistance 107 materials to aid municipalities in preparing to comply with the 108 requirements of this section and shall arrange for the provision of 109 technical assistance briefings, trainings, webinars and such other 110 guidance as the secretary deems necessary. 111 (d) Not later than January 1, 2025, and every ten years thereafter, each 112 municipality shall prepare and adopt a municipal fair share plan that 113 creates a realistic opportunity for achieving the municipality's fair share 114 goal, in accordance with the process established pursuant to subsection 115 (c) of this section. 116 Sec. 2. (NEW) (Effective July 1, 2022) Not later than January 1, 2026, 117 the secretary, in consultation with the commissioner and, as may be 118 determined by the secretary, experts, advocates and organizations with 119 expertise in affordable housing, fair housing and planning and zoning, 120 shall submit a report to the joint standing committees of the General 121 Assembly having cognizance of matters relating to housing and 122 planning and development, in accordance with section 11-4a of the 123 general statutes, concerning (1) implementation of the provisions of 124 section 1 of this act; (2) the status of municipalities' performance of the 125 obligations established by section 1 of this act; and (3) recommendations 126 regarding implementation, compliance and enforcement of section 1 of 127 this act, including, but not limited to, consideration of approaches used 128 in other states for implementing and ensuring compliance with similar 129 obligations. 130 This act shall take effect as follows and shall amend the following sections: Section 1 July 1, 2022 New section Sec. 2 July 1, 2022 New section HSG Joint Favorable