LCO No. 4013 1 of 11 General Assembly Raised Bill No. 6633 January Session, 2023 LCO No. 4013 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, 2023) (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 to be sold or rented at or below a price intended to 4 preserve such unit as housing for a low income household; 5 (2) "Commission", "zoning commission" or "zoning authority" means 6 a zoning commission, planning commission, planning and zoning 7 commission, zoning board of appeals or other municipal agency 8 exercising zoning or planning authority; 9 (3) "Commissioner" means the Commissioner of Housing, unless 10 otherwise specified; 11 (4) "Dwelling unit" means any house or building, or portion thereof, 12 Raised Bill No. 6633 LCO No. 4013 2 of 11 which is occupied, is designed to be occupied, or is rented, leased or 13 hired out to be occupied, as a home or residence of one or more persons; 14 (5) "Low income household" means a person or family with an annual 15 income less than or equal to eighty per cent of the state median income, 16 as determined by the United States Department of Housing and Urban 17 Development; 18 (6) "Very low income household" means a person or family with an 19 annual income less than or equal to fifty per cent of the state median 20 income, as determined by the United States Department of Housing and 21 Urban Development; 22 (7) "Extremely low income household" means a person or family with 23 an annual income less than or equal to thirty per cent of the state median 24 income, as determined by the United States Department of Housing and 25 Urban Development; 26 (8) "Interested party" means (A) a nonprofit organization that 27 represents low income households or addresses their housing needs, or 28 (B) a housing developer who seeks to construct housing contributing to 29 a municipality's fair share allocation if the intended or proposed 30 development (i) conforms with subdivision (3) or (6) of subsection (a) of 31 section 8-30g of the general statutes, revision of 1958, revised to January 32 1, 2023, or (ii) includes not less than twenty per cent of affordable 33 housing units conveyed by deeds containing affordable housing 34 covenants or restrictions applying for at least forty years, or a number 35 of nonage-restricted affordable housing units equal to not less than five 36 per cent of all units in the development that shall be sold or rented to 37 persons and families whose income is less than or equal to thirty per 38 cent of the lesser of state or area median income and the remainder of 39 the affordable housing units conveyed by deeds containing covenants 40 or restrictions shall be sold or rented to persons and families whose 41 income is less than or equal to eighty per cent of the lesser of state or 42 area median income. In such housing at least ten per cent of the deed-43 restricted units shall have two or more bedrooms; 44 Raised Bill No. 6633 LCO No. 4013 3 of 11 (9) "Median income" is the state median income, as determined by the 45 United States Department of Housing and Urban Development; 46 (10) "Multifamily housing" means a residential building that contains 47 three or more dwelling units; 48 (11) "Municipal fair share allocation" means the portion of the 49 minimum need for affordable housing units in a planning region, as 50 determined pursuant to subsection (b) of this section, that is allocated to 51 a municipality located within such planning region; 52 (12) "Municipal fair share goal" means the number of units each 53 municipality includes in its fair share plan, inclusive of additional bonus 54 points awarded, as described in subdivision (2) of subsection (c) of this 55 section; 56 (13) "Municipal fair share plan" means a municipality's plan and 57 updated zoning regulations and planning documents designed to 58 achieve its municipal fair share goal; 59 (14) "Planning region" means a planning region of the state, as 60 defined or redefined by the Secretary of the Office of Policy and 61 Management or the secretary's designee under the provisions of section 62 16a-4a of the general statutes, except the Metropolitan and Western 63 planning regions shall be considered a single planning region; 64 (15) "Secretary" means the Secretary of the Office of Policy and 65 Management; and 66 (16) "Supportive housing" means affordable housing units available 67 to persons or families who qualify for assistance in accordance with 68 section 17a-485c of the general statutes. 69 (b) (1) Not later than July 1, 2024, the secretary, in consultation with 70 the Commissioners of Housing and Economic and Community 71 Development and, as may be determined by the secretary, experts, 72 advocates and organizations with expertise in affordable housing, fair 73 housing and planning and zoning, shall establish a methodology for 74 Raised Bill No. 6633 LCO No. 4013 4 of 11 each municipality's fair share allocation by: 75 (A) Determining the need for affordable housing units in each 76 planning region; and 77 (B) Fairly allocating such need to the municipalities in each planning 78 region considering the duty of the state and municipalities to 79 affirmatively further fair housing pursuant to section 8-2 of the general 80 statutes and 42 USC 3608. Such methodology shall rely on data from the 81 Comprehensive Housing Affordability Strategy data set published by 82 the United States Department of Housing and Urban Development, or 83 from a similar source as may be determined by the secretary. 84 (2) The secretary shall ensure that the fair share allocation 85 methodology: 86 (A) Is designed with due consideration for the duty of the state and 87 each municipality to affirmatively further fair housing in accordance 88 with section 8-2 of the general statutes and 42 USC 3608; 89 (B) Relies on appropriate metrics of the minimum need for affordable 90 housing units in a planning region to ensure adequate housing options, 91 including the number of extremely low income households in the 92 planning region; 93 (C) Relies on appropriate factors for fairly allocating such need to 94 each municipality within each planning region, including a 95 municipality's compliance with the requirements of sections 8-2 and 8-96 23 of the general statutes with regard to promoting housing choice and 97 economic diversity in housing, including housing for both low and 98 moderate income households, and encouraging the development of 99 housing which meets the identified housing needs and the development 100 of housing opportunities, including opportunities for multifamily 101 dwellings, for all residents of the municipality and the planning region 102 in which the municipality is located; 103 (D) Does not assign a fair share allocation to any municipality with a 104 Raised Bill No. 6633 LCO No. 4013 5 of 11 federal poverty rate of twenty per cent or greater based on data reported 105 in the most recent United States decennial census or similar source; and 106 (E) Increases the municipal fair share allocation of a municipality if 107 such municipality, when compared to other municipalities in the same 108 planning region, has: 109 (i) A greater dollar value of the ratable real and personal property, as 110 reflected by its equalized net grand list, calculated in accordance with 111 the provisions of section 10-261a of the general statutes, for residential, 112 commercial, industrial, public utility and vacant land; 113 (ii) A higher median income, based on data reported in the most 114 recent United States decennial census or similar source; 115 (iii) A lower percentage of its population that is below the federal 116 poverty threshold, based on data reported in such census or similar 117 source; or 118 (iv) A lower percentage of its population that lives in multifamily 119 housing, based on data reported in such census or similar source. 120 (3) (A) Not later than July 1, 2024, and every ten years thereafter, the 121 secretary, in consultation with the commissioners, shall, using the 122 methodology established pursuant to this subsection, determine the 123 minimum need for affordable housing units for each planning region 124 and a municipal fair share allocation for each municipality within each 125 planning region. 126 (B) No municipal fair share allocation determined pursuant to 127 subparagraph (A) of this subdivision shall exceed twenty per cent of the 128 occupied dwelling units in such municipality. 129 (c) (1) Not later than July 1, 2024, the secretary, in consultation with 130 the commissioners and, as may be determined by the secretary, experts, 131 advocates and organizations with expertise in affordable housing, fair 132 housing and planning and zoning, shall establish: 133 Raised Bill No. 6633 LCO No. 4013 6 of 11 (A) A process by which each municipality shall be required to 134 develop, adopt and submit to the secretary and the commissioner 135 municipal fair share plans setting forth the new zoning regulations and 136 planning documents the municipality has adopted and other actions the 137 municipality will take to achieve its municipal fair share goal; 138 (B) The required contents and timing for submission of such plans, 139 including updated zoning regulations and planning documents; 140 (C) Requirements to ensure that each municipal fair share plan 141 provides for the creation of a sufficient supply of the different types of 142 deed-restricted affordable housing required for meeting its fair share 143 goal, including ensuring: 144 (i) Not less than fifty per cent of the units are affordable to very low 145 income households; 146 (ii) Not less than thirteen per cent of units are affordable to extremely 147 low income households; 148 (iii) Not more than fifty per cent of the units are affordable to 149 households with incomes above very low income but less than the low 150 income threshold; 151 (iv) Not less than twenty-five per cent of the units are rental units; 152 (v) Not more than twenty-five per cent of units are restricted by 153 occupant age; 154 (vi) Not less than fifty per cent of the units are unrestricted by 155 occupant age and include two or more bedrooms; 156 (vii) Not more than twenty per cent of the units are studios or one 157 bedroom; and 158 (viii) All units, regardless of sources of funding, are affirmatively 159 marketed in accordance with section 8-37ee of the general statutes and 160 associated regulations; 161 Raised Bill No. 6633 LCO No. 4013 7 of 11 (D) Policies ensuring that no municipal fair share plan creates, in the 162 determination of the secretary, undue concentrations of households 163 below the federal poverty threshold in the applicable planning region; 164 and 165 (E) Policies ensuring that each municipal fair share plan provides for 166 the equitable distribution of affordable housing within the municipality 167 in accordance with section 46a-64c of the general statutes and 42 USC 168 3601 to 3619, inclusive. 169 (2) In defining each municipality's obligation pursuant to this section, 170 the secretary shall include the ability of each municipality to convert its 171 municipal fair share allocation into a municipal fair share goal 172 represented by points wherein: 173 (A) Each affordable housing unit constitutes one point; 174 (B) Additional bonus points may be added for certain types of 175 housing units at a ratio conforming to the threshold requirements of 176 subparagraph (C) of subdivision (1) of this subsection, provided that no 177 fair share goal shall fall below eighty per cent of the municipality's initial 178 fair share allocation; 179 (C) Only one bonus point shall be awarded per unit such that the 180 bonus points are not cumulative; and 181 (D) Bonus points shall be awarded as follows: 182 (i) Qualifying housing affordable to households at or below the 183 extremely low income threshold shall receive one additional point; 184 (ii) Qualifying units with two or more bedrooms shall receive one 185 additional point; and 186 (iii) Qualifying units that constitute supportive housing as defined in 187 section 17a-485c of the general statutes shall receive an additional point. 188 (d) Not later than July 1, 2025, and every ten years thereafter, each 189 Raised Bill No. 6633 LCO No. 4013 8 of 11 municipality shall prepare and adopt a municipal fair share plan that 190 creates a realistic opportunity for achieving the municipality's fair share 191 goal, in accordance with the process established pursuant to subsection 192 (c) of this section. 193 Sec. 2. (NEW) (Effective July 1, 2023) (a) Each municipality shall meet 194 its fair share goals by issuing certificates of occupancy conforming to the 195 requirements of subparagraph (C) of subdivision (1) of subsection (c) of 196 section 1 of this act on the following schedule: 197 (1) By year three: Five per cent completion; 198 (2) By year five: Thirty per cent completion; 199 (3) By year seven: Sixty per cent completion; and 200 (4) By year ten: One hundred per cent completion. 201 (b) (1) Beginning on July 1, 2026, and annually thereafter, each 202 municipality shall submit a report to the Commissioner of Housing 203 documenting its progress toward meeting its fair share goal that 204 includes (A) the addresses of the units meeting its fair share goal, (B) the 205 income restrictions applicable to each unit, (C) relevant completed or 206 planned infrastructure expansion, and (D) the details of affirmative 207 marketing efforts, including copies of active affirmative marketing 208 plans for relevant developments; and (2) supporting documentation for 209 such reporting, which shall be made publicly available upon request, 210 excluding any redacted personally identifying information. 211 (c) Beginning on July 1, 2028, and annually thereafter, the 212 commissioner shall conduct random audits of at least ten per cent of the 213 municipal fair share plans to ensure that such plans comply with the 214 requirements of section 1 of this act. 215 (d) Not later than July 1, 2024, and periodically thereafter in the 216 discretion of the Secretary of the Office of Policy and Management, the 217 secretary, in consultation with the commissioner and, as may be 218 determined by the secretary, experts, advocates and organizations with 219 Raised Bill No. 6633 LCO No. 4013 9 of 11 expertise in affordable housing, fair housing and planning and zoning, 220 shall publish and disseminate technical assistance materials to aid each 221 municipality in compliance with the requirements of this section and 222 shall arrange for the provision of technical assistance briefings, 223 trainings, webinars and such other guidance to each municipality as the 224 secretary deems necessary. 225 (e) If any municipality has not submitted a fair share plan to the 226 secretary in accordance with subsection (c) of section 1 of this act or has 227 not issued certificates of occupancy in accordance with subsection (a) of 228 this section, such municipality shall be subject to default zoning that, 229 notwithstanding any other provision of the general statutes: 230 (1) In any area where water and sewer infrastructure and capacity are 231 available or where water and sewer service can be provided by 232 extending existing lines at the developer's expense, the following uses 233 are permitted as of right: multifamily housing of not more than twenty 234 units per acre if (A) at least twenty per cent of the units are nonage-235 restricted two or more bedroom units affordable to low income 236 households and deed restricted for forty years, or (B) ten per cent of the 237 units are nonage-restricted two or more bedroom units affordable to 238 very low income households and deed restricted for twenty years. 239 (2) In all other areas, as of right development of multifamily housing 240 subject to limitations on the number of units, density and other aspects 241 of the development required for any particular site by the applicable 242 provisions of chapter 368a of the general statutes and associated public 243 health regulations, with the greater of one unit or ten per cent of units 244 having two or more bedrooms, affordable to low income households, 245 and so deed restricted for forty years. 246 (f) When any municipality fails to submit a fair share plan to the 247 secretary in accordance with subsection (c) of section 1 of this act, or 248 when a fair share plan submitted by a municipality fails to create a 249 realistic opportunity for the municipality to attain its municipal fair 250 share allocation, any interested party may bring an action in the 251 Raised Bill No. 6633 LCO No. 4013 10 of 11 Superior Court of the judicial district in which the municipality is 252 located to seek (1) a court order that the municipality issue a fair share 253 plan and updated zoning regulations that create a realistic opportunity 254 for the municipality to meet its municipal fair share allocation, including 255 through express agreements with developers for housing development 256 projects contributing to the municipality's total fair share allocation; or 257 (2) if a particular housing development conforming with subparagraph 258 (B) of subdivision (8) of section (a) of section 1 of this act has been 259 rejected by the municipality's zoning authority and an appeal is brought 260 by the developer, a court order permitting the development unless the 261 defendant demonstrates that the decision from which such appeal is 262 taken and the reasons cited for such decision are supported by sufficient 263 evidence in the record and the defendant has demonstrated that (A) (i) 264 the decision is necessary to protect substantial public interests in health, 265 safety or other matters which the commission may legally consider; (ii) 266 such public interests clearly outweigh the need for affordable housing; 267 and (iii) such public interests cannot be protected by reasonable changes 268 to the affordable housing development, or (B) (i) the application which 269 was the subject of the decision from which such appeal was taken would 270 locate affordable housing in an area which is zoned for industrial use 271 and which does not permit residential uses; and (ii) the development is 272 not assisted housing. If the defendant does not satisfy its burden of 273 proof under this subsection, the court may wholly or partly revise, 274 modify, remand or reverse the decision from which the appeal was 275 taken in a manner consistent with the evidence in the record before it 276 and, if the plaintiff interested party prevails, the court may award 277 additional relief in accordance with section 46a-104 of the general 278 statutes. 279 This act shall take effect as follows and shall amend the following sections: Section 1 July 1, 2023 New section Sec. 2 July 1, 2023 New section Raised Bill No. 6633 LCO No. 4013 11 of 11 Statement of Purpose: To (1) require an assessment of the state-wide need for affordable housing and an allocation of such need to planning regions and municipalities, (2) require the creation of fair share plans for each municipality, and (3) establish penalties for municipalities that fail to submit fair share plans. [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.]