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General Assembly Substitute Bill No. 6633
January Session, 2023
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" 6
means a zoning commission, planning commission, planning and 7
zoning commission, zoning board of appeals or other municipal 8
agency 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
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 14
persons; 15
(5) "Low income household" means a person or family with an 16
annual income less than or equal to eighty per cent of the state median 17 Substitute Bill No. 6633
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income, as determined by the United States Department of Housing 18
and Urban Development; 19
(6) "Very low income household" means a person or family with an 20
annual income less than or equal to fifty per cent of the state median 21
income, as determined by the United States Department of Housing 22
and Urban Development; 23
(7) "Extremely low income household" means a person or family 24
with an annual income less than or equal to thirty per cent of the state 25
median income, as determined by the United States Department of 26
Housing and Urban Development; 27
(8) "Interested party" means (A) a nonprofit organization that 28
represents low income households or addresses their housing needs, 29
or (B) a housing developer who seeks to construct housing 30
contributing to a municipality's fair share allocation if the intended or 31
proposed development (i) conforms with subdivision (3) or (6) of 32
subsection (a) of section 8-30g of the general statutes, revision of 1958, 33
revised to January 1, 2023, or (ii) includes not less than twenty per cent 34
of affordable housing units conveyed by deeds containing affordable 35
housing covenants or restrictions applying for at least forty years, or a 36
number of nonage-restricted affordable housing units equal to not less 37
than five per cent of all units in the development are sold or rented to 38
persons and families whose income is less than or equal to thirty per 39
cent of the lesser of state or area median income and the remainder of 40
the affordable housing units conveyed by deeds containing covenants 41
or restrictions are sold or rented to persons and families whose income 42
is less than or equal to eighty per cent of the lesser of state or area 43
median income, provided at least ten per cent of the deed-restricted 44
units in such housing have two or more bedrooms; 45
(9) "Median income" is the state median income, as determined by 46
the United States Department of Housing and Urban Development; 47
(10) "Multifamily housing" means a residential building that 48 Substitute Bill No. 6633
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contains three or more dwelling units; 49
(11) "Municipal fair share allocation" means the portion of the 50
minimum need for affordable housing units in a planning region, as 51
determined pursuant to subsection (b) of this section, that is allocated 52
to a municipality located within such planning region; 53
(12) "Municipal fair share goal" means the number of units each 54
municipality includes in its fair share plan, inclusive of additional 55
bonus points awarded, as described in subdivision (2) of subsection (c) 56
of this section; 57
(13) "Municipal fair share plan" means a municipality's plan and 58
updated zoning regulations and planning documents designed to 59
achieve its municipal fair share goal; 60
(14) "Planning region" means a planning region of the state, as 61
defined or redefined by the Secretary of the Office of Policy and 62
Management or the secretary's designee under the provisions of 63
section 16a-4a of the general statutes, except the Metropolitan and 64
Western planning regions shall be considered a single planning region; 65
(15) "Secretary" means the Secretary of the Office of Policy and 66
Management; and 67
(16) "Supportive housing" means affordable housing units available 68
to persons or families who qualify for assistance in accordance with 69
section 17a-485c of the general statutes. 70
(b) (1) Not later than July 1, 2024, the secretary, in consultation with 71
the Commissioners of Housing and Economic and Community 72
Development and, as may be determined by the secretary, experts, 73
advocates and organizations with expertise in affordable housing, fair 74
housing and planning and zoning, shall establish a methodology for 75
each municipality's fair share allocation by: 76
(A) Determining the need for affordable housing units in each 77 Substitute Bill No. 6633
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planning region; and 78
(B) Fairly allocating such need to the municipalities in each 79
planning region considering the duty of the state and municipalities to 80
affirmatively further fair housing pursuant to section 8-2 of the general 81
statutes and 42 USC 3608. Such methodology shall rely on data from 82
the Comprehensive Housing Affordability Strategy data set published 83
by the United States Department of Housing and Urban Development, 84
or from a similar source as may be determined by the secretary. 85
(2) The secretary shall ensure that the fair share allocation 86
methodology: 87
(A) Is designed with due consideration for the duty of the state and 88
each municipality to affirmatively further fair housing in accordance 89
with section 8-2 of the general statutes and 42 USC 3608; 90
(B) Relies on appropriate metrics of the minimum need for 91
affordable housing units in a planning region to ensure adequate 92
housing options, including the number of extremely low income 93
households in the planning region; 94
(C) Relies on appropriate factors for fairly allocating such need to 95
each municipality within each planning region, including a 96
municipality's compliance with the requirements of sections 8-2 and 8-97
23 of the general statutes with regard to promoting housing choice and 98
economic diversity in housing, including housing for both low and 99
moderate income households, and encouraging the development of 100
housing which meets the identified housing needs an d the 101
development of housing opportunities, including opportunities for 102
multifamily housing, for all residents of the municipality and the 103
planning region in which the municipality is located; 104
(D) Does not assign a fair share allocation to any municipality with 105
a federal poverty rate of twenty per cent or greater based on data 106
reported in the most recent United States decennial census or similar 107
source; and 108 Substitute Bill No. 6633
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(E) Increases the municipal fair share allocation of a municipality if 109
such municipality, when compared to other municipalities in the same 110
planning region, has: 111
(i) A greater dollar value of the ratable real and personal property, 112
as reflected by its equalized net grand list, calculated in accordance 113
with the provisions of section 10-261a of the general statutes, for 114
residential, commercial, industrial, public utility and vacant land; 115
(ii) A higher median income, based on data reported in the most 116
recent United States decennial census or similar source; 117
(iii) A lower percentage of its population that is below the federal 118
poverty threshold, based on data reported in such census or similar 119
source; or 120
(iv) A lower percentage of its population that lives in multifamily 121
housing, based on data reported in such census or similar source. 122
(3) (A) Not later than July 1, 2024, and every ten years thereafter, the 123
secretary, in consultation with the Commissioners of Housing and 124
Economic and Community Development , shall, using the 125
methodology established pursuant to this subsection, determine the 126
minimum need for affordable housing units for each planning region 127
and a municipal fair share allocation for each municipality within each 128
planning region. 129
(B) No municipal fair share allocation determined pursuant to 130
subparagraph (A) of this subdivision shall exceed twenty per cent of 131
the occupied dwelling units in such municipality. 132
(c) (1) Not later than July 1, 2024, the secretary, in consultation with 133
the Commissioners of Housing and Economic and Community 134
Development and, as may be determined by the secretary, experts, 135
advocates and organizations with expertise in affordable housing, fair 136
housing and planning and zoning, shall establish: 137 Substitute Bill No. 6633
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(A) A process by which each municipality shall be required to 138
develop, adopt and submit municipal fair share plans to the secretary 139
and the commissioner that set forth the new zoning regulations and 140
planning documents the municipality has adopted and other actions 141
the municipality will take to achieve its municipal fair share goal; 142
(B) The required contents and timing for submission of such plans, 143
including updated zoning regulations and planning documents; 144
(C) Requirements to ensure that each municipal fair share plan 145
provides for the creation of a sufficient supply of the different types of 146
deed-restricted affordable housing required for meeting its fair share 147
goal, including ensuring: 148
(i) Not less than fifty per cent of the units are affordable to very low 149
income households; 150
(ii) Not less than thirteen per cent of units are affordable to 151
extremely low income households; 152
(iii) Not more than fifty per cent of the units are affordable to 153
households with incomes above very low income but less than the low 154
income threshold; 155
(iv) Not less than twenty-five per cent of the units are rental units; 156
(v) Not more than twenty-five per cent of units are restricted by 157
occupant age; 158
(vi) Not less than fifty per cent of the units are unrestricted by 159
occupant age and include two or more bedrooms; 160
(vii) Not more than twenty per cent of the units are studios or one 161
bedroom; and 162
(viii) All units, regardless of sources of funding, are affirmatively 163
marketed in accordance with section 8-37ee of the general statutes and 164
associated regulations; 165 Substitute Bill No. 6633
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(D) Policies ensuring that no municipal fair share plan creates, in the 166
determination of the secretary, undue concentrations of households 167
below the federal poverty threshold in the applicable planning region; 168
and 169
(E) Policies ensuring that each municipal fair share plan provides 170
for the equitable distribution of affordable housing within the 171
municipality in accordance with section 46a-64c of the general statutes 172
and 42 USC 3601 to 3619, inclusive. 173
(2) In defining each municipality's obligation pursuant to this 174
section, the secretary shall include the ability of each municipality to 175
convert its municipal fair share allocation into a municipal fair share 176
goal represented by points wherein: 177
(A) Each affordable housing unit constitutes one point; 178
(B) Additional bonus points may be added for certain types of 179
housing units at a ratio conforming to the threshold requirements of 180
subparagraph (C) of subdivision (1) of this subsection, provided no fair 181
share goal shall fall below eighty per cent of the municipality's initial 182
fair share allocation; 183
(C) Only one bonus point shall be awarded per unit such that the 184
bonus points are not cumulative; and 185
(D) Bonus points shall be awarded as follows: 186
(i) Qualifying housing affordable to households at or below the 187
extremely low income threshold shall receive one additional point; 188
(ii) Qualifying units with two or more bedrooms shall receive one 189
additional point; and 190
(iii) Qualifying units that constitute supportive housing, as defined 191
in section 17a-485c of the general statutes, shall receive an additional 192
point. 193 Substitute Bill No. 6633
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(d) Not later than July 1, 2025, and every ten years thereafter, each 194
municipality shall prepare and adopt a municipal fair share plan that 195
creates a realistic opportunity for achieving the municipality's fair 196
share goal, in accordance with the process established pursuant to 197
subsection (c) of this section. 198
Sec. 2. (NEW) (Effective July 1, 2023) (a) Each municipality shall meet 199
its fair share goals by issuing certificates of occupancy conforming to 200
the requirements of subparagraph (C) of subdivision (1) of subsection 201
(c) of section 1 of this act on the following schedule: 202
(1) By year three: Five per cent completion; 203
(2) By year five: Thirty per cent completion; 204
(3) By year seven: Sixty per cent completion; and 205
(4) By year ten: One hundred per cent completion. 206
(b) (1) Beginning on July 1, 2026, and annually thereafter, each 207
municipality shall submit a report to the Commissioner of Housing 208
documenting its progress toward meeting its fair share goal that 209
includes (A) the addresses of the units meeting its fair share goal, (B) 210
the income restrictions applicable to each unit, (C) relevant completed 211
or planned infrastructure expansion, and (D) the details of affirmative 212
marketing efforts, including copies of active affirmative marketing 213
plans for relevant developments; and (2) supporting documentation 214
for such reporting, which shall be made publicly available upon 215
request, excluding any redacted personally identifying information. 216
(c) Beginning on July 1, 2028, and annually thereafter, the 217
commissioner shall conduct random audits of at least ten per cent of 218
the municipal fair share plans to ensure that such plans comply with 219
the requirements of section 1 of this act. 220
(d) Not later than July 1, 2024, and periodically thereafter in the 221
discretion of the Secretary of the Office of Policy and Management, the 222 Substitute Bill No. 6633
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secretary, in consultation with the commissioner and, as may be 223
determined by the secretary, experts, advocates and organizations 224
with expertise in affordable housing, fair housing and planning and 225
zoning, shall publish and disseminate technical assistance materials to 226
aid each municipality in compliance with the requirements of this 227
section and shall arrange for the provision of technical assistance 228
briefings, trainings, webinars and such other guidance to each 229
municipality as the secretary deems necessary. 230
(e) If any municipality has not submitted a fair share plan to the 231
secretary in accordance with subsection (c) of section 1 of this act or 232
has not issued certificates of occupancy in accordance with subsection 233
(a) of this section, notwithstanding any other provision of the general 234
statutes, such municipality shall be subject to the following default 235
zoning: 236
(1) In any area where water and sewer infrastructure and capacity 237
are available or where water and sewer service can be provided by 238
extending existing lines at the developer's expense, the following uses 239
are permitted as of right: multifamily housing of not more than twenty 240
units per acre if (A) at least twenty per cent of the units are nonage-241
restricted two or more bedroom units affordable to low income 242
households and deed restricted for forty years, or (B) ten per cent of 243
the units are nonage-restricted two or more bedroom units affordable 244
to very low income households and deed restricted for twenty years. 245
(2) In all other areas, the development of multifamily housing is as 246
of right subject to limitations on the number of units, density and other 247
aspects of the development required for any particular site by the 248
applicable provisions of chapter 368a of the general statutes and 249
associated public health regulations, with the greater of one unit or ten 250
per cent of units having two or more bedrooms, being affordable to 251
low income households, and being so deed restricted for forty years. 252
(f) When any municipality fails to submit a fair share plan to the 253
secretary in accordance with subsection (c) of section 1 of this act, or 254 Substitute Bill No. 6633
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when a fair share plan submitted by a municipality fails to create a 255
realistic opportunity for the municipality to attain its municipal fair 256
share allocation, any interested party may bring an action in the 257
Superior Court of the judicial district in which the municipality is 258
located to seek (1) a court order that the municipality issue a fair share 259
plan and updated zoning regulations that create a realistic opportunity 260
for the municipality to meet its municipal fair share allocation, 261
including through express agreements with developers for housing 262
development projects contributing to the municipality's total fair share 263
allocation; or (2) if a particular housing development conforming with 264
subparagraph (B) of subdivision (8) of section (a) of section 1 of this act 265
has been rejected by the municipality's zoning authority and an appeal 266
is brought by the developer, a court order permitting the development 267
unless the defendant demonstrates that the decision from which such 268
appeal is taken and the reasons cited for such decision are supported 269
by sufficient evidence in the record and the defendant has 270
demonstrated that (A) (i) the decision is necessary to protect 271
substantial public interests in health, safety or other matters which the 272
commission may legally consider; (ii) such public interests clearly 273
outweigh the need for affordable housing; and (iii) such public 274
interests cannot be protected by reasonable changes to the affordable 275
housing development, or (B) (i) the application which was the subject 276
of the decision from which such appeal was taken would locate 277
affordable housing in an area which is zoned for industrial use and 278
which does not permit residential uses; and (ii) the development is not 279
assisted housing. If the defendant does not satisfy its burden of proof 280
under this subsection, the court may wholly or partly revise, modify, 281
remand or reverse the decision from which the appeal was taken in a 282
manner consistent with the evidence in the record before it and, if the 283
plaintiff interested party prevails, the court may award additional 284
relief in accordance with section 46a-104 of the general statutes. 285
This act shall take effect as follows and shall amend the following
sections:
Substitute Bill No. 6633
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Section 1 July 1, 2023 New section
Sec. 2 July 1, 2023 New section
Statement of Legislative Commissioners:
Sections 1(a)(8) and 2(e) were rephrased for clarity; and in Section
1(b)(2)(C), "multifamily dwellings" was changed to "multifamily
housing" for consistency with the defined term.
HSG Joint Favorable Subst. -LCO