Connecticut 2023 Regular Session

Connecticut House Bill HB06708 Compare Versions

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7-General Assembly Substitute Bill No. 6708
5+General Assembly Raised Bill No. 6708
86 January Session, 2023
7+LCO No. 4401
8+
9+
10+Referred to Committee on HOUSING
11+
12+
13+Introduced by:
14+(HSG)
15+
916
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1118
1219 AN ACT CONCERNING THE SECURITY DEPOSIT GUARANTEE
1320 PROGRAM.
1421 Be it enacted by the Senate and House of Representatives in General
1522 Assembly convened:
1623
1724 Section 1. Section 8-339 of the general statutes is repealed and the 1
1825 following is substituted in lieu thereof (Effective July 1, 2023): 2
1926 (a) The Commissioner of Housing shall establish, within available 3
2027 appropriations, and administer a security deposit guarantee program 4
2128 for [persons who (1) (A) are recipients of temporary family assistance, 5
2229 aid under the state supplement program, or state-administered general 6
23-assistance, or (B) have a documented showing of financial need, and 7
24-(2) (A) are residing in emergency shelters or other emergency housing, 8
30+assistance, or (B) have a documented showing of financial need, and (2) 7
31+(A) are residing in emergency shelters or other emergency housing, 8
2532 cannot remain in permanent housing due to any reason specified in 9
2633 subsection (a) of section 17b-808, or are] (1) any individual or family 10
27-whose income is eighty per cent or less of the median income of the 11
28-state, adjusted for family size, as determined by the United States 12
34+whose income is not greater than eighty per cent of the median income 11
35+of the state, adjusted for family size, as determined by the United States 12
2936 Department of Housing and Urban Development, (2) any individual 13
3037 who is served a writ, summons and complaint in a summary process 14
31-action instituted pursuant to chapter 832, or [(B) have] (3) any 15
32-individual who receives a certificate or voucher from a rental 16
33-assistance program or federal [Section 8] Housing Choice Voucher 17
34-program. Under the security deposit guarantee program, the 18
35-[Commissioner of Housing] commissioner may provide security 19
36-deposit guarantees for use by [such] persons who are eligible pursuant 20 Substitute Bill No. 6708
38+action instituted pursuant to chapter 832, or [(B) have] (3) any individual 15 Raised Bill No. 6708
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43-to this subsection in lieu of a security deposit on a rental dwelling unit. 21
44-Eligible persons may receive a security deposit guarantee in an amount 22
45-not to exceed the equivalent of [two] one and one-half months' rent on 23
46-such rental unit. No person may apply for and receive a security 24
47-deposit guarantee more than once in any [eighteen-month] twenty-25
48-four-month period without the express authorization of the 26
49-[Commissioner of Housing] commissioner, except as provided in 27
50-subsection (b) of this section. The [Commissioner of Housing] 28
51-commissioner may deny eligibility for the [security deposit guarantee] 29
52-program to an applicant for whom the commissioner has paid [two] 30
53-one or more claims by landlords. The [Commissioner of Housing] 31
54-commissioner shall prioritize the provision of security deposit 32
55-guarantees to eligible veterans and may establish priorities for 33
56-providing security deposit guarantees to other eligible persons 34
57-described in [subparagraphs (A) and (B) of subdivision (2)] 35
58-subdivisions (1) to (3), inclusive, of this subsection in order to 36
59-administer the program within available appropriations. 37
60-(b) In the case of any person who qualifies for a guarantee, the 38
61-[Commissioner of Housing] commissioner, or any local or regional 39
62-nonprofit corporation or social service organization under contract 40
63-with the Department of Housing to assist in the administration of the 41
64-[security deposit guarantee] program established pursuant to 42
65-subsection (a) of this section, may execute a written agreement to pay 43
66-the landlord for any damages suffered by the landlord due to the 44
67-tenant's failure to comply with such tenant's obligations, as defined in 45
68-section 47a-21, provided the amount of any such payment shall not 46
69-exceed the amount of the requested security deposit. Notwithstanding 47
70-the provisions of subsection (a) of this section, if a person who has 48
71-previously received a grant for a security deposit or a security deposit 49
72-guarantee becomes eligible for a subsequent security deposit guarantee 50
73-[within eighteen] not later than twenty-four months after a claim has 51
74-been paid on a prior security deposit guarantee, such person may 52
75-receive a security deposit guarantee. The amount of the subsequent 53
76-security deposit guarantee for which such person would otherwise 54 Substitute Bill No. 6708
42+LCO No. 4401 2 of 5
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44+that receives a certificate or voucher from a rental assistance program or 16
45+federal [Section 8] Housing Choice Voucher program. Under the 17
46+security deposit guarantee program, the [Commissioner of Housing] 18
47+commissioner may provide security deposit guarantees for use by 19
48+[such] persons eligible pursuant to this subsection in lieu of a security 20
49+deposit on a rental dwelling unit. Eligible persons may receive a security 21
50+deposit guarantee in an amount not to exceed the equivalent of [two] 22
51+one and one-half months' rent on such rental unit. No person may apply 23
52+for and receive a security deposit guarantee more than once in any 24
53+[eighteen-month] twenty-four-month period without the express 25
54+authorization of the [Commissioner of Housing] commissioner, except 26
55+as provided in subsection (b) of this section. The [Commissioner of 27
56+Housing] commissioner may deny eligibility for the [security deposit 28
57+guarantee] program to an applicant for whom the commissioner has 29
58+paid [two] one or more claims by landlords. The [Commissioner of 30
59+Housing] commissioner shall prioritize the provision of security deposit 31
60+guarantees to eligible veterans and may establish priorities for 32
61+providing security deposit guarantees to other eligible persons 33
62+described in [subparagraphs (A) and (B) of subdivision (2)] subdivisions 34
63+(1) to (3), inclusive, of this subsection in order to administer the program 35
64+within available appropriations. 36
65+(b) In the case of any person who qualifies for a guarantee, the 37
66+[Commissioner of Housing] commissioner, or any local or regional 38
67+nonprofit corporation or social service organization under contract with 39
68+the Department of Housing to assist in the administration of the 40
69+[security deposit guarantee] program established pursuant to 41
70+subsection (a) of this section, may execute a written agreement to pay 42
71+the landlord for any damages suffered by the landlord due to the 43
72+tenant's failure to comply with such tenant's obligations as defined in 44
73+section 47a-21, provided the amount of any such payment shall not 45
74+exceed the amount of the requested security deposit. Notwithstanding 46
75+the provisions of subsection (a) of this section, if a person who has 47
76+previously received a grant for a security deposit or a security deposit 48
77+guarantee becomes eligible for a subsequent security deposit guarantee 49 Raised Bill No. 6708
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83-have been eligible shall be reduced by (1) any amount of a previous 55
84-grant which has not been returned to the department pursuant to 56
85-section 47a-21, or (2) the amount of any payment made to the landlord 57
86-for damages pursuant to this subsection. 58
87-(c) Any payment made pursuant to this section to any person 59
88-receiving temporary family assistance, aid under the state supplement 60
89-program or state-administered general assistance shall not be deducted 61
90-from the amount of assistance to which the recipient would otherwise 62
91-be entitled. 63
92-(d) On and after July 1, 2000, no special need or special benefit 64
93-payments shall be made by the commissioner for security deposits 65
94-from the temporary family assistance, state supplement, or state-66
95-administered general assistance programs. 67
96-(e) The [Commissioner of Housing] commissioner may, within 68
97-available appropriations, on a case-by-case basis, provide a security 69
98-deposit grant to a person eligible for the [security deposit guarantee] 70
99-program established under subsection (a) of this section, in an amount 71
100-not to exceed the equivalent of one month's rent on such rental unit, 72
101-provided the commissioner determines that emergency circumstances 73
102-exist which threaten the health, safety or welfare of a child who resides 74
103-with such person. Such person shall not be eligible for more than one 75
104-such grant without the authorization of said commissioner. Nothing in 76
105-this section shall preclude the approval of such one-month security 77
106-deposit grant in conjunction with a one-month security deposit 78
107-guarantee. 79
108-(f) The [Commissioner of Housing] commissioner may provide a 80
109-security deposit grant to a person receiving such grant through any 81
110-local or regional nonprofit corporation or social service organization 82
111-under an existing contract with the Department of Housing to assist in 83
112-the administration of the security deposit program. [, but in no event 84
113-shall a payment be authorized after October 1, 2000.] Nothing in this 85
114-section shall preclude the commissioner from entering into a contract 86 Substitute Bill No. 6708
81+LCO No. 4401 3 of 5
82+
83+within [eighteen] twenty-four months after a claim has been paid on a 50
84+prior security deposit guarantee, such person may receive a security 51
85+deposit guarantee. The amount of the subsequent security deposit 52
86+guarantee for which such person would otherwise have been eligible 53
87+shall be reduced by (1) any amount of a previous grant which has not 54
88+been returned to the department pursuant to section 47a-21, or (2) the 55
89+amount of any payment made to the landlord for damages pursuant to 56
90+this subsection. 57
91+(c) Any payment made pursuant to this section to any person 58
92+receiving temporary family assistance, aid under the state supplement 59
93+program or state-administered general assistance shall not be deducted 60
94+from the amount of assistance to which the recipient would otherwise 61
95+be entitled. 62
96+(d) On and after July 1, 2000, no special need or special benefit 63
97+payments shall be made by the commissioner for security deposits from 64
98+the temporary family assistance, state supplement, or state-65
99+administered general assistance programs. 66
100+(e) The [Commissioner of Housing] commissioner may, within 67
101+available appropriations, on a case-by-case basis, provide a security 68
102+deposit grant to a person eligible for the [security deposit guarantee] 69
103+program established under subsection (a) of this section, in an amount 70
104+not to exceed the equivalent of one month's rent on such rental unit, 71
105+provided the commissioner determines that emergency circumstances 72
106+exist which threaten the health, safety or welfare of a child who resides 73
107+with such person. Such person shall not be eligible for more than one 74
108+such grant without the authorization of said commissioner. Nothing in 75
109+this section shall preclude the approval of such one-month security 76
110+deposit grant in conjunction with a one-month security deposit 77
111+guarantee. 78
112+(f) The [Commissioner of Housing] commissioner may provide a 79
113+security deposit grant to a person receiving such grant through any local 80
114+or regional nonprofit corporation or social service organization under 81 Raised Bill No. 6708
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121-with one or more local or regional nonprofit corporations or social 87
122-service organizations for the purpose of issuing security deposit 88
123-guarantees. 89
124-(g) A landlord may submit a claim for damages not later than [forty-90
125-five] twenty days after the date of termination of the tenancy. Payment 91
126-shall be made only for a claim that includes receipts for repairs made. 92
127-No claim shall be paid for an apartment from which a tenant vacated 93
128-because substandard conditions made the apartment uninhabitable, as 94
129-determined by a local, state or federal regulatory agency. 95
130-(h) Any person with income exceeding one hundred fifty per cent of 96
131-the federal poverty level, who is found eligible to receive a security 97
132-deposit guarantee under this section and for whom the commissioner 98
133-has paid a claim by a landlord, shall contribute [five] fifty per cent of 99
134-one month's rent to the payment of the security deposit. The 100
135-commissioner may waive such payment for good cause. 101
136-(i) The [Commissioner of Housing] commissioner shall adopt 102
137-regulations, in accordance with the provisions of chapter 54, to 103
138-administer the program established pursuant to this section and to set 104
139-eligibility criteria for the program, but may implement the program 105
140-while in the process of adopting such regulations provided notice of 106
141-intent to adopt the regulations is published [in the Connecticut Law 107
142-Journal within ] on the eRegulations System not later than twenty days 108
143-after implementation. 109
144-Sec. 2. (Effective July 1, 2023) The sum of ten million dollars is 110
145-appropriated to the Department of Housing from the General Fund, 111
146-for the fiscal year ending June 30, 2024, for the administration of the 112
147-security deposit guarantee program. 113
118+LCO No. 4401 4 of 5
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120+an existing contract with the Department of Housing to assist in the 82
121+administration of the security deposit program. [, but in no event shall 83
122+a payment be authorized after October 1, 2000.] Nothing in this section 84
123+shall preclude the commissioner from entering into a contract with one 85
124+or more local or regional nonprofit corporations or social service 86
125+organizations for the purpose of issuing security deposit guarantees. 87
126+(g) A landlord may submit a claim for damages not later than [forty-88
127+five] twenty days after the date of termination of the tenancy. Payment 89
128+shall be made only for a claim that includes receipts for repairs made. 90
129+No claim shall be paid for an apartment from which a tenant vacated 91
130+because substandard conditions made the apartment uninhabitable, as 92
131+determined by a local, state or federal regulatory agency. 93
132+(h) Any person with income exceeding one hundred fifty per cent of 94
133+the federal poverty level, who is found eligible to receive a security 95
134+deposit guarantee under this section and for whom the commissioner 96
135+has paid a claim by a landlord, shall contribute [five] fifty per cent of 97
136+one month's rent to the payment of the security deposit. The 98
137+commissioner may waive such payment for good cause. 99
138+(i) The [Commissioner of Housing] commissioner shall adopt 100
139+regulations, in accordance with the provisions of chapter 54, to 101
140+administer the program established pursuant to this section and to set 102
141+eligibility criteria for the program, but may implement the program 103
142+while in the process of adopting such regulations provided notice of 104
143+intent to adopt the regulations is published [in the Connecticut Law 105
144+Journal] on the eRegulations System within twenty days after 106
145+implementation. 107
146+Sec. 2. (Effective July 1, 2023) The sum of ten million dollars is 108
147+appropriated to the Department of Housing from the General Fund, for 109
148+the fiscal year ending June 30, 2024, for the administration of the security 110
149+deposit guarantee program. 111 Raised Bill No. 6708
150+
151+
152+
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148155 This act shall take effect as follows and shall amend the following
149156 sections:
150157
151158 Section 1 July 1, 2023 8-339
152-Sec. 2 July 1, 2023 New section Substitute Bill No. 6708
159+Sec. 2 July 1, 2023 New section
153160
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159-
160-Statement of Legislative Commissioners:
161-In Section 1(a), "not greater than" was changed to "or less" for clarity
162-and in Section 1(b) and 1(i), "within" was changed to "not later than"
163-for clarity.
164-
165-HSG Joint Favorable Subst. -LCO
161+Statement of Purpose:
162+To expand access to, and provide funding for, the security deposit
163+guarantee program.
164+[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
165+that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
166+underlined.]
166167