Researcher: SM Page 1 5/12/23 OLR Bill Analysis HB 6779 (as amended by House "A")* AN ACT ESTABLISHING A TASK FORCE TO STUDY A HOUSING OPPORTUNITIES TAX CREDIT. SUMMARY This bill establishes three separate task forces on (1) a housing opportunities tax credit, (2) homelessness, and (3) rental savings accounts. It requires the task forces to undertake studies that include certain components and specifies membership for each. The bill requires the legislative leaders to (1) make their initial appointments to the task forces no later than 30 days after the bill’s passage and (2) fill any vacancies. The House speaker and Senate president pro tempore jointly select the task forces’ chairpersons. The chairpersons must schedule the task forces’ first meeting and hold it within 60 days after the bill’s passage. The bill also requires each task force to report on its findings and recommendations to the Housing Committee by January 1, 2024. However, the homelessness task force must continue to report to the committee annually on January 1 until 2029; this task force terminates on January 1, 2029. The task forces on a housing opportunities tax credit and rental savings accounts terminate on January 1, 2024, or the date they submit their reports, whichever is later. Under the bill, the Housing Committee’s administrative staff serve as the administrative staff of each task force. *House Amendment “A” (1) reduces, from two to one, the appointments of the House speaker and Senate president pro tempore to the tax credit task force and (2) adds the provisions establishing the homelessness and rental savings accounts task forces. 2023HB-06779-R010776-BA.DOCX Researcher: SM Page 2 5/12/23 EFFECTIVE DATE: Upon passage § 1 — HOUSING OPPORT UNITIES TAX CREDIT TASK FORCE The bill establishes a nine-member task force to study the feasibility and potential benefits of a housing opportunities tax credit (1) provided to landlords who offer housing to formerly incarcerated people and (2) that would be (a) equal to 25% of the rental income landlords receive from these tenants and (b) applied against any state income taxes the landlords owe. The study must consider best practices for implementing the tax credit program and the credit’s potential: 1. impact on housing availability for formerly incarcerated people, 2. financial benefits for qualifying landlords, 3. impact on recidivism rates and financial benefits to the state from a reduction in these rates, and 4. administrative costs associated with implementation. Membership Under the bill, the task force consists of the housing, revenue services, and correction commissioners, or their designees, and six members whom the legislative leaders appoint. The legislative appointees may be General Assembly members and some must have certain qualifications, as shown in the table below. Table: Housing Opportunities Tax Credit Task Force — Legislative Appointees Appointing Authority Required Qualifications House speaker A formerly incarcerated person Senate president pro tempore Representative of a nonprofit housing services provider House majority leader None Senate majority leader None House minority leader A landlord Senate minority leader Representative of a nonprofit providing services to formerly incarcerated people § 2 — HOMELESSNESS TASK FO RCE The bill establishes a seven-member task force to study homelessness 2023HB-06779-R010776-BA.DOCX Researcher: SM Page 3 5/12/23 and policies to prevent it in the state and requires that the study examine, at a minimum, the following components: 1. strategies to prevent and reduce homelessness; 2. coordinating services and providing services and support for individuals and families experiencing homelessness (e.g., health care, education, and employment training); 3. providing emergency shelter and long-term housing solutions for these individuals and families; and 4. the availability and accessibility of affordable housing in Connecticut. Membership Under the bill, the task force consists of the Department of Housing (DOH) commissioner, or her designee, and six members whom the legislative leaders appoint. The legislative appointees may be General Assembly members and must have certain qualifications, as shown in the table below. Table: Homelessness Task Force — Legislative Appointees Appointing Authority Required Qualifications House speaker Experience in homelessness policies and programs Senate president pro tempore Expertise in fair housing protections House majority leader Represents a homeless service provider Senate majority leader Represents a low-income housing advocacy organization House minority leader Represents a landlord association Senate minority leader Represents a faith-based organization that provides services to households experiencing homelessness § 3 — RENTAL SAVINGS ACCO UNTS TASK FORCE The bill establishes an eight-member task force to study the feasibility of, and methods for, implementing rental savings accounts in the state. It requires that the study include the design and operation of tax- advantaged rental savings accounts for tenants to use for rental expenses and the potential impact of these accounts on (1) the banking industry, (2) tenants and landlords, (3) employers and the state 2023HB-06779-R010776-BA.DOCX Researcher: SM Page 4 5/12/23 economy, and (4) state revenue. Membership Under the bill, the task force consists of the DOH commissioner and Connecticut Housing Finance Authority chief executive officer, or their designees, and six members whom the legislative leaders appoint. The legislative appointees may be General Assembly members and generally must have certain qualifications, as shown in the table below. Table: Rental Savings Accounts Task Force — Legislative Appointees Appointing Authority Required Qualifications House speaker Representative of the banking industry Senate president pro tempore Representative of a housing advocacy group House majority leader Representative of tenants Senate majority leader None House minority leader Representative of landlords Senate minority leader Representative of employers COMMITTEE ACTION Housing Committee Joint Favorable Change of Reference - FIN Yea 15 Nay 0 (03/02/2023) Finance, Revenue and Bonding Committee Joint Favorable Yea 51 Nay 0 (04/18/2023)