OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
sHB-6808
AN ACT ESTABLISHING GRANT PROGRAMS TO FACILITATE
THE CONSTRUCTION AND RENOVATION OF HOUSING FOR
INDIVIDUALS WITH INTELLECTUAL AND DEVELOPMENTAL
DISABILITIES.
Primary Analyst: CG 4/3/23
Contributing Analyst(s): MP, EMG
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 24 $ FY 25 $
Department of Developmental
Services
GF - Cost See Below See Below
Department of Housing GF - Potential
Cost
None See Below
Treasurer, Debt Serv. GF - Potential
Cost
See Below See Below
Note: GF=General Fund
Municipal Impact: None
Explanation
Section 1 requires the Department of Developmental Services (DDS)
to develop and administer a competitive grant program beginning in FY
24 to fund housing development for people with intellectual and
developmental disabilities (IDD). Grant recipients may be (1)
developers, and (2) individuals with IDD and their relative caregivers.
The agency will require additional staff to undertake this responsibility
as DDS does not administer such a program
1
. While the exact staffing
level necessary to administer the program is not known at this time, it
is estimated that at a minimum the agency would require a Project
1
Recent supportive housing initiatives for DDS consumers have been done in
conjunction with the Department of Housing and the Connecticut Housing Finance
Authority. 2023HB-06808-R000413-FN.DOCX Page 2 of 3
Manager ($92,000 annual salary) and a Fiscal Administrative Officer
($72,000 annual salary) and associated fringe benefits, resulting in a total
state cost of at least $237,000 in FY 24 and $243,000 in FY 25.
This section also results in a cost associated with requiring DDS to
fund the grant program established by the bill. The extent of the cost is
dependent on the parameters DDS develops for the grant program and
the funding made available. Additionally, to the extent the department
is required to provide residential supports to the individuals accessing
housing as a result of the grant program, there could be additional costs
based on the level of need of the DDS consumers. There is currently a
waiting list for DDS residential support services.
2
Section 2 requires the Department of Housing (DOH) to develop and
administer a competitive grant program beginning in FY 24 for eligible
developers seeking to construct new affordable housing for people with
IDD. To the extent funding is made available, DOH will incur: (1)
annual costs for grants to developers, anticipated to exceed $1 million
each, beginning in FY 25, (2) consulting costs of up to $50,000 per year
beginning in FY 25, associated with the required annual reporting, and
(3) potential costs for ongoing project-based rental assistance to the IDD
units once they are constructed, beginning in FY 27 or later.
Due to limited research staff, it is anticipated that DOH would hire
an outside vendor to collect data and prepare the required report by
January 1, 2025, and annually thereafter, on the operations and
effectiveness of the program. The section does not result in new staffing
costs to DOH because the grant program is within the agency’s expertise
and could be administered within its current Development Engagement
Process.
DOH already administers the Intellectual Disabilities and Autism
Spectrum Disorder Housing (IDASH) Program, which funds permanent
2
As of December 2022, there were 677 individuals on the DDS residential waiting list,
who receive no residential support services with an active need designated either
emergency or urgent. 2023HB-06808-R000413-FN.DOCX Page 3 of 3
supportive housing development by providing grants to non-profits.
IDASH is funded through General Obligation (GO) bond funds. To the
extent DOH can utilize IDASH or other affordable housing state bond
funds for the new program, future General Fund debt service costs may
be incurred sooner under the bill, to the degree that it causes authorized
GO bond funds to be expended or to be expended more rapidly than
they otherwise would have been.
As of March 1, 2023, there is an unallocated bond balance of just over
$1.5 million available under the IDASH authorization. The bill does not
change GO bond authorizations relevant to the program.
According to DOH, the total cost to develop a new accessible,
affordable unit is currently $335 per square foot. This means a typical
handicapped accessible, one-bedroom unit that is 800 square feet costs
$268,000 to complete. Under most DOH housing development
programs, it takes three to five years from the time grant applications
are solicited until residents move into new units.
Under IDASH, 25% of the units are set aside for people with IDD and
supported with project-based rental assistance through the state’s
Rental Assistance Program (RAP).
3
The rental assistance helps make
the new development sustainable. To the extent units developed
through the bill’s grant program also require RAPs, DOH will incur
ongoing costs of approximately $8,000 to $11,000 per unit. Given the
length of time to finish new units, RAP costs are anticipated to begin in
FY 27 or later.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to inflation and the terms of any bonds
issued.
3
Remaining units are available to income-eligible households, including additional people with
IDD.