LCO \\PRDFS1\SCOUSERS\ANTONAKOSM \WS\2023SB-00004-R02- SB.docx 1 of 32 General Assembly Substitute Bill No. 4 January Session, 2023 AN ACT CONCERNING CONNECTICUT'S PRESENT AND FUTURE HOUSING NEEDS. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. Section 47a-23 of the general statutes is repealed and the 1 following is substituted in lieu thereof (Effective October 1, 2023): 2 (a) [When] Except as provided in subsection (f) of this section, when 3 the owner or lessor, or the owner's or lessor's legal representative, or 4 the owner's or lessor's attorney-at-law, or in-fact, desires to obtain 5 possession or occupancy of any land or building, any apartment in any 6 building, any dwelling unit, any trailer, or any land upon which a 7 trailer is used or stands, and (1) when a rental agreement or lease of 8 such property, whether in writing or by parol, terminates for any of 9 the following reasons: (A) By lapse of time; (B) by reason of any 10 expressed stipulation therein; (C) violation of the rental agreement or 11 lease or of any rules or regulations adopted in accordance with section 12 47a-9 or 21-70; (D) nonpayment of rent within the grace period 13 provided for residential property in section 47a-15a, as amended by 14 this act, or 21-83; (E) nonpayment of rent when due for commercial 15 property; (F) violation of section 47a-11 or subsection (b) of section 16 21-82; (G) nuisance, as defined in section 47a-32, or serious nuisance, as 17 defined in section 47a-15 or 21-80; or (2) when such premises, or any 18 part thereof, is occupied by one who never had a right or privilege to 19 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\ANTONAKOSM \WS\2023SB- 00004-R02-SB.docx } 2 of 32 occupy such premises; or (3) when one originally had the right or 20 privilege to occupy such premises but such right or privilege has 21 terminated; or (4) when an action of summary process or other action 22 to dispossess a tenant is authorized under subsection (b) of section 23 47a-23c for any of the following reasons: (A) Refusal to agree to a fair 24 and equitable rent increase, as defined in subsection (c) of section 25 47a-23c, (B) permanent removal by the landlord of the dwelling unit of 26 such tenant from the housing market, or (C) bona fide intention by the 27 landlord to use such dwelling unit as such landlord's principal 28 residence; or (5) when a farm employee, as described in section 47a-30, 29 or a domestic servant, caretaker, manager or other employee, as 30 described in subsection (b) of section 47a-36, occupies such premises 31 furnished by the employer and fails to vacate such premises after 32 employment is terminated by such employee or the employer or after 33 such employee fails to report for employment, such owner or lessor, or 34 such owner's or lessor's legal representative, or such owner's or lessor's 35 attorney-at-law, or in-fact, shall give notice to each lessee or occupant 36 to quit possession or occupancy of such land, building, apartment or 37 dwelling unit, at least three days before the termination of the rental 38 agreement or lease, if any, or before the time specified in the notice for 39 the lessee or occupant to quit possession or occupancy. 40 (b) The notice shall be in writing substantially in the following form: 41 "I (or we) hereby give you notice that you are to quit possession or 42 occupancy of the (land, building, apartment or dwelling unit, or of any 43 trailer or any land upon which a trailer is used or stands, as the case 44 may be), now occupied by you at (here insert the address, including 45 apartment number or other designation, as applicable), on or before 46 the (here insert the date) for the following reason (here insert the 47 reason or reasons for the notice to quit possession or occupancy using 48 the statutory language or words of similar import, also the date and 49 place of signing notice). A.B.". If the owner or lessor, or the owner's or 50 lessor's legal representative, attorney-at-law or attorney-in-fact knows 51 of the presence of an occupant but does not know the name of such 52 occupant, the notice for such occupant may be addressed to such 53 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\ANTONAKOSM \WS\2023SB- 00004-R02-SB.docx } 3 of 32 occupant as "John Doe", "Jane Doe" or some other alias which 54 reasonably characterizes the person to be served. 55 (c) A copy of such notice shall be delivered to each lessee or 56 occupant or left at such lessee's or occupant's place of residence or, if 57 the rental agreement or lease concerns commercial property, at the 58 place of the commercial establishment by a proper officer or indifferent 59 person. Delivery of such notice may be made on any day of the week. 60 (d) With respect to a month-to-month or a week-to-week tenancy of 61 a dwelling unit, a notice to quit possession based on nonpayment of 62 rent shall, upon delivery, terminate the rental agreement for the month 63 or week in which the notice is delivered, convert the month-to-month 64 or week-to-week tenancy to a tenancy at sufferance and provide 65 proper basis for a summary process action notwithstanding that such 66 notice was delivered in the month or week after the month or week in 67 which the rent is alleged to be unpaid. 68 (e) A termination notice required pursuant to federal law and 69 regulations may be included in or combined with the notice required 70 pursuant to this section and such inclusion or combination does not 71 thereby render the notice required pursuant to this section equivocal, 72 provided the rental agreement or lease shall not terminate until after 73 the date specified in the notice for the lessee or occupant to quit 74 possession or occupancy or the date of completion of the 75 pretermination process, whichever is later. A use and occupancy 76 disclaimer may be included in or combined with such notice, provided 77 that such disclaimer does not take effect until after the date specified in 78 the notice for the lessee or occupant to quit possession or occupancy or 79 the date of the completion of the pretermination process, whichever is 80 later. Such inclusion or combination does not thereby render the notice 81 required pursuant to this section equivocal. Such disclaimer shall be in 82 substantially the following form: "Any payments tendered after the 83 date specified to quit possession or occupancy, or the date of the 84 completion of the pretermination process if that is later, will be 85 accepted for use and occupancy only and not for rent, with full 86 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\ANTONAKOSM \WS\2023SB- 00004-R02-SB.docx } 4 of 32 reservation of rights to continue with the eviction action." 87 (f) No owner or lessor, and no owner's or lessor's legal 88 representative, or the owner's or lessor's attorney-at-law or attorney-89 in-fact, shall, between December first and March first of any year, 90 deliver or cause to be delivered a notice to quit possession for any 91 reason set forth in this chapter or chapter 812, except for serious 92 nuisance, as defined in section 47a-15. 93 Sec. 2. Section 47a-42 of the general statutes is repealed and the 94 following is substituted in lieu thereof (Effective October 1, 2023): 95 (a) Whenever a judgment is entered against a defendant pursuant to 96 section 47a-26, 47a-26a, 47a-26b or 47a-26d for the recovery of 97 possession or occupancy of residential property, such defendant and 98 any other occupant bound by the judgment by subsection (a) of section 99 47a-26h shall forthwith remove himself or herself, such defendant's or 100 occupant's possessions and all personal effects unless execution has 101 been stayed pursuant to sections 47a-35 to 47a-41, inclusive. If 102 execution has been stayed, such defendant or occupant shall forthwith 103 remove himself or herself, such defendant's or occupant's possessions 104 and all personal effects upon the expiration of any stay of execution. If 105 the defendant or occupant has not so removed himself or herself upon 106 entry of a judgment pursuant to section 47a-26, 47a-26a, 47a-26b or 107 47a-26d, and upon expiration of any stay of execution, the plaintiff 108 may obtain an execution upon such summary process judgment, and 109 the defendant or other occupant bound by the judgment by subsection 110 (a) of section 47a-26h and the possessions and personal effects of such 111 defendant or other occupant may be removed by a state marshal, 112 pursuant to such execution, and delivered to the place of storage 113 designated by the chief executive officer for such purposes. 114 (b) Before any such removal, the state marshal charged with 115 executing upon any such judgment of eviction shall give the chief 116 executive officer of the town twenty-four [hours] hours' notice of the 117 eviction, stating the date, time and location of such eviction as well as a 118 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\ANTONAKOSM \WS\2023SB- 00004-R02-SB.docx } 5 of 32 general description, if known, of the types and amount of property to 119 be removed from the premises and delivered to the designated place of 120 storage. Before giving such notice to the chief executive officer of the 121 town, the state marshal shall use reasonable efforts to locate and notify 122 the defendant of the date and time such eviction is to take place and of 123 the possibility of a sale pursuant to subsection (c) of this section. Such 124 notice shall include service upon each defendant and upon any other 125 person in occupancy, either personally or at the premises, of a true 126 copy of the summary process execution. Such execution shall be on a 127 form prescribed by the Judicial Department, shall be in clear and 128 simple language and in readable format, and shall contain, in addition 129 to other notices given to the defendant in the execution, a conspicuous 130 notice, in large boldface type, that a person who claims to have a right 131 to continue to occupy the premises should immediately contact an 132 attorney, and clear instructions as to how and where the defendant 133 may reclaim any possessions and personal effects removed and stored 134 pursuant to this section, including a telephone number that may be 135 called to arrange release of such possessions and personal effects. 136 (c) Whenever the possessions and personal effects of a defendant 137 are removed by a state marshal under this section, such possessions 138 and effects shall be delivered by such marshal to the designated place 139 of storage. The plaintiff shall pay the state marshal for such removal in 140 accordance with the provisions of subsection (b) of section 52-261. 141 Such removal and delivery shall be at the expense of the defendant 142 and may be recovered by the plaintiff. If such possessions and effects 143 are not reclaimed by the defendant and the expense of such storage is 144 not paid to the chief executive officer [within] not later than fifteen 145 days after such eviction, the chief executive officer shall sell the same 146 at public auction, after using reasonable efforts to locate and notify the 147 defendant of such sale and after posting notice of such sale for one 148 week on the public signpost nearest to the place where the eviction 149 was made, if any, or at some exterior place near the office of the town 150 clerk. The chief executive officer shall deliver to the defendant the net 151 proceeds of such sale, if any, after deducting a reasonable charge for 152 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\ANTONAKOSM \WS\2023SB- 00004-R02-SB.docx } 6 of 32 storage of such possessions and effects. If the defendant does not 153 demand the net proceeds within thirty days after such sale, the chief 154 executive officer shall turn over the net proceeds of the sale to the town 155 treasury. 156 (d) Notwithstanding the provisions of this section, no state marshal 157 may remove a defendant or occupant, or such defendant or occupant's 158 possessions and effects, between December first and March first of any 159 year unless the judgment of eviction binding upon such defendant or 160 occupant to be executed by such marshal was entered due to serious 161 nuisance, as defined in section 47a-15, by such defendant or occupant. 162 Sec. 3. (NEW) (Effective October 1, 2023) (a) As used in this section, 163 "tenant screening report" means a credit report, a criminal background 164 report, an employment history report or a rental history report, or any 165 combination thereof, used by a landlord to determine the suitability of 166 a prospective tenant. 167 (b) No landlord may demand from a prospective tenant any 168 payment, fee or charge for the processing, review or acceptance of any 169 rental application, or demand any other payment, fee or charge before 170 or at the beginning of the tenancy, except a security deposit pursuant 171 to section 47a-21 of the general statutes or a fee for a tenant screening 172 report as provided by subsection (c) of this section. 173 (c) A landlord may charge a fee for a tenant screening report 174 concerning a prospective tenant if the fee for such tenant screening 175 report is not more than the actual cost paid by the landlord for such 176 report. The landlord shall waive any fee for such report if the 177 prospective tenant provides the landlord with a copy of a tenant 178 screening report concerning the prospective tenant that was conducted 179 not later than thirty days after the prospective tenant's rental 180 application and that is satisfactory to the landlord. 181 (d) A landlord may not collect a tenant screening report fee from a 182 prospective tenant until the landlord provides the prospective tenant 183 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\ANTONAKOSM \WS\2023SB- 00004-R02-SB.docx } 7 of 32 with (1) a copy of the tenant screening report, and (2) a copy of the 184 receipt or invoice from the entity conducting the tenant screening 185 report concerning the prospective tenant. 186 Sec. 4. Subsection (a) of section 47a-4 of the general statutes is 187 repealed and the following is substituted in lieu thereof (Effective 188 October 1, 2023): 189 (a) A rental agreement shall not provide that the tenant: (1) Agrees 190 to waive or forfeit rights or remedies under this chapter and sections 191 47a-21, 47a-23 to 47a-23b, inclusive, as amended by this act, 47a-26 to 192 47a-26g, inclusive, 47a-35 to 47a-35b, inclusive, 47a-41a, 47a-43 and 193 47a-46, or under any section of the general statutes or any municipal 194 ordinance unless such section or ordinance expressly states that such 195 rights may be waived; (2) authorizes the landlord to confess judgment 196 on a claim arising out of the rental agreement; (3) agrees to the 197 exculpation or limitation of any liability of the landlord arising under 198 law or to indemnify the landlord for that liability or the costs 199 connected therewith; (4) agrees to waive his right to the interest on the 200 security deposit pursuant to section 47a-21; (5) agrees to permit the 201 landlord to dispossess him without resort to court order; (6) consents 202 to the distraint of his property for rent; (7) agrees to pay the landlord's 203 attorney's fees in excess of fifteen per cent of any judgment against the 204 tenant in any action in which money damages are awarded; (8) agrees 205 to pay a late charge prior to the expiration of the grace period set forth 206 in section 47a-15a, as amended by this act, or to pay rent in a reduced 207 amount if such rent is paid prior to the expiration of such grace period; 208 (9) agrees to pay a late charge on rent payments made subsequent to 209 such grace period in an amount exceeding the amounts set forth in 210 section 47a-15a, as amended by this act; or [(9)] (10) agrees to pay a 211 heat or utilities surcharge if heat or utilities is included in the rental 212 agreement. 213 Sec. 5. Section 47a-15a of the general statutes is repealed and the 214 following is substituted in lieu thereof (Effective October 1, 2023): 215 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\ANTONAKOSM \WS\2023SB- 00004-R02-SB.docx } 8 of 32 (a) If rent is unpaid when due and the tenant fails to pay rent within 216 nine days thereafter or, in the case of a one-week tenancy, within four 217 days thereafter, the landlord may terminate the rental agreement in 218 accordance with the provisions of sections 47a-23 to 47a-23b, inclusive, 219 as amended by this act. For purposes of this section, "grace period" 220 means the nine-day or four-day time periods identified in this 221 subsection, as applicable. 222 (b) If a rental agreement contains a valid written agreement to pay a 223 late charge in accordance with subsection (a) of section 47a-4, as 224 amended by this act, a landlord may assess a tenant such a late charge 225 on a rent payment made subsequent to the grace period in accordance 226 with this section. Such late charge may not exceed the lesser of (1) five 227 dollars per day, up to a maximum of twenty-five dollars, or (2) five per 228 cent of the delinquent rent payment or, in the case of a rental 229 agreement paid in whole or in part by a governmental or charitable 230 entity, five per cent of the tenant's share of the delinquent rent 231 payment. The landlord may not assess more than one late charge upon 232 a delinquent rent payment, regardless of how long the rent remains 233 unpaid. Any rent payments received by the landlord shall be applied 234 first to the most recent rent payment due. 235 Sec. 6. Subsections (a) and (b) of section 47a-6a of the general 236 statutes are repealed and the following is substituted in lieu thereof 237 (Effective October 1, 2023): 238 (a) As used in this section, (1) "address" means a location as 239 described by the full street number, if any, the street name, the city or 240 town, and the state, and not a mailing address such as a post office 241 box, (2) "dwelling unit" means any house or building, or portion 242 thereof, which is rented, leased or hired out to be occupied, or is 243 arranged or designed to be occupied, or is occupied, as the home or 244 residence of one or more persons, living independently of each other, 245 and doing their cooking upon the premises, and having a common 246 right in the halls, stairways or yards, (3) "agent in charge" or "agent" 247 means one who manages real estate, including, but not limited to, the 248 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\ANTONAKOSM \WS\2023SB- 00004-R02-SB.docx } 9 of 32 collection of rents and supervision of property, (4) "controlling 249 participant" means [an individual or entity that exercises day-to-day 250 financial or operational control] a natural person who is not a minor 251 and who, directly or indirectly and through any contract, arrangement, 252 understanding or relationship, exercises substantial control of, or owns 253 greater than twenty-five per cent of, a corporation, partnership, trust 254 or other legally recognized entity owning rental real property in the 255 state, and (5) "project-based housing provider" means a property 256 owner who contracts with the United States Department of Housing 257 and Urban Development to provide housing to tenants under the 258 federal Housing Choice Voucher Program, 42 USC 1437f(o). 259 (b) Any municipality may require the nonresident owner or project-260 based housing provider of occupied or vacant rental real property to 261 [maintain on file in the office of] report to the tax assessor, or other 262 municipal office designated by the municipality, the current residential 263 address of the nonresident owner or project-based housing provider of 264 such property [,] if the nonresident owner or project-based housing 265 provider is an individual, or the current residential address of the 266 agent in charge of the building [,] if the nonresident owner or project-267 based housing provider is a corporation, partnership, trust or other 268 legally recognized entity owning rental real property in the state. [In 269 the case of a] If the nonresident owners or project-based housing 270 [provider, such information] providers are a corporation, partnership, 271 trust or other legally recognized entity owning rental real property in 272 the state, such report shall also include identifying information and the 273 current residential address of each controlling participant associated 274 with the property. [, except that, if such controlling participant is a 275 corporation, partnership, trust or other legally recognized entity, the 276 project-based housing provider shall include the identifying 277 information and the current residential address of an individual who 278 exercises day-to-day financial or operational control of such entity.] If 279 such residential address changes, notice of the new residential address 280 shall be provided by such nonresident owner, project-based housing 281 provider or agent in charge of the building to the office of the tax 282 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\ANTONAKOSM \WS\2023SB- 00004-R02-SB.docx } 10 of 32 assessor or other designated municipal office not more than twenty-283 one days after the date that the address change occurred. If the 284 nonresident owner, project-based housing provider or agent fails to 285 file an address under this section, the address to which the 286 municipality mails property tax bills for the rental real property shall 287 be deemed to be the nonresident owner, project-based housing 288 provider or agent's current address. Such address may be used for 289 compliance with the provisions of subsection (c) of this section. 290 Sec. 7. (NEW) (Effective October 1, 2023) The Commissioner of 291 Housing shall, within existing appropriations, develop standardized 292 rental agreement forms that may be used by landlords and tenants in 293 the state. Such forms shall contain the essential terms of a rental 294 agreement between any landlord and any tenant, be designed to be 295 easily read and understood and include plain language explanations of 296 all terms and conditions of the agreement, including, but not limited 297 to, rent, fees, deposits and other charges. The commissioner shall make 298 such forms available in both English and Spanish and shall post such 299 forms on the Department of Housing's Internet web site not later than 300 July 1, 2024, and shall revise such forms from time to time, at the 301 commissioner's discretion. 302 Sec. 8. Section 47a-58 of the general statutes is repealed and the 303 following is substituted in lieu thereof (Effective October 1, 2023): 304 (a) Any enforcing agency may issue a notice of violation to any 305 person who violates any provision of this chapter or a provision of a 306 local housing code. If an enforcing agency issues an order to a 307 registrant, such order may be delivered in accordance with section 7-308 148ii, provided nothing in this section shall preclude an enforcing 309 agency from providing notice in another manner permitted by 310 applicable law. Such notice shall specify each violation and specify the 311 last day by which such violation shall be corrected. The date specified 312 shall not be less than three weeks from the date of mailing of such 313 notice, provided that in the case of a condition, which in the judgment 314 of the enforcing agency is or in its effect is dangerous or detrimental to 315 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\ANTONAKOSM \WS\2023SB- 00004-R02-SB.docx } 11 of 32 life or health, the date specified shall not be more than five days from 316 the date of mailing of such notice. The enforcing agency may postpone 317 the last day by which a violation shall be corrected upon a showing by 318 the owner or other responsible person that he has begun to correct the 319 violation but that full correction of the violation cannot be completed 320 within the time provided because of technical difficulties, inability to 321 obtain necessary materials or labor or inability to gain access to the 322 dwelling unit wherein the violation exists. 323 (b) When the owner or other responsible person has corrected such 324 violation, the owner or other responsible person shall promptly, but 325 not later than two weeks after such correction, report to the enforcing 326 agency in writing, indicating the date when each violation was 327 corrected. It shall be presumed that the violation was corrected on the 328 date so indicated, unless a subsequent inspection by the enforcing 329 agency again reveals the existence of the condition giving rise to the 330 earlier notice of violation. 331 (c) Any person who fails to correct any violation prior to the date set 332 forth in the notice of violation shall be subject to a cumulative civil 333 penalty of five dollars per day for each violation from the date set for 334 correction in the notice of violation to the date such violation is 335 corrected, except that in any case, the penalty shall not exceed one 336 hundred dollars per day and the total penalty shall not exceed seven 337 thousand five hundred dollars. The penalty may be collected by the 338 enforcing agency by action against the owner or other responsible 339 person or by an action against the real property. An action against the 340 owner may be joined with an action against the real property. 341 (d) In addition to the penalties specified in this section, the 342 enforcing agency may enforce the provisions of this chapter or a local 343 housing code by injunctive relief pursuant to chapter 916. 344 (e) (1) Any penalty imposed by an enforcing agency pursuant to the 345 provisions of subsection (c) of this section, and remaining unpaid for a 346 period of sixty days after its due date, shall constitute a lien upon the 347 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\ANTONAKOSM \WS\2023SB- 00004-R02-SB.docx } 12 of 32 real property against which the penalty was imposed, provided a 348 notice of violation is recorded in the land records and indexed in the 349 name of the property owner no later than thirty days after the penalty 350 was imposed. 351 (2) Each such notice of violation shall be effective from the time of 352 the recording on the land records. Each lien shall take precedence over 353 all transfers and encumbrances recorded after such time. 354 (3) Any municipal lien pursuant to the provisions of this section 355 may be foreclosed in the same manner as a mortgage. 356 (4) Any municipal lien pursuant to this section may be discharged 357 or dissolved in the manner provided in sections 49-35a to 49-37, 358 inclusive. 359 (f) Any enforcing agency imposing a penalty pursuant to subsection 360 (c) of this section shall maintain a current record of all properties with 361 respect to which such penalty remains unpaid in the office of such 362 agency. Such record shall be available for inspection by the public. 363 (g) Each enforcing agency empowered to enforce any provision of 364 this chapter or any provision of a local housing code shall create and 365 make available housing code violation complaint forms, written in 366 both English and Spanish, for use by any occupant of a dwelling unit 367 seeking to file a complaint against the owner of such unit, or other 368 responsible party, concerning such violations. 369 Sec. 9. (NEW) (Effective October 1, 2023) (a) As used in this section: 370 (1) "Commissioner" means the Commissioner of Housing. 371 (2) "Eligible workforce housing opportunity development project" 372 or "project" means a project for the construction or substantial 373 rehabilitation of rental housing (A) located within an opportunity zone 374 in this state, (B) designated under subsection (e) of this section for 375 certain professions that work within the municipality in which the 376 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\ANTONAKOSM \WS\2023SB- 00004-R02-SB.docx } 13 of 32 project is located and for low and moderate income families and 377 individuals, and (C) that may incorporate renewable energy 378 technology and be transit-oriented. 379 (3) "Substantial rehabilitation" means either (A) the costs of any 380 repair, replacement or improvement to a building that exceeds twenty-381 five per cent of the value of such building after the completion of all 382 such repairs, replacements or improvements, or (B) the replacement of 383 two or more of the following: (i) Roof structures, (ii) ceilings, (iii) wall 384 or floor structures, (iv) foundations, (v) plumbing systems, (vi) heating 385 and air conditioning systems, or (vii) electrical systems. 386 (4) "Opportunity zone" means an area designated as a qualified 387 opportunity zone pursuant to the Tax Cuts and Jobs Act of 2017, P.L. 388 115-97, as amended from time to time. 389 (5) "Eligible developer" or "developer" means (A) a nonprofit 390 corporation; (B) any business corporation incorporated pursuant to 391 chapter 601 of the general statutes, (i) that has as one of its purposes 392 the construction, rehabilitation, ownership or operation of housing, 393 and (ii) either certified under this section or that has articles of 394 incorporation approved by the commissioner in accordance with 395 regulations adopted pursuant to section 8-79a or 8-84 of the general 396 statutes; (C) any partnership, limited partnership, limited liability 397 partnership, joint venture, trust, limited liability company or 398 association, (i) that has as one of its purposes the construction, 399 rehabilitation, ownership or operation of housing, and (ii) either 400 certified under this section or that has basic documents of organization 401 approved by the commissioner in accordance with regulations adopted 402 pursuant to section 8-79a or 8-84 of the general statutes; (D) a housing 403 authority; or (E) a municipal developer. 404 (6) "Authority" or "housing authority" means any of the public 405 corporations created by section 8-40 of the general statutes, and the 406 Connecticut Housing Authority when exercising the rights, powers, 407 duties or privileges of, or subject to the immunities or limitations of, 408 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\ANTONAKOSM \WS\2023SB- 00004-R02-SB.docx } 14 of 32 housing authorities pursuant to section 8-121 of the general statutes. 409 (7) "Nonprofit corporation" means a nonprofit corporation 410 incorporated pursuant to chapter 602 of the general statutes or any 411 predecessor statutes thereto, that has as one of its purposes the 412 construction, rehabilitation, ownership or operation of housing and 413 that has articles of incorporation approved by the Commissioner of 414 Housing in accordance with regulations adopted pursuant to section 8-415 79a or 8-84 of the general statutes or that is certified under this section. 416 (8) "Municipal developer" means a municipality that has not 417 declared by resolution a need for a housing authority pursuant to 418 section 8-40 of the general statutes, acting by and through its 419 legislative body. "Municipal developer" means the board of selectmen 420 if such board is authorized to act as the municipal developer by the 421 town meeting or representative town meeting. 422 (9) "Low and moderate income families and individuals" means 423 families or individuals who lack the amount of income necessary, as 424 determined by the Commissioner of Housing, to enable such families 425 or individuals to rent mixed-income housing without financial 426 assistance. 427 (10) "Market rate" means the rental income that such property 428 would most probably command on the open market as indicated by 429 current rentals in the opportunity zone being paid for comparable 430 space. 431 (b) There is established a workforce housing opportunity 432 development program to be administered by the Department of 433 Housing under which individuals or entities who make cash 434 contributions to an eligible developer for an eligible workforce housing 435 opportunity development project located in a federally designated 436 opportunity zone may be allowed a credit against the tax due under 437 chapter 208 or 229 of the general statutes in an amount equal to the 438 amount specified by the commissioner under this section. Any 439 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\ANTONAKOSM \WS\2023SB- 00004-R02-SB.docx } 15 of 32 developer of a workforce housing opportunity development project 440 shall be allowed an exemption from any fees under section 29-263 of 441 the general statutes, as amended by this act, and any eligible workforce 442 housing opportunity development project shall be assessed using the 443 capitalization of net income method under subsection (b) of section 12-444 63b of the general statutes, as amended by this act. 445 (c) The Commissioner of Housing shall determine eligibility criteria 446 for such program and establish an application process for the program. 447 The Department of Housing shall commence accepting applications for 448 such program not later than January 1, 2024. A developer may apply to 449 the Department of Housing for certification as a developer qualified to 450 receive cash investments eligible for a tax credit pursuant to this 451 section in a manner and form prescribed by the commissioner. To the 452 extent feasible, any eligible workforce housing opportunity 453 development project shall incorporate renewable energy or other 454 technology in order to lower utility costs for the tenants and be transit-455 oriented. Any eligible workforce housing opportunity development 456 project once constructed or substantially rehabilitated shall be rented 457 as follows: (1) Fifty per cent of the units shall be rented at the market 458 rate, (2) forty per cent of the units shall be rented to the workforce 459 population designated under subsection (e) of this section, where such 460 project is located at a rent not exceeding twenty per cent of the 461 prevailing rent of the opportunity zone where such development is 462 located, and (3) ten per cent of the units shall be rented to families or 463 individuals of low and moderate income receiving rental assistance 464 under chapter 128 or 319uu of the general statutes or 42 USC 1437f, as 465 amended from time to time. The program shall provide for a method 466 of selecting persons satisfying such income criteria to rent such units of 467 housing from among a pool of applicants, which method shall not 468 discriminate on the basis of race, creed, color, national origin, ancestry, 469 sex, gender identity or expression, age or physical or intellectual 470 disability. 471 (d) A workforce housing opportunity development project shall be 472 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\ANTONAKOSM \WS\2023SB- 00004-R02-SB.docx } 16 of 32 scheduled for completion not more than three years after the date of 473 approval by the Department of Housing. Each developer of a 474 workforce housing opportunity development project shall submit to 475 the commissioner quarterly progress reports and a final report upon 476 completion, in a manner and form prescribed by the commissioner. If a 477 workforce housing opportunity development project fails to be 478 completed on or before three years from the date of approval of such 479 project, or at any time the commissioner determines that a project is 480 unlikely to be completed, the commissioner may request the Attorney 481 General to reclaim any remaining funds contributed to the project by 482 individuals or entities under subsection (b) of this section and, upon 483 receipt of any such remaining funds, the commissioner shall reallocate 484 such funds to another eligible project. 485 (e) The developer shall obtain the approval of the zoning 486 commission, as defined in section 8-13m of the general statutes, of the 487 municipality and of any other applicable municipal agency for the 488 proposed workforce housing opportunity development project. After 489 all such approvals are granted, the municipality may, not later than 490 thirty days after such approval, by vote of its legislative body or, in a 491 municipality where the legislative body is a town meeting, by vote of 492 the board of selectmen, designate the workforce population that forty 493 per cent of the project shall be dedicated to. Such designation may 494 include volunteer firefighters, teachers, police officers, emergency 495 medical personnel or other professions of persons working in the 496 municipality. If the municipality does not vote within such time 497 period, the developer shall designate the workforce population. 498 (f) For taxable income years commencing on or after January 1, 2025, 499 the Commissioner of Revenue Services shall grant a credit against the 500 tax imposed under chapter 208 or 229 of the general statutes, other 501 than the liability imposed by section 12-707 of the general statutes, in 502 an amount equal to the amount specified by the Commissioner of 503 Housing in a tax credit voucher issued by the Commissioner of 504 Housing pursuant to subsection (g) of this section. 505 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\ANTONAKOSM \WS\2023SB- 00004-R02-SB.docx } 17 of 32 (g) (1) The Commissioner of Housing shall administer a system of 506 tax credit vouchers within the resources, requirements and purposes of 507 this section, for individuals and entities making cash contributions to 508 an eligible developer for an eligible workforce housing opportunity 509 development project. Such voucher may be used as a credit against the 510 tax to which such individual or entity is subject under chapter 208 or 511 229 of the general statutes, other than the liability imposed by section 512 12-707 of the general statutes. 513 (2) In no event shall the total amount of all tax credits allowed to all 514 individuals or entities pursuant to the provisions of this section exceed 515 five million dollars in any one fiscal year. 516 (3) No tax credit shall be granted to any individual or entity for any 517 individual amount contributed of less than two hundred fifty dollars. 518 (4) Any tax credit not used in the taxable income year during which 519 the cash contribution was made may be carried forward or backward 520 for the five immediately succeeding or preceding taxable or income 521 years until the full credit has been allowed. 522 (5) If an entity claiming a credit under this section is an S 523 corporation or an entity treated as a partnership for federal income tax 524 purposes, the credit may be claimed by the entity's shareholders or 525 partners. If the entity is a single member limited liability company that 526 is disregarded as an entity separate from its owner, the credit may be 527 claimed by such limited liability company's owner, provided such 528 owner is subject to the tax imposed under chapter 208 or 229 of the 529 general statutes. 530 (h) The Commissioner of Housing shall adopt regulations, in 531 accordance with the provisions of chapter 54 of the general statutes, to 532 implement the provisions of this section, including, but not limited to, 533 the conditions for certification of a developer applying for assistance 534 under this section. 535 Sec. 10. Section 12-63b of the general statutes is repealed and the 536 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\ANTONAKOSM \WS\2023SB- 00004-R02-SB.docx } 18 of 32 following is substituted in lieu thereof (Effective October 1, 2023, and 537 applicable to assessment years commencing on or after October 1, 2023): 538 (a) The assessor or board of assessors in any town, at any time, 539 when determining the present true and actual value of real property as 540 provided in section 12-63, which property is used primarily for the 541 purpose of producing rental income, exclusive of such property used 542 solely for residential purposes, containing not more than six dwelling 543 units and in which the owner resides, shall determine such value on 544 the basis of an appraisal which shall include to the extent applicable 545 with respect to such property, consideration of each of the following 546 methods of appraisal: (1) Replacement cost less depreciation, plus the 547 market value of the land, (2) capitalization of net income based on 548 market rent for similar property, and (3) a sales comparison approach 549 based on current bona fide sales of comparable property. The 550 provisions of this section shall not be applicable with respect to any 551 housing assisted by the federal or state government except any such 552 housing for which the federal assistance directly related to rent for 553 each unit in such housing is no less than the difference between the fair 554 market rent for each such unit in the applicable area and the amount of 555 rent payable by the tenant in each such unit, as determined under the 556 federal program providing for such assistance. 557 (b) In the case of an eligible workforce housing opportunity 558 development project, as defined in section 9 of this act, the assessor 559 shall use the capitalization of net income method based on the actual 560 rent received for the property. 561 [(b)] (c) For purposes of subdivision (2) of subsection (a) of this 562 section and, generally, in its use as a factor in any appraisal with 563 respect to real property used primarily for the purpose of producing 564 rental income, the term "market rent" means the rental income that 565 such property would most probably command on the open market as 566 indicated by present rentals being paid for comparable space. In 567 determining market rent the assessor shall consider the actual rental 568 income applicable with respect to such real property under the terms 569 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\ANTONAKOSM \WS\2023SB- 00004-R02-SB.docx } 19 of 32 of an existing contract of lease at the time of such determination. 570 Sec. 11. Section 8-395 of the general statutes is repealed and the 571 following is substituted in lieu thereof (Effective October 1, 2023): 572 (a) As used in this section, (1) "business firm" means any business 573 entity authorized to do business in the state and subject to the 574 corporation business tax imposed under chapter 208, or any company 575 subject to a tax imposed under chapter 207, or any air carrier subject to 576 the air carriers tax imposed under chapter 209, or any railroad 577 company subject to the railroad companies tax imposed under chapter 578 210, or any regulated telecommunications service, express, cable or 579 community antenna television company subject to the regulated 580 telecommunications service, express, cable and community antenna 581 television companies tax imposed under chapter 211, or any utility 582 company subject to the utility companies tax imposed under chapter 583 212, [and] (2) "nonprofit corporation" means a nonprofit corporation 584 incorporated pursuant to chapter 602 or any predecessor statutes 585 thereto, having as one of its purposes the construction, rehabilitation, 586 ownership or operation of housing and having articles of incorporation 587 approved by the executive director of the Connecticut Housing 588 Finance Authority in accordance with regulations adopted pursuant to 589 section 8-79a or 8-84, (3) "workforce housing development project" or 590 "project" means the construction or substantial rehabilitation of 591 dwelling units for rental housing where (A) ten per cent of the units 592 are affordable housing, (B) forty per cent of the units are rented to the 593 workforce population designated by the developer, in consultation 594 with the municipality where such project is located, at a rent not 595 exceeding twenty per cent of the prevailing rent of the area where such 596 development is located, and (C) fifty per cent of the units are rented at 597 a market rate and includes, but is not limited to, an eligible workforce 598 housing opportunity development project, as defined in section 9 of 599 this act, (4) "affordable housing" means rental housing for which 600 persons and families pay thirty per cent or less of their annual income, 601 where such income is less than or equal to the area median income for 602 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\ANTONAKOSM \WS\2023SB- 00004-R02-SB.docx } 20 of 32 the municipality in which such housing is located, as determined by 603 the United States Department of Housing and Urban Development, (5) 604 "substantial rehabilitation" means either (A) the costs of any repair, 605 replacement or improvement to a building that exceeds twenty-five 606 per cent of the value of such building after the completion of all such 607 repairs, replacements or improvements, or (B) the replacement of two 608 or more of the following: (i) Roof structures, (ii) ceilings, (iii) wall or 609 floor structures, (iv) foundations, (v) plumbing systems, (vi) heating 610 and air conditioning systems, or (vii) electrical systems, and (6) 611 "market rate" means the rental income that such unit would most 612 probably command on the open market as indicated by present rentals 613 being paid for comparable space in the area where the unit is located. 614 (b) The Commissioner of Revenue Services shall grant a credit 615 against [any] the tax [due] imposed under [the provisions of] chapter 616 207, 208, 209, 210, 211 or 212 in an amount equal to the amount 617 specified by the Connecticut Housing Finance Authority in any tax 618 credit voucher issued by said authority pursuant to subsection (c) of 619 this section. 620 (c) The Connecticut Housing Finance Authority shall administer a 621 system of tax credit vouchers within the resources, requirements and 622 purposes of this section, for business firms making cash contributions 623 to housing programs developed, sponsored or managed by a nonprofit 624 corporation, as defined in subsection (a) of this section, which benefit 625 low and moderate income persons or families which have been 626 approved prior to the date of any such cash contribution by the 627 authority, including, but not limited to, contributions for a workforce 628 housing development project. Such vouchers may be used as a credit 629 against any of the taxes to which such business firm is subject and 630 which are enumerated in subsection (b) of this section. For taxable or 631 income years commencing on or after January 1, 1998, to be eligible for 632 approval a housing program shall be scheduled for completion not 633 more than three years from the date of approval. For taxable or income 634 years commencing on or after January 1, 2024, to be eligible for 635 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\ANTONAKOSM \WS\2023SB- 00004-R02-SB.docx } 21 of 32 approval, a workforce housing development project shall be scheduled 636 for completion not more than three years from the date of approval. 637 Each program or developer of a workforce housing development 638 project shall submit to the authority quarterly progress reports and a 639 final report upon completion, in a manner and form prescribed by the 640 authority. If a program or workforce housing development project fails 641 to be completed [after] on or before three years from the date of 642 approval of the project, or at any time the authority determines that a 643 program or project is unlikely to be completed, the authority may 644 reclaim any remaining funds contributed by business firms and 645 reallocate such funds to another eligible program or project. 646 (d) No business firm shall receive a credit pursuant to both this 647 section and chapter 228a in relation to the same cash contribution. 648 (e) Nothing in this section shall be construed to prevent two or more 649 business firms from participating jointly in one or more programs or 650 projects under the provisions of this section. Such joint programs or 651 projects shall be submitted, and acted upon, as a single program or 652 project by the business firms involved. 653 (f) No tax credit shall be granted to any business firm for any 654 individual amount contributed of less than two hundred fifty dollars. 655 (g) Any tax credit not used in the [period] taxable income year 656 during which the cash contribution was made may be carried forward 657 or backward for the five immediately succeeding or preceding taxable 658 or income years until the full credit has been allowed. 659 (h) In no event shall the total amount of all tax credits allowed to all 660 business firms pursuant to the provisions of this section exceed ten 661 million dollars in any one fiscal year, provided, each year until the date 662 sixty days after the date the Connecticut Housing Finance Authority 663 publishes the list of housing programs or workforce housing 664 development projects that will receive tax credit reservations, two 665 million dollars of the total amount of all tax credits under this section 666 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\ANTONAKOSM \WS\2023SB- 00004-R02-SB.docx } 22 of 32 shall be set aside for permanent supportive housing initiatives 667 established pursuant to section 17a-485c, and one million dollars of the 668 total amount of all tax credits under this section shall be set aside for 669 workforce housing, as defined by the Connecticut Housing Finance 670 Authority through written procedures adopted pursuant to subsection 671 (k) of this section. Each year, on or after the date sixty days after the 672 date the Connecticut Housing Finance Authority publishes the list of 673 housing programs or projects that will receive tax credit reservations, 674 any unused portion of such tax credits shall become available for any 675 housing program or project eligible for tax credits pursuant to this 676 section. 677 (i) No organization conducting a housing program or [programs] 678 project eligible for funding with respect to which tax credits may be 679 allowed under this section shall be allowed to receive an aggregate 680 amount of such funding for any such program or [programs] project in 681 excess of five hundred thousand dollars for any fiscal year. 682 (j) Nothing in this section shall be construed to prevent a business 683 firm from making any cash contribution to a housing program or 684 project to which tax credits may be applied which cash contribution 685 may result in the business firm having a limited equity interest in the 686 program or project. 687 (k) The Connecticut Housing Finance Authority, with the approval 688 of the Commissioner of Revenue Services, shall adopt written 689 procedures in accordance with section 1-121 to implement the 690 provisions of this section. Such procedures shall include provisions for 691 issuing tax credit vouchers for cash contributions to housing programs 692 or projects based on a system of ranking housing programs. In 693 establishing such ranking system, the authority shall consider the 694 following: (1) The readiness of the project to be built; (2) use of the 695 funds to build or rehabilitate a specific housing project or to capitalize 696 a revolving loan fund providing low-cost loans for housing 697 construction, repair or rehabilitation to benefit persons of very low, 698 low and moderate income; (3) the extent the project will benefit 699 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\ANTONAKOSM \WS\2023SB- 00004-R02-SB.docx } 23 of 32 families at or below twenty-five per cent of the area median income 700 and families with incomes between twenty-five per cent and fifty per 701 cent of the area median income, as defined by the United States 702 Department of Housing and Urban Development; (4) evidence of the 703 general administrative capability of the nonprofit corporation to build 704 or rehabilitate housing; (5) evidence that any funds received by the 705 nonprofit corporation for which a voucher was issued were used to 706 accomplish the goals set forth in the application; and (6) with respect 707 to any income year commencing on or after January 1, 1998: (A) Use of 708 the funds to provide housing opportunities in urban areas and the 709 impact of such funds on neighborhood revitalization; and (B) the 710 extent to which tax credit funds are leveraged by other funds. 711 (l) Vouchers issued or reserved by the Department of Housing 712 under the provisions of this section prior to July 1, 1995, shall be valid 713 on and after July 1, 1995, to the same extent as they would be valid 714 under the provisions of this section in effect on June 30, 1995. 715 (m) The credit which is sought by the business firm shall first be 716 claimed on the tax return for such business firm's taxable income or 717 year during which the cash contribution to which the tax credit 718 voucher relates was paid. 719 Sec. 12. Section 29-263 of the general statutes is repealed and the 720 following is substituted in lieu thereof (Effective October 1, 2023): 721 (a) Except as provided in subsection (h) of section 29-252a and the 722 State Building Code adopted pursuant to subsection (a) of section 29-723 252, after October 1, 1970, no building or structure shall be constructed 724 or altered until an application has been filed with the building official 725 and a permit issued. Such application shall be filed in person, by mail 726 or electronic mail, in a manner prescribed by the building official. Such 727 permit shall be issued or refused, in whole or in part, within thirty 728 days after the date of an application. No permit shall be issued except 729 upon application of the owner of the premises affected or the owner's 730 authorized agent. No permit shall be issued to a contractor who is 731 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\ANTONAKOSM \WS\2023SB- 00004-R02-SB.docx } 24 of 32 required to be registered pursuant to chapter 400, for work to be 732 performed by such contractor, unless the name, business address and 733 Department of Consumer Protection registration number of such 734 contractor is clearly marked on the application for the permit, and the 735 contractor has presented such contractor's certificate of registration as 736 a home improvement contractor. Prior to the issuance of a permit and 737 within said thirty-day period, the building official shall review the 738 plans of buildings or structures to be constructed or altered, including, 739 but not limited to, plans prepared by an architect licensed pursuant to 740 chapter 390, a professional engineer licensed pursuant to chapter 391 741 or an interior designer registered pursuant to chapter 396a acting 742 within the scope of such license or registration, to determine their 743 compliance with the requirements of the State Building Code and, 744 where applicable, the local fire marshal shall review such plans to 745 determine their compliance with the Fire Safety Code. Such plans 746 submitted for review shall be in substantial compliance with the 747 provisions of the State Building Code and, where applicable, with the 748 provisions of the Fire Safety Code. 749 (b) On and after July 1, 1999, the building official shall assess an 750 education fee on each building permit application. During the fiscal 751 year commencing July 1, 1999, the amount of such fee shall be sixteen 752 cents per one thousand dollars of construction value as declared on the 753 building permit application and the building official shall remit such 754 fees quarterly to the Department of Administrative Services, for 755 deposit in the General Fund. Upon deposit in the General Fund, the 756 amount of such fees shall be credited to the appropriation to the 757 Department of Administrative Services and shall be used for the code 758 training and educational programs established pursuant to section 29-759 251c and the educational programs required in subsections (a) and (b) 760 of section 29-262. On and after July 1, 2000, the assessment shall be 761 made in accordance with regulations adopted pursuant to subsection 762 (d) of section 29-251c. All fees collected pursuant to this subsection 763 shall be maintained in a separate account by the local building 764 department. During the fiscal year commencing July 1, 1999, the local 765 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\ANTONAKOSM \WS\2023SB- 00004-R02-SB.docx } 25 of 32 building department may retain two per cent of such fees for 766 administrative costs incurred in collecting such fees and maintaining 767 such account. On and after July 1, 2000, the portion of such fees which 768 may be retained by a local building department shall be determined in 769 accordance with regulations adopted pursuant to subsection (d) of 770 section 29-251c. No building official shall assess such education fee on 771 a building permit application to repair or replace a concrete 772 foundation that has deteriorated due to the presence of pyrrhotite. 773 (c) Any municipality may, by ordinance adopted by its legislative 774 body, exempt Class I renewable energy source projects from payment 775 of building permit fees imposed by the municipality. 776 (d) Notwithstanding any municipal charter, home rule ordinance or 777 special act, no municipality shall collect an application fee on a 778 building permit application to repair or replace a concrete foundation 779 that has deteriorated due to the presence of pyrrhotite. 780 (e) Notwithstanding any municipal charter, home rule ordinance or 781 special act, no municipality shall collect any fee for a building permit 782 application for the construction or substantial rehabilitation of (1) an 783 eligible workforce housing opportunity development project, as 784 defined in section 9 of this act, or (2) a workforce housing development 785 project, as defined in section 8-395, as amended by this act. 786 Sec. 13. (NEW) (Effective October 1, 2023, and applicable to assessment 787 years commencing on or after October 1, 2023) The legislative body of any 788 municipality or, in a municipality where the legislative body is a town 789 meeting, the board of selectmen may, by ordinance, exempt from real 790 property tax any workforce housing development project, as defined 791 in section 8-395 of the general statutes, as amended by this act, to the 792 extent of seventy per cent of its valuation for purposes of assessment in 793 each of the seven full assessment years following the assessment year 794 in which the construction or substantial rehabilitation, as defined in 795 section 8-395 of the general statutes, as amended by this act, is 796 completed. 797 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\ANTONAKOSM \WS\2023SB- 00004-R02-SB.docx } 26 of 32 Sec. 14. (NEW) (Effective October 1, 2023) (a) Beginning with the fiscal 798 year commencing July 1, 2025, the Secretary of the Office of Policy and 799 Management shall pay a state grant in lieu of taxes to any municipality 800 that has opted to partially exempt from real property tax a workforce 801 housing development project under section 13 of this act and 802 submitted an application for such grant. A municipality shall apply for 803 such grant annually on a form and in a manner prescribed by the 804 secretary. On or before January first, annually, the Secretary of the 805 Office of Policy and Management shall determine the amount due to 806 such municipality, in accordance with this section. 807 (b) Any grant payable to any municipality that applies for a grant 808 under the provisions of this section shall be equal to seventy per cent 809 of the property taxes that, except for any exemption applicable to any 810 such housing authority property under the provisions of chapter 128 of 811 the general statutes, would have been paid with respect to such 812 exempt real property on the assessment list in such municipality for 813 the assessment date two years prior to the commencement of the state 814 fiscal year in which such grant is payable, for a maximum of seven 815 assessment years. The amount of the grant payable to each 816 municipality in any year in accordance with this section shall be 817 reduced proportionately in the event that the total of such grants in 818 such year exceeds the amount appropriated for the purposes of this 819 section with respect to such year. 820 Sec. 15. (NEW) (Effective October 1, 2023) The Connecticut Housing 821 Finance Authority shall develop and administer a program of 822 mortgage assistance for (1) developers for the construction or 823 substantial rehabilitation of eligible workforce housing opportunity 824 development projects, as defined in section 9 of this act, and (2) 825 developers for the construction or substantial rehabilitation of 826 workforce housing development projects, as defined in section 8-395 of 827 the general statutes, as amended by this act. In making mortgage 828 assistance available under the program, the authority shall utilize any 829 appropriate housing subsidies. 830 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\ANTONAKOSM \WS\2023SB- 00004-R02-SB.docx } 27 of 32 Sec. 16. (Effective from passage) The Department of Housing shall, 831 within available appropriations, conduct a study on methods to (1) 832 increase housing options for apprentices and other newly hired 833 employees, and (2) enable such apprentices and other newly hired 834 employees to reside in the municipalities in which they work. Not later 835 than January 1, 2024, the Commissioner of Housing shall submit a 836 report, in accordance with the provisions of section 11-4a of the general 837 statutes, to the joint standing committee of the General Assembly 838 having cognizance of matters relating to housing. Such report shall 839 include recommendations on methods to increase such housing 840 options and any legislation necessary to implement such 841 recommendations. 842 Sec. 17. (NEW) (Effective October 1, 2023) (a) As used in this section: 843 (1) "Affordable housing deed restrictions" means deed restrictions 844 filed on the land records of the municipality, containing covenants or 845 restrictions that require the dwelling units in a multifamily building to 846 be sold or rented only to low-income residents; 847 (2) "Environmental justice community" has the same meaning as 848 provided in section 22a-20a of the general statutes; 849 (3) "Family violence" has the same meaning as provided in section 850 46b-38a of the general statutes; and 851 (4) "Low-income resident" means, after adjustments for family size, 852 individuals or families whose income is not greater than eighty per 853 cent of (A) the state median income, or (B) the area median income, 854 whichever is less, for the area in which the resident resides, as 855 determined by the United States Department of Housing and Urban 856 Development. 857 (b) The Commissioner of Energy and Environmental Protection, in 858 coordination with the Commissioner of Housing, shall establish a pilot 859 program to provide grants for retrofitting projects for multifamily 860 residences built before 1980 and located in environmental justice 861 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\ANTONAKOSM \WS\2023SB- 00004-R02-SB.docx } 28 of 32 communities that (1) improve the energy efficiency of such residences, 862 including, but not limited to, the installation of heat pumps, solar 863 power generating systems, improved roofing, storm doors and 864 windows and improved insulation, or (2) remediate health and safety 865 concerns, such as mold, vermiculite, asbestos, lead and radon. 866 (c) On and after January 1, 2024, the Commissioner of Energy and 867 Environmental Protection shall accept applications, in a form to be 868 specified by the commissioner, from any owner of a residential 869 dwelling unit for a grant under the program. Any such grant may be 870 awarded to an owner of a residential dwelling unit that is (1) subject to 871 binding affordable housing deed restrictions, (2) not owner-occupied, 872 and (3) occupied by a tenant, or if vacant, to be occupied by a tenant 873 not more than one hundred eighty days after the award of such grant. 874 If such dwelling unit is not occupied within one hundred eighty days 875 of the award of the grant, the owner shall return any funds received by 876 the owner under such grant to the commissioner. 877 (d) The Commissioner of Energy and Environmental Protection 878 shall prioritize the awarding of grants for projects that benefit any 879 resident or prospective resident who is (1) a low-income resident, (2) a 880 veteran, (3) a victim of family violence, or (4) experiencing 881 homelessness or who has experienced homelessness. 882 (e) The commissioner shall exclude from the program any owner of 883 a residential dwelling unit determined by the commissioner to be in 884 violation of chapter 830 of the general statutes. 885 (f) The commissioner shall seek to expend the funds appropriated to 886 the Department of Energy and Environmental Protection for the pilot 887 program equally on an annual basis for the term of the pilot program. 888 (g) On or before October 1, 2027, the commissioner shall file a 889 report, in accordance with the provisions of section 11-4a of the general 890 statutes, with the joint standing committee of the General Assembly 891 having cognizance of matters relating to housing (1) analyzing the 892 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\ANTONAKOSM \WS\2023SB- 00004-R02-SB.docx } 29 of 32 success of the pilot program, and (2) recommending whether a 893 permanent program should be established in the state and, if so, any 894 proposed legislation for such program. 895 (h) The pilot program established pursuant to this section shall 896 terminate on September 30, 2028. 897 Sec. 18. (Effective from passage) The Commissioner of Housing shall, 898 within available appropriations, establish a pilot program to provide 899 temporary housing for (1) persons experiencing homelessness, or (2) 900 veterans who need respite care. Such program shall be implemented in 901 not fewer than three municipalities, each with a population of not less 902 than seventy-five thousand, and shall provide not fewer than twenty 903 housing units for eligible persons who need respite care because they 904 are recovering from injury or illness. The commissioner shall establish 905 eligibility criteria for persons eligible to participate in the pilot 906 program. The commissioner may contract with one or more nonprofit 907 organizations to administer the program. Not later than January 1, 908 2025, the commissioner shall submit a report on the pilot program, in 909 accordance with the provisions of section 11-4a of the general statutes, 910 to the joint standing committee of the General Assembly having 911 cognizance of matters relating to housing. The pilot program shall 912 terminate on January 1, 2025. 913 Sec. 19. (Effective from passage) (a) There is established a task force to 914 study the potential growth of affordable housing in the state through 915 the conversion of underutilized commercial and retail properties, 916 including, but not limited to, shopping malls, hotels and warehouses, 917 into such housing. 918 (b) The task force shall consist of the following members: 919 (1) Two appointed by the speaker of the House of Representatives, 920 one of whom represents an affordable housing advocacy organization; 921 (2) Two appointed by the president pro tempore of the Senate, one 922 of whom represents a community development corporation; 923 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\ANTONAKOSM \WS\2023SB- 00004-R02-SB.docx } 30 of 32 (3) One appointed by the majority leader of the House of 924 Representatives; 925 (4) One appointed by the majority leader of the Senate; 926 (5) One appointed by the minority leader of the House of 927 Representatives, who represents retail or commercial property owners; 928 (6) One appointed by the minority leader of the Senate, who 929 represents a local chamber of commerce; 930 (7) The Commissioner of Housing, or the commissioner's designee; 931 and 932 (8) The Commissioner of Economic and Community Development, 933 or the commissioner's designee. 934 (c) Any member of the task force appointed under subdivision (1), 935 (2), (3), (4), (5) or (6) of subsection (b) of this section may be a member 936 of the General Assembly. 937 (d) All initial appointments to the task force shall be made not later 938 than thirty days after the effective date of this section. Any vacancy 939 shall be filled by the appointing authority. 940 (e) The speaker of the House of Representatives and the president 941 pro tempore of the Senate shall select the chairpersons of the task force 942 from among the members of the task force. Such chairpersons shall 943 schedule the first meeting of the task force, which shall be held not 944 later than sixty days after the effective date of this section. 945 (f) The administrative staff of the joint standing committee of the 946 General Assembly having cognizance of matters relating to housing 947 shall serve as administrative staff of the task force. 948 (g) Not later than January 1, 2024, the task force shall submit a 949 report on its findings and recommendations to the joint standing 950 committee of the General Assembly having cognizance of matters 951 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\ANTONAKOSM \WS\2023SB- 00004-R02-SB.docx } 31 of 32 relating to housing, in accordance with the provisions of section 11-4a 952 of the general statutes. The task force shall terminate on the date that it 953 submits such report or January 1, 2024, whichever is later. 954 Sec. 20. (Effective July 1, 2023) The sum of six hundred million dollars 955 is appropriated to the Department of Energy and Environmental 956 Protection from the General Fund, for the fiscal year ending June 30, 957 2024, for providing grants for retrofitting projects for multifamily 958 residences pursuant to the pilot program established under section 17 959 of this act. 960 This act shall take effect as follows and shall amend the following sections: Section 1 October 1, 2023 47a-23 Sec. 2 October 1, 2023 47a-42 Sec. 3 October 1, 2023 New section Sec. 4 October 1, 2023 47a-4(a) Sec. 5 October 1, 2023 47a-15a Sec. 6 October 1, 2023 47a-6a(a) and (b) Sec. 7 October 1, 2023 New section Sec. 8 October 1, 2023 47a-58 Sec. 9 October 1, 2023 New section Sec. 10 October 1, 2023, and applicable to assessment years commencing on or after October 1, 2023 12-63b Sec. 11 October 1, 2023 8-395 Sec. 12 October 1, 2023 29-263 Sec. 13 October 1, 2023, and applicable to assessment years commencing on or after October 1, 2023 New section Sec. 14 October 1, 2023 New section Sec. 15 October 1, 2023 New section Sec. 16 from passage New section Sec. 17 October 1, 2023 New section Sec. 18 from passage New section Sec. 19 from passage New section Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\ANTONAKOSM \WS\2023SB- 00004-R02-SB.docx } 32 of 32 Sec. 20 July 1, 2023 New section Statement of Legislative Commissioners: In Section 1(a) an exception was added and in Section 1(f) the notwithstanding phrase was deleted for consistency with standard drafting conventions; in Section 5(a), a definition of "grace period" was added for clarity; in Section 6(a)(3), "or "agent"" was added for clarity; in Section 9(a)(9), "them" was changed to "such families or individuals" for clarity; in Section 9(a)(10), "present" was changed to "current" for accuracy; in Section 17(c) "paid" was changed to "returned" and such sentence rephrased for clarity; in Section 17(d), "for projects" was added for clarity; and Section 20 was rewritten for consistency with standard drafting conventions. HSG Joint Favorable Subst.