LCO \\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-00004-R03- SB.docx 1 of 31 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 Section 47a-23 of the general statutes is repealed and the 1 following is substituted in lieu thereof (Effective October 1, 2023): 2 (a) [When] Except as provided in subsection (f) of this section, when 3 the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 the 4 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 trailer 7 is used or stands, and (1) when a rental agreement or lease of such 8 property, whether in writing or by parol, terminates for any of the 9 following reasons: (A) By lapse of time; (B) by reason of any expressed 10 stipulation therein; (C) violation of the rental agreement or lease or of 11 any rules or regulations adopted in accordance with section 47a-9 or 12 21-70; (D) nonpayment of rent within the grace period provided for 13 residential property in section 47a-15a, as amended by this act, or 21-83; 14 (E) nonpayment of rent when due for commercial property; (F) violation 15 of section 47a-11 or subsection (b) of section 21-82; (G) nuisance, as 16 defined in section 47a-32, or serious nuisance, as defined in section 17 47a-15 or 21-80; or (2) when such premises, or any part thereof, is 18 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-00004- R03-SB.docx } 2 of 31 occupied by one who never had a right or privilege to occupy such 19 premises; or (3) when one originally had the right or privilege to occupy 20 such premises but such right or privilege has terminated; or (4) when an 21 action of summary process or other action to dispossess a tenant is 22 authorized under subsection (b) of section 47a-23c for any of the 23 following reasons: (A) Refusal to agree to a fair and equitable rent 24 increase, as defined in subsection (c) of section 47a-23c, (B) permanent 25 removal by the landlord of the dwelling unit of such tenant from the 26 housing market, or (C) bona fide intention by the landlord to use such 27 dwelling unit as such landlord's principal residence; or (5) when a farm 28 employee, as described in section 47a-30, or a domestic servant, 29 caretaker, manager or other employee, as described in subsection (b) of 30 section 47a-36, occupies such premises furnished by the employer and 31 fails to vacate such premises after employment is terminated by such 32 employee or the employer or after such employee fails to report for 33 employment, such owner or lessor, or such owner's or lessor's legal 34 representative, or such owner's or lessor's attorney-at-law, or in-fact, 35 shall give notice to each lessee or occupant to quit possession or 36 occupancy of such land, building, apartment or dwelling unit, at least 37 three days before the termination of the rental agreement or lease, if any, 38 or before the time specified in the notice for the lessee or occupant to 39 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 may 44 be), now occupied by you at (here insert the address, including 45 apartment number or other designation, as applicable), on or before the 46 (here insert the date) for the following reason (here insert the reason or 47 reasons for the notice to quit possession or occupancy using the 48 statutory language or words of similar import, also the date and place 49 of signing notice). A.B.". If the owner or lessor, or the owner's or lessor's 50 legal representative, attorney-at-law or attorney-in-fact knows of the 51 presence of an occupant but does not know the name of such occupant, 52 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-00004- R03-SB.docx } 3 of 31 the notice for such occupant may be addressed to such occupant as "John 53 Doe", "Jane Doe" or some other alias which reasonably characterizes the 54 person to be served. 55 (c) A copy of such notice shall be delivered to each lessee or occupant 56 or left at such lessee's or occupant's place of residence or, if the rental 57 agreement or lease concerns commercial property, at the place of the 58 commercial establishment by a proper officer or indifferent person. 59 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 rent 62 shall, upon delivery, terminate the rental agreement for the month or 63 week in which the notice is delivered, convert the month-to-month or 64 week-to-week tenancy to a tenancy at sufferance and provide proper 65 basis for a summary process action notwithstanding that such notice 66 was delivered in the month or week after the month or week in which 67 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 the 73 date specified in the notice for the lessee or occupant to quit possession 74 or occupancy or the date of completion of the pretermination process, 75 whichever is later. A use and occupancy disclaimer may be included in 76 or combined with such notice, provided that such disclaimer does not 77 take effect until after the date specified in the notice for the lessee or 78 occupant to quit possession or occupancy or the date of the completion 79 of the pretermination process, whichever is later. Such inclusion or 80 combination does not thereby render the notice required pursuant to 81 this section equivocal. Such disclaimer shall be in substantially the 82 following form: "Any payments tendered after the date specified to quit 83 possession or occupancy, or the date of the completion of the 84 pretermination process if that is later, will be accepted for use and 85 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-00004- R03-SB.docx } 4 of 31 occupancy only and not for rent, with full reservation of rights to 86 continue with the eviction action." 87 (f) No owner or lessor, and no owner's or lessor's legal representative, 88 or the owner's or lessor's attorney-at-law or attorney-in-fact, shall, 89 between December first and March first of any year, deliver or cause to 90 be delivered a notice to quit possession for any reason set forth in this 91 chapter or chapter 812, except for serious nuisance, as defined in section 92 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 execution 102 has been stayed, such defendant or occupant shall forthwith remove 103 himself or herself, such defendant's or occupant's possessions and all 104 personal effects upon the expiration of any stay of execution. If the 105 defendant or occupant has not so removed himself or herself upon entry 106 of a judgment pursuant to section 47a-26, 47a-26a, 47a-26b or 47a-26d, 107 and upon expiration of any stay of execution, the plaintiff may obtain 108 an execution upon such summary process judgment, and the defendant 109 or other occupant bound by the judgment by subsection (a) of section 110 47a-26h and the possessions and personal effects of such defendant or 111 other occupant may be removed by a state marshal, pursuant to such 112 execution, and delivered to the place of storage designated by the chief 113 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 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-00004- R03-SB.docx } 5 of 31 eviction, stating the date, time and location of such eviction as well as a 118 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 copy 126 of the summary process execution. Such execution shall be on a form 127 prescribed by the Judicial Department, shall be in clear and simple 128 language and in readable format, and shall contain, in addition to other 129 notices given to the defendant in the execution, a conspicuous notice, in 130 large boldface type, that a person who claims to have a right to continue 131 to occupy the premises should immediately contact an attorney, and 132 clear instructions as to how and where the defendant may reclaim any 133 possessions and personal effects removed and stored pursuant to this 134 section, including a telephone number that may be called to arrange 135 release of such possessions and personal effects. 136 (c) Whenever the possessions and personal effects of a defendant are 137 removed by a state marshal under this section, such possessions and 138 effects shall be delivered by such marshal to the designated place of 139 storage. The plaintiff shall pay the state marshal for such removal in 140 accordance with the provisions of subsection (b) of section 52-261. Such 141 removal and delivery shall be at the expense of the defendant and may 142 be recovered by the plaintiff. If such possessions and effects are not 143 reclaimed by the defendant and the expense of such storage is not paid 144 to the chief executive officer [within] not later than fifteen days after 145 such eviction, the chief executive officer shall sell the same at public 146 auction, after using reasonable efforts to locate and notify the defendant 147 of such sale and after posting notice of such sale for one week on the 148 public signpost nearest to the place where the eviction was made, if any, 149 or at some exterior place near the office of the town clerk. The chief 150 executive officer shall deliver to the defendant the net proceeds of such 151 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-00004- R03-SB.docx } 6 of 31 sale, if any, after deducting a reasonable charge for storage of such 152 possessions and effects. If the defendant does not demand the net 153 proceeds within thirty days after such sale, the chief executive officer 154 shall turn over the net proceeds of the sale to the town treasury. 155 (d) Notwithstanding the provisions of this section, no state marshal 156 may remove a defendant or occupant, or such defendant or occupant's 157 possessions and effects, between December first and March first of any 158 year unless the judgment of eviction binding upon such defendant or 159 occupant to be executed by such marshal was entered due to serious 160 nuisance, as defined in section 47a-15, by such defendant or occupant. 161 Sec. 3. (NEW) (Effective October 1, 2023) (a) As used in this section, 162 "tenant screening report" means a credit report, a criminal background 163 report, an employment history report or a rental history report, or any 164 combination thereof, used by a landlord to determine the suitability of 165 a prospective tenant. 166 (b) No landlord may demand from a prospective tenant any 167 payment, fee or charge for the processing, review or acceptance of any 168 rental application, or demand any other payment, fee or charge before 169 or at the beginning of the tenancy, except a security deposit pursuant to 170 section 47a-21 of the general statutes or a fee for a tenant screening 171 report as provided by subsection (c) of this section. 172 (c) A landlord may charge a fee for a tenant screening report 173 concerning a prospective tenant if the fee for such tenant screening 174 report is not more than the actual cost paid by the landlord for such 175 report. The landlord shall waive any fee for such report if the 176 prospective tenant provides the landlord with a copy of a tenant 177 screening report concerning the prospective tenant that was conducted 178 not later than thirty days after the prospective tenant's rental application 179 and that is satisfactory to the landlord. 180 (d) A landlord may not collect a tenant screening report fee from a 181 prospective tenant until the landlord provides the prospective tenant 182 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-00004- R03-SB.docx } 7 of 31 with (1) a copy of the tenant screening report, and (2) a copy of the 183 receipt or invoice from the entity conducting the tenant screening report 184 concerning the prospective tenant. 185 Sec. 4. Subsection (a) of section 47a-4 of the general statutes is 186 repealed and the following is substituted in lieu thereof (Effective October 187 1, 2023): 188 (a) A rental agreement shall not provide that the tenant: (1) Agrees to 189 waive or forfeit rights or remedies under this chapter and sections 47a-190 21, 47a-23 to 47a-23b, inclusive, as amended by this act, 47a-26 to 47a-191 26g, inclusive, 47a-35 to 47a-35b, inclusive, 47a-41a, 47a-43 and 47a-46, 192 or under any section of the general statutes or any municipal ordinance 193 unless such section or ordinance expressly states that such rights may 194 be waived; (2) authorizes the landlord to confess judgment on a claim 195 arising out of the rental agreement; (3) agrees to the exculpation or 196 limitation of any liability of the landlord arising under law or to 197 indemnify the landlord for that liability or the costs connected 198 therewith; (4) agrees to waive his right to the interest on the security 199 deposit pursuant to section 47a-21; (5) agrees to permit the landlord to 200 dispossess him without resort to court order; (6) consents to the distraint 201 of his property for rent; (7) agrees to pay the landlord's attorney's fees 202 in excess of fifteen per cent of any judgment against the tenant in any 203 action in which money damages are awarded; (8) agrees to pay a late 204 charge prior to the expiration of the grace period set forth in section 47a-205 15a, as amended by this act, or to pay rent in a reduced amount if such 206 rent is paid prior to the expiration of such grace period; (9) agrees to pay 207 a late charge on rent payments made subsequent to such grace period 208 in an amount exceeding the amounts set forth in section 47a-15a, as 209 amended by this act; or [(9)] (10) agrees to pay a heat or utilities 210 surcharge if heat or utilities is included in the rental agreement. 211 Sec. 5. Section 47a-15a of the general statutes is repealed and the 212 following is substituted in lieu thereof (Effective October 1, 2023): 213 (a) If rent is unpaid when due and the tenant fails to pay rent within 214 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-00004- R03-SB.docx } 8 of 31 nine days thereafter or, in the case of a one-week tenancy, within four 215 days thereafter, the landlord may terminate the rental agreement in 216 accordance with the provisions of sections 47a-23 to 47a-23b, inclusive, 217 as amended by this act. For purposes of this section, "grace period" 218 means the nine-day or four-day time periods identified in this 219 subsection, as applicable. 220 (b) If a rental agreement contains a valid written agreement to pay a 221 late charge in accordance with subsection (a) of section 47a-4, as 222 amended by this act, a landlord may assess a tenant such a late charge 223 on a rent payment made subsequent to the grace period in accordance 224 with this section. Such late charge may not exceed the lesser of (1) five 225 dollars per day, up to a maximum of twenty-five dollars, or (2) five per 226 cent of the delinquent rent payment or, in the case of a rental agreement 227 paid in whole or in part by a governmental or charitable entity, five per 228 cent of the tenant's share of the delinquent rent payment. The landlord 229 may not assess more than one late charge upon a delinquent rent 230 payment, regardless of how long the rent remains unpaid. Any rent 231 payments received by the landlord shall be applied first to the most 232 recent rent payment due. 233 Sec. 6. Subsections (a) and (b) of section 47a-6a of the general statutes 234 are repealed and the following is substituted in lieu thereof (Effective 235 October 1, 2023): 236 (a) As used in this section, (1) "address" means a location as described 237 by the full street number, if any, the street name, the city or town, and 238 the state, and not a mailing address such as a post office box, (2) 239 "dwelling unit" means any house or building, or portion thereof, which 240 is rented, leased or hired out to be occupied, or is arranged or designed 241 to be occupied, or is occupied, as the home or residence of one or more 242 persons, living independently of each other, and doing their cooking 243 upon the premises, and having a common right in the halls, stairways 244 or yards, (3) "agent in charge" or "agent" means one who manages real 245 estate, including, but not limited to, the collection of rents and 246 supervision of property, (4) "controlling participant" means [an 247 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-00004- R03-SB.docx } 9 of 31 individual or entity that exercises day-to-day financial or operational 248 control] a natural person who is not a minor and who, directly or 249 indirectly and through any contract, arrangement, understanding or 250 relationship, exercises substantial control of, or owns greater than 251 twenty-five per cent of, a corporation, partnership, trust or other legally 252 recognized entity owning rental real property in the state, and (5) 253 "project-based housing provider" means a property owner who 254 contracts with the United States Department of Housing and Urban 255 Development to provide housing to tenants under the federal Housing 256 Choice Voucher Program, 42 USC 1437f(o). 257 (b) Any municipality may require the nonresident owner or project-258 based housing provider of occupied or vacant rental real property to 259 [maintain on file in the office of] report to the tax assessor, or other 260 municipal office designated by the municipality, the current residential 261 address of the nonresident owner or project-based housing provider of 262 such property [,] if the nonresident owner or project-based housing 263 provider is an individual, or the current residential address of the agent 264 in charge of the building [,] if the nonresident owner or project-based 265 housing provider is a corporation, partnership, trust or other legally 266 recognized entity owning rental real property in the state. [In the case 267 of a] If the nonresident owners or project-based housing [provider, such 268 information] providers are a corporation, partnership, trust or other 269 legally recognized entity owning rental real property in the state, such 270 report shall also include identifying information and the current 271 residential address of each controlling participant associated with the 272 property. [, except that, if such controlling participant is a corporation, 273 partnership, trust or other legally recognized entity, the project-based 274 housing provider shall include the identifying information and the 275 current residential address of an individual who exercises day-to-day 276 financial or operational control of such entity.] If such residential 277 address changes, notice of the new residential address shall be provided 278 by such nonresident owner, project-based housing provider or agent in 279 charge of the building to the office of the tax assessor or other designated 280 municipal office not more than twenty-one days after the date that the 281 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-00004- R03-SB.docx } 10 of 31 address change occurred. If the nonresident owner, project-based 282 housing provider or agent fails to file an address under this section, the 283 address to which the municipality mails property tax bills for the rental 284 real property shall be deemed to be the nonresident owner, project-285 based housing provider or agent's current address. Such address may 286 be used for compliance with the provisions of subsection (c) of this 287 section. 288 Sec. 7. (NEW) (Effective October 1, 2023) The Commissioner of 289 Housing shall, within existing appropriations, develop standardized 290 rental agreement forms that may be used by landlords and tenants in 291 the state. Such forms shall contain the essential terms of a rental 292 agreement between any landlord and any tenant, be designed to be 293 easily read and understood and include plain language explanations of 294 all terms and conditions of the agreement, including, but not limited to, 295 rent, fees, deposits and other charges. The commissioner shall make 296 such forms available in both English and Spanish and shall post such 297 forms on the Department of Housing's Internet web site not later than 298 July 1, 2024, and shall revise such forms from time to time, at the 299 commissioner's discretion. 300 Sec. 8. Section 47a-58 of the general statutes is repealed and the 301 following is substituted in lieu thereof (Effective October 1, 2023): 302 (a) Any enforcing agency may issue a notice of violation to any 303 person who violates any provision of this chapter or a provision of a 304 local housing code. If an enforcing agency issues an order to a registrant, 305 such order may be delivered in accordance with section 7-148ii, 306 provided nothing in this section shall preclude an enforcing agency 307 from providing notice in another manner permitted by applicable law. 308 Such notice shall specify each violation and specify the last day by which 309 such violation shall be corrected. The date specified shall not be less than 310 three weeks from the date of mailing of such notice, provided that in the 311 case of a condition, which in the judgment of the enforcing agency is or 312 in its effect is dangerous or detrimental to life or health, the date 313 specified shall not be more than five days from the date of mailing of 314 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-00004- R03-SB.docx } 11 of 31 such notice. The enforcing agency may postpone the last day by which 315 a violation shall be corrected upon a showing by the owner or other 316 responsible person that he has begun to correct the violation but that 317 full correction of the violation cannot be completed within the time 318 provided because of technical difficulties, inability to obtain necessary 319 materials or labor or inability to gain access to the dwelling unit wherein 320 the violation exists. 321 (b) When the owner or other responsible person has corrected such 322 violation, the owner or other responsible person shall promptly, but not 323 later than two weeks after such correction, report to the enforcing 324 agency in writing, indicating the date when each violation was 325 corrected. It shall be presumed that the violation was corrected on the 326 date so indicated, unless a subsequent inspection by the enforcing 327 agency again reveals the existence of the condition giving rise to the 328 earlier notice of violation. 329 (c) Any person who fails to correct any violation prior to the date set 330 forth in the notice of violation shall be subject to a cumulative civil 331 penalty of five dollars per day for each violation from the date set for 332 correction in the notice of violation to the date such violation is 333 corrected, except that in any case, the penalty shall not exceed one 334 hundred dollars per day and the total penalty shall not exceed seven 335 thousand five hundred dollars. The penalty may be collected by the 336 enforcing agency by action against the owner or other responsible 337 person or by an action against the real property. An action against the 338 owner may be joined with an action against the real property. 339 (d) In addition to the penalties specified in this section, the enforcing 340 agency may enforce the provisions of this chapter or a local housing 341 code by injunctive relief pursuant to chapter 916. 342 (e) (1) Any penalty imposed by an enforcing agency pursuant to the 343 provisions of subsection (c) of this section, and remaining unpaid for a 344 period of sixty days after its due date, shall constitute a lien upon the 345 real property against which the penalty was imposed, provided a notice 346 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-00004- R03-SB.docx } 12 of 31 of violation is recorded in the land records and indexed in the name of 347 the property owner no later than thirty days after the penalty was 348 imposed. 349 (2) Each such notice of violation shall be effective from the time of the 350 recording on the land records. Each lien shall take precedence over all 351 transfers and encumbrances recorded after such time. 352 (3) Any municipal lien pursuant to the provisions of this section may 353 be foreclosed in the same manner as a mortgage. 354 (4) Any municipal lien pursuant to this section may be discharged or 355 dissolved in the manner provided in sections 49-35a to 49-37, inclusive. 356 (f) Any enforcing agency imposing a penalty pursuant to subsection 357 (c) of this section shall maintain a current record of all properties with 358 respect to which such penalty remains unpaid in the office of such 359 agency. Such record shall be available for inspection by the public. 360 (g) Each enforcing agency empowered to enforce any provision of 361 this chapter or any provision of a local housing code shall create and 362 make available housing code violation complaint forms, written in both 363 English and Spanish, for use by any occupant of a dwelling unit seeking 364 to file a complaint against the owner of such unit, or other responsible 365 party, concerning such violations. 366 Sec. 9. (NEW) (Effective October 1, 2023) (a) As used in this section: 367 (1) "Commissioner" means the Commissioner of Housing. 368 (2) "Eligible workforce housing opportunity development project" or 369 "project" means a project for the construction or substantial 370 rehabilitation of rental housing (A) located within an opportunity zone 371 in this state, (B) designated under subsection (e) of this section for 372 certain professions that work within the municipality in which the 373 project is located and for low and moderate income families and 374 individuals, and (C) that may incorporate renewable energy technology 375 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-00004- R03-SB.docx } 13 of 31 and be transit-oriented. 376 (3) "Substantial rehabilitation" means either (A) the costs of any 377 repair, replacement or improvement to a building that exceeds twenty-378 five per cent of the value of such building after the completion of all 379 such repairs, replacements or improvements, or (B) the replacement of 380 two or more of the following: (i) Roof structures, (ii) ceilings, (iii) wall 381 or floor structures, (iv) foundations, (v) plumbing systems, (vi) heating 382 and air conditioning systems, or (vii) electrical systems. 383 (4) "Opportunity zone" means an area designated as a qualified 384 opportunity zone pursuant to the Tax Cuts and Jobs Act of 2017, P.L. 385 115-97, as amended from time to time. 386 (5) "Eligible developer" or "developer" means (A) a nonprofit 387 corporation; (B) any business corporation incorporated pursuant to 388 chapter 601 of the general statutes, (i) that has as one of its purposes the 389 construction, rehabilitation, ownership or operation of housing, and (ii) 390 either certified under this section or that has articles of incorporation 391 approved by the commissioner in accordance with regulations adopted 392 pursuant to section 8-79a or 8-84 of the general statutes; (C) any 393 partnership, limited partnership, limited liability partnership, joint 394 venture, trust, limited liability company or association, (i) that has as 395 one of its purposes the construction, rehabilitation, ownership or 396 operation of housing, and (ii) either certified under this section or that 397 has basic documents of organization approved by the commissioner in 398 accordance with regulations adopted pursuant to section 8-79a or 8-84 399 of the general statutes; (D) a housing authority; or (E) a municipal 400 developer. 401 (6) "Authority" or "housing authority" means any of the public 402 corporations created by section 8-40 of the general statutes, and the 403 Connecticut Housing Authority when exercising the rights, powers, 404 duties or privileges of, or subject to the immunities or limitations of, 405 housing authorities pursuant to section 8-121 of the general statutes. 406 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-00004- R03-SB.docx } 14 of 31 (7) "Nonprofit corporation" means a nonprofit corporation 407 incorporated pursuant to chapter 602 of the general statutes or any 408 predecessor statutes thereto, that has as one of its purposes the 409 construction, rehabilitation, ownership or operation of housing and that 410 has articles of incorporation approved by the Commissioner of Housing 411 in accordance with regulations adopted pursuant to section 8-79a or 8-412 84 of the general statutes or that is certified under this section. 413 (8) "Municipal developer" means a municipality that has not declared 414 by resolution a need for a housing authority pursuant to section 8-40 of 415 the general statutes, acting by and through its legislative body. 416 "Municipal developer" means the board of selectmen if such board is 417 authorized to act as the municipal developer by the town meeting or 418 representative town meeting. 419 (9) "Low and moderate income families and individuals" means 420 families or individuals who lack the amount of income necessary, as 421 determined by the Commissioner of Housing, to enable such families or 422 individuals to rent mixed-income housing without financial assistance. 423 (10) "Market rate" means the rental income that such property would 424 most probably command on the open market as indicated by current 425 rentals in the opportunity zone being paid for comparable space. 426 (b) There is established a workforce housing opportunity 427 development program to be administered by the Department of 428 Housing under which individuals or entities who make cash 429 contributions to an eligible developer for an eligible workforce housing 430 opportunity development project located in a federally designated 431 opportunity zone may be allowed a credit against the tax due under 432 chapter 208 or 229 of the general statutes in an amount equal to the 433 amount specified by the commissioner under this section. Any 434 developer of a workforce housing opportunity development project 435 shall be allowed an exemption from any fees under section 29-263 of the 436 general statutes, as amended by this act, and any eligible workforce 437 housing opportunity development project shall be assessed using the 438 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-00004- R03-SB.docx } 15 of 31 capitalization of net income method under subsection (b) of section 12-439 63b of the general statutes, as amended by this act. 440 (c) The Commissioner of Housing shall determine eligibility criteria 441 for such program and establish an application process for the program. 442 The Department of Housing shall commence accepting applications for 443 such program not later than January 1, 2024. A developer may apply to 444 the Department of Housing for certification as a developer qualified to 445 receive cash investments eligible for a tax credit pursuant to this section 446 in a manner and form prescribed by the commissioner. To the extent 447 feasible, any eligible workforce housing opportunity development 448 project shall incorporate renewable energy or other technology in order 449 to lower utility costs for the tenants and be transit-oriented. Any eligible 450 workforce housing opportunity development project once constructed 451 or substantially rehabilitated shall be rented as follows: (1) Fifty per cent 452 of the units shall be rented at the market rate, (2) forty per cent of the 453 units shall be rented to the workforce population designated under 454 subsection (e) of this section, where such project is located at a rent not 455 exceeding twenty per cent of the prevailing rent of the opportunity zone 456 where such development is located, and (3) ten per cent of the units shall 457 be rented to families or individuals of low and moderate income 458 receiving rental assistance under chapter 128 or 319uu of the general 459 statutes or 42 USC 1437f, as amended from time to time. The program 460 shall provide for a method of selecting persons satisfying such income 461 criteria to rent such units of housing from among a pool of applicants, 462 which method shall not discriminate on the basis of race, creed, color, 463 national origin, ancestry, sex, gender identity or expression, age or 464 physical or intellectual disability. 465 (d) A workforce housing opportunity development project shall be 466 scheduled for completion not more than three years after the date of 467 approval by the Department of Housing. Each developer of a workforce 468 housing opportunity development project shall submit to the 469 commissioner quarterly progress reports and a final report upon 470 completion, in a manner and form prescribed by the commissioner. If a 471 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-00004- R03-SB.docx } 16 of 31 workforce housing opportunity development project fails to be 472 completed on or before three years from the date of approval of such 473 project, or at any time the commissioner determines that a project is 474 unlikely to be completed, the commissioner may request the Attorney 475 General to reclaim any remaining funds contributed to the project by 476 individuals or entities under subsection (b) of this section and, upon 477 receipt of any such remaining funds, the commissioner shall reallocate 478 such funds to another eligible project. 479 (e) The developer shall obtain the approval of the zoning commission, 480 as defined in section 8-13m of the general statutes, of the municipality 481 and of any other applicable municipal agency for the proposed 482 workforce housing opportunity development project. After all such 483 approvals are granted, the municipality may, not later than thirty days 484 after such approval, by vote of its legislative body or, in a municipality 485 where the legislative body is a town meeting, by vote of the board of 486 selectmen, designate the workforce population that forty per cent of the 487 project shall be dedicated to. Such designation may include volunteer 488 firefighters, teachers, police officers, emergency medical personnel or 489 other professions of persons working in the municipality. If the 490 municipality does not vote within such time period, the developer shall 491 designate the workforce population. 492 (f) For taxable income years commencing on or after January 1, 2025, 493 the Commissioner of Revenue Services shall grant a credit against the 494 tax imposed under chapter 208 or 229 of the general statutes, other than 495 the liability imposed by section 12-707 of the general statutes, in an 496 amount equal to the amount specified by the Commissioner of Housing 497 in a tax credit voucher issued by the Commissioner of Housing pursuant 498 to subsection (g) of this section. 499 (g) (1) The Commissioner of Housing shall administer a system of tax 500 credit vouchers within the resources, requirements and purposes of this 501 section, for individuals and entities making cash contributions to an 502 eligible developer for an eligible workforce housing opportunity 503 development project. Such voucher may be used as a credit against the 504 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-00004- R03-SB.docx } 17 of 31 tax to which such individual or entity is subject under chapter 208 or 229 505 of the general statutes, other than the liability imposed by section 12-707 506 of the general statutes. 507 (2) In no event shall the total amount of all tax credits allowed to all 508 individuals or entities pursuant to the provisions of this section exceed 509 five million dollars in any one fiscal year. 510 (3) No tax credit shall be granted to any individual or entity for any 511 individual amount contributed of less than two hundred fifty dollars. 512 (4) Any tax credit not used in the taxable income year during which 513 the cash contribution was made may be carried forward or backward 514 for the five immediately succeeding or preceding taxable or income 515 years until the full credit has been allowed. 516 (5) If an entity claiming a credit under this section is an S corporation 517 or an entity treated as a partnership for federal income tax purposes, the 518 credit may be claimed by the entity's shareholders or partners. If the 519 entity is a single member limited liability company that is disregarded 520 as an entity separate from its owner, the credit may be claimed by such 521 limited liability company's owner, provided such owner is subject to the 522 tax imposed under chapter 208 or 229 of the general statutes. 523 (h) The Commissioner of Housing shall adopt regulations, in 524 accordance with the provisions of chapter 54 of the general statutes, to 525 implement the provisions of this section, including, but not limited to, 526 the conditions for certification of a developer applying for assistance 527 under this section. 528 Sec. 10. Section 12-63b of the general statutes is repealed and the 529 following is substituted in lieu thereof (Effective October 1, 2023, and 530 applicable to assessment years commencing on or after October 1, 2023): 531 (a) The assessor or board of assessors in any town, at any time, when 532 determining the present true and actual value of real property as 533 provided in section 12-63, which property is used primarily for the 534 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-00004- R03-SB.docx } 18 of 31 purpose of producing rental income, exclusive of such property used 535 solely for residential purposes, containing not more than six dwelling 536 units and in which the owner resides, shall determine such value on the 537 basis of an appraisal which shall include to the extent applicable with 538 respect to such property, consideration of each of the following methods 539 of appraisal: (1) Replacement cost less depreciation, plus the market 540 value of the land, (2) capitalization of net income based on market rent 541 for similar property, and (3) a sales comparison approach based on 542 current bona fide sales of comparable property. The provisions of this 543 section shall not be applicable with respect to any housing assisted by 544 the federal or state government except any such housing for which the 545 federal assistance directly related to rent for each unit in such housing 546 is no less than the difference between the fair market rent for each such 547 unit in the applicable area and the amount of rent payable by the tenant 548 in each such unit, as determined under the federal program providing 549 for such assistance. 550 (b) In the case of an eligible workforce housing opportunity 551 development project, as defined in section 9 of this act, the assessor shall 552 use the capitalization of net income method based on the actual rent 553 received for the property. 554 [(b)] (c) For purposes of subdivision (2) of subsection (a) of this 555 section and, generally, in its use as a factor in any appraisal with respect 556 to real property used primarily for the purpose of producing rental 557 income, the term "market rent" means the rental income that such 558 property would most probably command on the open market as 559 indicated by present rentals being paid for comparable space. In 560 determining market rent the assessor shall consider the actual rental 561 income applicable with respect to such real property under the terms of 562 an existing contract of lease at the time of such determination. 563 Sec. 11. Section 8-395 of the general statutes is repealed and the 564 following is substituted in lieu thereof (Effective October 1, 2023): 565 (a) As used in this section, (1) "business firm" means any business 566 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-00004- R03-SB.docx } 19 of 31 entity authorized to do business in the state and subject to the 567 corporation business tax imposed under chapter 208, or any company 568 subject to a tax imposed under chapter 207, or any air carrier subject to 569 the air carriers tax imposed under chapter 209, or any railroad company 570 subject to the railroad companies tax imposed under chapter 210, or any 571 regulated telecommunications service, express, cable or community 572 antenna television company subject to the regulated 573 telecommunications service, express, cable and community antenna 574 television companies tax imposed under chapter 211, or any utility 575 company subject to the utility companies tax imposed under chapter 576 212, [and] (2) "nonprofit corporation" means a nonprofit corporation 577 incorporated pursuant to chapter 602 or any predecessor statutes 578 thereto, having as one of its purposes the construction, rehabilitation, 579 ownership or operation of housing and having articles of incorporation 580 approved by the executive director of the Connecticut Housing Finance 581 Authority in accordance with regulations adopted pursuant to section 582 8-79a or 8-84, (3) "workforce housing development project" or "project" 583 means the construction or substantial rehabilitation of dwelling units for 584 rental housing where (A) ten per cent of the units are affordable 585 housing, (B) forty per cent of the units are rented to the workforce 586 population designated by the developer, in consultation with the 587 municipality where such project is located, at a rent not exceeding 588 twenty per cent of the prevailing rent of the area where such 589 development is located, and (C) fifty per cent of the units are rented at 590 a market rate and includes, but is not limited to, an eligible workforce 591 housing opportunity development project, as defined in section 9 of this 592 act, (4) "affordable housing" means rental housing for which persons 593 and families pay thirty per cent or less of their annual income, where 594 such income is less than or equal to the area median income for the 595 municipality in which such housing is located, as determined by the 596 United States Department of Housing and Urban Development, (5) 597 "substantial rehabilitation" means either (A) the costs of any repair, 598 replacement or improvement to a building that exceeds twenty-five per 599 cent of the value of such building after the completion of all such repairs, 600 replacements or improvements, or (B) the replacement of two or more 601 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-00004- R03-SB.docx } 20 of 31 of the following: (i) Roof structures, (ii) ceilings, (iii) wall or floor 602 structures, (iv) foundations, (v) plumbing systems, (vi) heating and air 603 conditioning systems, or (vii) electrical systems, and (6) "market rate" 604 means the rental income that such unit would most probably command 605 on the open market as indicated by present rentals being paid for 606 comparable space in the area where the unit is located. 607 (b) The Commissioner of Revenue Services shall grant a credit against 608 [any] the tax [due] imposed under [the provisions of] chapter 207, 208, 609 209, 210, 211 or 212 in an amount equal to the amount specified by the 610 Connecticut Housing Finance Authority in any tax credit voucher 611 issued by said authority pursuant to subsection (c) of this section. 612 (c) The Connecticut Housing Finance Authority shall administer a 613 system of tax credit vouchers within the resources, requirements and 614 purposes of this section, for business firms making cash contributions to 615 housing programs developed, sponsored or managed by a nonprofit 616 corporation, as defined in subsection (a) of this section, which benefit 617 low and moderate income persons or families which have been 618 approved prior to the date of any such cash contribution by the 619 authority, including, but not limited to, contributions for a workforce 620 housing development project. Such vouchers may be used as a credit 621 against any of the taxes to which such business firm is subject and which 622 are enumerated in subsection (b) of this section. For taxable or income 623 years commencing on or after January 1, 1998, to be eligible for approval 624 a housing program shall be scheduled for completion not more than 625 three years from the date of approval. For taxable or income years 626 commencing on or after January 1, 2024, to be eligible for approval, a 627 workforce housing development project shall be scheduled for 628 completion not more than three years from the date of approval. Each 629 program or developer of a workforce housing development project shall 630 submit to the authority quarterly progress reports and a final report 631 upon completion, in a manner and form prescribed by the authority. If 632 a program or workforce housing development project fails to be 633 completed [after] on or before three years from the date of approval of 634 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-00004- R03-SB.docx } 21 of 31 the project, or at any time the authority determines that a program or 635 project is unlikely to be completed, the authority may reclaim any 636 remaining funds contributed by business firms and reallocate such 637 funds to another eligible program or project. 638 (d) No business firm shall receive a credit pursuant to both this 639 section and chapter 228a in relation to the same cash contribution. 640 (e) Nothing in this section shall be construed to prevent two or more 641 business firms from participating jointly in one or more programs or 642 projects under the provisions of this section. Such joint programs or 643 projects shall be submitted, and acted upon, as a single program or 644 project by the business firms involved. 645 (f) No tax credit shall be granted to any business firm for any 646 individual amount contributed of less than two hundred fifty dollars. 647 (g) Any tax credit not used in the [period] taxable income year during 648 which the cash contribution was made may be carried forward or 649 backward for the five immediately succeeding or preceding taxable or 650 income years until the full credit has been allowed. 651 (h) In no event shall the total amount of all tax credits allowed to all 652 business firms pursuant to the provisions of this section exceed ten 653 million dollars in any one fiscal year, provided, each year until the date 654 sixty days after the date the Connecticut Housing Finance Authority 655 publishes the list of housing programs or workforce housing 656 development projects that will receive tax credit reservations, two 657 million dollars of the total amount of all tax credits under this section 658 shall be set aside for permanent supportive housing initiatives 659 established pursuant to section 17a-485c, and one million dollars of the 660 total amount of all tax credits under this section shall be set aside for 661 workforce housing, as defined by the Connecticut Housing Finance 662 Authority through written procedures adopted pursuant to subsection 663 (k) of this section. Each year, on or after the date sixty days after the date 664 the Connecticut Housing Finance Authority publishes the list of 665 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-00004- R03-SB.docx } 22 of 31 housing programs or projects that will receive tax credit reservations, 666 any unused portion of such tax credits shall become available for any 667 housing program or project eligible for tax credits pursuant to this 668 section. 669 (i) No organization conducting a housing program or [programs] 670 project eligible for funding with respect to which tax credits may be 671 allowed under this section shall be allowed to receive an aggregate 672 amount of such funding for any such program or [programs] project in 673 excess of five hundred thousand dollars for any fiscal year. 674 (j) Nothing in this section shall be construed to prevent a business 675 firm from making any cash contribution to a housing program or project 676 to which tax credits may be applied which cash contribution may result 677 in the business firm having a limited equity interest in the program or 678 project. 679 (k) The Connecticut Housing Finance Authority, with the approval of 680 the Commissioner of Revenue Services, shall adopt written procedures 681 in accordance with section 1-121 to implement the provisions of this 682 section. Such procedures shall include provisions for issuing tax credit 683 vouchers for cash contributions to housing programs or projects based 684 on a system of ranking housing programs. In establishing such ranking 685 system, the authority shall consider the following: (1) The readiness of 686 the project to be built; (2) use of the funds to build or rehabilitate a 687 specific housing project or to capitalize a revolving loan fund providing 688 low-cost loans for housing construction, repair or rehabilitation to 689 benefit persons of very low, low and moderate income; (3) the extent the 690 project will benefit families at or below twenty-five per cent of the area 691 median income and families with incomes between twenty-five per cent 692 and fifty per cent of the area median income, as defined by the United 693 States Department of Housing and Urban Development; (4) evidence of 694 the general administrative capability of the nonprofit corporation to 695 build or rehabilitate housing; (5) evidence that any funds received by 696 the nonprofit corporation for which a voucher was issued were used to 697 accomplish the goals set forth in the application; and (6) with respect to 698 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-00004- R03-SB.docx } 23 of 31 any income year commencing on or after January 1, 1998: (A) Use of the 699 funds to provide housing opportunities in urban areas and the impact 700 of such funds on neighborhood revitalization; and (B) the extent to 701 which tax credit funds are leveraged by other funds. 702 (l) Vouchers issued or reserved by the Department of Housing under 703 the provisions of this section prior to July 1, 1995, shall be valid on and 704 after July 1, 1995, to the same extent as they would be valid under the 705 provisions of this section in effect on June 30, 1995. 706 (m) The credit which is sought by the business firm shall first be 707 claimed on the tax return for such business firm's taxable income or year 708 during which the cash contribution to which the tax credit voucher 709 relates was paid. 710 Sec. 12. Section 29-263 of the general statutes is repealed and the 711 following is substituted in lieu thereof (Effective October 1, 2023): 712 (a) Except as provided in subsection (h) of section 29-252a and the 713 State Building Code adopted pursuant to subsection (a) of section 29-714 252, after October 1, 1970, no building or structure shall be constructed 715 or altered until an application has been filed with the building official 716 and a permit issued. Such application shall be filed in person, by mail or 717 electronic mail, in a manner prescribed by the building official. Such 718 permit shall be issued or refused, in whole or in part, within thirty days 719 after the date of an application. No permit shall be issued except upon 720 application of the owner of the premises affected or the owner's 721 authorized agent. No permit shall be issued to a contractor who is 722 required to be registered pursuant to chapter 400, for work to be 723 performed by such contractor, unless the name, business address and 724 Department of Consumer Protection registration number of such 725 contractor is clearly marked on the application for the permit, and the 726 contractor has presented such contractor's certificate of registration as a 727 home improvement contractor. Prior to the issuance of a permit and 728 within said thirty-day period, the building official shall review the plans 729 of buildings or structures to be constructed or altered, including, but not 730 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-00004- R03-SB.docx } 24 of 31 limited to, plans prepared by an architect licensed pursuant to chapter 731 390, a professional engineer licensed pursuant to chapter 391 or an 732 interior designer registered pursuant to chapter 396a acting within the 733 scope of such license or registration, to determine their compliance with 734 the requirements of the State Building Code and, where applicable, the 735 local fire marshal shall review such plans to determine their compliance 736 with the Fire Safety Code. Such plans submitted for review shall be in 737 substantial compliance with the provisions of the State Building Code 738 and, where applicable, with the provisions of the Fire Safety Code. 739 (b) On and after July 1, 1999, the building official shall assess an 740 education fee on each building permit application. During the fiscal year 741 commencing July 1, 1999, the amount of such fee shall be sixteen cents 742 per one thousand dollars of construction value as declared on the 743 building permit application and the building official shall remit such 744 fees quarterly to the Department of Administrative Services, for deposit 745 in the General Fund. Upon deposit in the General Fund, the amount of 746 such fees shall be credited to the appropriation to the Department of 747 Administrative Services and shall be used for the code training and 748 educational programs established pursuant to section 29-251c and the 749 educational programs required in subsections (a) and (b) of section 29-750 262. On and after July 1, 2000, the assessment shall be made in 751 accordance with regulations adopted pursuant to subsection (d) of 752 section 29-251c. All fees collected pursuant to this subsection shall be 753 maintained in a separate account by the local building department. 754 During the fiscal year commencing July 1, 1999, the local building 755 department may retain two per cent of such fees for administrative costs 756 incurred in collecting such fees and maintaining such account. On and 757 after July 1, 2000, the portion of such fees which may be retained by a 758 local building department shall be determined in accordance with 759 regulations adopted pursuant to subsection (d) of section 29-251c. No 760 building official shall assess such education fee on a building permit 761 application to repair or replace a concrete foundation that has 762 deteriorated due to the presence of pyrrhotite. 763 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-00004- R03-SB.docx } 25 of 31 (c) Any municipality may, by ordinance adopted by its legislative 764 body, exempt Class I renewable energy source projects from payment 765 of building permit fees imposed by the municipality. 766 (d) Notwithstanding any municipal charter, home rule ordinance or 767 special act, no municipality shall collect an application fee on a building 768 permit application to repair or replace a concrete foundation that has 769 deteriorated due to the presence of pyrrhotite. 770 (e) Notwithstanding any municipal charter, home rule ordinance or 771 special act, no municipality shall collect any fee for a building permit 772 application for the construction or substantial rehabilitation of (1) an 773 eligible workforce housing opportunity development project, as defined 774 in section 9 of this act, or (2) a workforce housing development project, 775 as defined in section 8-395, as amended by this act. 776 Sec. 13. (NEW) (Effective October 1, 2023, and applicable to assessment 777 years commencing on or after October 1, 2023) The legislative body of any 778 municipality or, in a municipality where the legislative body is a town 779 meeting, the board of selectmen may, by ordinance, exempt from real 780 property tax any workforce housing development project, as defined in 781 section 8-395 of the general statutes, as amended by this act, to the extent 782 of seventy per cent of its valuation for purposes of assessment in each 783 of the seven full assessment years following the assessment year in 784 which the construction or substantial rehabilitation, as defined in 785 section 8-395 of the general statutes, as amended by this act, is 786 completed. 787 Sec. 14. (NEW) (Effective October 1, 2023) (a) Beginning with the fiscal 788 year commencing July 1, 2025, the Secretary of the Office of Policy and 789 Management shall pay a state grant in lieu of taxes to any municipality 790 that has opted to partially exempt from real property tax a workforce 791 housing development project under section 13 of this act and submitted 792 an application for such grant. A municipality shall apply for such grant 793 annually on a form and in a manner prescribed by the secretary. On or 794 before January first, annually, the Secretary of the Office of Policy and 795 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-00004- R03-SB.docx } 26 of 31 Management shall determine the amount due to such municipality, in 796 accordance with this section. 797 (b) Any grant payable to any municipality that applies for a grant 798 under the provisions of this section shall be equal to seventy per cent of 799 the property taxes that, except for any exemption applicable to any such 800 housing authority property under the provisions of chapter 128 of the 801 general statutes, would have been paid with respect to such exempt real 802 property on the assessment list in such municipality for the assessment 803 date two years prior to the commencement of the state fiscal year in 804 which such grant is payable, for a maximum of seven assessment years. 805 The amount of the grant payable to each municipality in any year in 806 accordance with this section shall be reduced proportionately in the 807 event that the total of such grants in such year exceeds the amount 808 appropriated for the purposes of this section with respect to such year. 809 Sec. 15. (NEW) (Effective October 1, 2023) The Connecticut Housing 810 Finance Authority shall develop and administer a program of mortgage 811 assistance for (1) developers for the construction or substantial 812 rehabilitation of eligible workforce housing opportunity development 813 projects, as defined in section 9 of this act, and (2) developers for the 814 construction or substantial rehabilitation of workforce housing 815 development projects, as defined in section 8-395 of the general statutes, 816 as amended by this act. In making mortgage assistance available under 817 the program, the authority shall utilize any appropriate housing 818 subsidies. 819 Sec. 16. (Effective from passage) The Department of Housing shall, 820 within available appropriations, conduct a study on methods to (1) 821 increase housing options for apprentices and other newly hired 822 employees, and (2) enable such apprentices and other newly hired 823 employees to reside in the municipalities in which they work. Not later 824 than January 1, 2024, the Commissioner of Housing shall submit a 825 report, in accordance with the provisions of section 11-4a of the general 826 statutes, to the joint standing committee of the General Assembly 827 having cognizance of matters relating to housing. Such report shall 828 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-00004- R03-SB.docx } 27 of 31 include recommendations on methods to increase such housing options 829 and any legislation necessary to implement such recommendations. 830 Sec. 17. (NEW) (Effective October 1, 2023) (a) As used in this section: 831 (1) "Affordable housing deed restrictions" means deed restrictions 832 filed on the land records of the municipality, containing covenants or 833 restrictions that require the dwelling units in a multifamily building to 834 be sold or rented only to low-income residents; 835 (2) "Environmental justice community" has the same meaning as 836 provided in section 22a-20a of the general statutes; 837 (3) "Family violence" has the same meaning as provided in section 838 46b-38a of the general statutes; and 839 (4) "Low-income resident" means, after adjustments for family size, 840 individuals or families whose income is not greater than eighty per cent 841 of (A) the state median income, or (B) the area median income, 842 whichever is less, for the area in which the resident resides, as 843 determined by the United States Department of Housing and Urban 844 Development. 845 (b) The Commissioner of Energy and Environmental Protection, in 846 coordination with the Commissioner of Housing, shall establish a pilot 847 program to provide grants for retrofitting projects for multifamily 848 residences built before 1980 and located in environmental justice 849 communities that (1) improve the energy efficiency of such residences, 850 including, but not limited to, the installation of heat pumps, solar power 851 generating systems, improved roofing, storm doors and windows and 852 improved insulation, or (2) remediate health and safety concerns, such 853 as mold, vermiculite, asbestos, lead and radon. 854 (c) On and after January 1, 2024, the Commissioner of Energy and 855 Environmental Protection shall accept applications, in a form to be 856 specified by the commissioner, from any owner of a residential dwelling 857 unit for a grant under the program. Any such grant may be awarded to 858 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-00004- R03-SB.docx } 28 of 31 an owner of a residential dwelling unit that is (1) subject to binding 859 affordable housing deed restrictions, (2) not owner-occupied, and (3) 860 occupied by a tenant, or if vacant, to be occupied by a tenant not more 861 than one hundred eighty days after the award of such grant. If such 862 dwelling unit is not occupied within one hundred eighty days of the 863 award of the grant, the owner shall return any funds received by the 864 owner under such grant to the commissioner. 865 (d) The Commissioner of Energy and Environmental Protection shall 866 prioritize the awarding of grants for projects that benefit any resident or 867 prospective resident who is (1) a low-income resident, (2) a veteran, (3) 868 a victim of family violence, or (4) experiencing homelessness or who has 869 experienced homelessness. 870 (e) The commissioner shall exclude from the program any owner of a 871 residential dwelling unit determined by the commissioner to be in 872 violation of chapter 830 of the general statutes. 873 (f) The commissioner shall seek to expend the funds appropriated to 874 the Department of Energy and Environmental Protection for the pilot 875 program equally on an annual basis for the term of the pilot program. 876 (g) On or before October 1, 2027, the commissioner shall file a report, 877 in accordance with the provisions of section 11-4a of the general statutes, 878 with the joint standing committee of the General Assembly having 879 cognizance of matters relating to housing (1) analyzing the success of 880 the pilot program, and (2) recommending whether a permanent 881 program should be established in the state and, if so, any proposed 882 legislation for such program. 883 (h) The pilot program established pursuant to this section shall 884 terminate on September 30, 2028. 885 Sec. 18. (Effective from passage) The Commissioner of Housing shall, 886 within available appropriations, establish a pilot program to provide 887 temporary housing for (1) persons experiencing homelessness, or (2) 888 veterans who need respite care. Such program shall be implemented in 889 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-00004- R03-SB.docx } 29 of 31 not fewer than three municipalities, each with a population of not less 890 than seventy-five thousand, and shall provide not fewer than twenty 891 housing units for eligible persons who need respite care because they 892 are recovering from injury or illness. The commissioner shall establish 893 eligibility criteria for persons eligible to participate in the pilot program. 894 The commissioner may contract with one or more nonprofit 895 organizations to administer the program. Not later than January 1, 2025, 896 the commissioner shall submit a report on the pilot program, in 897 accordance with the provisions of section 11-4a of the general statutes, 898 to the joint standing committee of the General Assembly having 899 cognizance of matters relating to housing. The pilot program shall 900 terminate on January 1, 2025. 901 Sec. 19. (Effective from passage) (a) There is established a task force to 902 study the potential growth of affordable housing in the state through 903 the conversion of underutilized commercial and retail properties, 904 including, but not limited to, shopping malls, hotels and warehouses, 905 into such housing. 906 (b) The task force shall consist of the following members: 907 (1) Two appointed by the speaker of the House of Representatives, 908 one of whom represents an affordable housing advocacy organization; 909 (2) Two appointed by the president pro tempore of the Senate, one of 910 whom represents a community development corporation; 911 (3) One appointed by the majority leader of the House of 912 Representatives; 913 (4) One appointed by the majority leader of the Senate; 914 (5) One appointed by the minority leader of the House of 915 Representatives, who represents retail or commercial property owners; 916 (6) One appointed by the minority leader of the Senate, who 917 represents a local chamber of commerce; 918 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-00004- R03-SB.docx } 30 of 31 (7) The Commissioner of Housing, or the commissioner's designee; 919 and 920 (8) The Commissioner of Economic and Community Development, 921 or the commissioner's designee. 922 (c) Any member of the task force appointed under subdivision (1), 923 (2), (3), (4), (5) or (6) of subsection (b) of this section may be a member 924 of the General Assembly. 925 (d) All initial appointments to the task force shall be made not later 926 than thirty days after the effective date of this section. Any vacancy shall 927 be filled by the appointing authority. 928 (e) The speaker of the House of Representatives and the president pro 929 tempore of the Senate shall select the chairpersons of the task force from 930 among the members of the task force. Such chairpersons shall schedule 931 the first meeting of the task force, which shall be held not later than sixty 932 days after the effective date of this section. 933 (f) The administrative staff of the joint standing committee of the 934 General Assembly having cognizance of matters relating to housing 935 shall serve as administrative staff of the task force. 936 (g) Not later than January 1, 2024, the task force shall submit a report 937 on its findings and recommendations to the joint standing committee of 938 the General Assembly having cognizance of matters relating to housing, 939 in accordance with the provisions of section 11-4a of the general statutes. 940 The task force shall terminate on the date that it submits such report or 941 January 1, 2024, whichever is later. 942 Sec. 20. (Effective July 1, 2023) The sum of six hundred million dollars 943 is appropriated to the Department of Energy and Environmental 944 Protection from the General Fund, for the fiscal year ending June 30, 945 2024, for providing grants for retrofitting projects for multifamily 946 residences pursuant to the pilot program established under section 17 947 of this act. 948 Substitute Bill No. 4 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-00004- R03-SB.docx } 31 of 31 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 Sec. 20 July 1, 2023 New section HSG Joint Favorable Subst. APP Joint Favorable