Researcher: SM Page 1 6/3/23
OLR Bill Analysis
sSB 998 (File 427, as amended by House "A" and "B" and Senate
"A")*
AN ACT ESTABLISHING A TAX ABATEMENT FOR CERTAIN
CONSERVATION EASEMENTS.
TABLE OF CONTENTS:
SUMMARY
§§ 1 & 2 — MUNICIPAL PROGRAMS TO ABATE PROPERTY TAXES
FOR CERTAIN CONSERVA TION RESTRICTIONS
Allows municipalities to adopt an ordinance establishing a program to abate property
taxes for qualifying portions of a taxpayer’s land that are subject to a conservation
easement preserving its use as a recreational trail
§ 3 — INCREASED FINES FOR HOUSING VIOLATIONS
Allows (1) municipalities to set civil penalties of up to $2,000 per day against landlords
for each violation of their rules on maintaining safe and sanitary housing and (2)
landlords to appeal these fines to the municipality’s legislative body or board of selectmen,
under certain circumstances
§§ 4 & 5 — PRE-OCCUPANCY WALK-THROUGHS
Beginning January 1, 2024, requires landlords to give tenants the opportunity to request
and complete a pre-occupancy “walk-through” of a dwelling unit after or at the time of
entering into a rental agreement; prohibits landlords from keeping any portion of a
tenant’s security deposit or seeking payment for conditions specifically identified during
the walk-through
§§ 5 & 6 — LIMITS ON RENTAL APPLICATION-RELATED FEES
Limits rental application-related fees and payments that landlords may require from
prospective tenants; requires landlords to give prospective tenants these reports, or related
information, and a receipt or invoice; prohibits landlords from charging tenants a move-in
or move-out fee
§§ 7 & 8 — LIMITS ON LATE CHARGES FOR OVERDUE RENT
Limits late charges that landlords may impose for overdue rent; prohibits rental
agreements from requiring any late fees that exceed these amounts; prohibits landlords
from assessing more than one late charge on an overdue rent payment
§ 9 — SECURITY DEPOSIT GUARANTEE PROGRAM
Makes various changes to DOH’s Security Deposit Guarantee Program, including,
among other things, expanding program eligibility and reducing the frequency with which
a person may apply for assistance
§ 10 — REQUIRED NOTICE OF PROTECTED TENANT STATUS 2023SB-00998-R02-BA.DOCX
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Beginning January 1, 2024, requires landlords to give tenants a written DOH notice
summarizing the rights of protected tenants (i.e., generally certain tenants at least age 62
or with a disability) whenever they rent, or enter or renew an agreement to rent, certain
dwelling units; requires that the notice be available in both English and Spanish, and
eventually additional languages
§§ 11, 12 & 15 — HOUSING AUTHORITY TRAINING, INFORMATION,
AND AUDIT REQUIREMEN TS
Requires housing authorities (1) receiving state assistance to annually give tenants
specified information and (2) subject to the State Single Audit Act, to include the audit
results in their annual reports; also requires all current and new housing authority
commissioners to participate in a training
§§ 13 & 14 — STANDARDIZED RENTAL AGREEME NT AND
HOUSING CODE VIOLATION FORMS IN ENGLISH AND
ADDITIONAL LANGUAGES
Requires (1) DOH to develop standardized rental agreement forms that landlords and
tenants may use, (2) municipal code enforcement agencies to create housing code violation
complaint forms for tenants, (3) that both forms be made available in English and Spanish,
and (4) DOH to make the rental agreement forms available in additional languages by
December 1, 2028
§ 16 — MUNICIPAL LANDLORD IDENTIFICATION REQUIREMENTS
Modifies current municipal landlord identification requirements, including generally
extending the requirements for landlords participating in the federal Housing Choice
Voucher program to nonresident rental property owners; exempts information provided
under these requirements from FOIA
§ 17 — OPM OFFICE OF RESPONSIBLE GROWTH
Statutorily establishes the Office of Responsible Growth within OPM and assigns it
various responsibilities
§ 18 — FAIR SHARE HOUSING ALLOCATION MET HODOLOGY
Requires OPM, by December 1, 2024, to establish a methodology meeting certain
requirements for each municipality’s fair share allocation by (1) assessing the affordable
housing need in each of the state’s planning regions and (2) fairly allocating a portion of
this need to each of the region’s municipalities; requires each chamber of the General
Assembly to approve the methodology
§ 19 — DOH PROGRAM TO INCENTIVIZE LANDLORD
PARTICIPATION IN TENANT-BASED RENTAL ASSISTANCE
PROGRAMS
Requires the DOH commissioner, within available appropriations and in consultation
with CHFA and housing authority representatives, to establish a program to incentivize
landlord participation in various tenant-based rental assistance programs
§§ 20 & 21 — DOH RAP STUDY AND PROGRAM E XPENDITURES
Requires the DOH commissioner to (1) study, within available appropriations, methods to
improve the efficiency of processing applications under RAP and (2) affirmatively seek to
spend all funds appropriated to the program annually
§ 22 — HOMELESS AND HOUSING INSECURE VETERANS 2023SB-00998-R02-BA.DOCX
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Requires the Department of Veterans Affairs, within available appropriations, to convert,
rehabilitate, and renovate vacant, underused, or otherwise available properties for housing
homeless or housing insecure veterans
§ 23 — REMOVAL OF CERTAIN EVICTION RECORDS FROM THE
JUDICIAL DEPARTMENT WEBSITE
Requires the Judicial Department to remove from its website records or identifying
information about eviction proceedings within specified time periods based on an action’s
disposition; prohibits the department from selling or transferring these removed records
for commercial purposes, such as consumer reporting or tenant screening
§§ 24 & 25 — REAL ESTATE CONVEYANCE TAX EXEMPTIONS AND
TRANSFERS
Exempts conveyances of property with deed-restricted affordable housing dwelling units
from the state real estate conveyance tax; requires the comptroller to transfer state
conveyance tax revenue in excess of $300 million each fiscal year, annually adjusted for
inflation, to the Housing Trust Fund
§ 26 — HOUSING DISCRIMINATION BASED ON SEXUAL
ORIENTATION
Subjects the rental of certain owner-occupied dwelling units to a state law that prohibits
housing discrimination specifically due to a person’s sexual orientation or civil union
status
§ 27 — SEWER SYSTEM REGULATORY OVERSIGHT
Transfers from DEEP to DPH regulatory authority over certain small community
sewerage systems and household and small commercial subsurface sewerage disposal
systems, and requires the agencies to adopt regulations on them
§§ 28-35 — WORKFORCE HOUSING DEVELOPMENT S
Establishes various state and local financial incentives for individuals and businesses
investing in, and developing rental units set aside for, designated workforce populations
under these programs
§ 36 — AFFORDABLE HOUSING ROUNDTABLE GRO UP
Establishes the majority leaders’ roundtable group on affordable housing, consisting of 24
members, to study various topics related to promoting and developing affordable housing
in the state
§ 37 — HOUSING TRUST FUND PROGRAM ADVISO RY COMMITTEE
Eliminates the Housing Trust Fund Program Advisory Committee
§§ 38 & 39 — RETURN OF SECURITY DEPOSITS
Generally shortens the deadline for landlords to return a tenant’s security deposit and
interest on deposits under certain circumstances
§§ 40 & 41 — PUBLISHING PAYMENT STANDARD S FOR TENANT-
BASED RENTAL ASSISTANCE AND DOH COMMON R ENTAL
APPLICATION FOR HOUSING AUTHORITIES
Requires (1) any housing authority that administers a tenant-based rental assistance
program to publicly post a payment standard (or similar information) within 30 days after
setting or updating it and (2) the housing commissioner to develop a common rental
application that may be used by housing authorities 2023SB-00998-R02-BA.DOCX
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§ 42 — SCHOOL BUILDING PROJECT REIMBURSEMENT RATE
Makes boards of education located in an “inclusive municipality” eligible for a five
percentage point increase to their state grant reimbursement rate for school building
projects
§ 43 — DOH TEMPORARY HOUSING PILOT PROGRAM
Requires DOH, within available appropriations, to establish a pilot program to provide
temporary housing to individuals experiencing homelessness and veterans who need
respite care
SUMMARY
This bill, among other things, makes various changes in laws on
housing, landlords and tenants, and housing authorities. It also makes
technical and conforming changes. A section-by-section analysis
follows.
*Senate Amendment “A” makes changes in the provisions on tax
abatements for conservation restrictions by allowing, rather than
requiring, municipalities to establish these tax abatement programs and
correspondingly removes the deadline for doing this (January 1, 2024).
*House Amendment “A” adds all of the bill’s other provisions, with
the exception of those concerning municipal programs to abate property
taxes for certain conservation restrictions.
*House Amendment “B” adds the provision requiring the Office of
Policy and Management (OPM) secretary to submit the fair share
allocation methodology developed under the bill to (1) the Housing and
Planning and Development committees and (2) each chamber of the
General Assembly for approval.
EFFECTIVE DATE: Various; see below.
§§ 1 & 2 — MUNICIPAL PROGRAMS TO ABATE PR OPERTY TAXES
FOR CERTAIN CONSERVA TION RESTRICTIONS
Allows municipalities to adopt an ordinance establishing a program to abate property
taxes for qualifying portions of a taxpayer’s land that are subject to a conservation
easement preserving its use as a recreational trail
The bill allows municipalities to adopt an ordinance establishing a
program to abate property taxes for qualifying portions of a taxpayer’s 2023SB-00998-R02-BA.DOCX
Researcher: SM Page 5 6/3/23
land that are subject to a conservation restriction preserving its use as a
recreational trail. It relatedly establishes an application and municipal
approval process for these abatements. Under the bill, an abatement
continues with the land (even if sold or transferred) until the
municipality’s legislative body, or board of selectmen if the legislative
body is a town meeting, votes to end it.
Under existing law, municipalities may recommend in their local
plans of conservation and development (POCD) particular areas of land
for preservation as open space, making it eligible for classification as
open space for property tax purposes. The bill specifies that this
recommendation may also include portions of land, including terrestrial
recreational trail corridors that meet Connecticut Greenways Council
(CGC)-established criteria for designating greenways (see
BACKGROUND).
EFFECTIVE DATE: October 1, 2023, and the property tax abatement
provision is applicable to assessment years beginning on or after that
date.
Eligibility
Under the bill, to qualify for a property tax abatement, the portion of
land involved must meet the following criteria:
1. be a terrestrial recreation trail with a clearly defined trail corridor
that does not exceed 100 feet at its widest point;
2. meet CGC’s criteria for designation as a greenway; and
3. be subject to a recorded permanent conservation restriction (see
BACKGROUND) that (a) is conveyed to the municipality, the
state, or a nonprofit land conservation organization and (b) does
not prohibit public use of it for compatible recreation purposes.
Application and Approval
After the municipality adopts an ordinance for the abatement
program, the bill authorizes owners of eligible land to file an application
to the municipal assessor for an abatement. The application must be 2023SB-00998-R02-BA.DOCX
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made on an assessor-prescribed form and include the following:
1. a description of the land;
2. a copy of the land’s permanent conservation restriction;
3. a copy of the owner’s deed;
4. a certified land survey, done by a licensed surveyor, showing the
recreation trail’s boundaries; and
5. any other information the assessor requires to determine the
property’s eligibility.
Within 30 days after receiving the application, the bill requires the
assessor to submit it to the municipality’s legislative body (or board of
selectmen if the legislative body is a town meeting) along with his or her
recommendation on whether it should be approved or denied, based on
the eligibility criteria set in the bill (see above). The legislative body, or
board of selectmen, as applicable, must approve of the abatement by a
vote.
Background — Connecticut Greenways Council Designation
Criteria
In 1995, the legislature created the Connecticut Greenways Council
and required it to set criteria to use for designating official greenways
(CGS § 23-102). To be considered for the designation, a project must
meet at least one of the council’s criteria, which consider, among other
things, whether the project (1) connects existing open spaces, trail
segments, neighborhoods, or transportation centers; (2) is a municipal
project included in a local POCD; (3) is included in a regional Council
of Governments plan; (4) is sponsored by an organization with a proven
record of land use protection; or (5) may be a key link in an emerging
greenway.
§ 3 — INCREASED FINES FOR HOUSING VIOLATIONS
Allows (1) municipalities to set civil penalties of up to $2,000 per day against landlords
for each violation of their rules on maintaining safe and sanitary housing and (2)
landlords to appeal these fines to the municipality’s legislative body or board of selectmen,
under certain circumstances 2023SB-00998-R02-BA.DOCX
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Existing law allows municipalities to set penalties, of up to $250, for
violations of their regulations and ordinances adopted under their
statutorily enumerated general powers. (It also specifically authorizes
other municipal fines for housing blight; see Background). The bill
additionally allows municipalities to prescribe civil penalties of up to
$2,000 against rental property owners for each violation of the
municipality’s rules on maintaining safe and sanitary housing.
However, the bill requires that municipalities enforce multiple
violations discovered on the same date as one violation.
The bill allows an owner who is assessed this penalty to appeal to the
municipality’s legislative body, or board of selectmen where the
legislative body is a town meeting, on the grounds that the violation was
proximately caused by a tenant’s deliberate or reckless action. (Existing
law generally requires a municipality to notify individuals of their right
to contest a citation before a hearing officer, whose decision can be
appealed in Superior Court (CGS § 7-152c).)
EFFECTIVE DATE: October 1, 2023
Background
Fines for Housing Blight. By law, municipalities may (1) establish
fines of between $10 and $100 per day for housing blight, which
constitute a lien on the property if unpaid (CGS §§ 7-148(c)(7)(H)(xv) &
7-148aa), and (2) enact an ordinance imposing a special assessment on
blighted housing to cover blight enforcement and remediation costs
(CGS § 7-148ff).
Related Bills. sHB 6781 (File 208), § 1, reported favorably by the
Housing Committee, contains similar provisions.
HB 6666 (File 183), § 2, reported favorably by the Housing and
Judiciary committees, contains a provision allowing municipalities to
set civil penalties of up to $1,000 for each violation of their rules on
maintaining safe and sanitary housing.
§§ 4 & 5 — PRE-OCCUPANCY WALK-THROUGHS 2023SB-00998-R02-BA.DOCX
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Beginning January 1, 2024, requires landlords to give tenants the opportunity to request
and complete a pre-occupancy “walk-through” of a dwelling unit after or at the time of
entering into a rental agreement; prohibits landlords from keeping any portion of a
tenant’s security deposit or seeking payment for conditions specifically identified during
the walk-through
Beginning January 1, 2024, the bill requires landlords to give tenants
the opportunity to request and complete a pre-occupancy “walk-
through” of a dwelling unit after or at the time of entering into a rental
agreement.
Under the bill, a “walk-through” is a joint, in-person inspection of a
dwelling unit by the landlord and tenant or their designees to note and
list the unit’s existing conditions, defects, or damages using a
Department of Housing (DOH) checklist. The bill requires the DOH
commissioner to prepare this standardized, pre-occupancy walk-
through checklist and make it available on DOH’s website by December
1, 2023. During the walk-through, the landlord and tenant or their
designees must note the unit’s existing conditions, defects, or damages.
Afterwards, they must each sign and receive duplicate copies of the
checklist.
When a tenant vacates the dwelling unit, the bill prohibits the
landlord from keeping any portion of the tenant’s security deposit or
seeking payment for a condition, defect, or damage noted in the
preoccupancy walk-through checklist. In administrative or judicial
proceedings, this checklist is admissible, subject to the rules of evidence.
But it is not conclusive as evidence of the unit’s condition at the
beginning of a tenant’s occupancy.
The bill specifies that these provisions do not apply to tenancies
under rental agreements entered into before January 1, 2024.
EFFECTIVE DATE: October 1, 2023
Background — Related Bill
sHB 6781 (File 208), §§ 2 & 3, reported favorably by the Housing
Committee, contain identical provisions.
§§ 5 & 6 — LIMITS ON RENTAL APPLICATION -RELATED FEES 2023SB-00998-R02-BA.DOCX
Researcher: SM Page 9 6/3/23
Limits rental application-related fees and payments that landlords may require from
prospective tenants; requires landlords to give prospective tenants these reports, or related
information, and a receipt or invoice; prohibits landlords from charging tenants a move-in
or move-out fee
The bill generally prohibits landlords from requiring prospective
tenants to pay any fees, charges, or payments for reviewing, processing,
or accepting a rental application, or make any other payments before or
at the start of tenancy, with certain exceptions. The bill excludes from
this prohibition a(n) (1) security deposit, (2) advance payment for first
month’s rent, (3) deposit for a key or other special equipment, and (4)
fee for a tenant screening report. Under the bill, a “tenant screening
report” is a credit report, criminal background report, employment
history report, rental history report, or any combination of these that a
landlord uses to determine a prospective tenant’s suitability.
Beginning on October 1, 2023, the bill limits the fee a landlord can
charge for a tenant screening report to $50 plus an inflation adjustment
that reflects any increase in the consumer price index for urban
consumers. The housing commissioner must annually determine this
inflation adjustment.
Under the bill, landlords that charge a prospective tenant a fee for a
tenant screening report must give him or her (1) (a) a copy of the
screening report or (b) information that would allow the tenant to
request it from the service provider that produced the report, if the
landlord is prohibited from doing so, and (2) a receipt or invoice from
the entity that conducted the report.
Lastly, the bill prohibits landlords from charging tenants a move-in
or move-out fee.
EFFECTIVE DATE: October 1, 2023
Background — Related Bills
sHB 6781 (File 208), §§ 3 & 4, reported favorably by the Housing
Committee, contain similar provisions. sSB 4 (File 203), § 3, reported
favorably by both the Housing and Appropriations committees, also
contains similar provisions. 2023SB-00998-R02-BA.DOCX
Researcher: SM Page 10 6/3/23
§§ 7 & 8 — LIMITS ON LATE CHARGES FOR OV ERDUE RENT
Limits late charges that landlords may impose for overdue rent; prohibits rental
agreements from requiring any late fees that exceed these amounts; prohibits landlords
from assessing more than one late charge on an overdue rent payment
By law, if a rental agreement requires tenants to pay a late charge for
overdue rent, it must give them a nine-day grace period (or four days
for week-to-week tenancies), before imposing the charge. The bill limits
the late charges landlords may impose after this grace period has
passed. Under the bill, if a rental agreement contains a valid written
agreement to pay late charges after the grace period, the charges may
not exceed the lesser of (1) $5 per day, up to a $50 maximum, or (2) 5%
of the overdue rent or 5% of the tenant’s share of the rent in the case of
rental agreements that are partially paid by a government or charitable
entity.
The bill prohibits rental agreements from requiring tenants to agree
to late charges that exceed these limits. Additionally, the bill prohibits
landlords from assessing more than one late charge on an overdue rent
payment, regardless of the length of time for which the rent is overdue.
EFFECTIVE DATE: October 1, 2023
Background — Related Bills
sSB 4 (File 203), §§ 4 & 5, reported favorably by both the Housing and
Appropriations committees, contain similar provisions.
§ 9 — SECURITY DEPOSIT GUARANTEE PROGRAM
Makes various changes to DOH’s Security Deposit Guarantee Program, including,
among other things, expanding program eligibility and reducing the frequency with which
a person may apply for assistance
The bill makes several changes to the security deposit guarantee
program. It generally extends eligibility for the program to any person
with a documented financial need whose income is less than 60% of the
state median income. It also reduces, from every 18 months to every 24
months, the frequency with which a person may apply for assistance
unless the DOH commissioner grants an exception. The bill allows the
commissioner to deny eligibility to an applicant after paying one or
more claims by a landlord, rather than after paying two claims as 2023SB-00998-R02-BA.DOCX
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current law allows.
Under existing law, DOH’s security deposit guarantee program may
provide a deposit guarantee that a person may use in place of a security
deposit. The commissioner, or a local or regional nonprofit or social
services organization with whom the department contracts, may
execute a written agreement to pay the landlord for damages suffered
due to a tenant’s failure to comply with his or her obligations. The
payment is capped at the amount of the deposit.
EFFECTIVE DATE: July 1, 2023
Eligibility
The bill makes the security deposit guarantee program available to
(1) any person or family (a) whose income is less than 60% of the state
median income adjusted for family size, as determined by the U.S.
Department of Housing and Urban Development, and (b) that has a
documented financial need, as determined by the housing
commissioner; (2) a person who has been served a writ, summons, and
complaint related to eviction; or (3) a person who has a certificate or
voucher from a rental assistance program or federal voucher program.
The bill replaces current law’s eligibility requirements, which deem a
person eligible for the program if he or she (1) meets one of the latter
two factors listed above, or lives in an emergency shelter or other
emergency housing for specified reasons (e.g., a catastrophic event), and
(2) receives TFA (Temporary Family Assistance), SAGA (state-
administered general assistance), or aid under the state supplement
program, or has a documented showing of financial need.
Existing law requires the DOH commissioner to prioritize eligible
veterans when providing guarantees. Current law authorizes the
commissioner to set more priorities based on eligibility criteria other
than receipt of cash assistance or documented financial need (e.g.,
shelter or emergency housing status). The bill instead authorizes her to
set more priorities based on any of the bill’s eligibility criteria.
Application Frequency 2023SB-00998-R02-BA.DOCX
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The bill increases, from 18 months to 24 months, the length of time
that a person must wait before re-applying for a security guarantee
unless the commissioner authorizes an exception. As under existing
law, if the commissioner authorizes an exception, the amount of the
subsequent guarantee must be reduced by the amount of any (1)
previous grant that has not been returned to DOH and (2) payment to a
landlord for damages.
Claims
The bill reduces, from 45 days to 20 days after the termination of a
tenancy, the amount of time that a landlord has to submit a claim for
damages.
Under current law, if the DOH commissioner pays a claim to a
landlord for a person whose income exceeds 150% of the federal poverty
level, the person must contribute 5% of one month’s rent to paying the
security deposit. The bill increases this to 50% of one month’s rent.
Contracts With Other Organizations
The bill reinstates the DOH commissioner’s authority to pay a
security deposit grant to a person receiving the grant through any local
or regional nonprofit corporation or social service organization under
an existing contract with DOH. Under current law, this authority
expired in 2000.
Regulations
Existing law requires the DOH commissioner to adopt regulations to
implement the program, but allows her to implement the program
before adoption if she has published a notice of intent to adopt
regulations. The bill requires her to post the notice on the eRegulations
System, rather than publish it in the Connecticut Law Journal.
Background — Related Bill
sHB 6708 (File 189), reported favorably by the Housing Committee,
contains similar provisions.
§ 10 — REQUIRED NOTICE OF PROTECTED TENA NT STATUS 2023SB-00998-R02-BA.DOCX
Researcher: SM Page 13 6/3/23
Beginning January 1, 2024, requires landlords to give tenants a written DOH notice
summarizing the rights of protected tenants (i.e., generally certain tenants at least age 62
or with a disability) whenever they rent, or enter or renew an agreement to rent, certain
dwelling units; requires that the notice be available in both English and Spanish, and
eventually additional languages
State law provides more protections against evictions and rent
increases to certain “protected tenants” residing in a (1) building or
complex consisting of five or more separate dwelling units, (2) mobile
manufactured home park (including certain conversion tenants), or (3)
dwelling unit in a common interest community where the landlord
owns five or more units. To qualify for this protection, a tenant must:
1. be at least age 62,
2. have a physical or intellectual disability,
3. permanently reside with a spouse or specified relative that (a) is
at least age 62 or (b) has a disability meeting certain
requirements, or
4. be a conversion tenant in a mobile home park meeting certain
requirements.
Beginning January 1, 2024, the bill requires landlords or their agents
to give a written DOH notice summarizing these protections to any
tenant that rents, or enters or renews an agreement to rent, one of the
units described above.
Existing law, unchanged by the bill, prohibits protected tenants from
being evicted solely for their lease expiring (i.e., lapse of time). It also
requires that their rent only be increased by an amount that is fair and
equitable and allows those aggrieved by a rent increase, and residing in
a municipality without a fair rent commission, to bring action to contest
the increase in Superior Court.
Under the bill, the DOH commissioner must create the one-page,
plain-language summary of protected tenants’ rights and post it on the
department’s website by December 1, 2023. The bill requires that the
notice be available in both English and Spanish. Additionally, it requires 2023SB-00998-R02-BA.DOCX
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the commissioner, by December 1, 2028, to (1) translate the notice into
the five most commonly spoken languages in the state, as she
determines, and (2) post the translations on DOH’s website.
EFFECTIVE DATE: October 1, 2023
Background — Related Bill
sHB 6781 (File 208), § 5, reported favorably by the Housing
Committee, contains similar provisions.
§§ 11, 12 & 15 — HOUSING AUTHORITY TRAINING, INFORMATION,
AND AUDIT REQUIREMEN TS
Requires housing authorities (1) receiving state assistance to annually give tenants
specified information and (2) subject to the State Single Audit Act, to include the audit
results in their annual reports; also requires all current and new housing authority
commissioners to participate in a training
The bill requires (1) existing housing authority commissioners, by
January 1, 2024, to participate in a training provided by an industry-
recognized training provider and (2) new commissioners to do so upon
appointment (§ 11).
It also requires housing authorities receiving state assistance and the
Connecticut Housing Finance Authority (CHFA) (if it or its subsidiaries
are successor owners to housing previously owned by a local authority)
to annually give tenants, beginning when they sign their initial lease: (1)
contact information for the authority’s management, local health
department, and Commission on Human Rights and Opportunities
(CHRO) and (2) a copy of the judicial branch’s guidance on tenants’ and
landlords’ rights and responsibilities (§ 12).
Under the bill, housing authorities subject to the state’s Single Audit
Act (i.e., those with annual revenue of more than $1 million and that
spend more than $300,000 in a fiscal year) must include the audit results
in the annual reports they must submit by law to the housing
commissioner and their respective municipality’s chief executive officer
(§ 15). (Existing law, unchanged by the bill, also requires the housing
commissioner to ensure local housing authorities are audited biennially,
with the authority covering the audit’s costs, if the commissioner
requires it (CGS § 7-392(d)).) 2023SB-00998-R02-BA.DOCX
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EFFECTIVE DATE: October 1, 2023
Background — Related Bill
sHB 6781 (File 208), §§ 6-8, reported favorably by the Housing
Committee, contains similar provisions.
§§ 13 & 14 — STANDARDIZED RENTAL AGREEME NT AND
HOUSING CODE VIOLATI ON FORMS IN ENGLISH AND
ADDITIONAL LANGUAGES
Requires (1) DOH to develop standardized rental agreement forms that landlords and
tenants may use, (2) municipal code enforcement agencies to create housing code violation
complaint forms for tenants, (3) that both forms be made available in English and Spanish,
and (4) DOH to make the rental agreement forms available in additional languages by
December 1, 2028
The bill requires the DOH commissioner, within existing
appropriations, to develop standardized rental agreement forms that
landlords and tenants may use. The forms must (1) contain the essential
terms of a rental agreement; (2) be easily readable; and (3) include plain-
language explanations of all the terms and conditions, including rent,
fees, deposits, and other charges. DOH must post the forms on its
website by July 1, 2024, and make them available in both English and
Spanish. The bill requires the department to revise the forms at the
commissioner’s discretion.
Additionally, the bill requires the department, by December 1, 2028,
to (1) translate these forms into the five most commonly spoken
languages in the state, as determined by the housing commissioner, and
(2) post the translations on its website.
The bill also requires agencies empowered to enforce municipal
health and safety standards or the local housing code (i.e., the board of
health or other designated authorities) to create and make available
housing code violation complaint forms, in both English and Spanish,
for tenants to use.
EFFECTIVE DATE: October 1, 2023
§ 16 — MUNICIPAL LANDLORD IDENTIFICATION REQUIREMENTS
Modifies current municipal landlord identification requirements, including generally
extending the requirements for landlords participating in the federal Housing Choice 2023SB-00998-R02-BA.DOCX
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Voucher program to nonresident rental property owners; exempts information provided
under these requirements from FOIA
Under existing law, generally unchanged by the bill, municipalities
can require nonresident owners and landlords renting to Housing
Choice Voucher (HCV) program participants (also known as project-
based housing providers or PBHPs) to give (1) their current residential
addresses or (2) the current residential address of the agent in charge of
the building if the owners are a business entity that owns rental property
(i.e., a corporation, partnership, trust, or other legally recognized entity).
Current law includes an additional “controlling participant”
requirement for PBHPs. It requires them to provide identifying
information and the current residential address of each controlling
participant associated with the property, meaning an individual or
entity that exercises day-to-day financial or operational control. If a
controlling participant is a business entity, the PBHP must identify and
provide the residential address for a natural person who exercises
control over that entity.
The bill makes changes to this “controlling participant” requirement.
It only requires a PBHP to disclose the identifying information and
current residential addresses of its controlling participants if the PBHP
is a business entity. It also limits the definition of controlling participant
to individuals, rather than both individuals and entities. The bill extends
this requirement to nonresident owners in addition to PBHPs.
Lastly, beginning on October 1, 2023, the bill makes the reports given
to a tax assessor under these identification requirements, confidential
and exempt from disclosure under the state’s Freedom of Information
Act (FOIA).
EFFECTIVE DATE: October 1, 2023
Background
HCV Program and PBHPs. The HCV program is the federal
government’s main program for helping very low-income families
afford private market housing (42 U.S.C. § 1437f(o)). Eligible households
that are issued a housing voucher must find housing that meets the 2023SB-00998-R02-BA.DOCX
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program’s requirements. The U.S. Department of Housing and Urban
Development (HUD) funds the program and it is administered locally
by Public Housing Agencies and statewide by DOH. State law defines
PBHPs as property owners who contract with HUD to provide housing
to tenants under the HCV program.
Related Bills
sSB 4 (File 203), § 6, sHB 6781 (File 208), § 9, and SB 996 (File 174), § 3,
contain provisions on municipal landlord identification requirements.
The Housing Committee reported each favorably; sSB4 was also
reported favorably by the Appropriations Committee.
§ 17 — OPM OFFICE OF RESPONSIBLE GROWTH
Statutorily establishes the Office of Responsible Growth within OPM and assigns it
various responsibilities
The bill statutorily establishes the Office of Responsible Growth
within the Office of Policy and Management’s (OPM)
Intergovernmental Policy Division, and makes it the successor agency
to the office of the same name established by executive order in 2006
(see Background). It assigns the office the following responsibilities, for
which OPM is generally responsible under existing law:
1. collecting, analyzing, and disseminating information to help the
ongoing development of responsible growth goals for the
governor, Continuing Committee on State Planning and
Development, state and regional agencies, local governments,
and the public;
2. coordinating the development of state agency policy, planning,
and programming to improve outcomes and efficiently use state
resources and expertise through developing and implementing
the state plan of conservation and development;
3. administering OPM’s responsibilities under the Connecticut
Environmental Policy Act;
4. facilitating coordination (a) between agencies, related to land and
water resources and infrastructure improvements, among other 2023SB-00998-R02-BA.DOCX
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activities, and (b) between the state, planning regions, and
municipalities, on development and conservation, by serving as
a state liaison to regional councils of government;
5. providing staff support to boards, committees, and other groups,
as the OPM secretary deems appropriate, such as the State Water
Planning Council and Advisory Commission on
Intergovernmental Relations;
6. administering grant programs, as the OPM secretary deems
appropriate, such as incentive grant programs for (a) responsible
growth and transit-oriented development and (b) regional
performance; and
7. performing other duties, as the OPM secretary deems
appropriate, to address current and emerging development and
conservation issues.
The bill requires the OPM secretary to designate a member of his staff
to serve as the State Responsible Growth Coordinator and oversee the
office.
EFFECTIVE DATE: October 1, 2023
Background
Office of Responsible Growth. Executive Order No. 15, signed by
Governor Rell in October 2006, created the Office of Responsible Growth
within OPM’s Intergovernmental Policy Division and assigned it
various responsibilities. The order additionally required (1) the OPM
secretary to designate a staff member as the State Responsible Growth
Coordinator and (2) two additional planning staff members to be added
to the division.
Related Bills. sHB 6781 (File 208), § 23, reported favorably by the
Housing Committee, and sHB 6890 (File 594), § 2, reported favorably by
the Planning and Development Committee, contain similar provisions.
§ 18 — FAIR SHARE HOUSING ALLOCATION METHODOLOGY 2023SB-00998-R02-BA.DOCX
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Requires OPM, by December 1, 2024, to establish a methodology meeting certain
requirements for each municipality’s fair share allocation by (1) assessing the affordable
housing need in each of the state’s planning regions and (2) fairly allocating a portion of
this need to each of the region’s municipalities; requires each chamber of the General
Assembly to approve the methodology
The bill requires the OPM secretary, in consultation with the DOH
commissioner and economic and community development (DECD)
commissioner, to establish a methodology for each municipality’s fair
share allocation by:
1. determining the need for affordable housing units in each of the
state’s planning regions, and
2. fairly allocating this need to each region’s municipalities
considering the duty of the state and municipalities to
affirmatively further fair housing under the state Zoning
Enabling Act and the federal Fair Housing Act (FHA).
The OPM secretary must establish the methodology by December 1,
2024, and in doing so, may consult with experts, advocates, statewide
organizations representing municipalities, and organizations with
expertise in affordable housing, fair housing, and planning and zoning.
EFFECTIVE DATE: July 1, 2023
Fair Share Allocation Methodology
The bill requires the OPM secretary, by December 1, 2024, and in
consultation with the DOH and DECD commissioners, to use the
methodology to determine the minimum need for affordable housing
units for each planning region and a municipal fair share allocation for
each region’s municipalities. The methodology must generally rely on
data HUD’s Comprehensive Housing Affordability Strategy data set, or
a similar source chosen by the OPM secretary.
Under the bill, the secretary must ensure the methodology:
1. considers the duty of the state and municipalities to affirmatively
further fair housing under the state Zoning Enabling Act and the
FHA; 2023SB-00998-R02-BA.DOCX
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2. relies on appropriate metrics of the minimum need for affordable
housing units in a planning region to ensure adequate housing
options, including the number of households whose (a) income
is no more than 30% of the area median income and (b) housing
costs make up at least 50% of the household’s income;
3. relies on appropriate factors for fairly allocating this need among
each municipality, including a municipality’s compliance with
certain statutory planning and zoning requirements related to (a)
promoting housing choice and economic diversity and (b)
encouraging housing development that meets the identified
housing needs and the development of housing opportunities;
4. does not assign (a) a fair share allocation to municipalities in
which the federal poverty rate is at least 20% based on the most
recent decennial census or a similar source or (b) an allocation
exceeding 20% of all occupied dwelling units for any
municipality; and
5. increases a municipality’s fair share allocation if, relative to other
municipalities in its planning region, it has a (a) higher equalized
net grand list (i.e., an estimate of the market value of all taxable
property in a municipality); (b) higher median income; (c) lower
federal poverty rate; and (d) lower population share residing in
multi-family housing (i.e., residential buildings with at least
three dwelling units).
Data related to increasing a fair share allocation must come from the
most recent U.S. decennial census or a similar source, except for the
equalized net grand list data, which must be based on OPM’s
calculations of these figures for educational equalization grants.
The OPM secretary must submit the fair share allocation
methodology developed under the bill to (1) the Housing and Planning
and Development committees and (2) each chamber of the General
Assembly for approval.
Affordable Housing and Planning Regions 2023SB-00998-R02-BA.DOCX
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Under the bill, (1) an “affordable housing unit” is a unit deed-
restricted to preserve affordability for a low-income household and (2)
a “planning region” generally follows the boundaries of a regional
council of governments (see Background), except that the Metropolitan
and Western planning regions are considered a single entity.
Background
Planning Regions. In practice, the boundaries of the state’s nine
planning regions are the same as those of its regional councils of
government, which serve as the formal governance structures of the
planning regions.
Related Bill. sHB 6633 (File 182), reported favorably by the Housing
Committee, contains similar provisions on establishing a fair share
methodology.
§ 19 — DOH PROGRAM T O INCENTIVIZE LANDLO RD
PARTICIPATION IN TEN ANT-BASED RENTAL ASS ISTANCE
PROGRAMS
Requires the DOH commissioner, within available appropriations and in consultation
with CHFA and housing authority representatives, to establish a program to incentivize
landlord participation in various tenant-based rental assistance programs
The bill requires the DOH commissioner, within available
appropriations and in consultation with CHFA and housing authority
representatives that she selects, to establish a program to encourage and
recruit landlords to accept from prospective tenants HCV vouchers,
RAP certificates, or payments from any other state-administered
programs providing rental payment subsidies. The program can include
advertisements, community outreach events, and communications with
landlords who participate in other state housing programs.
The bill requires the DOH commissioner, starting by October 1, 2024,
to report annually to the Housing Committee on (1) the program’s
status, including its effectiveness, and (2) related recommendations.
EFFECTIVE DATE: October 1, 2023
Background — Related Bill
sHB 6781 (File 208), § 29, reported favorably by the Housing 2023SB-00998-R02-BA.DOCX
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Committee, contains similar provisions.
§§ 20 & 21 — DOH RAP STUDY AND PROGRAM E XPENDITURES
Requires the DOH commissioner to (1) study, within available appropriations, methods to
improve the efficiency of processing applications under RAP and (2) affirmatively seek to
spend all funds appropriated to the program annually
The bill requires the DOH commissioner, within available
appropriations, to conduct a study on methods to improve the efficiency
of processing applications under the department’s Rental Assistance
Program (RAP). The study must include the following components:
1. an analysis of current RAP application processing time, including
inspection timelines;
2. an assessment of the application process, including barriers or
challenges to applicants or landlords;
3. recommendations for improving the efficiency of the application
process, including use of technology and alternative processing
methods; and
4. an estimate of the cost associated with implementing
recommended improvements.
Under the bill, the DOH commissioner must submit a report on the
study’s findings and recommendations to the Housing Committee by
January 1, 2024.
Additionally, the bill requires the commissioner to affirmatively seek
to spend all funds appropriated to the program annually without regard
to population limitation established in prior years.
EFFECTIVE DATE: Upon passage, except the appropriations
provision is effective October 1, 2023.
Background — Related Bill
sHB 6781 (File 208), §§ 30 & 31, reported favorably by the Housing
Committee, contain similar provisions.
§ 22 — HOMELESS AND HOUSING INSECURE VET ERANS 2023SB-00998-R02-BA.DOCX
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Requires the Department of Veterans Affairs, within available appropriations, to convert,
rehabilitate, and renovate vacant, underused, or otherwise available properties for housing
homeless or housing insecure veterans
The bill requires the Department of Veterans Affairs, within available
appropriations, to convert, rehabilitate, and renovate vacant,
underused, or otherwise available properties for housing homeless or
housing insecure veterans. The department must build, improve, or
remediate infrastructure as needed to support the residential use of
these properties.
EFFECTIVE DATE: July 1, 2023
§ 23 — REMOVAL OF CE RTAIN EVICTION RECOR DS FROM THE
JUDICIAL DEPARTMENT WEBSITE
Requires the Judicial Department to remove from its website records or identifying
information about eviction proceedings within specified time periods based on an action’s
disposition; prohibits the department from selling or transferring these removed records
for commercial purposes, such as consumer reporting or tenant screening
The bill requires the Judicial Department to remove from its website
any records or identifying information (“records”) related to a summary
process action (i.e., eviction proceeding) that is withdrawn, dismissed
or nonsuited, or decided in the defendant’s (i.e., tenant’s) favor. It must
do this within 30 days after the action’s disposition.
The bill also prohibits the Judicial Department from including
removed records in any sale or transfer of bulk case records to a person
or entity purchasing them for commercial purposes (e.g., selling the
records, providing consumer reporting- and prospective tenant
screening-related services, or using them for any other financial gain). It
also expressly prohibits these commercial purchasers from disclosing a
removed record. However, the bill exempts from this ban use of the
records for governmental, scholarly, educational, journalistic, or other
noncommercial purposes.
The bill requires the Judicial Department to restore a case to its
website, including any associated records that were previously
removed, if there is any activity in the case. Similarly, the department
must retain records on its website beyond their removal date if there is
an ongoing appeal. Under the bill, restored or retained records remain 2023SB-00998-R02-BA.DOCX
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on the Judicial Department website until the later of (1) 30 days after the
associated case’s disposition or (2) the applicable time period from the
original disposition.
Finally, the bill specifies that its requirements do not prevent the
Judicial Department or a case reporting service from publishing any
formal written judicial opinion.
EFFECTIVE DATE: July 1, 2024, and applicable to any summary
process action disposed of either before or after this date.
Background — Related Bill
sHB 6781 (File 208), § 33, reported favorably by the Housing
Committee, contains similar provisions.
§§ 24 & 25 — REAL ESTATE CONVEYANCE TAX EXEMP TIONS
AND TRANSFERS
Exempts conveyances of property with deed-restricted affordable housing dwelling units
from the state real estate conveyance tax; requires the comptroller to transfer state
conveyance tax revenue in excess of $300 million each fiscal year, annually adjusted for
inflation, to the Housing Trust Fund
Conveyance Tax Exemption (§ 25)
The bill exempts from the real estate conveyance tax any deeds of
property with dwelling units where all of the units are deed-restricted
as affordable housing (i.e., housing where households earning no more
than the host municipality’s area median income, as determined by
HUD, spend 30% or less of their annual income on it). For property in
which only some the units are deed-restricted affordable housing, the
exemption must be proportionately reduced based on the number of
unrestricted units.
Transfer of Conveyance Tax Revenue to Housing Trust Fund (§
24)
Starting in FY 26, the bill requires the comptroller to transfer, from
the General Fund to the Housing Trust Fund, any conveyance tax
revenue the state receives each fiscal year exceeding $300 million. It
requires the threshold amount for this transfer to be adjusted annually
for inflation beginning with FY 27 (i.e., the percentage increase in the
consumer price index for all urban consumers during the preceding 2023SB-00998-R02-BA.DOCX
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calendar year, calculated on a December over December basis using U.S.
Bureau of Labor Statistics data).
EFFECTIVE DATE: July 1, 2023, except the provisions on the transfer
of conveyance tax revenue to the Housing Trust Fund are effective
October 1, 2023.
Background — Related Bill
sHB 6781 (File 208), §§ 34-36, reported favorably by the Housing
Committee, contain similar provisions.
§ 26 — HOUSING DISCR IMINATION BASED ON SEXUAL
ORIENTATION
Subjects the rental of certain owner-occupied dwelling units to a state law that prohibits
housing discrimination specifically due to a person’s sexual orientation or civil union
status
The bill subjects the rental of certain owner-occupied dwelling units
to a state law that prohibits housing discrimination specifically due to a
person’s sexual orientation or civil union status. Current law exempts
from these antidiscrimination provisions the rental of (1) rooms in a
dwelling the owner lives in or (2) units in a dwelling containing up to
four units, one of which the owner occupies (i.e., “owner-occupied
units”). The bill eliminates this exemption, and in doing so subjects such
an owner who violates the state’s anti-housing discrimination law to a
class D misdemeanor, punishable by up to 30 days in prison, a fine of
up to $250, or both.
EFFECTIVE DATE: October 1, 2023
Housing Discrimination
State law prohibits housing discrimination based on a person’s sexual
orientation or civil union status and establishes a list of specific actions
considered discriminatory practices. (A related law, the Discriminatory
Housing Practices Act (DHPA), provides similar protection against
housing discrimination based on other protected classes, such as race,
marital status, or gender expression or identity.)
By eliminating current law’s exemption from these provisions, the 2023SB-00998-R02-BA.DOCX
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bill makes it a discriminatory practice for an owner of an owner-
occupied unit to do any of the following based on someone’s sexual
orientation or civil union status:
1. refuse to negotiate, sell, or rent after a legitimate offer;
2. discriminate in terms, conditions, or privileges of a sale, rental,
or provision of services or facilities;
3. deny access to real estate multiple listing services;
4. place housing ads indicating a discriminatory preference; or
5. represent that the dwelling is not available for inspection, sale, or
rental when it is in fact available.
CHRO Investigations
Under existing law, unchanged by the bill, individuals who believe
they have been discriminated against in violation of the DHPA, or the
similar protections against housing discrimination due to sexual
orientation or civil union status, may file a complaint with the
Commission on Human Rights and Opportunities (CHRO) within 180
days after the alleged incident. When CHRO finds reasonable cause that
discrimination occurred, it negotiates a settlement agreement between
the parties. If an agreement cannot be reached, it conducts an
administrative hearing (CGS § 46a-82 et seq.).
Background — Related Bill
HB 6666 (File 183), § 3, reported favorably by both the Housing and
Judiciary committees, contains identical provisions.
§ 27 — SEWER SYSTEM REGULATORY OVERSIGHT
Transfers from DEEP to DPH regulatory authority over certain small community
sewerage systems and household and small commercial subsurface sewerage disposal
systems, and requires the agencies to adopt regulations on them
The bill transfers regulatory authority from the Department of
Energy and Environmental Protection (DEEP) to the Department of
Public Health (DPH) over: 2023SB-00998-R02-BA.DOCX
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1. small community sewerage systems with daily capacities of up
to 10,000 gallons (community sewerage systems have one
subsurface sewage disposal system serving at least two
residential buildings) and
2. household and small commercial subsurface sewage disposal
systems with daily capacities up to 10,000 gallons (current law
gives DPH authority over those with capacities up to 7,500
gallons).
The bill also requires (1) DEEP to amend its regulations, by July 1,
2025, to establish and define categories of discharges that constitute
small community sewerage systems (as well as household and small
commercial subsurface sewage disposal systems, which existing law
already requires) and (2) DPH to establish minimum requirements for
these systems, as well as procedures for local health directors or
sanitarians to issue permits or other approvals.
It applies the DEEP regulations in effect on July 1, 2025 (i.e., the newly
adopted regulations), to those systems whose oversight was transferred
to DPH under the bill (e.g., larger household and small commercial
subsurface sewage disposal systems and certain small community
sewerage systems). Under existing law, unchanged by the bill, DEEP’s
regulations in effect on July 1, 2017, apply to household and small
commercial subsurface sewer disposal systems with capacities of 7,500
gallons or less.
EFFECTIVE DATE: Upon passage
Background — Related Bill
sSB 1001 (File 699), reported favorably by the Planning and
Development Committee contains similar provisions.
§§ 28-35 — WORKFORCE HOUSING DEVELOPMENT S
Establishes various state and local financial incentives for individuals and businesses
investing in, and developing rental units set aside for, designated workforce populations
under these programs
The bill establishes various state and local financial incentives for 2023SB-00998-R02-BA.DOCX
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individuals and businesses investing in and developing rental units set
aside for designated workforce populations under these programs.
Specifically, the bill does the following:
1. establishes a new tax credit against the personal income and
corporation business taxes, administered by DOH, for
individuals or entities making cash contributions to eligible
developers constructing or rehabilitating eligible “workforce
housing opportunity development projects” in federally
designated opportunity zones (see Background) (§ 28);
2. expressly allows businesses making cash contributions to
nonprofits developing eligible “workforce housing development
projects,” including those in an opportunity zone, to qualify for
tax credits under CHFA’s Housing Tax Credit Contribution
(HTCC) program (§ 30);
3. requires municipal tax assessors to assess workforce housing
opportunity development projects using the capitalization of net
income method based on actual rent received for property tax
assessment purposes (§ 29);
4. exempts both of these categories of workforce housing projects
from building permit application fees (§ 31);
5. allows municipalities to provide up to a seven-year, 70%
property tax exemption for workforce housing development
projects, offset by a 70% state grant in lieu of taxes (§§ 32 & 33);
6. requires CHFA to develop and administer a mortgage assistance
program for developers of both categories of these projects (§ 34);
and
7. requires DOH to conduct a workforce housing study and report
to the Housing Committee (§ 35).
EFFECTIVE DATE: June 1, 2024, except for the DOH workforce
housing study provision, which is effective upon passage; the property
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to assessment years beginning on or after June 1, 2024.
Workforce Housing Opportunity Development Tax Credit (§ 28)
Administration. The bill requires DOH to administer a new
program providing tax credit vouchers to individuals or entities making
cash contributions to eligible developers constructing or rehabilitating
eligible housing projects in opportunity zones. The department must
begin accepting applications from eligible developers by January 1,
2025. Under the bill, the DOH commissioner must determine the
program’s additional eligibility criteria, certification conditions, and
application guidelines. The bill requires the commissioner to adopt
regulations to implement the program, including conditions for
certifying developers.
Eligible Projects. Under the bill, an eligible workforce housing
opportunity development project is a project to build or substantially
rehabilitate rental housing that is (1) located in an opportunity zone in
the state and (2) partially designated for certain targeted residents (see
“Rental Requirements”). Additionally, the bill requires that these
projects, to the extent feasible, incorporate renewable energy and be
transit-oriented.
In the case of rehabilitation projects, the bill requires that (1) a
building’s repairs, replacements, or improvements exceed 25% of the
building’s value when rehabilitation is complete or (2) the project
replace two or more major components of the building (i.e., roof
structures, wall or floor structures, plumbing systems, heating and air
conditioning systems, electrical systems, ceilings, or foundations).
Eligible Developers. The bill authorizes developers to apply to
DOH, as the commissioner prescribes, to be certified to receive credit-
eligible cash investments under the program. Under the bill, the
following entities may qualify as eligible developers:
1. nonprofits and business corporations incorporated in
Connecticut and other business entities (i.e., partnerships,
limited partnerships, limited liability partnerships, joint 2023SB-00998-R02-BA.DOCX
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ventures, trusts, limited liability companies (LLCs), or
associations) that (a) construct, rehabilitate, own, or operate
housing and (b) are either certified by DOH under the program
or whose articles of incorporation or organizational documents,
as applicable, have been approved by DOH under its regulations
for the moderate rental housing or moderate cost program;
2. municipal housing authorities (and the Connecticut Housing
Authority, although it is no longer active); and
3. municipal developers.
Under the bill, a “municipal developer” is the legislative body of a
municipality that has not established a housing authority; it may be the
municipality’s board of selectmen if the town meeting or representative
town meeting authorized the board to act as a developer.
Rental Requirements. The bill requires that completed workforce
housing opportunity development projects be rented as follows:
1. 40% of the units at market rate (i.e., the rate the property would
most probably command on the open market based on current
comparable rentals in the opportunity zone);
2. 50% of the units to members of a designated workforce
population with an income of up to 60% of the area median
income (as described below); and
3. 10% of the units to very low-income households (i.e., those whose
income is 30% or less of the area median income) that also receive
rental assistance through certain state programs or HUD’s
federal section 8 program.
Under the bill, the program must establish a method for selecting
tenants who meet the income criteria that does not discriminate on the
basis of race, creed, color, national origin, ancestry, sex, gender identity
or expression, age, or physical or intellectual disability.
Designation of Workforce Population. The bill requires that 2023SB-00998-R02-BA.DOCX
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eligible developers receive municipal approval for proposed workforce
housing opportunity development projects from zoning commissions
and other applicable municipal agencies. No later than 30 days after a
municipality approves a project, its legislative body (or board of
selectmen if its legislative body is a town meeting) may vote to designate
the workforce population the project will serve. The bill allows
developers to make this designation if municipalities fail to do so within
the given time limit. Under the bill, the designated workforce
population may include volunteer firefighters, teachers, police officers,
emergency medical personnel, and any other professions working in the
town where the project is located.
Timeframe for Completion. The bill requires eligible developers to
(1) schedule the workforce housing opportunity development projects
for completion within three years of DOH’s project approval and (2)
submit quarterly progress reports and a final report to the DOH
commissioner. If a project is not completed within the three-year
timeframe, or at any time if the DOH commissioner determines that it is
unlikely to be completed, the bill allows the commissioner to ask the
attorney general to reclaim any remaining contributions made by
individuals and entities to the developer and reallocate the funds to
another eligible project.
Tax Credits for Qualifying Contributions. The bill requires the
DOH commissioner to administer the tax credit vouchers, similar to
CHFA’s existing HTCC program, for individuals or entities that make a
cash contribution of at least $250 to an eligible developer for the eligible
projects described above. The vouchers may be claimed against state
corporation business and personal income taxes, except for the
withholding tax, for taxable income years beginning in 2025
(presumably, for tax years or income years beginning in 2025). The
Department of Revenue Services must grant the credits in the amount
specified by DOH in the tax credit vouchers.
The bill caps the total amount of credits allowed per fiscal year at $5
million. Taxpayers may claim the credits in the taxable income year in
which they made the cash contribution and may carry unused credits 2023SB-00998-R02-BA.DOCX
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forward or back for five years. In the case of S corporations or entities
treated as a partnership for federal tax purposes, the entity’s
shareholders or partners may claim the credits. If the entity is a single-
member LLC that is disregarded as an entity separate from its owner,
only the owner may claim the credit.
CHFA HTCC Program (§ 30)
The bill expressly makes investments in “workforce housing
development projects” eligible for HTCC tax credits. Under this
program, CHFA administers tax credit vouchers for businesses that
make cash contributions of at least $250 to nonprofits that develop,
sponsor, or manage housing programs benefiting low- and moderate-
income households (e.g., affordable housing developments). The credits
apply against various business taxes, including the insurance
premiums, corporation business, and utility companies taxes.
Under the bill, “workforce housing development projects” are
generally similar to the workforce housing opportunity projects
described above, except that they are not limited to opportunity zones
and are subject to different set-aside requirements. (It is unclear whether
projects that meet the eligibility criteria for both programs would
qualify for both credits for the same cash contributions.) Starting with
tax or income years beginning on or after January 1, 2024, workforce
housing development projects must be scheduled for completion within
three years after approval.
Specifically, workforce housing development projects are to
construct or substantially rehabilitate rental housing where:
1. 50% of the units are market rate units (i.e., the rate the unit would
probably command on the open market based on comparable
units in the same area);
2. 40% are rented to the workforce population designated by the
developer in consultation with the host municipality; and
3. 10% are affordable housing (i.e., when households earning no
more than the host municipality’s area median income, as 2023SB-00998-R02-BA.DOCX
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determined by HUD, spend 30% or less of their annual income
on it).
Under the bill, “substantial rehabilitation” has the same definition as
described above for workforce housing opportunity development
projects. An eligible “workforce housing opportunity development”
project is also considered an eligible “workforce housing development”
project.
The law, unchanged by the bill, caps the total amount of tax credits
allowed to businesses under the program at $10 million per fiscal year,
and $1 million of these credits must be set aside each year for workforce
housing as defined in CHFA’s written procedures (i.e., affordable
housing for low- and moderate-income wage or salaried workers in the
municipalities where they work). The bill also makes various
conforming changes to the HTCC program.
Property Tax Assessment for Workforce Housing Opportunity
Development Projects (§ 29)
The bill requires assessors to determine the value of workforce
housing opportunity development projects for property tax purposes by
using the capitalization of net income method based on actual rent
received. This means assessors must consider net rental income, rather
than market rent for similar property, when determining the project’s
gross potential income. Under the capitalization of net income method,
all else being equal, a property with a lower gross potential income will
also have a lower valuation.
Under current law, assessors must consider three methods when
assessing the fair market value of rental properties (with certain
exceptions):
1. replacement cost less depreciation, plus the land’s market value;
2. capitalization of net income based on market rent for similar
property; and
3. comparable sales. 2023SB-00998-R02-BA.DOCX
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For property tax assessments, the bill treats workforce housing
opportunity development projects the same as properties used solely for
housing low- or moderate-income individuals and families located in
municipalities that have chosen to abate property taxes on these
properties (CGS §§ 8-215 & 8-216a).
Building Permit Fee Exemption (§ 31)
The bill exempts both categories of workforce housing development
projects (i.e., workforce housing development and workforce housing
opportunity development projects) from all building permit application
fees. In doing so, it supersedes any municipal charters, home rule
ordinances, and special acts.
Local Option Property Tax Exemption and State Reimbursement
(§§ 32 & 33)
The bill allows a municipality’s legislative body (or board of
selectmen if the legislative body is a town meeting) to provide up to a
seven-year, 70% property tax exemption to the workforce housing
development projects eligible for the HTCC credit. Under the bill, the
property tax exemption may begin in the first full assessment year after
the project’s construction or rehabilitation is complete.
Additionally, the bill requires the OPM secretary, beginning in FY 26,
to pay a state grant in lieu of taxes to municipalities that (1) provide this
local option exemption and (2) submit an annual grant application to
OPM, as the secretary prescribes. OPM must determine the amount due
to these municipalities annually by January 1.
Under the bill, the grant in lieu of taxes equals 70% of the property
taxes that would have been paid for the assessment year two years
before the fiscal year in which the grant is paid (excluding exemptions
for certain housing authority properties). The grants are payable for a
maximum of seven assessment years and may be reduced
proportionately if the total of all grants in a fiscal year exceeds state
appropriations for the grants.
CHFA Mortgage Assistance Program (§ 34) 2023SB-00998-R02-BA.DOCX
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The bill requires CHFA to (1) develop and administer a mortgage
assistance program for developers of both categories of workforce
housing projects under the bill (i.e., workforce housing development
and workforce housing opportunity development) and (2) use any
appropriate housing subsidies in providing this mortgage assistance.
DOH Workforce Housing Study (§ 35)
The bill requires DOH to conduct a study, within available
appropriations, on ways to (1) increase housing options for apprentices
and newly hired employees and (2) enable this population to live in the
municipalities where they work. The DOH commissioner must submit
a report to the Housing Committee, including recommendations and
legislation necessary for implementation, by January 1, 2024.
Background
Opportunity Zones. The federal Opportunity Zone program, created
as part of the 2017 federal Tax Cuts and Jobs Act (P.L. 115-97), is
designed to spur economic development and job creation in distressed
communities by providing federal tax benefits for private investments
in the zones. The program’s tax benefits are available to investors that
reinvest gains earned on prior investments in a qualified opportunity
zone fund that invests in zone businesses. Investors may receive
additional tax benefits if they hold their investments in the fund for at
least five, seven, or 10 years.
Connecticut has 72 opportunity zones in 27 municipalities that were
approved by the U.S. Treasury Department in 2018.
Related Bill. sSB 4 (File 203), §§ 9-16, reported favorably by the
Housing and Appropriations committees, contain similar provisions.
§ 36 — AFFORDABLE HO USING ROUNDTABLE GRO UP
Establishes the majority leaders’ roundtable group on affordable housing, consisting of 24
members, to study various topics related to promoting and developing affordable housing
in the state
The bill establishes the majority leaders’ roundtable group on
affordable housing and requires it to study the following topics: 2023SB-00998-R02-BA.DOCX
Researcher: SM Page 36 6/3/23
1. existing affordable housing policies, programs, and initiatives in
the state;
1. the possibility of converting state properties into affordable
housing developments;
2. successful models and best practices from other states or regions
to inform potential policy recommendations;
3. the possibility of converting commercial properties (e.g., hotels,
malls, and office buildings) into residential buildings; and
4. any other topics related to promoting and developing affordable
housing in the state.
Membership, Administration, and Reporting
Under the bill, the 24-member roundtable group includes:
1. the co-chairs and ranking members of the Housing and Planning
and Development committees;
2. the Senate and House majority leaders, and their six appointees
as shown in the table below;
3. the commissioners of the Department of Administrative Services,
DOH, DECD, and the Department of Transportation, or their
designees;
4. the Responsible Growth Coordinator, or the coordinator’s
designee;
5. CHFA’s executive director, or the director’s designee; and
6. one representative each from the Connecticut Conference of
Municipalities and the Connecticut Council of Small Towns.
Table: Affordable Housing Roundtable Group Appointees
House Majority Leader Senate Majority Leader
Public housing expert Regional planning expert 2023SB-00998-R02-BA.DOCX
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House Majority Leader Senate Majority Leader
Representative of a regional council of
governments
Local planning and zoning expert
Representative of a business
advocacy organization or regional
chamber of commerce
Housing development expert
The Senate and House majority leaders serve as the group’s
chairpersons and must schedule and hold its first meeting within 60
days after the bill’s passage. They must (1) make their initial
appointments to the group within 30 days after the bill’s passage and (2)
fill any vacancies.
Beginning by January 1, 2024, the group must annually report its
findings and recommendations to the Housing Committee.
Under the bill, the Housing Committee’s administrative staff serves
as the group’s administrative staff.
EFFECTIVE DATE: Upon passage
§ 37 — HOUSING TRUST FUND PROGRAM ADVISO RY
COMMITTEE
Eliminates the Housing Trust Fund Program Advisory Committee
The bill eliminates the Housing Trust Fund Program Advisory
Committee. The Housing Trust Fund Program (see Background) was
established in 2005 to, among other things, promote the rehabilitation,
preservation, and production of rental and homeownership housing for
low- and moderate-income households.
Current law requires the advisory committee to meet at least semi-
annually and advise the DOH commissioner on (1) the program’s
administration, management, and objectives and (2) developing related
regulations, procedures, and rating criteria. (Current DOH program
regulations include requirements for, among other things, the
program’s project selection process and rating criteria (see Conn.
Agencies Regs., § 8-336q).)
Under current law, the DOH commissioner appoints the committee 2023SB-00998-R02-BA.DOCX
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in consultation with the state treasurer and the OPM secretary. Its
membership must include the following individuals:
1. the chairpersons and ranking members of the Housing and
Planning and Development committees;
2. representatives from specified housing-related sectors and
entities (e.g., the nonprofit and for-profit development
communities, a housing authority, a community development
financial institution, a statewide housing organization, a state
employer or business association, and the Connecticut Housing
Finance Authority); and
3. municipal officials from towns and cities of varying population
size.
EFFECTIVE DATE: October 1, 2023
Background
Housing Trust Fund Program. DOH administers the Housing Trust
Fund Program, which is designed to create affordable housing for low-
and moderate-income households. The department awards funds
through loans and grants to eligible sponsors of affordable housing. It
solicits applications twice per year, within available appropriations.
Related Bill. SB 908 (File 112), reported favorably by the Housing
Committee, contains identical provisions.
§§ 38 & 39 — RETURN OF SECURITY DEPOSITS
Generally shortens the deadline for landlords to return a tenant’s security deposit and
interest on deposits under certain circumstances
The bill generally shortens the deadline for landlords to return a
tenant’s security deposit and interest on deposits under certain
circumstances.
Under current law, after a tenancy terminates, landlords must return
the tenant’s security deposit, or the deposit balance if any, plus accrued
interest, within the greater of (1) 30 days or (2) 15 days after receiving
written notification of the tenant’s forwarding address. The bill reduces 2023SB-00998-R02-BA.DOCX
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this 30-day deadline to 21 days. Under existing law and unchanged by
the bill, any landlord that violates this requirement is liable for twice the
security deposit amount (or, if the landlord fails only to deliver the
accrued interest, the greater of twice the accrued interest or $10).
The bill also makes a similar change to a statutory provision requiring
landlords to pay interest annually on tenants’ security deposits. Under
current law, a landlord must pay their tenant the accrued interest within
30 days after (1) the tenancy is terminated before its anniversary date or
(2) he or she returns all or part of a security deposit before the tenancy’s
anniversary date. The bill reduces this deadline to 21 days.
By law, any landlord who knowingly and willfully fails to pay all or
part of a security deposit when due is subject to a fine of up to $250 for
each offense, or $100 per offense for failing to pay accrued interest (CGS
§ 47a-21(k)).
EFFECTIVE DATE: October 1, 2023
Background — Related Bill
sSB 943 (File 144), reported favorably by the Housing Committee,
contains similar provisions.
§§ 40 & 41 — PUBLISHING PAYMENT STANDARD S FOR TENANT-
BASED RENTAL ASSISTA NCE AND DOH COMMON R ENTAL
APPLICATION FOR HOUS ING AUTHORITIES
Requires (1) any housing authority that administers a tenant-based rental assistance
program to publicly post a payment standard (or similar information) within 30 days after
setting or updating it and (2) the housing commissioner to develop a common rental
application that may be used by housing authorities
The bill requires any housing authority that administers a tenant-
based rental assistance program (see Background) to publicly post a
payment standard (or similar maximum monthly assistance payment)
within 30 days after setting or updating it. Under the bill and federal
HUD regulations, a “payment standard” is the maximum monthly
assistance payment for a family in the voucher program before
deducting the total tenant payment by the family (24 C.F.R. § 982.4).
The bill requires a housing authority to post the payment standard in 2023SB-00998-R02-BA.DOCX
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a prominent and publicly available location on its website or the website
of the municipality in which it is located. The posting must include (1) a
disclaimer that the maximum payment standard may not be applied in
full to the actual rental rate the applicant paid in certain circumstances
and (2) any rules or regulations the authority has adopted on rental
assistance programs.
Additionally, the bill requires the housing commissioner, in
consultation with the state’s housing authorities, to develop a common
rental application that may be used by the housing authorities.
EFFECTIVE DATE: October 1, 2023
BACKGROUND
Tenant-Based Rental Assistance and Payment Standards.
Tenant-based rental assistance is generally rental subsidies to help low-
income households rent privately owned homes that meet certain
guidelines. HUD’s HCV Program (42 U.S.C. § 1437f(o)) and the state’s
Rental Assistance Program (RAP; CGS § 8-345) are two examples of
programs that offer this type of assistance. According to a November
2020 update to the payment standards chapter of HUD’s HCV Program
Guidebook, HUD permits housing authorities to submit payment
standard information to HUD for inclusion in a mobile application that
provides information to voucher-recipient families searching for a unit
based on the GPS location of their mobile device.
Related Bills. sHB 6781 (File 208), § 28, reported favorably by the
Housing Committee, contains provisions requiring the DOH
commissioner, in consultation with CHFA and local housing authority
representatives, to develop and implement a common application for
households seeking benefits under RAP, the HCV Program, or other
state rental assistance programs.
SB 1049 (File 150), reported favorably by the Housing Committee,
contains similar provisions on publishing payment standards.
§ 42 — SCHOOL BUILDING PROJECT REIMBURSE MENT RATE 2023SB-00998-R02-BA.DOCX
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Makes boards of education located in an “inclusive municipality” eligible for a five
percentage point increase to their state grant reimbursement rate for school building
projects
Under the bill, local or regional boards of education located in an
“inclusive municipality,” as determined by the DOH commissioner, are
eligible for a five percentage point increase to their state grant
reimbursement rate for school building projects. To qualify as an
inclusive municipality, a municipality must have:
1. a total population greater than 6,000 (generally based on the more
recent of the U.S. Census Bureau’s (a) newest decennial census or
(b) current population report series available on January 1 of the
fiscal year two years before the fiscal year in which the grant will
be paid);
2. a share of affordable housing units that is less than 10% of its total
housing, as determined by the DOH commissioner;
3. adopted, and currently maintain, zoning regulations that (a)
promote fair housing, as determined by the commissioner; (b)
provide a streamlined approval process for multi-family housing
development of three units or more; (c) permit mixed-use
development; and (d) allow accessory dwelling units; and
4. built new affordable housing units that are (a) deed-restricted to
households whose income are 80% or less of the state median
income and (b) equal to at least 1% of the municipality’s total
housing units in the three years immediately before the
municipality’s application.
EFFECTIVE DATE: October 1, 2023
§ 43 — DOH TEMPORARY HOUSING PILOT PROGR AM
Requires DOH, within available appropriations, to establish a pilot program to provide
temporary housing to individuals experiencing homelessness and veterans who need
respite care
The bill requires DOH, within available appropriations, to establish
a pilot program to provide temporary housing to individuals
experiencing homelessness and veterans who need respite care. Under 2023SB-00998-R02-BA.DOCX
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the bill, the program must (1) be implemented in at least three
municipalities with populations of 75,000 or more and (2) provide at
least 20 housing units for eligible individuals in need of respite care due
to injury or illness. The bill requires the DOH commissioner to establish
program eligibility criteria and allows the department to contract with
nonprofit organizations to administer it.
The bill terminates the pilot program on January 1, 2025, by which
time DOH must report on the pilot program to the Housing Committee.
EFFECTIVE DATE: October 1, 2023
Background — Related Bill
sSB 4 (File 203), § 18, reported favorably by the Housing and
Appropriations committees, contains a similar provision.
COMMITTEE ACTION
Planning and Development Committee
Joint Favorable Substitute
Yea 14 Nay 7 (03/17/2023)
Appropriations Committee
Joint Favorable
Yea 35 Nay 17 (05/01/2023)
Finance, Revenue and Bonding Committee
Joint Favorable
Yea 37 Nay 13 (05/16/2023)