OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
sHB-5272
AN ACT CONCERNING THE EXPIRATION OF CERTAIN LAND
USE APPROVALS AND THE NEW HOME CONSTRUCTION
GUARANTY FUND.
As Amended by House "A" (LCO 4410)
House Calendar No.: 284
Primary Analyst: ME 4/30/24
Contributing Analyst(s):
Reviewer: PR
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 25 $ FY 26 $
Consumer Protection, Dept. New Home
Construction
Guaranty Fund -
Various
See Below See Below
Consumer Protection, Dept. Consumer
Protection
Enforcement
Account -
Potential
Revenue Gain
See Below See Below
Note: GF=General Fund
Municipal Impact:
Municipalities Effect FY 25 $ FY 26 $
All Municipalities Potential
Revenue
Gain
See Below See Below
Explanation
The bill makes various changes regarding the expiration of land use
approvals and the New Home Construction Guaranty Fund resulting in
the impact described below.
Sections 1-5: allow municipalities to take enforcement action when
certain zoning regulations are violated regarding incomplete work. This 2024HB-05272-R010638-FN.DOCX Page 2 of 3
results in a potential revenue gain to municipalities beginning in FY 25
to the extent that fines are imposed by zoning enforcement officers.
Sections 6-7 makes various changes to the New Home Construction
Guaranty Fund and the Consumer Protection Enforcement account
resulting in the following impacts.
1. The cap on the New Home Construction Guaranty Fund
1
(NHCGF) is reduced from $750,000 to $650,000 resulting in a
potential revenue loss to the fund to the extent future revenues
exceed the cap.
2. The excess transfer from NHCGF to the Consumer Protection
Enforcement account is increased from $300,000 to $400,000
resulting in a potential revenue gain to the extent excess
funding is transferred.
2
3. The maximum payment per claim from the NHCGF is
increased from $30,000 to $50,000 and consumers are allowed
to make claims against the fund if a judgement is awarded
against a proprietor
3
resulting in a potential cost to the fund
depending on the number and size of future claims.
4. New home construction contractors and proprietors are held
liable for the resulting debt to the fund resulting in a potential
revenue gain to the NHCGF to the extent violations occur and
contractors and proprietors repay the Fund.
House "A" strikes the underlying bill and its associated fiscal impact
resulting in the impact described above.
1
The New Home Construction Guaranty Fund can reimburse consumers who are
unable to collect for losses resulting from work performed by a registered new home
builder. Homeowners may be eligible to receive up to $30,000 from the fund if certain
criteria are met.
2
In FY 23 there were two restitution claims paid from the fund totaling $60,000 and
$101,000 was transferred to the Consumer Protection Enforcement Account.
3
Current law only allows for payments from the fund for judgments against
construction companies. 2024HB-05272-R010638-FN.DOCX Page 3 of 3
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to the number of claims paid by the
fund.