OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
sHB-5337
AN ACT CONCERNING AFFORDABLE HOUSING DEVELOPMENT
PRACTICES.
Primary Analyst: LG 3/18/24
Contributing Analyst(s):
Reviewer: RW
OFA Fiscal Note
State Impact: None
Municipal Impact:
Municipalities Effect FY 25 $ FY 26 $
All Municipalities Potential
Revenue
Gain
See Below See Below
Explanation
The bill (1) requires applicants for certain proposed affordable
housing developments to provide a $100,000 surety bond with their
application, and (2) expands the use of district master plan funds from
tax increment financing districts. This results in a potential revenue gain
for municipalities beginning in FY 25 to the extent that municipalities
take action to collect the surety bond if and when developers withdraw
an application.
The bill may also result in municipalities using funds from district
master plan funds more quickly. This will only impact municipalities
that have established tax increment financing districts.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to the number of surety bonds that are
collected.