Connecticut 2024 Regular Session

Connecticut House Bill HB05337 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2	2
3		-	LCO \\PRDFS1\HCOUSERS\BARRYJN\WS\2024HB-05337-R01-
4		-	HB.docx
5		-	1 of 5
	3	+	LCO No. 2224 1 of 6
6	4
7		-	General Assembly ~~Substitute~~ Bill No. 5337
	5	+	General Assembly Raised Bill No. 5337
8	6		February Session, 2024
	7	+	LCO No. 2224
	8	+
	9	+
	10	+	Referred to Committee on HOUSING
	11	+
	12	+
	13	+	Introduced by:
	14	+	(HSG)
	15	+
9	16
10	17
11	18
12	19		AN ACT CONCERNING AFFORDABLE HOUSING DEVELOPMENT
13	20		PRACTICES.
14	21		Be it enacted by the Senate and House of Representatives in General
15	22		Assembly convened:
16	23
17	24		Section 1. Subsection (a) of section 8-30g of the general statutes is 1
18	25		repealed and the following is substituted in lieu thereof (Effective October 2
19	26		1, 2024): 3
20	27		(a) As used in this section, [and] section 8-30j and section 2 of this act: 4
21	28		(1) "Affordable housing development" means a proposed housing 5
22	29		development which is (A) assisted housing, or (B) a set-aside 6
23	30		development; 7
24	31		(2) "Affordable housing application" means any application made to 8
25	32		a commission in connection with an affordable housing development by 9
26	33		a person who proposes to develop such affordable housing; 10
27	34		(3) "Assisted housing" means housing [which] that is receiving, or 11
28	35		will receive, financial assistance under any governmental program for 12
29		-	the construction or substantial rehabilitation of low and moderate 13
	36	+	the construction or substantial rehabilitation of low and moderate 13 Raised Bill No. 5337
	37	+
	38	+
	39	+
	40	+	LCO No. 2224 2 of 6
	41	+
30	42		income housing, and any housing occupied by persons receiving rental 14
31	43		assistance under chapter 319uu or Section 1437f of Title 42 of the United 15
32	44		States Code; 16
33		-	(4) "Commission" means a zoning commission, planning 17 Substitute Bill No. 5337
34		-
35		-
36		-	LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2024HB-05337-
37		-	R01-HB.docx }
38		-	2 of 5
39		-
40		-	commission, combined planning and zoning commission, zoning board 18
41		-	of appeals or municipal agency exercising zoning or planning authority; 19
	45	+	(4) "Commission" means a zoning commission, planning 17
	46	+	commission, planning and zoning commission, zoning board of appeals 18
	47	+	or municipal agency exercising zoning or planning authority; 19
42	48		(5) "Municipality" means any town, city or borough, whether 20
43	49		consolidated or unconsolidated; 21
44	50		(6) "Set-aside development" means a development in which not less 22
45	51		than thirty per cent of the dwelling units will be conveyed by deeds 23
46	52		containing covenants or restrictions which shall require that, for at least 24
47	53		forty years after the initial occupation of the proposed development, 25
48	54		such dwelling units shall be sold or rented at, or below, prices which 26
49	55		will preserve the units as housing for which persons and families pay 27
50	56		thirty per cent or less of their annual income, where such income is less 28
51	57		than or equal to eighty per cent of the median income. In a set-aside 29
52	58		development, of the dwelling units conveyed by deeds containing 30
53	59		covenants or restrictions, a number of dwelling units equal to not less 31
54	60		than fifteen per cent of all dwelling units in the development shall be 32
55	61		sold or rented to persons and families whose income is less than or equal 33
56	62		to sixty per cent of the median income and the remainder of the dwelling 34
57	63		units conveyed by deeds containing covenants or restrictions shall be 35
58	64		sold or rented to persons and families whose income is less than or equal 36
59	65		to eighty per cent of the median income; 37
60	66		(7) "Median income" means, after adjustments for family size, the 38
61	67		lesser of the state median income or the area median income for the area 39
62	68		in which the municipality containing the affordable housing 40
63	69		development is located, as determined by the United States Department 41
64	70		of Housing and Urban Development; and 42
65	71		(8) "Commissioner" means the Commissioner of Housing. 43
66		-	Sec. 2. (NEW) (Effective October 1, 2024) (a) Each applicant who 44
67		-	submits an affordable housing application to a commission shall 45
68		-	provide a surety bond issued by a licensed insurance company, banking 46
69		-	institution or surety company authorized to do business in this state, in 47
70		-	the amount of one hundred thousand dollars, as surety for the 48 Substitute Bill No. 5337
	72	+	Sec. 2. (NEW) (Effective October 1, 2024) (a) Each applicant who 44 Raised Bill No. 5337
71	73
72	74
73		-	LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2024HB-05337-
74		-	R01-HB.docx }
75		-	3 of 5
76	75
	76	+	LCO No. 2224 3 of 6
	77	+
	78	+	submits an affordable housing application to a commission shall 45
	79	+	provide a surety bond, issued by a licensed insurance company, 46
	80	+	banking institution or surety company authorized to do business in this 47
	81	+	state, in the amount of one hundred thousand dollars, as surety for the 48
77	82		applicant's development of the project as specified in such application. 49
78	83		The bond shall be in favor of the municipality in which such commission 50
79		-	is located and ~~shall have an effective~~ period of one year. 51
	84	+	is located and run for a period of one year. 51
80	85		(b) A municipality may proceed on such bond against the amount of 52
81	86		such bond if the applicant withdraws such applicant's affordable 53
82	87		housing application without good cause, as determined by the 54
83		-	commission. ~~Any~~ proceeds of such bond recovered by the municipality 55
84		-	shall be used by the municipality ~~solely~~ for (1) the development of 56
	88	+	commission. The proceeds of such bond recovered by the municipality 55
	89	+	shall be used solely by the municipality for (1) the development of 56
85	90		affordable housing, as defined in section 8-39a of the general statutes, 57
86	91		(2) capital improvements to the public property of the municipality, or 58
87	92		(3) the acquisition or preservation of land designated as open space. 59
88	93		Sec. 3. Section 7-339hh of the general statutes is repealed and the 60
89	94		following is substituted in lieu thereof (Effective October 1, 2024): 61
90	95		Costs authorized for payment from a district master plan fund, 62
91	96		established pursuant to section 7-339gg are limited to: 63
92	97		(1) Costs of improvements made within the tax increment district, 64
93	98		including, but not limited to, (A) capital costs, including, but not limited 65
94	99		to, (i) the acquisition or construction of land, improvements, 66
95	100		infrastructure, public ways, parks, buildings, structures, railings, street 67
96	101		furniture, signs, landscaping, plantings, benches, trash receptacles, 68
97	102		curbs, sidewalks, turnouts, recreational facilities, structured parking, 69
98	103		transportation improvements, pedestrian improvements and other 70
99	104		related improvements, fixtures and equipment for public use, (ii) the 71
100	105		acquisition or construction of land, improvements, infrastructure, 72
101	106		buildings, structures, including facades and signage, fixtures and 73
102	107		equipment for industrial, commercial, residential, mixed-use or retail 74
103	108		use or transit-oriented development, (iii) the demolition, alteration, 75
104		-	remodeling, repair or reconstruction of existing buildings, structures 76
	109	+	remodeling, repair or reconstruction of existing buildings, structures 76 Raised Bill No. 5337
	110	+
	111	+
	112	+
	113	+	LCO No. 2224 4 of 6
	114	+
105	115		and fixtures; (iv) environmental remediation; (v) site preparation and 77
106	116		finishing work; and (vi) all fees and expenses associated with the capital 78
107	117		cost of such improvements, including, but not limited to, licensing and 79
108		-	permitting expenses and planning, engineering, architectural, testing, 80 Substitute Bill No. 5337
109		-
110		-
111		-	LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2024HB-05337-
112		-	R01-HB.docx }
113		-	4 of 5
114		-
	118	+	permitting expenses and planning, engineering, architectural, testing, 80
115	119		legal and accounting expenses; (B) financing costs, including, but not 81
116	120		limited to, closing costs, issuance costs, reserve funds and capitalized 82
117	121		interest; (C) real property assembly costs; (D) costs of technical and 83
118	122		marketing assistance programs; (E) professional service costs, 84
119	123		including, but not limited to, licensing, architectural, planning, 85
120	124		engineering, development and legal expenses; (F) maintenance and 86
121	125		operation costs; (G) administrative costs, including, but not limited to, 87
122	126		reasonable charges for the time spent by municipal employees, other 88
123	127		agencies or third-party entities in connection with the implementation 89
124	128		of a district master plan; and (H) organizational costs relating to the 90
125	129		planning and the establishment of the tax increment district, including, 91
126	130		but not limited to, the costs of conducting environmental impact and 92
127	131		other studies and the costs of informing the public about the creation of 93
128	132		tax increment districts and the implementation of the district master 94
129	133		plan; 95
130	134		(2) Costs of improvements that are made outside the tax increment 96
131	135		district but are directly related to or are made necessary by the 97
132	136		establishment or operation of the tax increment district, including, but 98
133	137		not limited to, (A) that portion of the costs reasonably related to the 99
134	138		construction, alteration or expansion of any facilities not located within 100
135	139		the tax increment district that are required due to improvements or 101
136	140		activities within the tax increment district, including, but not limited to, 102
137	141		roadways, traffic signalization, easements, sewage treatment plants, 103
138	142		water treatment plants or other environmental protection devices, storm 104
139	143		or sanitary sewer lines, water lines, electrical lines, improvements to fire 105
140	144		stations, and street signs; (B) costs of public safety and public school 106
141	145		improvements made necessary by the establishment of the tax 107
142	146		increment district; and (C) costs of funding to mitigate any adverse 108
143	147		impact of the tax increment district upon the municipality and its 109
144		-	constituents; [and] 110
	148	+	constituents; and 110 Raised Bill No. 5337
	149	+
	150	+
	151	+
	152	+	LCO No. 2224 5 of 6
	153	+
145	154		(3) Costs related to economic development, environmental 111
146	155		improvements or employment training associated with the tax 112
147		-	increment district, including, but not limited to, (A) economic 113 Substitute Bill No. 5337
148		-
149		-
150		-	LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2024HB-05337-
151		-	R01-HB.docx }
152		-	5 of 5
153		-
	156	+	increment district, including, but not limited to, (A) economic 113
154	157		development programs or events related to the tax increment district; 114
155	158		(B) environmental improvement projects developed by the municipality 115
156	159		related to the tax increment district; (C) the establishment of permanent 116
157	160		economic development revolving loan funds, investment funds and 117
158	161		grants; and (D) services and equipment necessary for employment skills 118
159	162		development and training, including scholarships to in -state 119
160	163		educational institutions for jobs created or retained in the tax increment 120
161		-	district~~; and~~ 121
	164	+	district. 121
162	165		(4) Costs of improvements that are made outside the tax increment 122
163	166		district for the renovation or rehabilitation of a housing development 123
164	167		that is a set-aside development, as defined in subsection (a) of section 8-124
165	168		30g, as amended by this act, for which development the deed covenants 125
166	169		or restrictions that preserve such development as a set-aside 126
167		-	development will expire in not ~~more~~ than three years, provided the 127
	170	+	development will expire in not greater than three years, provided the 127
168	171		costs of such improvements are paid pursuant to an agreement between 128
169	172		the municipality and the owner of such development in which the 129
170	173		owner agrees to renew such deed covenants or restrictions for not less 130
171	174		than forty years. 131
172	175		This act shall take effect as follows and shall amend the following
173	176		sections:
174	177
175	178		Section 1 October 1, 2024 8-30g(a)
176	179		Sec. 2 October 1, 2024 New section
177	180		Sec. 3 October 1, 2024 7-339hh
178	181
179		-	Statement of Legislative Commissioners:
180		-	In Section 1(a)(4), "combined" was inserted before "planning and zoning
181		-	commission" for statutory consistency; in Section 2(a) "run for a" was
182		-	replaced with "have an effective" for clarity; and in Section 2(b), "used
183		-	solely by the municipality" was changed to "used by the municipality
184		-	solely" for accuracy.
	182	+	Statement of Purpose:
	183	+	To (1) require a surety bond from any developer who submits an
	184	+	affordable housing application to a zoning commission, and (2) allow a
	185	+	municipality to award funds from a tax increment district master plan
	186	+	fund for improvements to certain affordable housing if pursuant to an
	187	+	agreement with the owner to renew the affordable deed covenants or
	188	+	restrictions concerning such affordable housing. Raised Bill No. 5337
185	189
186		-	HSG Joint Favorable Subst. -LCO
	190	+
	191	+
	192	+	LCO No. 2224 6 of 6
	193	+
	194	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
	195	+	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
	196	+	underlined.]
187	197