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repealed and the following is substituted in lieu thereof (Effective October 2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