OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
sHB-5475
AN ACT CONCERNING THE DEVELOPMENT OF HOUSING,
CHALLENGES TO CERTAIN DECISIONS OF MUNICIPAL
AGENCIES, AND THE CONVERSION OF VACANT NURSING
HOMES INTO MULTIFAMILY HOUSING.
Primary Analyst: MP 4/9/24
Contributing Analyst(s): LG
Reviewer: JS
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 25 $ FY 26 $
Department of Housing GF - See Below See Below See Below
Note: GF=General Fund
Municipal Impact:
Municipalities Effect FY 25 $ FY 26 $
All Municipalities Potential
Cost
See Below See Below
All Municipalities See Below See Below See Below
Explanation
The bill results in potential costs for municipalities and increases the
likelihood that the Department of Housing (DOH) will incur a cost,
beginning in FY 25.
The bill allows municipalities to adopt an ordinance to exempt certain
developments from inland wetlands agency reviews. There is a
potential cost to municipalities as the bill requires them to hold a public
hearing prior to adopting the ordinance. There is no impact to
municipalities that choose not to adopt this ordinance.
The bill requires municipalities that exercise their zoning powers
under the statutes to allow nursing homes that meet certain criteria to
be converted to multifamily housing as of right. Any impact to 2024HB-05475-R000419-FN.docx Page 2 of 2
municipalities is dependent on the number of facilities and changes to
the value of the facilities that are converted.
1
The bill requires DOH, beginning October 1, 2024, to develop a
detailed plan for creating affordable housing from surplus state
property when appropriate parcels become available for review,
whether or not the agency is interested in utilizing the property itself.
As under current law when the agency is interested in utilizing the
property for that purpose, DOH will incur costs of approximately
$50,000 per parcel for an environmental review and other inspections by
consultants. By removing DOH choice, the bill makes it more likely that
DOH will incur the $50,000 cost when a suitable parcel of surplus state
property is available. However, no parcels have been suitable in at least
the past five years.
2
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to inflation.
1
This may result in a grand list increase or decrease to municipalities. Any grand list
impact is dependent on how a building is valued before and after a conversion.
2
DOH reviews surplus state property to assess its suitability for developing affordable
housing approximately twice a month.