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General Assembly Substitute Bill No. 456
February Session, 2024
AN ACT ESTABLISHING A PILOT PROGRAM FOR THE
DEVELOPMENT AND IMPLEMENTATION OF TEN -YEAR PLANS TO
ERADICATE CONCENTRATED POVERTY IN THE STATE.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. (NEW) (Effective from passage) (a) It is hereby declared that 1
there exists a concentrated poverty crisis in the state that exacts a critical 2
toll on poor and nonpoor residents of communities that house areas of 3
concentrated poverty, which create lifelong and persistent 4
disadvantages across generations by lowering the quality of educational 5
and employment opportunities, limiting health care access and 6
diminishing health outcomes, increasing exposure to crime, reducing 7
available choices for affordable and properly maintained housing and 8
imposing obstacles to wealth-building and economic mobility. It is 9
further declared that the development and implementation of the ten-10
year plans under this section to eradicate concentrated poverty in the 11
state are necessary and for the public benefit, as a matter of legislative 12
determination. 13
(b) There is established an Office of Neighborhood Investment and 14
Community Engagement within the Department of Economic and 15
Community Development. Said office shall have a staff dedicated 16
exclusively to carrying out the provisions of this section, overseeing the 17
implementation of the ten-year plans developed pursuant to this 18 Substitute Bill No. 456
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subsection, monitoring the state's progress in reducing concentrated 19
poverty in the state and serving as the facilitator to coordinate 20
communication between the various parties and disseminate 21
information in a timely and efficient manner. 22
(c) (1) There is established a pilot program to implement the 23
provisions of the ten-year plans developed pursuant to this section for 24
participating concentrated poverty census tracts. Any concentrated 25
poverty census tract or group of tracts (A) that is located in any of the 26
four municipalities with the greatest number of concentrated poverty 27
census tracts, and (B) for which community members have established 28
a community development corporation pursuant to the provisions of 29
section 32-7s of the general statutes, as amended by this act, to assist the 30
municipality in which such census tract or group of tracts is located in 31
carrying out the municipality's responsibilities under this section and 32
the ten-year plan developed for such census tract or group of tracts, shall 33
be eligible to participate in the program. Notwithstanding the 34
provisions of subparagraph (A) of this subdivision, any municipality in 35
which a concentrated poverty census tract or group of tracts is located 36
and for which a community development corporation has been 37
established as described under subparagraph (B) of this subdivision, or 38
any such community development corporation, may request to 39
participate in the program. As used in this section, "concentrated 40
poverty census tract" means a census tract identified as a high poverty-41
low opportunity census tract, as of January 1, 2024, by the Office of 42
Policy and Management pursuant to section 32-7x of the 2024 43
supplement to the general statutes. 44
(2) (A) The Office of Neighborhood Investment and Community 45
Engagement shall develop a plan for each participating concentrated 46
poverty census tract or group of tracts, as applicable, to eradicate, over 47
ten years, the levels of concentrated poverty in the state, evidenced by a 48
reduction, to twenty per cent or lower, in the percentage of households 49
who reside in a concentrated poverty census tract and have incomes 50
below the federal poverty level, as well as sustained improvements in 51
community infrastructure and other underlying conditions that serve to 52 Substitute Bill No. 456
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prolong concentrated poverty and economic inertia in such census 53
tracts. In developing such plan, said office shall consult with the Office 54
of Community Economic Development Assistance established under 55
section 32-7s of the general statutes, as amended by this act, the Office 56
of Workforce Strategy established under section 4-124w of the general 57
statutes, the Office of Early Childhood, the Department of Education, 58
the Office of Policy and Management, the applicable community 59
development corporations serving the participating concentrated 60
poverty census tract or group of tracts and the applicable municipal 61
chief elected officials and any other public or private entity the 62
Commissioner of Economic and Community Development deems 63
relevant or necessary to achieving the purposes of this subsection. 64
(B) Each ten-year plan shall include, but need not be limited to, (i) 65
measurable steps to be taken for its implementation, the target date by 66
which each such step is to be completed and the state or municipal 67
official or state or municipal agency, department or division responsible 68
for each such step, (ii) minimum state-wide averages for educational 69
metrics, including, but not limited to, kindergarten-readiness, grade 70
level reading and mathematics and college-readiness or career-71
readiness, to be used as benchmarks for improvements in each 72
concentrated poverty census tract or group of tracts, as applicable, and 73
(iii) the list of possible projects determined pursuant to subdivision (3) 74
of this subsection. 75
(C) On or before June 1, 2025, the Commissioner of Economic and 76
Community Development shall inform the joint standing committee of 77
the General Assembly having cognizance of matters relating to finance, 78
revenue and bonding, in writing, of the progress made to date in the 79
development of each ten-year plan. Not later than January 1, 2026, said 80
commissioner shall submit all such plans to the General Assembly, in 81
accordance with the provisions of section 11-4a of the general statutes. 82
(3) The Office of Neighborhood Investment and Community 83
Engagement shall, jointly with the chief elected official of each 84
applicable municipality and the community development corporation 85 Substitute Bill No. 456
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established to assist such municipality, develop a list of possible projects 86
that will be included in the ten-year plan for each participating 87
concentrated poverty census tract or group of tracts, as applicable, 88
located in such municipality. Said office, official and corporation shall 89
(A) determine the types of projects they deem to be the most appropriate 90
and effective for such census tract or group of tracts to eradicate 91
concentrated poverty within such census tract or group of tracts, 92
including, but not limited to, capital projects, workforce development 93
programs, housing development, community and neighborhood 94
improvements and education initiatives to assist and support residents 95
in meeting and surpassing the educational metrics described in 96
subparagraph (B)(ii) of subdivision (2) of this subsection, and (B) take 97
into account the criteria for projects eligible for grants under sections 32-98
7s of the general statutes, as amended by this act, 32-7x of the general 99
statutes, as amended by this act, and 32-285a of the general statutes, as 100
amended by this act. 101
(4) Not later than February 1, 2027, and annually thereafter, the 102
Commissioner of Economic and Community Development shall submit 103
a report to the General Assembly, the Office of Workforce Strategy, the 104
Office of Early Childhood and the Office of Policy and Management, in 105
accordance with the provisions of section 11-4a of the general statutes, 106
that summarizes the progress being made by the Office of 107
Neighborhood Investment and Community Engagem ent in 108
implementing each of the ten-year plans, the status of any projects 109
pending or undertaken for each participating concentrated poverty 110
census tract or group of tracts and any other information the 111
commissioner or the Office of Neighborhood Investment and 112
Community Engagement deems relevant or necessary. 113
(5) (A) Commencing with the calendar year 2027, not later than 114
March first of said year and annually thereafter for the next two years, 115
the joint standing committee of the General Assembly having 116
cognizance of matters relating to finance, revenue and bonding shall 117
hold an informational forum for the Commissioner of Economic and 118
Community Development to present the contents of the submitted 119 Substitute Bill No. 456
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report and for other state officials, municipal officials, representatives of 120
community development corporations serving participating 121
concentrated poverty census tracts or groups of tracts and other 122
interested parties to provide oral and written comments on the 123
submitted report and the pilot program. 124
(B) Commencing with the calendar year 2030, said committee shall 125
hold such informational forum every two years. 126
(d) Not later than January 1, 2029, the Commissioner of Economic and 127
Community Development shall submit a recommendation to the joint 128
standing committee of the General Assembly having cognizance of 129
matters relating to finance, revenue and bonding of whether the pilot 130
program should be expanded to all concentrated poverty census tracts 131
or groups of tracts in the state for which a community development 132
corporation has been established as described under subparagraph (B) 133
of subdivision (1) of subsection (c) of this section. If the commissioner 134
recommends such expansion, the commissioner and the Office of 135
Neighborhood Investment and Community Engagement shall 136
immediately undertake such expansion. 137
(e) If any state or municipal official responsible for carrying out a 138
requirement or responsibility under the provisions of this section or a 139
ten-year plan fails to do so in a timely manner, any community 140
development corporation established as described under subparagraph 141
(B) of subdivision (1) of subsection (c) of this section that is aggrieved 142
by such failure may bring an action against such official in the superior 143
court for the judicial district in which such census tract or group of tracts 144
is located for a writ of mandamus to compel such official to carry out 145
such requirement or responsibility. 146
Sec. 2. Section 32-7s of the general statutes is repealed and the 147
following is substituted in lieu thereof (Effective from passage): 148
(a) As used in this section: 149
(1) "Certified community development corporation" means an 150 Substitute Bill No. 456
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organization exempt from taxation under Section 501(c)(3) of the 151
Internal Revenue Code of 1986, or any subsequent corresponding 152
internal revenue code of the United States, as amended from time to 153
time, that (A) focuses a substantial majority of the community 154
development corporation's efforts on serving one or more target areas, 155
(B) has as its purpose to engage local residents and businesses to work 156
together to undertake community development programs, projects and 157
activities that develop and improve urban communities in sustainable 158
ways that create and expand economic opportunities for low and 159
moderate-income people, (C) demonstrates to the Office of Community 160
Economic Development Assistance established under subsection (b) of 161
this section that the community development corporation's 162
constituency is meaningfully represented on the board of directors of 163
such community development corporation, through (i) the percentage 164
of the board members who are residents of a target area or a community 165
that such community development corporation serves or seeks to serve, 166
(ii) the percentage of board members who are low or moderate-income, 167
(iii) the racial and ethnic composition of the board in comparison to the 168
racial and ethnic composition of the community such community 169
development corporation serves or seeks to serve, or (iv) the use of 170
mechanisms such as committees or membership meetings that the 171
community development corporation uses to ensure that its 172
constituency has a meaningful role in the governance and direction of 173
the community development corporation, and (D) is certified by the 174
Office of Community Economic Development Assistance pursuant to 175
this section; 176
(2) "Department" means the Department of Economic and 177
Community Development; and 178
(3) "Target area" means a contiguous geographic area in which the 179
current unemployment rate exceeds the state unemployment rate by at 180
least twenty-five per cent or in which the mean household income is at 181
or below eighty per cent of the state mean household income, as 182
determined by the most recent decennial census. 183 Substitute Bill No. 456
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(b) (1) There is established an Office of Community Economic 184
Development Assistance within the Department of Economic and 185
Community Development. The office shall, within available 186
appropriations, (A) provide assistance to organizations seeking to 187
establish themselves or be certified as a community development 188
corporation in the state, (B) provide grants to certified community 189
development corporations for projects to be undertaken in a target area, 190
(C) serve as the liaison between community development corporations 191
and investors seeking to invest funds in such community development 192
corporations and provide assistance in soliciting investment funds for 193
such community development corporations, and (D) seek to ensure 194
coordinated, efficient and timely responses to such organizations, 195
community development corporations and investors. 196
(2) The office shall identify eligible target areas in the state and post 197
such target areas on the department's Internet web site. 198
(c) (1) Any organization exempt from taxation under Section 501(c)(3) 199
of the Internal Revenue Code of 1986, or any subsequent corresponding 200
internal revenue code of the United States, as amended from time to 201
time, may apply to the Office of Community Economic Development 202
Assistance to establish itself as or be certified as a community 203
development corporation in the state. The office shall prescribe the form 204
and manner of such application. 205
(2) (A) Any existing community development corporation that 206
operates or seeks to operate in the state may apply to the office to be 207
certified. The office shall certify any community development 208
corporation that is exempt from taxation under Section 501(c)(3) of said 209
Internal Revenue Code and meets the requirements set forth in 210
subparagraphs (A) to (C), inclusive, of subdivision (1) of subsection (a) 211
of this section. Each community development corporation that is 212
established pursuant to this subsection shall be deemed to be certified. 213
(B) The office shall maintain a current list of certified community 214
development corporations and shall post such list on the Internet web 215 Substitute Bill No. 456
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site of the department. 216
(3) The Office of Community Economic Development Assistance 217
shall establish a grant program for projects to be undertaken by a 218
certified community development corporation in a target area, 219
provided, on and after the date the ten-year plans developed under 220
section 1 of this act are submitted to the General Assembly, the office 221
shall give priority to projects included in such plans. Such projects shall 222
include, but not be limited to, infrastructure improvements, housing 223
rehabilitation, streetscape improvements and facade improvements for 224
businesses. The office shall establish the application form and process 225
for such grant program, the criteria for eligible projects and for 226
awarding grants and any caps or limits on the amount or number of 227
grants awarded. The office shall post information concerning the grant 228
program on the department's Internet web site. 229
(d) (1) For the purposes described in subdivision (2) of this 230
subsection, the State Bond Commission shall have the power from time 231
to time to authorize the issuance of bonds of the state in one or more 232
series and in principal amounts not exceeding in the aggregate fifty 233
million dollars. 234
(2) The proceeds of the sale of such bonds, to the extent of the amount 235
stated in subdivision (1) of this subsection, shall be used by the 236
Department of Economic and Community Devel opment for the 237
purposes of carrying out the duties of the Office of Community 238
Economic Development Assistance under subsection (b) of this section 239
and the grant program under subsection (c) of this section. 240
(3) All provisions of section 3-20, or the exercise of any right or power 241
granted thereby, that are not inconsistent with the provisions of this 242
section are hereby adopted and shall apply to all bonds authorized by 243
the State Bond Commission pursuant to this section. Temporary notes 244
in anticipation of the money to be derived from the sale of any such 245
bonds so authorized may be issued in accordance with section 3-20 and 246
from time to time renewed. Such bonds shall mature at such time or 247 Substitute Bill No. 456
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times not exceeding twenty years from their respective dates as may be 248
provided in or pursuant to the resolution or resolutions of the State 249
Bond Commission authorizing such bonds. None of such bonds shall be 250
authorized except upon a finding by the State Bond Commission that 251
there has been filed with it a request for such authorization that is signed 252
by or on behalf of the Secretary of the Office of Policy and Management 253
and states such terms and conditions as said commission, in its 254
discretion, may require. Such bonds issued pursuant to this section shall 255
be general obligations of the state and the full faith and credit of the state 256
of Connecticut are pledged for the payment of the principal of and 257
interest on such bonds as the same become due, and accordingly and as 258
part of the contract of the state with the holders of such bonds, 259
appropriation of all amounts necessary for punctual payment of such 260
principal and interest is hereby made, and the State Treasurer shall pay 261
such principal and interest as the same become due. 262
(e) Not later than July 1, 2023, and annually thereafter, the Office of 263
Community Economic Development Assistance shall submit a report, 264
in accordance with the provisions of section 11-4a, to the joint standing 265
committees of the General Assembly having cognizance of matters 266
relating to commerce, planning and development and finance, revenue 267
and bonding. Such report shall include, but not be limited to, a 268
description of the activities undertaken by the office in the preceding 269
fiscal year, the number of community development corporations 270
established and certified in the preceding fiscal year, the number and 271
amounts of grants awarded to certified community development 272
corporations in the preceding fiscal year and a description and the 273
locations of the projects undertaken by certified community 274
development corporations in the preceding fiscal year. 275
Sec. 3. Section 32-7x of the 2024 supplement to the general statutes is 276
repealed and the following is substituted in lieu thereof (Effective from 277
passage): 278
(a) As used in this section, ["high poverty-low opportunity census 279
tract"] "concentrated poverty census tract" means a United States census 280 Substitute Bill No. 456
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tract in which thirty per cent or more of the [residents] households 281
within such census tract have incomes below the federal poverty level, 282
according to the most recent five-year United States Census Bureau 283
American Community Survey. 284
(b) The Secretary of the Office of Policy and Management shall 285
compile a list of [high poverty-low opportunity] concentrated poverty 286
census tracts in the state and the municipalities in which such census 287
tracts are located and shall, not later than July 31, 2023, submit such list 288
to the General Assembly in accordance with the provisions of section 289
11-4a. The secretary shall post such list to the Internet web site of the 290
Office of Policy and Management and shall review and update such list 291
as necessary. Whenever the secretary updates such list, the secretary 292
shall submit such updated list to the General Assembly in accordance 293
with the provisions of section 11-4a. 294
(c) (1) The Commissioner of Economic and Community Development 295
shall establish a grant program to fund eligible projects within [high 296
poverty-low opportunity] concentrated poverty census tracts. An 297
eligible project shall seek to reduce concentrated poverty within such 298
tracts and the effects of such poverty, including, but not limited to, the 299
lower lifetime income of residents within such tracts, the lower lifetime 300
income expectations of future generations within such tracts, increased 301
crime and risk of incarceration for residents within such tracts and 302
educational deficiencies within such tracts. An eligible project includes: 303
(A) Construction, renovation or rehabilitation of mixed-income rental 304
housing and owner-occupied housing, in order to retain individuals and 305
families of different income levels and to increase the percentage of 306
owner-occupied housing within such census tract or tracts; 307
(B) The establishment or improvement of workforce development 308
programs, including, but not limited to, programs that partner with 309
organizations to identify unemployed or underemployed individuals 310
and at-risk youth residing in such census tracts, identify workforce 311
training opportunities and other resources for such individuals and link 312 Substitute Bill No. 456
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such individuals with the appropriate training and resources that will 313
increase the skills and earning potential of such individuals; and 314
(C) Construction, renovation or rehabilitation of public 315
infrastructure, in order to support and improve the private investment 316
opportunities, quality of life and public safety within such census tract 317
or tracts. 318
(2) Beginning on January 1, 2024, and not later than January 1, 2030, 319
each municipality in which a [high poverty-low opportunity] 320
concentrated poverty census tract is located may apply to the 321
commissioner, in a form and manner prescribed by the commissioner, 322
to receive a grant for an eligible project or any combination of eligible 323
projects. An application may target one [high poverty-low opportunity] 324
concentrated poverty census tract or more than one such census tract if 325
such census tracts are geographically contiguous or within reasonable 326
proximity of each other. An applicant shall not be prohibited from filing 327
more than one application for different [high poverty-low opportunity] 328
concentrated poverty census tracts or groups of such census tracts. 329
(d) (1) Not later than January 1, 2024, the commissioner shall establish 330
criteria for the awarding of grants as described in subdivision (2) of this 331
subsection, requirements for documents and information as described 332
in subdivision [(3)] (4) of this subsection and deadlines for submitting 333
applications and revised and modified applications under subsection (e) 334
of this section. The commissioner shall post such criteria, requirements 335
and deadlines on the Internet web site of the Department of Economic 336
and Community Development, notify each municipality in which a 337
[high poverty-low opportunity] concentrated poverty census tract is 338
located of such posting and promote the availability of the grant 339
program established by this section in each [high poverty-low 340
opportunity] such census tract. 341
(2) Criteria for the awarding of grants pursuant to this section shall 342
include, but need not be limited to: 343
(A) The likelihood that a proposal will reduce adult or child poverty 344 Substitute Bill No. 456
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within a [high poverty-low opportunity] concentrated poverty census 345
tract; 346
(B) The likelihood that a proposal will reduce the likelihood that 347
children currently residing within a [high poverty-low opportunity] 348
concentrated poverty census tract will live in poverty after reaching 349
adulthood; 350
(C) The likelihood that a proposal will produce persistent and 351
meaningful improvements in residents' wealth, financial security, 352
employability or quality of life beyond the duration of the proposal; 353
(D) The feasibility of the initiatives in a proposal and the 354
demonstrated or perceived capacity to execute upon the scope of work 355
in a proposal, including, but not limited to, adequate staffing levels of 356
entities involved with the proposal; and 357
(E) The interconnectivity and mutual reinforcement among all 358
proposed initiatives in the same [high poverty-low opportunity] 359
concentrated poverty census tract area or areas, such as providing 360
workforce training programs to parents of children enrolled in a 361
supported early childhood program. 362
(3) On and after the date the ten-year plans developed under section 363
1 of this act are submitted to the General Assembly, priority shall be 364
given to projects included in such plan. 365
[(3)] (4) Requirements for documents and information to be 366
submitted by municipalities to evaluate applications shall include, but 367
need not be limited to: 368
(A) A description of how the proposal intends to address each type 369
of eligible project described in subparagraphs (A) to (C), inclusive, of 370
subdivision (1) of subsection (c) of this section, and whether there are 371
existing projects or programs to address such eligible projects; 372
(B) A description of each initiative within the proposal, which may 373
include multiple simultaneous initiatives, and how each initiative will 374 Substitute Bill No. 456
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meet one of the criteria established pursuant to subdivision (2) of this 375
subsection; 376
(C) A description of sufficient efforts, as determined by the 377
commissioner, to engage residents of the [high poverty-low 378
opportunity] concentrated poverty census tract in formulating a 379
proposal; 380
(D) For an initiative that is an eligible project described in 381
subparagraph (B) of subdivision (1) of subsection (c) of this section, a 382
description of the municipality's consultations with the regional 383
workforce development board that serves the municipality regarding 384
the development of such project and efforts to coordinate such project 385
with the board's activities; 386
(E) A description of each organization that will participate in an 387
eligible project described in subparagraph (B) of subdivision (1) of 388
subsection (c) of this section, and information on each organization's 389
commitment to provide continuous, sustained engagement with 390
residents of such tract throughout the project; 391
(F) A description of the entity or organization responsible for 392
coordinating the implementation of each component of the application 393
and overseeing the various projects and programs outlined in such 394
application; 395
(G) A description of plans for ongoing engagement with residents of 396
such census tracts and solicitation of feedback on the progress of a 397
proposal during its implementation; and 398
(H) A description of plans to provide residents of such census tract 399
with opportunities to become involved in implementation of a proposal. 400
(e) (1) The department shall review and evaluate each application 401
submitted and shall work with the applicant municipality to revise the 402
application if the department believes such revisions will improve or 403
strengthen the application. The department shall assist an applicant in 404 Substitute Bill No. 456
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identifying and applying for funding under other programs in order to 405
maximize the amount of funding available for an applicant, including 406
seeking funding under section 4-66c. For a proposal for an eligible 407
project described in subparagraph (A) of subdivision (1) of subsection 408
(c) of this section, the commissioner shall evaluate such project in 409
consultation with the Commissioner of Housing and the Commissioner 410
of Housing shall assist the applicant with obtaining funding for such 411
project through programs operated by the Department of Housing. 412
(2) The commissioner shall submit to the Governor all applications 413
that are deemed to satisfy the requirements of subsection (d) of this 414
section. The Governor shall review such applications and may approve 415
or disapprove an application or return an application to the 416
commissioner for modifications. If an application is returned to the 417
commissioner, the commissioner shall work with the applicant to 418
modify the application and shall resubmit such application with 419
modifications to the Governor. If the Governor approves an application, 420
the Governor shall make a grant award from bond proceeds under 421
section 32-7y, provided the Governor may use funds from other bond 422
proceeds authorized for the general purposes described in 423
subparagraphs (A) to (C), inclusive, of subdivision (1) of subsection (c) 424
of this section for such grants. Grants awarded under this section shall 425
be for a period of three years, and in an amount sufficient to carry out 426
the objectives of the application, but not less than five hundred 427
thousand dollars. Each application that the Governor approves shall be 428
considered at a State Bond Commission meeting not later than two 429
months after the date the application was approved by the Governor. 430
(f) At the conclusion of the initial grant period, the commissioner 431
shall evaluate the municipality's progress toward reducing the number 432
of [residents] households within the applicable [high poverty-low 433
opportunity] concentrated poverty census tract who have incomes 434
below the federal poverty level to less than thirty per cent of the 435
[residents] households of such census tract. Such evaluation shall 436
consider, among other factors, any change in the percentage of 437
[residents] households within such census tract who have incomes 438 Substitute Bill No. 456
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below the federal poverty level, and whether the actions taken pursuant 439
to such grant during the initial grant period: (1) May reasonably result 440
in a future reduction in the percentage of [residents] households within 441
such census tract who have incomes below the federal poverty level, (2) 442
have resulted in a reduction in child poverty within such census tract, 443
(3) may reasonably result in a future reduction in child poverty within 444
such census tract, or (4) may reasonably decrease the likelihood that 445
children who are currently living within such census tract will have 446
incomes below the federal poverty level after they reach adulthood. 447
Upon a determination by the commissioner that reasonable progress has 448
been made, the municipality shall be eligible for subsequent grants 449
under this section, provided, at the conclusion of each subsequent grant 450
period of three years, each applicant municipality shall be subject to an 451
evaluation and determination under this subsection prior to being 452
eligible to apply for a subsequent grant. An application for a subsequent 453
grant and the awarding of a subsequent grant shall be in accordance 454
with the provisions of subsections (c) to (e), inclusive, of this section. 455
(g) Not later than August 1, 2024, and annually thereafter until and 456
including August 1, 2029, the commissioner shall submit a report, in 457
accordance with the provisions of section 11-4a, to the General 458
Assembly, that includes the municipalities that submitted applications 459
and that were awarded grants under this section in the prior fiscal year, 460
a description of each purpose and eligible project a municipality 461
awarded a grant under this section is seeking to accomplish or 462
undertaking, a progress report, if applicable, for each such purpose or 463
eligible project and any other information the commissioner deems 464
relevant. 465
Sec. 4. Section 32-285a of the 2024 supplement to the general statutes 466
is repealed and the following is substituted in lieu thereof (Effective from 467
passage): 468
(a) As used in this section: 469
(1) "Administrative costs" means the costs paid or incurred by the 470 Substitute Bill No. 456
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administrator of the Community Investment Fund 2030 Board 471
established under subsection (b) of this section, including, but not 472
limited to, allocated staff costs and other out-of-pocket costs attributable 473
to the administration and operation of the board; 474
(2) "Administrator" means the Commissioner of Economic and 475
Community Development, or the commissioner's designee; 476
(3) "Eligible project" means: 477
(A) (i) A project proposed by a municipality, community 478
development corporation or nonprofit organization, for the purpose of 479
promoting economic or community development in the municipality or 480
a municipality served by such corporation or organization, such as 481
brownfield remediation, affordable housing, establishment of or 482
improvements to water and sewer infrastructure to support smaller 483
scale economic development, pedestrian safety and traffic calming 484
improvements, establishment of or improvements to energy resiliency 485
or clean energy projects and land acquisition and capital projects to 486
construct, rehabilitate or renovate buildings and structures to facilitate 487
or improve home rehabilitation programs and facilities such as libraries 488
and senior centers; or 489
(ii) A grant-in-aid proposed by a municipality, community 490
development corporation or nonprofit organization for the purpose of 491
providing (I) a revolving loan program, microloans or gap financing, to 492
small businesses located within such municipality or a municipality 493
served by such corporation or organization, or (II) start-up funds to 494
establish a small business in any such municipality; and 495
(B) Such project or grant-in-aid furthers consistent and systematic 496
fair, just and impartial treatment of all individuals, including 497
individuals who belong to underserved and marginalized communities 498
that have been denied such treatment, such as Black, Latino and 499
indigenous and Native American persons; Asian Americans and Pacific 500
Islanders and other persons of color; members of religious minorities; 501
lesbian, gay, bisexual, transgender and queer persons and other persons 502 Substitute Bill No. 456
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comprising the LGBTQ+ community; persons who live in rural areas; 503
and persons otherwise adversely affected by persistent poverty or 504
inequality; and 505
(4) "Municipality" means a municipality designated as a public 506
investment community pursuant to section 7-545 or as an alliance 507
district pursuant to section 10-262u. 508
(b) (1) There is established a Community Investment Fund 2030 509
Board, which shall be within the Department of Economic and 510
Community Development. The board shall consist of the following 511
members: 512
(A) The speaker of the House of Representatives and the president 513
pro tempore of the Senate; 514
(B) The majority leader of the House of Representatives, the majority 515
leader of the Senate, the minority leader of the House of Representatives 516
and the minority leader of the Senate; 517
(C) One appointed by the speaker of the House of Representatives 518
and one appointed by the president pro tempore of the Senate, each of 519
whom shall be a member of the Black and Puerto Rican Caucus of the 520
General Assembly; 521
(D) The two chairpersons of the general bonding subcommittee of the 522
joint standing committee of the General Assembly having cognizance of 523
matters relating to finance, revenue and bonding; 524
(E) Two appointed by the Governor; and 525
(F) The Secretary of the Office of Policy and Management, the 526
Attorney General, the Treasurer, the Comptroller, the Secretary of the 527
State and the Commissioners of Economic and Community 528
Development, Administrative Services, Social Services and Housing, or 529
their designees. 530
(2) All initial appointments shall be made not later than sixty days 531 Substitute Bill No. 456
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after June 30, 2021. The terms of the members appointed by the 532
Governor shall be coterminous with the term of the Governor or until 533
their successors are appointed, whichever is later. Any vacancy in 534
appointments shall be filled by the appointing authority. Any vacancy 535
occurring other than by expiration of term shall be filled for the balance 536
of the unexpired term. 537
(3) Notwithstanding any provision of the general statutes, it shall not 538
constitute a conflict of interest for a trustee, director, partner, officer, 539
stockholder, proprietor, counsel or employee of any person to serve as 540
a member of the board, provided such trustee, director, partner, officer, 541
stockholder, proprietor, counsel or employee abstains and absents 542
himself or herself from any deliberation, action and vote by the board in 543
specific respect to such person. The members appointed by the 544
Governor shall be deemed public officials and shall adhere to the code 545
of ethics for public officials set forth in chapter 10. 546
(4) The speaker of the House of Representatives and the president pro 547
tempore of the Senate shall serve as the chairpersons of the board and 548
shall schedule the first meeting of the board, which shall be held not 549
later than January 1, 2022. The board shall meet at least quarterly. 550
(5) Eleven members of the board shall constitute a quorum for the 551
transaction of any business. 552
(6) The members of the board shall serve without compensation, but 553
shall, within the limits of available funds, be reimbursed for expenses 554
necessarily incurred in the performance of their duties. 555
(7) The board shall have the following powers and duties: (A) Review 556
eligible projects to be recommended to the Governor under subsection 557
(c) of this section for approval; (B) establish bylaws to govern its 558
procedures; (C) review and provide comments to the Department of 559
Economic and Community Development on projects funded through 560
the state's Economic Action Plan as provided under section 32-4p; and 561
(D) perform such other acts as may be necessary and appropriate to 562
carry out its duties described in this section. 563 Substitute Bill No. 456
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(8) The administrator shall hire such employee or employees as may 564
be necessary to assist the board to carry out its duties described in this 565
section. 566
(c) (1) The Community Investment Fund 2030 Board shall establish 567
an application and review process with guidelines and terms for funds 568
provided from the bond proceeds under subsection (d) of this section 569
for eligible projects. Such funds shall be used for costs related to an 570
eligible project recommended by the board and approved by the 571
Governor pursuant to this subsection but shall not be used to pay or to 572
reimburse the administrator for administrative costs under this section. 573
The Department of Economic and Community Development shall pay 574
for administrative costs within available appropriations. 575
(2) The chairpersons of the board shall notify the chief elected official 576
of each municipality when the application and review process has been 577
established and shall publicize the availability of any funds available 578
under this section. Each such official or any community development 579
corporation or nonprofit organization may submit an application to the 580
board requesting funds for an eligible project. The board shall meet to 581
consider applications submitted and determine which, if any, the board 582
will recommend to the Governor for approval. 583
(3) (A) The board shall give priority to eligible projects (i) that are 584
proposed by a municipality that (I) has implemented local hiring 585
preferences pursuant to section 7-112, or (II) has or will leverage 586
municipal, private, philanthropic or federal funds for such project, [and] 587
(ii) that have a project labor agreement or employ or will employ ex-588
offenders or individuals with physical, intellectual or developmental 589
disabilities, and (iii) on and after the date the ten-year plans developed 590
under section 1 of this act are submitted to the General Assembly, that 591
are included in such plans. The board shall give additional priority to 592
an application submitted by a municipality that includes a letter of 593
support for the proposed eligible project from a member or members of 594
the General Assembly in whose district the eligible project is or will be 595
located. 596 Substitute Bill No. 456
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(B) In evaluating applications for an eligible project described in 597
subparagraph (A)(ii) of subdivision (3) of subsection (a) of this section, 598
the board shall (i) evaluate the risk of default on the repayment of a 599
proposed loan or financing, (ii) consider the impact of the eligible 600
project on job creation or retention in the municipality, (iii) consider the 601
impact of the eligible project on blighted properties in the municipality, 602
and (iv) consider the overall impact of the eligible project on the 603
community. The board shall not recommend any proposed loan or 604
financing under subparagraph (A)(ii) of subdivision (3) of subsection (a) 605
of this section for which the interest rate varies from the prevailing 606
market rate. 607
(4) (A) Whenever the board deems it necessary or desirable, the 608
chairpersons of the board shall submit to the Governor a list of the 609
board's recommendations of eligible projects to be funded from bond 610
proceeds under subsection (d) of this section. The board may 611
recommend state funding for eligible projects, provided the total cost of 612
such recommendations shall not exceed one hundred seventy-five 613
million dollars in any fiscal year. Such list shall include, at a minimum: 614
(i) For each eligible project described in subparagraph (A)(i) of 615
subdivision (3) of subsection (a) of this section, a description of such 616
project, the municipality in which such project is located, the amount of 617
funds sought for such project, any cost estimates for such project, any 618
schematics or plans for such project, the total estimated project costs and 619
the applicable fiscal year to which such disbursement will be attributed; 620
and 621
(ii) For each eligible project described in subparagraph (A)(ii) of 622
subdivision (3) of subsection (a) of this section, a description of and 623
specific terms for any proposed loans, financing or start-up funds to be 624
provided from such grant-in-aid, the types of small businesses located 625
or to be located in the municipality that may be eligible for such loan, 626
financing or start-up funds, the amount of the grant-in-aid sought and 627
the applicable fiscal year to which such disbursement will be attributed. 628 Substitute Bill No. 456
LCO 21 of 24
(B) The Governor shall review the eligible projects on the list and may 629
recommend changes to any eligible project on the list. The Governor 630
shall determine the most appropriate method of funding for each 631
eligible project and shall provide to the members of the board, in 632
writing, such determination for each eligible project on the list and the 633
reasons therefor. The board may reconsider at a future meeting any 634
eligible project for which the Governor recommends a change. Each 635
eligible project for which the Governor recommends the allocation of 636
bond funds shall be considered at a State Bond Commission meeting not 637
later than two months after the date such eligible project was submitted 638
to the Governor pursuant to subparagraph (A) of this subdivision. 639
(5) Funds for an eligible project approved under this section may be 640
administered on behalf of the board by a state agency, as determined by 641
the Secretary of the Office of Policy and Management, provided a 642
memorandum of understanding between the administrator of the 643
Community Investment Fund 2030 Board and the state, acting by and 644
through the Secretary of the Office of Policy and Management, has been 645
entered into with respect to such funds and project. 646
(6) Not later than August 31, 2023, the board shall submit a report, in 647
accordance with the provisions of section 11-4a, to the General 648
Assembly, the Black and Puerto Rican caucus of the General Assembly, 649
the Auditors of Public Accounts and the Governor, for the preceding 650
fiscal year, that includes (A) a list of the eligible projects recommended 651
by the board and approved by the Governor pursuant to this section, (B) 652
the total amount of funds provided for such eligible projects, (C) for 653
each such eligible project, a description of the project and the amounts 654
and terms of the funds provided, (D) the status of the project and any 655
balance remaining of the allocated funds, and (E) any other information 656
the board deems relevant or necessary. The board shall submit such 657
report annually for each fiscal year in which the funds specified in 658
subparagraph (A) of subdivision (3) of this subsection are disbursed for 659
eligible projects. 660
(7) The Auditors of Public Accounts shall audit, on a biennial basis, 661 Substitute Bill No. 456
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all eligible projects funded under this section and shall report their 662
findings to the Governor, the Secretary of the Office of Policy and 663
Management and the General Assembly. 664
(d) (1) The State Bond Commission may authorize the issuance of 665
bonds of the state, in accordance with the provisions of section 3-20, in 666
principal amounts not exceeding in the aggregate eight hundred 667
seventy-five million dollars. The amount authorized for the issuance 668
and sale of such bonds in each of the following fiscal years shall not 669
exceed the following corresponding amount for each such fiscal year, 670
except that, to the extent the State Bond Commission does not provide 671
for the use of all or a portion of such amount in any such fiscal year, 672
such amount not provided for shall be carried forward and added to the 673
authorized amount for the next succeeding fiscal year, and provided 674
further, the costs of issuance and capitalized interest, if any, may be 675
added to the capped amount in each fiscal year, and each of the 676
authorized amounts shall be effective on July first of the fiscal year 677
indicated as follows: 678
T1 Fiscal Year Ending June 30, Amount
T2 2023 $175,000,000
T3 2024 175,000,000
T4 2025 175,000,000
T5 2026 175,000,000
T6 2027 175,000,000
T7 Total $875,000,000
(2) The proceeds of the sale of bonds set forth in this subsection shall 679
be used for the purpose of funding eligible projects for which the 680
Governor has determined under subsection (c) of this section that bond 681
funding is appropriate and that no other bond authorization is available. 682
(e) (1) Upon the agreement of the Governor and the Community 683
Investment Fund 2030 Board, and subsequent to the adoption of a 684
resolution by the General Assembly affirming the reauthorization of the 685
board and the program provided for under this section, the State Bond 686
Commission may authorize the issuance of bonds of the state, in 687 Substitute Bill No. 456
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accordance with the provisions of section 3-20, in principal amounts not 688
exceeding in the aggregate one billion two hundred fifty million dollars. 689
The amount authorized for the issuance and sale of such bonds in each 690
of the following fiscal years shall not exceed the following 691
corresponding amount for each such fiscal year, except that, to the 692
extent the State Bond Commission does not provide for the use of all or 693
a portion of such amount in any such fiscal year, such amount not 694
provided for shall be carried forward and added to the authorized 695
amount for the next succeeding fiscal year, and provided further, the 696
costs of issuance and capitalized interest, if any, may be added to the 697
capped amount in each fiscal year, and each of the authorized amounts 698
shall be effective on July first of the fiscal year indicated as follows: 699
T8 Fiscal Year Ending June 30, Amount
T9 2028 $250,000,000
T10 2029 250,000,000
T11 2030 250,000,000
T12 2031 250,000,000
T13 2032 250,000,000
T14 Total $1,250,000,000
(2) The proceeds of the sale of bonds set forth in this subsection shall 700
be used for the purpose of funding eligible projects for which the 701
Governor has determined under subsection (c) of this section that bond 702
funding is appropriate and that no other bond authorization is available. 703
(f) All provisions of section 3-20, or the exercise of any right or power 704
granted thereby, that are not inconsistent with the provisions of this 705
section are hereby adopted and shall apply to all bonds authorized by 706
the State Bond Commission pursuant to this section. Temporary notes 707
in anticipation of the money to be derived from the sale of any such 708
bonds so authorized may be issued in accordance with said section, and 709
from time to time renewed. All bonds issued pursuant to this section 710
shall be general obligations of the state and the full faith and credit of 711
the state of Connecticut are pledged for the payment of the principal of 712
and interest on said bonds as the same become due, and accordingly 713
and as part of the contract of the state with the holders of said bonds, 714 Substitute Bill No. 456
LCO 24 of 24
appropriation of all amounts necessary for punctual payment of such 715
principal and interest is hereby made, and the Treasurer shall pay such 716
principal and interest as the same become due. 717
This act shall take effect as follows and shall amend the following
sections:
Section 1 from passage New section
Sec. 2 from passage 32-7s
Sec. 3 from passage 32-7x
Sec. 4 from passage 32-285a
Statement of Legislative Commissioners:
In Section 1(c)(1), "section 101 of public act 23-205" was changed to
"section 32-7x of the 2024 supplement to the general statutes" for
consistency with standard drafting conventions; Section 1(c)(2)(A) was
rewritten for accuracy and clarity; in Section 1(c)(2)(B), "subdivision (2)"
was changed to "subdivision (3)" for accuracy; in Section 1(c)(3), "each
such municipality" was changed to "each applicable municipality" and
"subsection (b) of this section" was changed to "this subsection", for
accuracy; and in Section 1(e), "established for a participating
concentrated poverty census tract or group of tracts" was changed to
"established as described under subparagraph (B) of subdivision (1) of
subsection (c) of this section" for consistency.
FIN Joint Favorable Subst.