OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
sHB-6944
AN ACT REQUIRING A MUNICIPALITY TO INCLUDE CERTAIN
INFORMATION IN ITS AFFORDABLE HOUSING PLAN.
Primary Analyst: LG 3/25/25
Contributing Analyst(s): EMG, BP, CR
Reviewer: RW
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 26 $ FY 27 $
Policy & Mgmt., Off. GF - Potential
Cost
See Below See Below
Policy & Mgmt., Off. GF - Cost 310,900 206,700
Department of Housing GF - Potential
Cost
See Below See Below
Department of Housing GF - Potential
Cost
86,068 -
98,695
86,068 -
98,695
Connecticut Housing Finance
Authority (CHFA)
CHFA - Potential
Cost
125,000 -
140,000
125,000 -
140,000
Connecticut Housing Finance
Authority (CHFA)
CHFA - Potential
Cost
See Below See Below
State Comptroller - Fringe
Benefits
1
GF - Cost 84,900 84,900
State Comptroller - Fringe
Benefits
2
GF - Potential
Cost
35,038 -
40,179
35,038 -
40,179
Note: GF=General Fund; CHFA=Resources of CHFA
Municipal Impact:
Municipalities Effect FY 26 $ FY 27 $
Various Municipalities Potential
Cost
See Below See Below
1
The fringe benefit costs for most state employees are budgeted centrally in accounts
administered by the Comptroller. The estimated active employee fringe benefit cost
associated with most personnel changes is 40.71% of payroll in FY 26.
2
The fringe benefit costs for most state employees are budgeted centrally in accounts
administered by the Comptroller. The estimated active employee fringe benefit cost
associated with most personnel changes is 40.71% of payroll in FY 26. 2025HB-06944-R000266-FN.DOCX Page 2 of 4
Explanation
The bill makes various changes to municipal affordable housing
plans and places various requirements on the Office of Policy and
Management (OPM), Department of Housing (DOH), and the
Connecticut Housing and Finance Authority (CHFA) which results in
the impacts described below.
Municipal Impact
The bill (1) changes requirements for municipal affordable housing
plans, (2) requires municipalities to update local regulations and
policies to meet certain requirements, (3) submit an application to OPM
for approval on updated plans and policies, and (4) prioritizes
municipalities for certain discretionary funding if they comply with the
bills requirements or are exempt from making these plans.
3
This may result in a cost to municipalities beginning in FY 26 to the
extent that they require additional resources to update the municipal
affordable housing plans, update policies, and submit an application to
OPM.
There is also a potential revenue shift associated with prioritizing
discretionary funding. This may result in some towns receiving larger
grants and some receiving smaller grants. Any shift is dependent on
how the funding is prioritized.
Office of Policy and Management
The bill (1) makes the OPM responsible for reviewing municipal
affordable housing plans, (2) allows nonprofits and housing developers
to bring action against OPM to defend approval of the plans, (3) requires
OPM to update affordable housing estimates and fair share allocations
every ten years, and (4) requires OPM to make grants available to
3
The discretionary funding includes (1) Small Town Economic Assistance Program,
(2) Main Street Investment Fund, (3) Incentive Housing Zone Program, and (4) Town
Aid Road, to the extent such programs are (A) permitted to include a priority
designation and (B) recommended to include prioritization by the OPM Secretary. 2025HB-06944-R000266-FN.DOCX Page 3 of 4
municipalities and regional councils of government or designate DOH
or CHFA to administer the program.
This results in an annual cost of $266,700 to OPM beginning in FY 26
associated with two additional positions to review the affordable
housing plans, updated policies, and application and a one-time cost of
$4,200 for equipment in FY 26. There is also an annual cost of $84,900
beginning in FY 26 to the Office of the State Comptroller for associated
fringe benefits.
The bill results in a potential cost to OPM beginning in FY 26 to the
extent legal action is brought against them to defend the approval of the
municipal affordable housing plans.
The bill also results in a potential cost to OPM beginning in FY 26 to
the extent they make grants available to municipalities and regional
councils of government. If OPM chooses to designate DOH or CHFA to
administer this grant program it will not result in a fiscal impact to
OPM.
Department of Housing and Connecticut Housing and Finance
Authority
The bill will require DOH or CHFA to administer a technical
assistance grant program for municipalities if either agency is
designated to do so by OPM.
If the program is administered by DOH, they will require one full-
time employee which result in a cost of $86,068 - $98,695 to DOH for
salary and $35,038 - $40,179 to the State Comptroller for fringe benefits.
4
DOH will also incur additional costs for grants to municipalities.
If the program is administered by CHFA, they may hire one full-time
employee which results in an approximate cost of $125,000 - $140,000
4
DOH may hire a Housing Specialist 2 for $86,068 annually or Housing and
Community Development Manager for $98,695 annually or a similar position. 2025HB-06944-R000266-FN.DOCX Page 4 of 4
annually for salary and fringe benefits to CHFA's own resources.
5
CHFA will also incur additional costs for grants to municipalities.
It is unlikely that both CHFA and DOH will administer the program.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to the position selected by DOH and
grants issued.
5
CHFA is a quasi-public authority that issues its own federally tax-exempt and taxable
mortgage revenue bonds. The authority pays its operating expenses using funds
derived from the excess of interest income from loans over bond interest expenses.