HB 6632 — AN ACT CONCERNING AFFORDABLE HOMEOWNERSHIP OPPORTUNITIES.

Substitute House ofBill Representatives File No.

7276632 GeneralPublic AssemblyAct January Session, 2023(Reprint of File No.

135)23-144 SubstituteAN HouseACT BillCONCERNING No.AFFORDABLE HOMEOWNERSHIP OPPORTUNITIES.

6632 As Amended by House Amendment Schedule "A" Approved by the Legislative Commissioner May 5, 2023 AN ACT CONCERNING AFFORDABLE HOMEOWNERSHIP OPPORTUNITIES.

No housing authority that receives or has received any state financial assistance may sell, lease, transfer or destroy, or contract to sell, lease, transfer or destroy, any housing project or portion thereof in any case where such project or portion thereof would no longer be available for thepurposeoflowormoderateincomerentalhousingasaresultofsuch sale, lease, transfer or destruction, except the Commissioner of Housing may grant written approval for the sale, lease, transfer or destruction of a housing project if the commissioner finds, after a public hearing, that (1)thesale, lease, transfer or destructionisinthebest interest ofthestateofthe state and the municipality in which the project is located, (2) an adequate supply of low or moderate income rental housing exists in the sHB6632municipality /in Filewhich the project is located, (3) the housing authority has developed a plan for the sale, lease, transfer or destruction of such project in consultation with the residents of such project and representatives of the municipality in which such project is situated and has made adequate provision for [said] such residents' and Substitute House Bill No.

7276632 sHB6632representatives' Fileparticipation No.in such plan, which plan may include the construction of housing that is subject to an affordable housing deed restriction, as defined in section 12-81bb, for not less than twenty years and that is owner-occupied single-family or multifamily housing to replace existing housing units at a ratio of not less than one-to-one, and (4) any person who is displaced as a result of the sale, lease, transfer or destruction will (A) berelocatedto a comparable dwelling unit of public or subsidized housing in the same municipality, [or will] (B) receive a tenant-based rental subsidy and will receive relocation assistance under chapter 135, or (C) be relocated to a housing unit within a single-family or multifamily residence in the same municipality that is subject to an affordable housing deed restriction, as defined in section 12-81bb, for not less than twenty years.

727The municipalitycommissioner inshall whichconsider the projectextent isto located,which (3) the housing authorityunits hasthat developedare ato planbe forsold, theleased, sale,transferred lease, transfer or destructiondestroyedwillbereplaced ofwithhousing suchthat projectisaffordableto inhouseholds consultation with theincomes residentsbelow oftwenty-five suchper projectcent and representatives of the municipalityarea inmedian whichincome such project is situated and hasto madehouseholds adequatewith provisionincomes forbelow [said]fifty suchper residents'cent andof representatives' participation in such plan, which plan may include the constructionarea ofmedian housingincome, that is subject to an affordable housing deed restriction, as defined in sectionways 12-81bb, for not less than twenty years and that ismay owner-occupiedinclude, single-familybut orneed multifamilynot housingbe tolimited replaceto, existingnewly housingconstructed unitshousing, atrehabilitation a ratio of nothousing lessthat than one-to-one, and (4) any person who is displacedabandoned as a result of the sale, lease, transfer or destructionhas willbeen (A)vacant berelocatedtofor aat comparableleast dwellingone unityear, of public or subsidizednew housingfederal, instate the same municipality, [or will] (B) receive a tenant-based rental subsidy and will receive relocation assistance under chapter 135, or (C)local betenant- relocatedbased to a housing unit within a single-family or multifamilyproject-based residencerental insubsidies. the same municipality that is subject to an affordable housing deed restriction, as defined in section 12-81bb, for not less than twenty years.

The commissioner shall consider the extent to which the housing units that are to be sold, leased, transferred or destroyedwillbereplacedwithhousing that isaffordableto households with incomes below twenty-five per cent of the area median income and to households with incomes below fifty per cent of the area median income, in ways that may include, but need not be limited to, newly constructed housing, rehabilitation of housing that is abandoned or has been vacant for at least one year, or new federal, state or local tenant- based or project-based rental subsidies.

The commissioner shall not impose a one-for-one replacement requirementonKingCourt inEast Hartford.Thissectionshallnot apply sHB6632to /phase FileI of Father Panik Village in Bridgeport, Elm Haven in New Haven, Pequonnock Gardens Project in Bridgeport, Evergreen Apartments in Bridgeport, Quinnipiac Terrace/Riverview in New Public Act No.

72723-144 sHB66322 Fileof 3 Substitute House Bill No.

7276632 to phase I of Father Panik Village in Bridgeport, Elm Haven in New Haven, Pequonnock Gardens Project in Bridgeport, Evergreen Apartments in Bridgeport, Quinnipiac Terrace/Riverview in New Haven, Dutch Point in Hartford, William V.

ThisApproved actJune shall26, take2023 effectPublic asAct followsNo. and shall amend the following sections:

Section23-144 13 Octoberof 1,3 2023 8-64a sHB6632 / File No.

727 3 sHB6632 File No.

727 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.

In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.

Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note State Impact:

None Municipal Impact:

None Explanation The bill, which allows the Department of Housing (DOH) to approve an additional means through which a housing authority may replace its housing units, has no fiscal impact.

DOH has the expertise to review proposals utilizing the bill’s additional replacement method.

House “A” clarifies the definition of “affordable housing”, which has no fiscal impact.

The Out Years State Impact:

None Municipal Impact:

None sHB6632 / File No.

727 4 sHB6632 File No.

727 OLR Bill Analysis sHB 6632 (as amended by House “A”)* AN ACT CONCERNING AFFORDABLE HOMEOWNERSHIP OPPORTUNITIES.

SUMMARY Existing law generally prohibits housing authorities that receive or have received state assistance from selling, leasing, transferring, or destroying a housing project if the project would no longer be available for, or replaced by, low- or moderate-income rental housing.

However, the housing commissioner may approve the action if she finds, after a public hearing, that four specified conditions are met.

This bill modifies two of the four conditions.

Under current law, one of these conditions requires a finding that the housing authority (1) developed a plan to lease, sell, transfer, or destroy the project in consultation with its residents and municipal representatives and (2) made adequate provision for the residents and representatives to participate in the plan.

The bill allows the plan to include constructing certaintypesofhousing to replace existing unitsat aratio ofat least one- to-one.

Specifically, the housing must be subject to an affordable housing deed restriction (see BACKGROUND) for at least 20 years and be owner-occupied single-family or multifamily housing.

A second condition under current law requires a finding by the commissioner that anyone displaced by the action will receive assistance under the Uniform Relocation Assistance Act and will either berelocated to a comparablepublicor subsidizedhousing dwelling unit in the municipality or be given a tenant-based rental subsidy.

The bill additionally allows her to find that someone displaced by the actionwill be relocated to a housing unit within a single-family or multifamily sHB6632 / File No.

727 5 sHB6632 File No.

727 residence in the same municipality that is subject to an affordable housing deed restriction for at least 20 years.

Under existing law, the other two findings that the commissioner must make before approving the action are that (1) an adequate supply of low- or moderate-income rental housing exists in the municipality where the project is located and (2) the action is in the state’s and municipality’s best interests.

*House Amendment “A” adds the requirement that the affordable housing be subject to a deed restriction for at least 20 years.

EFFECTIVE DATE: