HB 5153 — AN ACT CONCERNING ELIGIBILITY FOR WORKFORCE HOUSING DEVELOPMENT PROJECTS.

Substitute House ofBill Representatives File No.

6185153 GeneralPublic AssemblyAct February Session, 2024Reprint of File No.

33)24-86 SubstituteAN HouseACT BillCONCERNING No.ELIGIBILITY FOR WORKFORCE HOUSING DEVELOPMENT PROJECTS.

5153 As Amended by House Amendment Schedule "A" Approved by the Legislative Commissioner April 29, 2024 AN ACT CONCERNING ELIGIBILITY FOR WORKFORCE HOUSING DEVELOPMENT PROJECTS.

(a) As used in this section, (1) "business firm" means (A) any business entity authorized to do business in the state and subject to the corporation business tax imposed under chapter 208, [or] (B) any company subject to a tax imposed under chapter 207, [or] (C) any air carrier subject to the air carriers tax imposed under chapter 209, [or] (D) any railroad company subject to the railroad companies tax imposed under chapter 210, [or] (E) any regulated telecommunications service, express, cable or community antenna television company subject to the regulated telecommunications service, express, cable and community sHB5153antenna /television Filecompanies tax imposed under chapter 211, or (F) any utility company subject to the utility companies tax imposed under chapter 212, (2) "nonprofit corporation" means a nonprofit corporation incorporated pursuant to chapter 602 or any predecessor statutes thereto, having as one of its purposes the construction, rehabilitation, Substitute House Bill No.

6185153 sHB5153ownership Fileor No.operation of housing and having articles of incorporation approved by the executive director of the Connecticut Housing Finance Authority in accordance with regulations adopted pursuant to section 8-79a or 8-84, (3) "workforce housing development project" or "project" meanstheconstructionorsubstantialrehabilitationofdwellingunitsfor rental housing where (A) ten per cent of the units are affordable housing, (B) [forty] fifty per cent of the units are rented to the workforce population designated by the developer, in consultation with the municipality where such project is located, and (C) [fifty] forty per cent of the units are rented at a market rate and includes, but is not limited to, an eligible workforce housing opportunity development project, as defined in section 8-395a, as amended by this act, (4) "affordable housing" means rental housing for which persons and families pay thirty per cent or less of their annual income, where such income is less than or equal to the area median income for the municipality in which such housing is located, as determined by theUnited States Department of Housing and Urban Development, (5) "substantial rehabilitation" means either (A) the costs of any repair, replacement or improvement to a building that exceeds twenty-five per cent of the value of such building after the completion of all such repairs, replacements or improvements, or (B) the replacement of two or more of the following:

618 antenna television companies tax imposed under chapter 211, or (F) any utility company subject to the utility companies tax imposed under chapter 212, (2) "nonprofit corporation" means a nonprofit corporation incorporated pursuant to chapter 602 or any predecessor statutes thereto, having as one of its purposes the construction, rehabilitation, ownership or operation of housing and having articles of incorporation approved by the executive director of the Connecticut Housing Finance Authority in accordance with regulations adopted pursuant to section 8-79a or 8-84, (3) "workforce housing development project" or "project" meanstheconstructionorsubstantialrehabilitationofdwellingunitsfor rental housing where (A) ten per cent of the units are affordable housing, (B) [forty] fifty per cent of the units are rented to the workforce population designated by the developer, in consultation with the municipality where such project is located, and (C) [fifty] forty per cent of the units are rented at a market rate and includes, but is not limited to, an eligible workforce housing opportunity development project, as defined in section 8-395a, as amended by this act, (4) "affordable housing" means rental housing for which persons and families pay thirty per cent or less of their annual income, where such income is less than or equal to the area median income for the municipality in which such housing is located, as determined by theUnited States Department of Housing and Urban Development, (5) "substantial rehabilitation" means either (A) the costs of any repair, replacement or improvement to a building that exceeds twenty-five per cent of the value of such building after the completion of all such repairs, replacements or improvements, or (B) the replacement of two or more of the following:

Subsection (e) of section 8-395a of the 2024 supplement to the general statutes is repealed and the following is substituted in lieu sHB5153thereof /(Effective FileJune No.1, 2024):

618(e)Thedevelopershallobtaintheapprovalofthezoningcommission, sHB5153Public FileAct No.

61824-86 thereof2 (Effectiveof June3 1,Substitute 2024):House Bill No.

(e)Thedevelopershallobtaintheapprovalofthezoningcommission,5153 as defined in section 8-13m, of the municipality and of any other applicable municipal agency for the proposed workforce housing opportunity development project.

ThisApproved actMay shall30, take2024 effectPublic asAct followsNo. and shall amend the following sections:

Section24-86 13 Juneof 1,3 2024 8-395(a) Sec.

2 June 1, 2024 8-395a(e) sHB5153 / File No.

618 3 sHB5153 File No.

618 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 makes a technical change to the state’s Housing Tax Credit Contribution (HTCC) Program, which is not anticipated to have a fiscal impact.

The HTCC program currently reaches the existing and unchanged $10 million aggregate cap on an annual basis.

Under the bill and current law, workforce housing development projects continue to be one type, among others, of housing projects that are eligible to receive cash contributions under the HTCC program.

House “A” makes technical and conforming changes related to the Department of Housing’s Workforce Housing Opportunity Development Projects program, which have no fiscal impact.

The Out Years State Impact:

None Municipal Impact:

None sHB5153 / File No.

618 4 sHB5153 File No.

618 OLR Bill Analysis sHB 5153 (as amended by House "A")* AN ACT CONCERNING ELIGIBILITY FOR WORKFORCE HOUSING DEVELOPMENT PROJECTS.

SUMMARY PA 23-207, § 30, expressly makes investments in “workforce housing development projects” eligible for tax credits under the Connecticut Housing Finance Authority’s (CHFA) Housing Tax Credit Contribution (HTCC) program, effective June 1, 2024.

This bill modifies the set-aside requirements for these projects.

Specifically, the bill:

1.

increases, from 40% to 50%, the share of units that must be rented to a designated workforce population (e.g., teachers and police officers) and 2.

decreases,from50%to40%,theshareofunits thatmustberented at market rate.

As under existing law, the remaining 10% of units must be affordable housing.

Under theHTCC program,CHFA administerstax creditvouchersfor businesses that make cash contributions of at least $250 to nonprofits that develop, sponsor, or manage housing programs benefitting low- and moderate-income households (e.g., affordable housing developments).

The credits apply against various business taxes.

The bill generally aligns the HTCC program’s workforce population and market rate set-aside requirements for workforce housing development projects with those for a similar type of development sHB5153 / File No.

618 5 sHB5153 File No.