Connecticut 2024 Regular Session Status: In Committee 3 D cosponsors

HB 5337 — AN ACT CONCERNING AFFORDABLE HOUSING DEVELOPMENT PRACTICES.

Last action — FILE NO. 65

  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed House
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2024 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there are no live odds of enactment. It would have to be reintroduced in the current session to move again.

Bill Text

What changed in the latest version

136 added · 17 removed

136 line(s) added, 17 removed.

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General Assembly Substitute Bill No.
House of Representatives General Assembly File No.
5337 February Session, 2024 AN ACT CONCERNING AFFORDABLE HOUSING DEVELOPMENT PRACTICES.
65 February Session, 2024 Substitute House Bill No.
5337 House of Representatives, March 20, 2024 The Committee on Housing reported through REP.
FELIPE of the 130th Dist., Chairperson of the Committee on the part of the House, that the substitute bill ought to pass.
AN ACT CONCERNING AFFORDABLE HOUSING DEVELOPMENT PRACTICES.
Subsection (a) of section 8-30g of the general statutes is repealed andthefollowing is substituted inlieuthereof(EffectiveOctober 1, 2024):
Subsection (a) of section 8-30g of the general statutes is repealed andthefollowing issubstituted inlieu thereof(EffectiveOctober 1, 2024):
(3) "Assisted housing" means housing [which] that is receiving, or will receive, financial assistance under any governmental program for the construction or substantial rehabilitation of low and moderate income housing, and any housing occupied by persons receiving rental assistance under chapter 319uu or Section 1437f of Title 42 of the United States Code;
(3) "Assisted housing" means housing [which] that is receiving, or will receive, financial assistance under any governmental program for the construction or substantial rehabilitation of low and moderate sHB5337 / File No.
(4) "Commission" means a zoning commission, planning LCO \\PRDFS1\HCOUSERS\BARRYJN\WS\2024HB-05337-R011 of 5 HB.docx Substitute Bill No.
65 1 sHB5337 File No.
5337 commission, combined planning and zoning commission, zoning board of appeals or municipal agency exercising zoning or planning authority;
65 income housing, and any housing occupied by persons receiving rental assistance under chapter 319uu or Section 1437f of Title 42 of the United States Code;
(4) "Commission" means a zoning commission, planning commission, combined planning and zoning commission, zoning board of appeals or municipal agency exercising zoning or planning authority;
(NEW) (Effective October 1, 2024) (a) Each applicant who submits an affordable housing application to a commission shall provide a surety bond issued by a licensed insurance company, banking institution or surety company authorized to do business in this state, in the amount of one hundred thousand dollars, as surety for the LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2024HB-053372 of 5 R01-HB.docx } Substitute Bill No.
(NEW) (Effective October 1, 2024) (a) Each applicant who sHB5337 / File No.
5337 applicant's development of the project as specified in such application.
65 2 sHB5337 File No.
65 submits an affordable housing application to a commission shall provide a surety bond issued by a licensed insurance company, banking institution or surety company authorized to do business in this state, in the amount of one hundred thousand dollars, as surety for the applicant's development of the project as specified in such application.
(v) site preparation and finishing work;
(v) site preparation and sHB5337 / File No.
and (vi) all fees and expenses associated with the capital cost of such improvements, including, but not limited to, licensing and permitting expenses and planning, engineering, architectural, testing, LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2024HB-053373 of 5 R01-HB.docx } Substitute Bill No.
65 3 sHB5337 File No.
5337 legal and accounting expenses;
65 finishing work;
and (vi) all fees and expenses associated with the capital cost of such improvements, including, but not limited to, licensing and permitting expenses and planning, engineering, architectural, testing, legal and accounting expenses;
[and] (3) Costs related to economic development, environmental improvements or employment training associated with the tax increment district, including, but not limited to, (A) economic LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2024HB-053374 of 5 R01-HB.docx } Substitute Bill No.
[and] (3) Costs related to economic development, environmental sHB5337 / File No.
5337 development programs or events related to the tax increment district;
65 4 sHB5337 File No.
65 improvements or employment training associated with the tax increment district, including, but not limited to, (A) economic development programs or events related to the tax increment district;
-LCO LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2024HB-05337- 5 of 5 R01-HB.docx }
-LCO sHB5337 / File No.
65 5 sHB5337 File No.
65 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:
Municipalities Effect FY 25 $ FY 26 $ All Municipalities Potential See Below See Below Revenue Gain Explanation The bill (1) requires applicants for certain proposed affordable housing developments to provide a $100,000 surety bond with their application, and (2) expands the use of district master plan funds from tax increment financing districts.
This results in a potentialrevenue gain for municipalities beginning in FY 25 to the extent that municipalities take action to collect the surety bond if and when developers withdraw an application.
The bill may also result in municipalities using funds from district master plan funds more quickly.
This will only impact municipalities that have established tax increment financing districts.
The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to the number of surety bonds that are collected.
sHB5337 / File No.
65 6 sHB5337 File No.
65 OLR Bill Analysis sHB 5337 AN ACT CONCERNING AFFORDABLE HOUSING DEVELOPMENT PRACTICES.
SUMMARY This bill makes two separate changes related to the state’s affordable housing laws.
Specifically, it (1) requires developers to provide a surety bond in conjunction with their application to build an affordable housing development under the affordable housing land use appeals procedure (CGS § 8-30g;
hereinafter “8-30g”) and (2) authorizes municipalities to use tax increment district funds to renovate certain 8- 30g deed-restricted affordable housing in exchange for the owner renewing the development’s affordability restrictions.
The bill also makes technical and conforming changes.
EFFECTIVE DATE:
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October 1, 2024 SURETY BOND REQUIREMENT FOR AFFORDABLE HOUSING DEVELOPMENTS The bill requires an applicant (i.e., developer) for a proposed affordable housing development under 8-30g (see BACKGROUND) to provide a $100,000 surety bond in favor of the commission’s municipality.
A “commission” means a municipality’s zoning commission, planning commission, combined planning and zoning commission, zoning board of appeals,or other agency exercising zoning or planning authority.
The bond, which acts as surety for the developer’s construction of the project as described in the application, must (1) be issued by a licensed insurance company, banking institution, or surety company authorized to do business in Connecticut and (2) have a one-year effective period.
sHB5337 / File No.
65 7 sHB5337 File No.
65 The bill allows a municipality to take action to collect on the bond if the developer withdraws the application without good cause, as determinedbythecommission.Municipalitiesmustuserecoveredbond proceeds only for (1) making capital improvements to public property, (2) acquiring or preserving land designated as open space, or (3) developing affordable housing (i.e., that for which households earning no more than the federally determined area median income pay 30% or less of their annual income).
TAX INCREMENT DISTRICT FUNDING FOR AFFORDABLE HOUSING RENOVATION By law, municipalities that have adopted a tax increment district generally must establish a “district master plan fund” (see BACKGROUND).
Current law limits the use of the fund to paying for specified categories of expenses, including costs (1) of certain improvements made in the district, or outside the district that are directly related to or necessary for establishing or operating the district, and (2) related to economic development, environmental improvements, or employment training associated with the district.
The bill allows municipalities to also use the fund for improvement costs outside the district for renovating or rehabilitating certain 8-30g “set-aside developments” (i.e., deed-restricted affordable housing;
see BACKGROUND).
A municipality can do so if the (1) development’s affordability deed restrictions will expire in three years or less and (2) improvement costs are paid based on an agreement between the municipality and the development’s owner that the owner will renew the deed restrictions for at least 40 years.
BACKGROUND Affordable Housing Developments By law, an affordable housing development under 8-30g means “assisted housing” or a “set-aside development.” The former is generally certain government-assisted housing or housing occupied by people receiving rental assistance.
The latter is a development in which, for at least 40 years after initial occupancy, at least 30% of the units are sHB5337 / File No.
65 8 sHB5337 File No.
65 deed restricted based on specified household income limits.
8-30g requires commissions to defend their decisions to reject affordable housing applicationsor approvethemwithcostly conditions.
In traditional land use appeals, the developer must convince the court that the municipality acted illegally, arbitrarily, or abused its discretion.
The 8-30g procedure instead places the burden of proof on municipalities.
Tax Increment Districts Existing law allows municipalities, through their legislative bodies, to establish a tax increment district (generally known as a tax increment financing (TIF) district) to finance economic development projects in eligible areas (CGS § 7-339cc et seq.).
It requires them to adopt a district master plan for the district and a statement of the percentage or amount of increased assessed value that will be designated as “captured assessed value” under the plan (i.e., the percentage or amount of the incremental increase in property values that is used from year to year to finance the plan’s project costs).
Municipalities generally must establish a “district master plan fund” for depositing incremental tax revenues and paying project costs.
They must also deposit any benefit assessments imposed on real property in the district.
COMMITTEE ACTION Housing Committee Joint Favorable Yea 14 Nay 1 (03/07/2024) sHB5337 / File No.
65 9
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Action History

  1. FILE NO. 65

  2. HOUSE CALENDAR NUMBER 77

  3. FAV. RPT., TABLED FOR HOUSE CALENDAR

  4. RPTD. OUT OF LCO

  5. REFERRED TO Office of Legislative Research AND Office of Fiscal Analysis 03/19/24

  6. FILED WITH LCO

  7. Joint Favorable

  8. PUBLIC HEARING 0305

  9. REF. TO JOINT COMM. ON Housing

Sponsors

Sponsorship breakdown

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3 sponsors · 0 co-sponsors · 184 not signed on

Sponsors (3)

Co-sponsors (0)

None.

Not signed on (184)

184 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

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Subjects

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Frequently asked questions

Who sponsors HB 5337?
HB 5337 is sponsored by Raghib Allie-Brennan (Democratic), Jason Rojas (Democratic), and Antonio Felipe (Democratic).
What is the current status of HB 5337?
This bill died with 2024 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track HB 5337?
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