SB 6 — AN ACT CONCERNING HOUSING.

Any owner eligible to apply for a tax credit voucher pursuant to this section shall be eligible for such voucher in an amount equal to ten per cent of the total qualified conversion expenditure.

(d) Prior to beginning any conversionwork ona commercial building for which an owner will seek a tax credit voucher under this section, such owner shall submit a conversion plan to the commissioner (1) a conversion plan for a determination of whether such conversion plan meets theany standards developed under the provisions of subsections (c) and (k) of this sectionsection, and(2) shall also submit to the commissioner an estimate of the qualified conversion expenditures made, and (3) any other information prescribed by the commissioner.

Not later than sixty days after receipt of such plan, estimate of qualified conversion expenditures and other suchinformation, information prescribed by the commissioner, the commissioner shall determine whether such plan conforms to the standards developed under the provisions of subsections (c) and (k) of this section.

LCO(e) If the commissioner certifies that the conversion plan conforms to the standards developed under the provisions of subsections (c) and (k) of this section, the commissioner shall reserve for the benefit of the owner an allocation for a tax credit equivalent to ten per cent of the sSB6 / File No.

182092 7 ofsSB6 47File CommitteeNo. Bill No.6 (e) If the commissioner certifies that the conversion plan conforms to the standards developed under the provisions of subsections (c) and (k) of this section, the commissioner shall reserve for the benefit of the owner an allocation for a tax credit equivalent to ten per cent of the projected qualified conversion expenditures.

92 projected qualified conversion expenditures.

(g) The owner of a commercial building converted into a residential development shall not be eligible for a tax credit voucher under subsections (c)(f) and (k)(h) of this section, unless the owner incurs qualified conversion expenditures exceeding fifteen thousand dollars.

(A) (i) For a taxpayer described under subparagraph (A) of subdivision (7) of subsection (a) of this section holding a tax credit voucher issued on or after January 1, 2025, under subsections (b) to (g), LCOinclusive, No.of this section, against the tax imposed under chapter 229 of the general statutes in the amount specified in the tax credit voucher.

1820(ii) 8If the amount of 47the Committeetax Billcredit No.6voucher inclusive,exceeds ofthe thistaxpayer's section,liability againstfor the tax imposed under chapter 229 of the general statutesstatutes, insSB6 the/ amountFile specifiedNo. in the tax credit voucher.

(ii)92 If8 thesSB6 amountFile ofNo. the tax credit voucher exceeds the taxpayer's liability for the tax imposed under chapter 229 of the general statutes, the Commissioner of Revenue Services shall treat such excess as an overpayment and, except as provided under section 12-739 or 12-742 of the general statutes, shall refund the amount of such excess, without interest, to the taxpayer;

92 the Commissioner of Revenue Services shall treat such excess as an overpayment and, except as provided under section 12-739 or 12-742 of the general statutes, shall refund the amount of such excess, without interest, to the taxpayer;

(2)The Commissioner ofHousing shallprovidea copy ofthevoucher to the Commissioner of Revenue ServicesServices, upon the request of the Commissioner of Revenue Services.

(j) The aggregate amount of all tax credits that may be reserved by the Commissioner of Housing upon certification of conversion plans under the provisions of subsections (b) to (d), inclusive, of this section shall not exceed three million dollars in any one fiscal year.

(k) The Commissioner of Housing may, in consultation with the Commissioner of Revenue Services, adopt regulations in accordance with the provisions of chapter 54 of the general statutes to carry out the LCOpurposes No.of this section.

1820 9 of 47 Committee Bill No.

6 purposes of this section.

Section 12-494 of the 2024 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2024):2024, and applicable to conveyances occurring on or after said date):

(a)sSB6 There/ isFile imposedNo. a tax on each deed, instrument or writing, whereby any lands, tenements or other realty is granted, assigned, transferred or otherwise conveyed to, or vested in, the purchaser, or any other person by such purchaser's direction, when the consideration for the interest or property conveyed equals or exceeds two thousand dollars:

(1)92 Subject9 tosSB6 theFile provisionsNo. of [subsection] subsections (b) and (c) of this section, at the rate of three-quarters of one per cent of the consideration for the interest in real property conveyed by such deed, instrument or writing, the revenue from which shall be remitted by the town clerk of the municipality in which such tax is paid, not later than ten days following receipt thereof, to the Commissioner of Revenue Services for deposit to the credit of the state General Fund;

92 (a) There is imposed a tax on each deed, instrument or writing, whereby any lands, tenements or other realty is granted, assigned, transferred or otherwise conveyed to, or vested in, the purchaser, or any other person by such purchaser's direction, when the consideration for the interest or property conveyed equals or exceeds two thousand dollars:

(1) Subject to the provisions of [subsection (b)] subsections (b) and (c) of this section, at the rate of three-quarters of one per cent of the consideration for the interest in real property conveyed by such deed, instrument or writing, the revenue from which shall be remitted by the town clerk of the municipality in which such tax is paid, not later than ten days following receipt thereof, to the Commissioner of Revenue Services for deposit to the credit of the state General Fund;

For the purposes of this LCOsubdivision, No."unimproved land" includes land designated as farm, forest or open space land;

1820(2) 10[In] Except as provided in subsection (c) of 47this Committeesection, Billin the case of any conveyance to a purchaser who is an individual and in which the real property conveyed is [a] residential real estate, including a primary dwelling and any auxiliary housing or structures, regardless of the sSB6 / File No.

692 subdivision,10 "unimprovedsSB6 land"File includesNo. land designated as farm, forest or open space land;

(2)92 [In] Except as provided in subsection (c) of this section, in the case of any conveyance in which the real property conveyed is a residential estate, including a primary dwelling and any auxiliary housing or structures, regardless of the number of deeds, instruments or writings used to convey such residential real estate, for which the consideration or aggregate consideration, as the case may be, in such conveyance is eight hundred thousand dollars or more, the tax under said subdivision (1) shall be imposed:

[For the purposes of subdivision (1) of this subsection, "unimproved land" includes land designated as farm, forest or open space land.] LCO(c) No.On and after October 1, 2024, in the case of any conveyance of real property that is residential real estate to a purchaser that is not an individual, regardless of the number of deeds, instruments or writings used to convey such residential real estate, in lieu of the rate under subdivision (1) of subsection (a) of this section or subdivision (2) of subsection (b) of this section, the rate of tax imposed on such purchaser of real property shall be:

1820sSB6 11/ ofFile 47No. Committee Bill No.6 (c) On and after October 1, 2024, for a purchaser that is not an individual, in the case of any conveyance in which the real property conveyed is residential real estate, regardless of the number of deeds, instruments or writings used to convey such residential real estate, in lieu of the rate under subdivision (1) of subsection (a) of this section or subdivision (2) of subsection (b) of this section, the rate of tax imposed on such purchaser of the real property shall be:

(1)92 At11 thesSB6 rateFile ofNo. one and three-quarters per cent on that portion of such consideration up to and including the amount of eight hundred thousand dollars;

92 (1) At the rate of one and three-quarters per cent on that portion of such consideration up to and including the amount of eight hundred thousand dollars;

On and after July 1, 2026, the threshold amount in this LCOsubsection No.shall be adjusted annually by the percentage increase in inflation.

1820 12 of 47 Committee Bill No.6 subsection shall be adjusted annually by the percentage increase in inflation.

Subdivision (1) of section 12-408 of the 2024 supplement to the general statutes is repealed and the following is substituted in lieu thereofsSB6 (Effective/ JulyFile 1,No. 2024, and applicable to sales occurring on or after July 1, 2024):

(1)92 (A)12 ForsSB6 theFile privilegeNo. of making any sales, as defined in subdivision (2) of subsection (a) of section 12-407, at retail, in this state for a consideration, a tax is hereby imposed on all retailers at the rate of six and thirty-five-hundredths per cent of the gross receipts of any retailer from the sale of all tangible personal property sold at retail or fromtherendering ofany servicesconstituting asaleinaccordance with subdivision (2) of subsection (a) of section 12-407, except, in lieu of said rate, the rates provided in subparagraphs (B) to (I), inclusive, of this subdivision;

92 thereof (Effective July 1, 2024, and applicable to sales occurring on or after July 1, 2024):

(1) (A) For the privilege of making any sales, as defined in subdivision (2) of subsection (a) of section 12-407, at retail, in this state for a consideration, a tax is hereby imposed on all retailers at the rate of six and thirty-five-hundredths per cent of the gross receipts of any retailer from the sale of all tangible personal property sold at retail or fromtherendering ofany servicesconstituting asaleinaccordance with subdivision (2) of subsection (a) of section 12-407, except, in lieu of said rate, the rates provided in subparagraphs (B) to [(I)] (J), inclusive, of this subdivision;

(C) With respect to the sale of a motor vehicle to any individual who is a member of the armed forces of the United States and is on full-time active duty in Connecticut and who is considered, under 50 App USC 574, a resident of another state, or to any such individual and the spouse LCOthereof, No.at a rate of four and one-half per cent of the gross receipts of any retailer from such sales, provided such retailer requires and maintains a declaration by such individual, prescribed as to form by the commissioner andbearing notice totheeffect that false statementsmade in such declaration are punishable, or other evidence, satisfactory to the commissioner, concerning the purchaser's state of residence under 50 App USC 574;

1820(D) 13(i) ofWith 47respect Committeeto Bill No.6 thereof, at a rate of four and one-half per cent of the grosssales receipts of anycomputer retailer from such sales, provided such retailer requires and maintainsdata aprocessing declarationservices byoccurring suchon individual, prescribed as to form by the commissioner andbearing notice totheeffect that false statementsmade in such declaration are punishable, or otherafter evidence,July satisfactory1, to2001, theat commissioner, concerning the purchaser'srate state of residenceone underper 50cent, Appand USCsSB6 574;/ File No.

(D)92 (i)13 WithsSB6 respectFile toNo. the sales of computer and data processing services occurring on or after July 1, 2001, at the rate of one per cent, and (ii) with respect to sales of Internet access services, on and after July 1, 2001, such services shall be exempt from such tax;

(E)(i)Withrespect92 to(ii) thesalesofwith laborthatisotherwiserespect taxableunderto subparagraphsales (C) or (G) of subdivisionInternet (2)access ofservices, subsection (a) of section 12-407 on existing vessels and repair or maintenance services on vessels occurring on and after July 1, 1999,2001, such services shall be exempt from such tax;

(E)(i)Withrespect to thesalesoflaborthatisotherwise taxableunder subparagraph (C) or (G) of subdivision (2) of subsection (a) of section 12-407 on existing vessels and repair or maintenance services on vessels occurring on and after July 1, 1999, such services shall be exempt from such tax;

(G) With respect to the rental or leasing of a passenger motor vehicle LCOfor No.a period of thirty consecutive calendar days or less, at a rate of nine and thirty-five-hundredths per cent;

1820(H) 14With respect to the sale of 47(i) Committeea Billmotor No.6vehicle for a periodsales price exceeding fifty thousand dollars, at a rate of thirtyseven consecutiveand calendarthree-fourths daysper cent on the entire sales price, (ii) jewelry, whether real or less,imitation, for a sales price exceeding five thousand dollars, at a rate of nineseven and thirty-five-hundredthsthree-fourths per cent;cent on the entire sales price, and (iii) an article of clothing or footwear intended to be worn on or about the human body, a handbag, luggage, umbrella, wallet or watch for a sales price exceeding one thousand dollars, at a rate of seven and three-fourths per sSB6 / File No.

(H)92 With14 respectsSB6 toFile theNo. sale of (i) a motor vehicle for a sales price exceeding fifty thousand dollars, at a rate of seven and three-fourths per cent on the entire sales price, (ii) jewelry, whether real or imitation, for a sales price exceeding five thousand dollars, at a rate of seven and three-fourths per cent on the entire sales price, and (iii) an article of clothing or footwear intended to be worn on or about the human body, a handbag, luggage, umbrella, wallet or watch for a sales price exceeding one thousand dollars, at a rate of seven and three-fourths per cent on the entire sales price.

92 cent on the entire sales price.

(J) With respect to the sale of tangible personal property purchased for the construction of a new residential development project, at the rate of three per cent, provided such project contains not fewer than fifty dwelling units of affordable housing, as defined in section 8-39a, except that the provisionsprovisionsofthissubparagraphshallnotapplytoaprojectthatqualifies of this subparagraph shall not apply to a project that qualifies for an exemption under section 12-412, as amended by this act;

LCO[(J)] No.(K) The rate of tax imposed by this chapter shall be applicable to all retail sales upon the effective date of such rate, except that a new rate that represents an increase in the rate applicable to the sale shall not apply to any sales transaction wherein a binding sales contract without an escalator clause has been entered into prior to the effective date ofthe new rate and delivery is made within ninety days after the effective date of the new rate.

1820For 15the purposes of 47payment Committeeof Billthe tax imposed under this section, any retailer of services taxable under subdivision (37) of subsection (a) of section 12-407, who computes taxable income, for purposes of taxation under the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, sSB6 / File No.

692 [(J)]15 (K)sSB6 TheFile rateNo. of tax imposed by this chapter shall be applicable to all retail sales upon the effective date of such rate, except that a new rate that represents an increase in the rate applicable to the sale shall not apply to any sales transaction wherein a binding sales contract without an escalator clause has been entered into prior to the effective date ofthe new rate and delivery is made within ninety days after the effective date of the new rate.

For92 the purposes of payment of the tax imposed under this section, any retailer of services taxable under subdivision (37) of subsection (a) of section 12-407, who computes taxable income, for purposes of taxation under the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time, on an accounting basis that recognizes only cash or other valuable consideration actually received as income and who is liable for such tax only due to the rendering of such services may make payments related to such tax for the period during which such income is received, without penalty or interest, without regard to when such service is rendered;

[(L)] (M) (i) For calendar months commencing on or after July 1, 2021, but prior to July 1, 2023, the commissioner shall deposit into the municipalrevenue sharing account establishedpursuant to section4-66l sevenandnine-tenthsseven andnine-tenths per cent oftheamountsreceivedby thestate from the statetax fromimposed LCOunder No.subparagraph (A) of this subdivision, including such amounts received on or after July 1, 2023, attributable to the fiscal year ending June 30, 2023;

1820 16 of 47 Committee Bill No.6 the tax imposed under subparagraph (A) of this subdivision, including such amounts received on or after July 1, 2023, attributable to the fiscal year ending June 30, 2023;

and [(M)](N)(i)For calendar monthscommencing onorafterJuly 1,2017,1, 2017, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 seven and nine-tenths per cent of the amountssSB6 received/ byFile theNo. state from the tax imposed under subparagraph (A) of this subdivision;

92 16 sSB6 File No.

92 amounts received by the state from the tax imposed under subparagraph (A) of this subdivision;

LCO(v) No.For calendar months commencing on or after July 1, 2021, but prior to July 1, 2022, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 seventy-five per cent of the amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the sale of a motor vehicle;

1820 17 of 47 Committee Bill No.6 (v) For calendar months commencing on or after July 1, 2021, but prior to July 1, 2022, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 seventy-five per cent of the amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the sale of a motor vehicle;

Sec.sSB6 / File No.

92 17 sSB6 File No.

92 Sec.

LCO(ii) No.At a rate of eleven per cent of the rent paid to a bed and breakfast establishment for the first period not exceeding thirty consecutive calendar days;

1820(C) 18With respect to the storage, acceptance, consumption or use in this state of 47a Committeemotor Billvehicle No.6purchased (ii)from Atany retailer for storage, acceptance, consumption or use in this state by any individual who is a ratemember of eleventhe perarmed centforces of the rentUnited paidStates toand is on full-time active duty in Connecticut and who is considered, under 50 App USC 574, a bedresident of another state, or to any such individual and breakfastthe establishmentspouse forofsuchindividualata rate offourandone-halfpercentofthesalesprice of such vehicle, provided such retailer requires and maintains a declaration by such individual, prescribed as to form by the firstcommissioner periodandbearing notnotice exceedingtotheeffect thirtythat consecutivefalse calendarstatementsmade days;sSB6 / File No.

(C)92 With18 respectsSB6 toFile theNo. storage, acceptance, consumption or use in this state of a motor vehicle purchased from any retailer for storage, acceptance, consumption or use in this state by any individual who is a member of the armed forces of the United States and is on full-time active duty in Connecticut and who is considered, under 50 App USC 574, a resident of another state, or to any such individual and the spouse ofsuchindividualata rateoffourandone-halfpercentofthesalesprice of such vehicle, provided such retailer requires and maintains a declaration by such individual, prescribed as to form by the commissioner andbearing notice totheeffect that false statementsmade in such declaration are punishable, or other evidence, satisfactory to the commissioner, concerning the purchaser's state of residence under 50 App USC 574;

92 in such declaration are punishable, or other evidence, satisfactory to the commissioner, concerning the purchaser's state of residence under 50 App USC 574;

(III)Withrespecttothestorage,acceptanceorotheruseofdyeddiesel fuel, as defined in subsection (d) of section 12-487, exclusively for LCOmarine No.purposes, at the rate of two and ninety-nine-hundredths per cent;

1820 19 of 47 Committee Bill No.

6 marine purposes, at the rate of two and ninety-nine-hundredths per cent;

(F) With respect to the acceptance or receipt in this state of patient care services purchased from any retailer for consumption or use in this state for which payment is received by the hospital on or after July 1, 1999, and prior to July 1, 2001, at the rate of five and three-fourths per cent and on and after July 1, 2001, such services shall be exempt from suchsSB6 tax;/ File No.

92 19 sSB6 File No.

92 such tax;

For purposes of this subparagraph, "motor vehicle" has the meaning provided in section 14- 1, but does not include a motor vehicle subject to the provisions of subparagraph (C) of this subdivision, a motor vehicle having a gross vehicle weight rating over twelve thousand five hundred pounds, or a motor vehicle having a gross vehicle weight rating of twelve thousand five hundred pounds or less that is not used for private passenger LCOpurposes, No.but is designed or used to transport merchandise, freight or persons in connection with any business enterprise and issued a commercial registration or more specific type of registration by the Department of Motor Vehicles;

1820 20 of 47 Committee Bill No.6 purposes, but is designed or used to transport merchandise, freight or persons in connection with any business enterprise and issued a commercial registration or more specific type of registration by the Department of Motor Vehicles;

(J) With respect to the storage, use or other consumption of tangible personalproperty for theconstructionofanewresidentialdevelopment project at the rate of three per cent, provided such project contains not fewersSB6 than/ fiftyFile dwellingNo. units of affordable housing, as defined in section 8-39a, except that the provisions of this subparagraph shall not apply to a project that qualifies for an exemption under section 12-412, as amended by this act;

92 20 sSB6 File No.

92 fewer than fifty units of affordable housing, as defined in section 8-39a, except the provisions of this subparagraph shall not apply to a project that qualifies for an exemption under section 12-412, as amended by this act;

[(K)] (L) (i) For calendar months commencing on or after July 1, 2021, but prior to July 1, 2023, the commissioner shall deposit into the LCOmunicipalrevenue No.sharing account establishedpursuant to section4-66l sevenandnine-tenths per cent oftheamountsreceivedby thestate from the tax imposed under subparagraph (A) of this subdivision, including such amounts received on or after July 1, 2023, attributable to the fiscal year ending June 30, 2023;

1820 21 of 47 Committee Bill No.6 municipalrevenue sharing account establishedpursuant to section4-66l sevenandnine-tenths per cent oftheamountsreceivedby thestate from the tax imposed under subparagraph (A) of this subdivision, including such amounts received on or after July 1, 2023, attributable to the fiscal year ending June 30, 2023;

(ii)sSB6 For/ calendarFile monthsNo. commencing on or after July 1, 2018, but prior to July 1, 2019, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 eight per cent of the amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the acceptance or receipt in this state of a motor vehicle;

92 21 sSB6 File No.

92 (ii) For calendar months commencing on or after July 1, 2018, but prior to July 1, 2019, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 eight per cent of the amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the acceptance or receipt in this state of a motor vehicle;

(iv) For calendar months commencing on or after July 1, 2020, but prior to July 1, 2021, the commissioner shall deposit into the Special Transportation Fund established under section 13b-68 twenty-five per cent of the amounts received by the state from the tax imposed under subparagraphs (A) and (H) of this subdivision on the acceptance or LCOreceipt No.in this state of a motor vehicle;

1820 22 of 47 Committee Bill No.6 receipt in this state of a motor vehicle;

ThesSB6 Secretary/ ofFile theNo. Office of Policy and Management may establish receivables for the revenue anticipated pursuant to subparagraph [(K)] (L) of subdivision (1) of section 12-408, as amended by this act, and section 4-66l.

92 22 sSB6 File No.

92 The Secretary of the Office of Policy and Management may establish receivables for the revenue anticipated pursuant to subparagraph [(K)] (L) of subdivision (1) of section 12-408, as amended by this act, and section 4-66l.

Such study shall include an examination of (1) the likelihood that prospective tenants whoserentalapplicationshavebeendeniedbyalandlordwouldreceive approval from such landlord if such tenants could provide advance rental payments in addition to a security deposit, (2) potential reasons a landlord may require advance rental payments from a tenant, (3) any potential financial burdens upon tenants resulting from allowing advance rental payments to landlords, and (4) the effect advance rental payments may have on housing availability in the state.

LCO(b) No.Not later than January 1, 2025, the commissioner shall submit a report, in accordance with the provisions of section 11-4a of the general statutes, to the joint standing committee of the General Assembly having cognizance of matters relating to housing containing the findings of such study and any legislation recommended by the commissioner.

1820 23 of 47 Committee Bill No.6 (b) Not later than January 1, 2025, the commissioner shall submit a report, in accordance with the provisions of section 11-4a of the general statutes, to the joint standing committee of the General Assembly having cognizance of matters relating to housing containing the findings of such study and any legislation recommended by the commissioner.

Subdivision (4) of section 12-81 of the 2024 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2024, and applicable to grandassessment list years on and after October 1, 2024):

(4) (A) Except as otherwise provided by law, personal property belonging to, held in trust for, or leased to, a municipal corporation of this state and used for a public purpose, including personal property used for cemetery purposes, and (B) real property belonging to, held in trust for, or leased to, a municipal corporation of this state and used for (i) a public purpose, including real property used for cemetery purposes, (ii) workforce housing, as defined in section 8-395, or (iii) affordablehousingasdefinedinsection8-39a,providedanysuchleasedsSB6 personal/ property,File including,No. but not limited to, motor vehicles subject to the provisions of section 12-71 and any such leased real property is located within the boundaries of such municipal corporation;

92 23 sSB6 File No.

92 affordablehousingasdefinedinsection8-39a,providedanysuchleased personal property, including, but not limited to, motor vehicles subject to the provisions of section 12-71 and any such leased real property is located within the boundaries of such municipal corporation;

[(a)] (1) "Area of operation" [includes the municipality in which a housing authority is created under the provisions of this chapter and may include a neighboring municipality, provided the governing body of such neighboring municipality agrees by proper resolution to the extension of the area of operation to include such neighboring LCOmunicipality] No.means a municipal area of operation and, if adopted by a housing authority, includes an expanded area of operation.

1820 24 of 47 Committee Bill No.6 municipality] means a municipal area of operation and, if adopted by a housing authority, includes an expanded area of operation.

(B) any business corporation incorporated pursuant to chapter 601 or any predecessor statutes thereto, having as one of its purposes the construction, rehabilitation, ownership or operation of housing, and having its articles of incorporation approved by the CommissionersSB6 of/ HousingFile inNo. accordance with regulations adopted pursuant to section 8-79a or 8-84;

92 24 sSB6 File No.

92 Commissioner of Housing in accordance with regulations adopted pursuant to section 8-79a or 8-84;

(6) "Expanded area of operation" means an area in a municipality, other than the municipality adoptedin bywhich athe housing authority underis sectionlocated, 8-40,adopted asby amendedsuch byhousing thisauthority, act,provided such other thanmunicipality thehas municipalityadopted inan whichagreement thepursuant housingto authoritysubsection is(c) LCOof No.section 8-40, as amended by this act.

1820 25 of 47 Committee Bill No.6 located.

[(h)]sSB6 (11)/ "GoverningFile body"No. means, for towns having a town council, the council;

92 25 sSB6 File No.

92 [(h)] (11) "Governing body" means, for towns having a town council, the council;

[(i)] (12) "Housing project" means any work or undertaking [(1)] to (1)(A) [to] demolish, clear or remove buildings from any slum area, which work or undertaking may embrace the adaptation of such area to public purposes, including parksor otherrecreationalor community purposes;

[or][or (2) [to]to] (B) provide decent, safe and sanitary urban or rural dwellings, apartments or other living accommodations for families of low or moderate income, which work or undertaking may include buildings, land, equipment, facilities and other real or personal property for necessary, convenient or desirable appurtenances, streets, sewers, water service, parks, site preparation, gardening, administrative, community, LCOrecreational, No.commercial or welfare purposes and may include the acquisition and rehabilitation of existing dwelling units or structures to be used for moderate or low rental units;

1820 26 of 47 Committee Bill No.6 recreational, commercial or welfare[(3) purposesto] and(C) mayaccomplish includea thecombination acquisition and rehabilitation of existingthe dwellingforegoing. units or structures to be used for moderate or low rental units;

or (3) [to] accomplish a combination of the foregoing.

and "moderate rental housing project" means a housing project,sSB6 receiving/ stateFile aidNo. in the form of loans or grants, for families unable to pay more than moderate rental.

92 26 sSB6 File No.

92 project, receiving state aid in the form of loans or grants, for families unable to pay more than moderate rental.

(15) "Municipal area of operation" includes the municipality in which LCOa No.housing authority is created under the provisions of this chapter and may include any other municipality, as provided in section 8-40, as amended by this act.

1820(16) 27"Municipal ofdeveloper" 47means Committeea Billmunicipality No.6that has not declared by resolution a need for a housing authority pursuant to section8-40, asamendedby thisact,acting byandthroughitslegislative body, exceptthatinany towninwhichatownmeetingorrepresentative town meeting is createdthe underlegislative body, "municipal developer" means the provisionsboard of thisselectmen chapterif andsuch mayboard includeis anyauthorized otherto municipality,act as providedthe inmunicipal sectiondeveloper 8-40,by asthe amendedtown bymeeting thisor act.representative town meeting.

(16) "Municipal developer" means a municipality that has not declared by resolution a need for a housing authority pursuant to section8-40, asamendedby thisact,acting byandthroughitslegislative body, exceptthatin any towninwhichatownmeetingorrepresentative town meeting is the legislative body, "municipal developer" means the board of selectmen if such board is authorized to act as the municipal developer by the town meeting or representative town meeting.

[(m)]sSB6 (19)/ "ObligeeFile ofNo. the authority" or "obligee" includes any bondholder, trustee or trustees for any bondholders, or lessor demising to the authority property used in connection with a housing project, or any assignee or assignees of such lessor's interest or any part thereof, and the state or federal government when it is a party to any contract with the authority.

92 27 sSB6 File No.

92 [(m)] (19) "Obligee of the authority" or "obligee" includes any bondholder, trustee or trustees for any bondholders, or lessor demising to the authority property used in connection with a housing project, or any assignee or assignees of such lessor's interest or any part thereof, and the state or federal government when it is a party to any contract with the authority.

LCO[(o)] No.(21) "Rent" means the entire amount paid to an authority for any dwelling unit.

1820 28 of 47 Committee Bill No.6 [(o)] (21) "Rent" means the entire amount paid to an authority for any dwelling unit.

[(q)] (23) "Slum" means any area where dwellings predominate which, by reason of dilapidation, overcrowding, faulty arrangement or design,lack ofventilation,light or sanitary facilities,orfacilities, or any combination of these factors, are detrimental to safety, health and morals.

(u)sSB6 "Eligible/ developer"File orNo. "developer" means (1) a nonprofit corporation;

92 28 sSB6 File No.

92 (u) "Eligible developer" or "developer" means (1) a nonprofit corporation;

(5) a family or person LCOapproved No.by the commissioner as qualified to own, construct, rehabilitate,manageandmaintainhousingunderamortgageloanmade or insured under an agreement entered into pursuant to the provisions of this chapter;

1820 29 of 47 Committee Bill No.6 approved by the commissioner as qualified to own, construct, rehabilitate,manageandmaintainhousingunderamortgageloanmade or insured under an agreement entered into pursuant to the provisions of this chapter;

(x) "Municipal developer" means a municipality, as defined in subsection(l)ofthissection,whichhasnotdeclaredbyresolutionaneed for a housing authority pursuant to section 8-40, acting by and through its legislative body, except that in any town in which a town meeting or representativesSB6 town/ meetingFile isNo. the legislative body, "municipal developer" means the board of selectmen if such board is authorized to act as the municipal developer by the town meeting or representative town meeting.] Sec.

92 29 sSB6 File No.

92 representative town meeting is the legislative body, "municipal developer" means the board of selectmen if such board is authorized to act as the municipal developer by the town meeting or representative town meeting.] Sec.

(a) In each municipality of the state there is created a public body corporate and politic to be known as the "housing authority" of the municipality, [;] provided such authority shall not transact any business or exercise itspowers [hereunder]under this section untilthe governing LCObody No.of the municipality by resolution declares that there is need for a housing authority in the municipality.

1820 30 of 47 Committee Bill No.6 body of the municipality by resolution declares that there is need for a housing authority in the municipality.

The area of operation of such authority shall include the municipalities for which such authority is createdcreated, andprovided, anyin expandedthe case of a municipal area of operation adoptedthat byincludes any other municipality, such authority.other municipality agrees by proper resolution and adoption of an sSB6 / File No.

Such92 authority30 shallsSB6 actFile throughNo. a board of commissioners composed of two representatives from each municipality appointed for terms of four years in the manner provided in section 8-41.

(c)92 Anyagreementtotheexpansionoftheareaofoperationincluding housingsuchother authoritymunicipality. or regional housing authority established pursuant to this section may adopt an expanded area of operation.

Suchauthorityshallact throughaboardofcommissioners composed of two representatives from each municipality appointed for terms of four years in the manner provided in section 8-41.

(c) (1) Any housing authority may adopt an expanded area of operation, provided the governing body of the municipality to be included in the expanded area of operation, at its sole discretion after evaluating the housing needs of the municipality and the qualifications ofthehousingauthority,adoptsanagreementauthorizingsuchhousing authority to operate in the municipality as an expanded area of operation.

(2) If the governing body of such municipality does not adopt an agreement with a housing authority that requests such agreement pursuant to subdivision (1) of this subsection, the governing body's failure to adopt such agreement shall not be construed to be a violation of section 8-30g or of any other provision of the general statutes.

(a)Any housing authority createdbysection8-40,asamendedby this act, shall have the power to establish and maintain a housing authority police force, [the] except that no housing authority shall have the power LCOto No.establish or maintain a housing authority police force in an expanded area of operation.

1820 31 of 47 Committee Bill No.6 to establish or maintain a housing authority police force in an expanded area of operation.

No person shall be appointed to such housing authority police force unless [he] such person has been awarded a certificate attesting to [his] such person's successfulsSB6 completion/ ofFile anNo. approved municipal police basic training program, as provided in section 7-294e.

92 31 sSB6 File No.

92 successful completion of an approved municipal police basic training program, as provided in section 7-294e.

Such LCOspecial No.police officers:

1820 32 of 47 Committee Bill No.

6 special police officers:

(3) shall be peace officersofficers, as defined in subdivision (9) of section 53a-3;

(7) shall complete a forty-hour basic training programsSB6 provided/ byFile theNo. municipality within one hundred eighty days of June 27, 1983;

92 32 sSB6 File No.

92 program provided by the municipality within one hundred eighty days of June 27, 1983;

Section 8-45a of the general statutes is repealed and the LCOfollowing No.is substituted in lieu thereof (Effective October 1, 2024):

1820A 33housing ofauthority, 47[as Committeedefined Billin No.6subsection following(b) isof substitutedsection 8-39,] in lieudetermining thereofeligibility (Effectivefor Octoberthe 1,rental 2024):of public housing units, may establish criteria and consider relevant information concerning (1) an applicant's or any proposed occupant's history of criminal activity involving:

A(A) housingCrimes authority,of [asphysical definedviolence into subsectionpersons (b)or ofproperty, section(B) 8-39,]crimes involving the illegal manufacture, sale, distribution or use of, or possession with intent to manufacture, sell, use or distribute, a controlled substance, as defined in determiningsection eligibility21a-240, foror the(C) rentalother ofcriminal publicacts housingwhich unitswould mayadversely establishaffect criteriathe andhealth, considersafety relevantor informationwelfare concerningof (1)other tenants, (2) an applicant's or any proposed occupant's historyabuse, or pattern of criminalabuse, activityof involving:alcohol when the housing authority has reasonable cause to believe that such applicant's or proposed occupant's abuse, or pattern of abuse, of alcohol may interfere with the health, safety or right to sSB6 / File No.

(A)92 Crimes33 ofsSB6 physicalFile violenceNo. to persons or property, (B) crimes involving the illegal manufacture, sale, distribution or use of, or possession with intent to manufacture, sell, use or distribute, a controlled substance, as defined in section 21a-240, or (C) other criminal acts which would adversely affect the health, safety or welfare of other tenants, (2) an applicant's or any proposed occupant's abuse, or pattern of abuse, of alcohol when the housing authority has reasonable cause to believe that such applicant's or proposed occupant's abuse, or pattern of abuse, of alcohol may interfere with the health, safety or right to peaceful enjoyment of the premises by other residents, and (3) an applicant or any proposed occupant who is subject to a lifetime registration requirement under section 54-252 on account of being convicted or found not guilty by reason of mental disease or defect of a sexually violent offense.

92 peaceful enjoyment of the premises by other residents, and (3) an applicant or any proposed occupant who is subject to a lifetime registration requirement under section 54-252 on account of being convicted or found not guilty by reason of mental disease or defect of a sexually violent offense.

(29) (A) Sales of and the storage, use or other consumption of tangible personal property acquired for incorporation into or used and consumed in the operation of housing facilities for low and moderate LCOincome No.families and persons and sales of and the acceptance, use or other consumption of any service described in subdivision (2) of section 12-407 that is used and consumed in the development, construction, rehabilitation, renovation, repair or operation of housing facilities for low and moderate income families and persons, provided such facilities are constructed under the sponsorship of and owned or operated by nonprofit housing organizations or housing authorities, as defined in [subsection (b) of] section 8-39, as amended by this act.

1820 34 of 47 Committee Bill No.6 income families and persons and sales of and the acceptance, use or other consumption of any service described in subdivision (2) of section 12-407 that is used and consumed in the development, construction, rehabilitation, renovation, repair or operation of housing facilities for low and moderate income families and persons, provided such facilities are constructed under the sponsorship of and owned or operated by nonprofit housing organizations or housing authorities, as defined in [subsection (b) of] section 8-39, as amended by this act.

At the time of any sale or purchase that is exempt under this subsection, the purchaser shall present to the retailer a copy of the determination letter that was issued to the nonprofit housing organization or housing authority together with a certificatesSB6 from/ theFile purchaser,No. in such form as the commissioner may prescribe, certifying that the tangible personal property or services that are being purchased from the retailer are to be used or consumed exclusively for the purposes of incorporation into or in the development, construction, rehabilitation, renovation, repair or operation of the housing facility identified in the letter of determination.

For92 the34 purposessSB6 ofFile this subsection, (i) "nonprofit housing organization" means any organization which has as one of its purposes the development, construction, sponsorship or ownership of housing for low and moderate income families as stated in its charter, if it is incorporated, or its constitution or bylaws, if it is unincorporated, and which has received exemption from federal income tax under the provisions of Section 501(c) of the Internal Revenue Code, as amended from time to time, provided the charter of such organization, if it is incorporated, or its constitution or bylaws, if unincorporated, shall contain a provision that no officer, member or employee [thereof] of such organization shall receive or at any future time may receive any pecuniary profit from the operation thereof, except a reasonable LCO No.

182092 35certificate offrom 47the Committeepurchaser, Billin No.6such compensationform foras the commissioner may prescribe, certifying that the tangible personal property or services inthat effectingare being purchased from the retailer are to be used or consumed exclusively for the purposes of incorporation into or in the organization;development, construction, rehabilitation, renovation, repair or operation of the housing facility identified in the letter of determination.

For the purposes of this subsection, (i) "nonprofit housing organization" means any organization which has as one of its purposes the development, construction, sponsorship or ownership of housing for low and moderate income families as stated in its charter, if it is incorporated, or its constitution or bylaws, if it is unincorporated, and which has received exemption from federal income tax under the provisions of Section 501(c) of the Internal Revenue Code, as amended from time to time, provided the charter of such organization, if it is incorporated, or its constitution or bylaws, if unincorporated, shall contain a provision that no officer, member or employee [thereof] of such organization shall receive or at any future time may receive any pecuniary profit from the operation thereof, except a reasonable compensation for services in effecting the purposes of the organization;

(B) Sales of and the acceptance, use or other consumption of any service described in subdivision (2) of section 12-407 that is used or consumed in the development, construction, renovation or operation of housing facilities for low and moderate income families and persons, provided such facilities are owned or sponsored by a mutual housing association, as defined in subsection (b) of section 8-214f, and operated as mutual housing by such association at a location that was conveyed tosSB6 suchassociationby/ theUnitedStatesSecretaryFile ofHousingNo. andUrban Development prior to September 1, 1995.

92 35 sSB6 File No.

92 to suchassociationby theUnitedStatesSecretary ofHousing andUrban Development prior to September 1, 1995.

Subdivision (9) of section 12-631 of the general statutes is repealed andthefollowing issubstituted inlieuthereof(EffectiveOctoberin LCOlieuthereof(EffectiveOctober No.1, 2024):

1820 36 of 47 Committee Bill No.6 1, 2024):

(c)sSB6 "Governing/ body"File means,No. for towns having a town council, the council;

92 36 sSB6 File No.

92 (c) "Governing body" means, for towns having a town council, the council;

(e) "Area of operation" shall include the municipality in which a housing authority is created under the provisions of this chapter, and may include a neighboring municipality, provided the governing body of such neighboring municipality shall agree by proper resolution to the extension of the area of operation to include such neighboring municipality.] LCO(2) No."Bonds" means any bonds, notes, interim certificates, certificates of indebtedness, debentures or other obligations issued by the authority pursuant to this chapter.

1820 37 of 47 Committee Bill No.6 (2) "Bonds" means any bonds, notes, interim certificates, certificates of indebtedness, debentures or other obligations issued by the authority pursuant to this chapter.

(4) "Housing partnership" means any partnership, limited partnership, joint venture, trust or association consisting of (A) a housing authority, a nonprofit corporation, or both, and (B) (i) a business corporation incorporated pursuant to chapter 601 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 commissioner in accordance with regulations adopted pursuant to section 8-79a or 8-84, (ii)sSB6 a/ for-profitFile partnership,No. limited partnership, joint venture, trust, limited liability company or association having as one of its purposes the construction, rehabilitation, ownership or operation of housing, and having basic documents of organization approved by the commissioner in accordance with regulations adopted pursuant to section 8-79a or 8- 84,or(iii)anycombinationoftheentitiesincludedundersubparagraphs (B)(i) and (B)(ii) of this subdivision.

92 37 sSB6 File No.

92 (ii) a for-profit partnership, limited partnership, joint venture, trust, limited liability company or association having as one of its purposes the construction, rehabilitation, ownership or operation of housing, and having basic documents of organization approved by the commissioner in accordance with regulations adopted pursuant to section 8-79a or 8- 84,or(iii)anycombinationoftheentitiesincludedundersubparagraphs (B)(i) and (B)(ii) of this subdivision.

[(2)] (B) to provide decent, safe and sanitary urban or rural dwellings, apartments or other living accommodations for elderly persons, which LCOwork No.or undertaking may include buildings, land, equipment, facilities and other real or personal property for necessary, convenient or desirable appurtenances, streets, sewers, water service, parks, site preparation, gardening, administrative, community, recreational or welfare purposes;

1820 38 of 47 Committee Bill No.6 work or undertaking may include buildings, land, equipment, facilities and other real or personal property for necessary, convenient or desirable appurtenances, streets, sewers, water service, parks, site preparation, gardening, administrative, community, recreational or welfare purposes;

(h) "Real property" shall include all lands, including improvements and fixtures thereon, and property of any nature appurtenant thereto, orsSB6 used/ inFile connectionNo. therewith, and every estate, interest and right, legal or equitable, therein, including terms for years and liens by way of judgment, mortgage or otherwise and the indebtedness secured by such liens.

92 38 sSB6 File No.

92 or used in connection therewith, and every estate, interest and right, legal or equitable, therein, including terms for years and liens by way of judgment, mortgage or otherwise and the indebtedness secured by such liens.

(j) "State public body" means any city, borough, town, municipal corporation, district or other subdivision of the state.] LCO[(k)] No.(6) "Rent" means the entire amount paid to a local authority, nonprofit corporation or housing partnership for any dwelling unit.

1820[(l)] 39(7) of"Shelter 47rent" Committeemeans Bill"rent" No.6as [(k)]defined (6)[herein] "Rent"in meansthis thesection, entireless amountany paidcharges tomade by a local authority, nonprofit corporation or housing partnership for anywater, dwellingheat, unit.gas, electricity and sewer use charges.

[(l)] (7) "Shelter rent" means "rent" as defined herein, less any charges made by a local authority, nonprofit corporation or housing partnership for water, heat, gas, electricity and sewer use charges.

(n) "Housing partnership" means any partnership, limited partnership,jointventure,trustorassociationconsistingof(1)ahousing authority, a nonprofit corporation or both and (2) (A) a business corporation incorporated pursuant to chapter 601 or any predecessor statutes thereto, having as one of its purposes the construction, rehabilitation,ownershiporsSB6 operationofhousing,and/ havingFile articlesofNo. incorporation approved by the commissioner in accordance with regulations adopted pursuant to section 8-79a or 8-84, (B) a for-profit partnership, limited partnership, joint venture, trust, limited liability company or association having as one of its purposes the construction, rehabilitation, ownership or operation of housing, and having basic documents of organization approved by the commissioner in accordance with regulations adopted pursuant to section 8-79a or 8-84 or (C) any combination of the entities included under subparagraphs (A) and (B) of this subdivision.] Sec.

92 39 sSB6 File No.

92 rehabilitation,ownershipor operationofhousing,and having articlesof incorporation approved by the commissioner in accordance with regulations adopted pursuant to section 8-79a or 8-84, (B) a for-profit partnership, limited partnership, joint venture, trust, limited liability company or association having as one of its purposes the construction, rehabilitation, ownership or operation of housing, and having basic documents of organization approved by the commissioner in accordance with regulations adopted pursuant to section 8-79a or 8-84 or (C) any combination of the entities included under subparagraphs (A) and (B) of this subdivision.] Sec.

LCO(a)Anelderlyperson[,asdefinedinsubsection(m)ofsection8-113a,] No.shall not be eligible to move into a housing project [, as defined in subsection(f)ofsection8-113a,]iftheperson(1)iscurrentlyusingillegal drugs, (2) is currently abusing alcohol and has a recent history of disruptive or dangerous behavior and whose tenancy (A) would constitute a direct threat to the health or safety of another individual, or (B) would result in substantial physical damage to the property of another,(3)hasarecenthistoryofdisruptiveordangerousbehaviorand whose tenancy (A) would constitute a direct threat to the health and safety of another individual, or (B) would result in substantial physical damage to the property of another, or (4) was convicted of the illegal sale or possession of a controlled substance, as defined in section 21a- 240, within the prior twenty-four-month period.

1820 40 of 47 Committee Bill No.6 (a)Anelderlyperson[,asdefinedinsubsection(m)ofsection8-113a,] shall not be eligible to move into a housing project [, as defined in subsection(f)ofsection8-113a,]iftheperson(1)iscurrentlyusingillegal drugs, (2) is currently abusing alcohol and has a recent history of disruptive or dangerous behavior and whose tenancy (A) would constitute a direct threat to the health or safety of another individual, or (B) would result in substantial physical damage to the property of another,(3)hasarecenthistoryofdisruptiveordangerousbehaviorand whose tenancy (A) would constitute a direct threat to the health and safety of another individual, or (B) would result in substantial physical damage to the property of another, or (4) was convicted of the illegal sale or possession of a controlled substance, as defined in section 21a- 240, within the prior twenty-four-month period.

Any elderly person [, as defined in subsection (m) of section 8-113a,] who applies for and is accepted for admission to a housing project pursuant to this part or part VII of this chapter or pursuant to any other state or federal housing assistance program may terminate the lease or rentalagreement forthedwelling unit that heheor or sheoccupiesat thetime ofsSB6 such/ acceptance,File withoutNo. the penalty or liability for the remaining term of the lease or rental agreement, upon giving thirty days' written notice to the landlord of such dwelling unit.

92 40 sSB6 File No.

92 of such acceptance, without the penalty or liability for the remaining term of the lease or rental agreement, upon giving thirty days' written notice to the landlord of such dwelling unit.

Upon preliminary approval by the State Bond Commission pursuant to the provisions of section 3-20, the state, acting by and through the Commissioner of Housing, may enter into a contract or contracts with an authority, a municipal developer, a nonprofit corporation or a housing partnership for state financial assistance for a congregate housing project, in the form of capital grants, interim loans, permanent loans, deferred loans or any combination thereof for application to the LCOdevelopment No.cost of such project or projects.

1820 41 of 47 Committee Bill No.6 development cost of such project or projects.

Such capital grants or loans shall be in an amount not in excess of the development cost of the project or projects, including, in the case of grants or loans financed from the proceeds of the state's general obligation bonds issued pursuant to any authorization, allocation or approval of the State Bond Commission made prior to July 1, 1990, administrative or other cost or expense to be incurred by the state in connection therewith, as approved by said commissioner.sSB6 / File No.

92 41 sSB6 File No.

92 commissioner.

As used in this section, LCO"housing No.partnership" has the same meaning as provided in [subsection (n) of] section 8-113a, as amended by this act.

1820 42 of 47 Committee Bill No.6 "housing partnership" has the same meaning as provided in [subsection (n) of] section 8-113a, as amended by this act.

(2)sSB6 "Commissioner"/ meansFile theNo. Commissioner of Housing;

92 42 sSB6 File No.

92 (2) "Commissioner" means the Commissioner of Housing;

(5) "Housing voucher holder" means any person or family entitled to participate in any housing voucher program other than the rental LCOassistance No.program;

1820 43 of 47 Committee Bill No.6 assistance program;

and (8) "Rental assistance program" or "program" means the rental assistance program established by the commissioner pursuant to chapter 138 of the general statutes;statutes.

(c) Not less than annually, the commissioner shall undertake an assessment, based on statistically representative rental housing survey data selected by the commissioner, to determine if maximum rent amounts provided for in the rental assistance program established pursuant to chapter 138a of the general statutes, or other housing voucher programs administered in whole or in part by the commissioner,sSB6 are/ sufficientFile toNo. provide certificate holders and housing voucher holders with housing opportunities in each municipality or zip codeinthestate.Ifthecommissionerfindssuchmaximumrentamounts are insufficient for such purpose, the commissioner shall adjust such maximum rent levels so that such rent levels are sufficient for such purpose.

92 43 sSB6 File No.

92 commissioner, are sufficient to provide certificate holders and housing voucher holders with housing opportunities in each municipality or zip codeinthestate.Ifthecommissionerfindssuchmaximumrentamounts are insufficient for such purpose, the commissioner shall adjust such maximum rent levels so that such rent levels are sufficient for such purpose.

(d) Any certificate issued pursuant to chapter 138a of the general LCOstatutes, No.and to the extent permissible by federal law, as applicable, any housing voucher may be used for housing in any municipality in the state.

1820 44 of 47 Committee Bill No.6 statutes, and to the extent permissible by federal law, as applicable, any housing voucher may be used for housing in any municipality in the state.

(e)The(e) commissionershalladministertheprograminsuchawaythatThe commissioner shall administer the program in a manner that ensures that no certificate holder or housing voucher holder shall be displaced as a result of the application of the provisions of subsection (f) of section 8-345 of the general statutes.

Sec.This act shall take effect as follows and shall amend the following sections:

26.

(Effective July 1, 2024) The sum of two hundred thousand dollars is appropriated to the Department of Housing from the General Fund, for the fiscal year ending June 30, 2025, for the Commissioner of Housing's assessment of maximum rent amounts required by subsection (c) of section 25 of this act.

Sec.27.(EffectiveJuly1,2024)Thesumofeighteenmillionsixhundred thousand dollars is appropriated to the Department of Housing from the General Fund, for the fiscal year ending June 30, 2025, for housing and homeless services.

Sec.

28.

(Effective July 1, 2024) The sum of one million four hundred thousand dollars is appropriated to the Department of Mental Health andAddictionServicesfromtheGeneralFund,forthefiscalyearending June 30, 2025, for housing support.

Sec.

29.

(Effective July 1, 2024) The sum of twenty-five million dollars is appropriated to the Department of Housing from the General Fund, forthefiscalyearendingJune30,2025,fortherentalassistanceprogram.

LCO No.

1820 45 of 47 Committee Bill No.

6 This act shall take effect as follows and shall amend the following sections:

2 October 1, 2024 New section October 1, 2024 Sec.

3 October 1, 2024 New section Sec.

5 July 1, 2024, and New section applicable to taxable years commencing on and after July 1, 2024 Sec.sSB6 / File No.

692 October44 1,sSB6 2024File 12-494No. Sec.

92 Sec.

6 October 1, 2024, and 12-494 applicable to conveyances occurring on or after said date Sec.

10 from passage New section October 1, 2024, and Sec.

11 October 1, 2024, and 12-81(4) applicable to grandassessment list years on and after October 1, 2024 Sec.

22 October 1, 2024 8-116d October 1, 2024 Sec.

23 October 1, 2024 8-119h Sec.

25 October 1, 2024 New section Sec.Statement of Legislative Commissioners:

26In JulySection 1,1(7), 2024"housing" Newwas sectionchanged LCOto No."dwelling" for accuracy;

1820in 46Section of3(a), 47"the" Committeewas Billchanged No.to "each" for clarity and "annual" was added before "housing growth score" for accuracy;

6in Sec.Section 3(c), "for" was changed to "based on" for accuracy;

27Section July3(c)(8) 1,was 2024rewritten Newfor sectionclarity; Sec.

28in JulySection 1,3(f), 2024"concerning" Newwas sectionchanged Sec.to "necessary for" for clarity;

29Sections July4(a) 1,and 2024(b) Newand section5(b) Statementand of(d) Purpose:were rewritten for clarity;

Toin makeSection housing5(g), more"(c) affordableand for(k)" Connecticutwas residents.changed to "(f) and (h)" for accuracy;

thatin whenSection 6 the entireeffective textdate ofwas achanged billfor orconsistency resolutionsSB6 or/ aFile sectionNo. of a bill or resolution is new, it is not underlined.] Co-Sponsors:

SEN.92 45 sSB6 File No.

LOONEY,92 11thwith Dist.;standard drafting conventions and in Subsec.

SEN.(b)(2) "to a purchaser who is an individual" was added for clarity;

DUFF,in 25thSection Dist.7(1)(J), before "units", "dwelling" was deleted for internal consistency;

SEN.in Section 8(1)(J), before "units", "dwelling" was deleted for internal consistency;

ANWAR,in 3rdSection Dist.;20(7), "herein" was changed to "in this section" for consistency with standard drafting conventions;

SEN.and in Section 25(e),"such a way" was changed to "a manner" for clarity.

CABRERA,HSG 17thJoint Dist.Favorable Subst.

SEN.sSB6 / File No.

FLEXER,92 29th46 Dist.;sSB6 File No.

SEN.92 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.

GASTON,In 23rdgeneral, Dist.fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.

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

HOCHADEL,OFA 13thFiscal Dist.;Note State Impact:

SEN.Agency Affected Fund-Effect FY 25 $ FY 26 $ Department of Economic & GF - Cost 50.2 million 50.2 million Community Development Department of Revenue Services GF - Revenue Up to 25 Up to 34 Gain million million Department of Revenue Services GF - Revenue None Up to 3 Loss million Department of Revenue Services GF - Cost Up to None 300,000 Department of Revenue Services Various - 2 million 2 million Revenue Loss Department of Housing GF - Cost 417,000 - 390,000 - 867,000 790,000 State Comptroller - Fringe GF - Cost 160,000 213,000 Benefits1 Department of Housing GF - Potential Potential Potential Cost Significant Significant Note:

KUSHNER,GF=General 24thFund; Dist.

SEN.Various=Various Municipal Impact:

LESSER,Municipalities 9thEffect Dist.;FY 25 $ FY 26 $ All Municipalities Revenue 50 million 50 million Gain All Municipalities Potential See Below See Below Cost Various Municipalities Grand List None See Below Reduction Explanation 1The fringe benefit costs for most state employees are budgeted centrally in accounts administered by the Comptroller.

SEN.The estimated active employee fringe benefit cost associated with most personnel changes is 41.25% of payroll in FY 25.

MAHER,sSB6 26th/ Dist.File No.

SEN.92 47 sSB6 File No.

MARX,92 20thThe Dist.;bill makes various changes related to housing that result in the fiscal impacts described by section below.

SEN.Sections 1–4 result in an annualized cost of $50.2 million to the Department of Economic and Community Development (DECD) by establishing the Housing Growth Fund.

MCCRORY,The 2ndbill Dist.requires $50 million to be allocated to the Housing Growth Fund annually.

SEN.The Department would require 2.5 full-time equivalent (FTE) staff at an approximate cost of $250,000 in FY 25 to begin and administer the Housing Growth Fund program ($168,750 salary, $70,000 fringe benefits, and $10,000 in other expenses to promote the program).

MILLERThe P.,ongoing 27thannualized Dist.;cost is approximately $330,000 ($225,000 salary for 2.5 FTEs, $93,000 fringe benefits, and $10,000 in other administrative expenses to promote the program).

SEN.These sections also result in an annual revenue gain of up to $50 million to all municipalities aggregately beginning in FY 25 associated with grants from the Housing Growth Fund.

MOORE,The 22ndgrant Dist.amount for each municipality is dependent on its housing growth score and the total available funds.

SEN.There is also a potential cost to municipalities beginning in FY 25 for providing documentation to DECD for the purpose of calculating the housing growth score.

NEEDLEMAN,Any 33rdimpact Dist.;will be dependent on what information and documentation is requested by DECD.

SEN.Section 5, which establishes a tax credit for qualified conversions of commercial buildings to residential developments, results in a revenue loss of up to $3 million annually beginning in FY 26.

RAHMAN,This 4thsection Dist.also results in a one-time cost of up to $75,000 to the Department of Revenue Services in FY 25 associated with programming updates to the CTax tax administration system and myconneCT online portal, and form modification.

SEN.Section 5 requires the Department of Housing to establish the new commercial conversion tax credit program by January 1, 2025.

SLAP,The 5thsSB6 Dist.;/ File No.

SEN.92 48 sSB6 File No.

WINFIELD,92 10thdepartment Dist.wouldrequire approximately3.5FTEstafftoadministerthe program at an approximate state cost of $307,000 in FY 25 ($217,000 salary and $90,000 fringe benefits, reflecting nine months of costs).

S.B.The ongoing annualized cost is approximately $410,000 ($290,000 salary and $120,000 fringe benefits) beginning in FY 26.

6Section LCO6, No.which increases real estate conveyance tax rates for conveyances of residential dwellings to non-individual buyers, results in a General Fund revenue gain of up to $25 million in FY 25 (partial year impact) and up to $34 million in FY 26 and annually thereafter.

18202 47This is based on data from CoreLogic and Stateline indicating that approximately 14% of 47home sales in Connecticut are by investors.

Section 6 also results in a one-time cost of up to $75,000 to the Department of Revenue Services in FY 25 associated with programming updates to the CTax tax administration system and myconneCT online portal, and form modification.

The Department of Housing (DOH) and Connecticut Housing Finance Authority (CHFA)subsidize approximately 17housing projects per year that are likely to face higher costs as a result of this change.

Sections 7–8 result in an estimated $2 million annual revenue loss beginning in FY 25 by lowering the sales tax rate from 6.35% to 3% on construction materials for new residential facilities with at least 50 units of affordable housing.

The actual revenue loss is dependent upon the (1) cost of materials and (2) number of qualifying construction projects, both of which may fluctuate annually based on market conditions.

Based on data provided by the Department of Housing and the Connecticut Housing Finance Authority, it is anticipated that five to ten facilities may qualify for the 3% sales tax rate annually with an average 2CGS Sec.

12-494(d) specifies that, on and after July 1, 2026, any real estate conveyance tax revenue received each fiscal year in excess of $300 million (adjusted annually for inflation) is to be transferred from the General Fund to the Housing Trust Fund.

Consequently, if this section results in revenues exceeding that threshold, the excess of the revenue gain would be deposited in the Housing Trust Fund.

sSB6 / File No.

92 49 sSB6 File No.

92 revenue loss of $200,000 per housing facility.

These sections also result in a one-time cost of up to $150,000 to the Department of Revenue Services in FY 25 associated with programming updates to the CTax tax administration system and myconneCT online portal, form modification, and the development of an exemption certificate and guidance to retailers.

Section 10 results in a one-time cost of approximately $100,000 to the Department of Housing (DOH) in FY 25 to conduct a study related to advance rental payments.

DOH is anticipated to hire a consultant to conduct a survey and analyze the relevant data, as the agency lacks the necessary expertise and staff capacity to do so.

Section 11 exempts certain workforce housing and affordable housing from property tax.

This results in a grand list reduction to various municipalities beginning in FY 26.

A grand list reduction results in a revenue loss given a constant mill rate, however, it is likely that a municipality will adjust its mill rate to offset any predicted revenue loss.

The impact for each municipality will be dependent on the number and value of qualified properties within each municipality.

Sections 12-24 make changes related to housing authority jurisdiction that have no fiscal impact.5 Section 25 results in higher annual costs to the Department of Housing (DOH) beginning in FY 25 associated with the Rental Assistance Program (RAP).

DOH will incur costs of between $100,000 and $500,000 in FY 25 and annually thereafter, to assess if the maximum allowable rents for RAP are set high enough for RAP participants to have housing opportunitiesin every zipcode.It isanticipatedthat DOH will need to hire a vendor to conduct an extensive rental market survey 3This applies to real property owned by, held in trust for, or leased to a municipality.

4In FY 24, exempt property that was owned, held in trust for, or leased to a municipality, made up approximately 5.8% of the total gross Grand List.

5Housing authorities are autonomous public corporations that are primarily funded by the U.S.

Department of Housing and Urban Development (HUD) but may also receive state funding.

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92 each year, unless up-to-date, statistically representative rent data becomes available at zip code level.

DOH’s RAP vendor conducts ad hoc rent studies in single towns at a cost of $30,000 to $50,000 each;

this section requires a more comprehensive analysis.

The sectionresults ina potential,significant cost annually to DOHfor higher RAP subsidies, to the extent DOH:

(1) raises the MAR schedule rentsbased ontheannualassessment’sfindingshigher thanitotherwise would have, and (2) cannot offset higher per-certificate costs by reducing the number of certificates through attrition.

Because RAP is not an entitlement and operates within available funding, the cost increase will be temporary unless annual inflation pressures continuously exceed the value of turnover RAPs (from families leaving the program) that DOH can eliminate.

For reference, the program supported 6,530 RAP certificates totaling $73,485,912 in FY 23 and the average annualized state cost of a RAP certificate was approximately $12,300 in January 2024 including administrative fees.

As an example of the potential cost, if the allowable rents increased by $100 per month on average (approximately 10%) because of the assessment, annualized subsidy costs could be more than $7.5 million higher per year.

DOH would incur higher per-voucher costs both for new RAP certificates and a large portion of existing certificates as leases are renewed over time.

Actual costs will depend on how DOH’s MAR schedule compares to current rental market conditions and how many leases take advantage of the higher maximum allowable rents.

The section also appears to require DOH to set the payment standard for the federal Section 8 Housing Choice Voucher (HCV) program at the same assessment-determined level as RAP.

It is not clear if or how this could be achieved given several factors:

(1) the payment standard for 6The program is likely to require additional funding during periods of higher rent inflation, if operating at full capacity.

7RAP participants pay 40% of their adjusted gross income (or 30% of adjusted gross income if the participant is elderly or disabled) toward rent and utilities and the DOH rental subsidy pays the remainder of the contract rent directly to the landlord.

Given this structure, changes to contract rent are fully borne by the state, all else equal.

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92 HCV is lower than RAP for many locations;

(2) DOH receives a set amount of federal funding to support HCV vouchers;

and (3) DOH spends all or nearly all available program funding annually.

8 It is not clear to what extent the bill creates a new entitlement for existing RAP certificate holders to continue receiving rental assistance even when no funding is appropriated to the program.

In recent years, funding has been sufficient to continue assistance for current participants of RAP and the federal vouchers that DOH administers.

The section requires DOH to adopt implementing regulations.

To the extenttheagencyrequiresoutsideassistancetodoso,thereisapotential cost to DOH in FY 25 of up to $50,000 for legal services.

The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.

8HUD Housing Choice Voucher (HCV) Data Dashboard.

https://www.hud.gov/program_offices/public_indian_housing/programs/hcv/da shboard sSB6 / File No.

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92 OLR Bill Analysis sSB 6 AN ACT CONCERNING HOUSING.

TABLE OF CONTENTS:

SUMMARY §§ 1-4 — HOUSING GROWTH FUND Establishes the Housing Growth Fund administered by DECD;

requires DECD to use the fund to give annual grants to eligible municipalities based on a scoring system for certain types of housing units municipalities approved during the previous fiscal year § 5 — TAX CREDIT PROGRAM FOR COMMERCIAL CONVERSIONS Requires DOH, by January 1, 2025, to establish a tax credit program for owners that convert commercial buildings into residential developments § 6 — REAL ESTATE CONVEYANCE TAX Increases state real estate conveyance tax rates for conveyances of residential dwellings to buyers that are not individuals §§ 7-9 — REDUCED SALES AND USE TAX RATE FOR CERTAIN DEVELOPMENTS Decreases, to 3%, the sales and use tax rate for tangible personal property purchased for constructing certain new residential development projects § 10 — DOH STUDY OF ADVANCE RENTAL PAYMENTS Requires DOH to study the impacts of allowing landlords to accept advance rental payments and report its findings and recommendations to the Housing Committee by January 1, 2025 § 11 — PROPERTY TAX EXEMPTION Exempts from the property tax real property belonging to, held in trust for, or leased to a municipality and used for workforce housing or affordable housing §§ 12-24 — HOUSING AUTHORITY JURISDICTION sSB6 / File No.

92 53 sSB6 File No.

92 Allows housing authorities to exercise their powers outside of their municipal boundaries, with certain exceptions, subject to the other municipality’s approval § 25 — DOH ADMINISTRATION OF HOUSING VOUCHER PROGRAMS Requires DOH to take certain actions related to its administration of RAP and other housing voucher programs SUMMARY This bill, among other things, makes various changes to laws related to state housing assistance programs, housing authorities, and certain state taxes.

It also establishes (1) a Housing Growth Fund administered by the Department of Economic and Community Development and (2) a Department of Housing tax credit program for owners that convert commercial buildings into residential developments.

A section-by- section analysis follows.

EFFECTIVE DATE:

Various, see below §§ 1-4 — HOUSING GROWTH FUND Establishes the Housing Growth Fund administered by DECD;

requires DECD to use the fund to give annual grants to eligible municipalities based on a scoring system for certain types of housing units municipalities approved during the previous fiscal year ThebillestablishestheHousingGrowthFund,whichtheDepartment of Economic and Community Development (DECD) must develop and administer.

The fund’s purpose is to give grants to eligible municipalities for the following:

1.

increasing affordable housing availability (i.e., that for which households earning no more than the federally determined area median income pay 30% or less of their annual income);

2.

promoting housing production affordable to low- and moderate- income households (i.e., those lacking the income needed to rent or purchase moderate cost housing without financial assistance, as determined by the housing commissioner);

and sSB6 / File No.

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92 3.

maximizing residential, commercial, and leisure space within walking distance of transit facilities.

The bill requires DECD to annually allocate $50 million to the fund, within available appropriations.

Under the bill, the department must annually calculate a housing growth score for the state and each municipality, and use the scores to proportionally award annual grants to municipalities meeting certain eligibility requirements.

The bill allows DECD to adopt related regulations and requires it to post them on the department’s website.

EFFECTIVE DATE:

October 1, 2024 Housing Growth Scores The bill requires DECD, by March 1, 2025, and then annually before March 1, to calculate a “housing growth score” for each municipality based on the number of dwelling units approved for construction (i.e., permitted) in the municipality during the previous fiscal year.

Specifically, DECD must calculate (1) each municipality’s housing growth score by totaling assigned point values for certain types of approved dwelling units, as described in the table below, and (2) a statewide housing growth score by totaling each municipality’s score.

The bill requires DECD to post the scores on its website.

Table:

Municipal Housing Growth Score Point Values Type of Dwelling Unit Approved for Construction by the Point Value Municipality During the Previous Fiscal Year Dwelling unit 1.0 Dwelling unit in a mixed-use development (i.e., that also contains at1.5ast one commercial, public, institutional, retail, office, or industrial use) Dwelling unit in a mixed-income development (i.e., a portion of units1.5 qualify as affordable housing, as defined above) Dwelling unit in a transit-oriented development (i.e., generally thos2.0 within ½ mile or walking distance of a transit facility, such as bus and train stations) Dwelling unit in a multi-family housing building (i.e., that contains2.0 least two dwelling units) Dwelling unit in a housing authority development (i.e., that is owned2.0 sSB6 / File No.

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92 Type of Dwelling Unit Approved for Construction by the Point Value Municipality During the Previous Fiscal Year acquired, or developed by a housing authority, which also includes any state entity providing funds for affordable housing or an affordable housing program) Dwelling unit in a set-aside development (i.e., one in which, for a3.0east years after initial occupancy, at least 30% of the units are deed restricted based on specified household income limits) Dwelling unit that is or will be sold or rented at or below a cost 3.0al to no more than 30% of the annual household income of those earning 30% of the state median income Under the bill, dwelling units are not eligible for a point value if they are in an affordable housing development completed after a successful court appeal under CGS § 8-30g.

By law, an “affordable housing development” is either a set-aside development (see above) or certain government-assisted housing or housing occupied by people receiving rental assistance (i.e., assisted housing).

The bill requires each municipality, by December 1, 2024, and then annually before December 1, to give DECD any documentation the department needs to calculate these scores.

A municipality that fails to do so is ineligible for assistance from the fund.

Under the bill, DECD may request, inspect, and audit certain information needed to calculate a municipality’s score (i.e., reports, books, records, and other financial or project-related information).

Municipal Grants Eligibility.

The bill requires DECD, by June 1, 2025, and then annually before June 1, to award grants from the Housing Growth Fund to each eligible municipality.

To be eligible, a municipality must have approved during the previous fiscal year:

1.

at least 2% of the total housing permits that were approved statewide (or have a poverty rate greater than the state’s based on the most recent decennial census);

2.

at least three times more new housing permits than demolition permits;

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92 3.

dwelling units that will be sold or rented at a price that results in the rent or mortgage payments equaling no more than 30% of the annual household income of those earning 30% of the state median income, provided these units make up at least 10% of the total units the municipality permitted.

Grant Calculation.Tocalculateannualmunicipalgrantamounts,the bill requires DECD to divide an eligible municipality’s housing growth score by the statewide score;

the resulting percentage is equal to the percentage of the available annual funding that the municipality will receive.

(Because the statewide housing growth score equals the total of each municipality’s score, rather than the total of only eligible municipalities, the bill’s formula for calculating annual grants may result in unallocated moneys remaining in the fund.) § 5 — TAX CREDIT PROGRAM FOR COMMERCIAL CONVERSIONS Requires DOH, by January 1, 2025, to establish a tax credit program for owners that convert commercial buildings into residential developments The bill requires the Department of Housing (DOH), by January 1, 2025, to do the following:

1.

establish a program to administer tax credit vouchers for (a) owners that convert commercial buildings into residential developments with at least one dwelling unit or (b) taxpayers that make “qualified conversion expenditures” toward these projects and 2.

develop standards for approving the vouchers that account for whether the proposed conversion will create or preserve affordable housing units.

Under the program, a “commercial building” is one primarily designed or used for non-residential purposes (e.g., hotels and retail or office spaces) but not an industrial building (e.g., warehouses, factories, andstorage facilities)that isusedprimarilyfor anindustrialactivityand generally not open to the public.

Under the bill, “qualified conversion expenditures” include sSB6 / File No.

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92 construction costs of at least $15,000, excluding the cost of (1) the owner’s labor;

(2) site improvements, unless to provide access to people with disabilities;

(3) new additions, unless required to comply with the state building code or fire safety code;

(4) converting an outbuilding, unless it contains at least one dwelling unit;

and (5) architecture fees, legal fees, financing fees, and other non-construction costs.

The bill specifies information an owner must give DOH both before andafter a conversionandestablishesa processby whichan owner may claim a tax credit.

It allows eligible owners to apply for a tax credit voucher equal to 10% of their total qualified conversion expenditure.

It caps (1) owners’ tax credits under the program at $30,000 per dwelling unit or $50,000 per unit for nonprofits and (2) the total amount of tax credits that DOH may reserve per fiscal year at $3 million.

Additionally, the bill allows DOH, in consultation with the Department of Revenue Services (DRS), to adopt regulations related to the program.

EFFECTIVEDATE:July1,2024,andapplicabletotaxyearsbeginning on or after this date.

Pre-Construction Application Under the bill, before starting work on a conversion, the owner must submit to DOH the following:

1.

a construction plan and specifications for the proposed conversion that includes enough detail for DOH to evaluate compliance with its conversion standards and any related program regulations (i.e., a “conversion plan”);

2.

as estimate of qualified conversion expenditures;

and 3.

any other information DOH requires.

The bill requires DOH to determine whether an application meets its conversion standards and any related regulations within 60 days after receiving the information described above.

If so, DOH must reserve a sSB6 / File No.

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92 tax credit for the owner.

Post-Construction Process The bill requires owners to notify DOH when the conversion is completed, give the department documentation of work done, and certify the conversion cost.

After DOH verifies compliance with the conversion plan, it must issue a tax credit voucher to the owner (or taxpayer that contributed to the conversion) in an amount that equals the lesser of (1) the reserved tax credit or (2) 10% of the qualified conversion expenditures.

Issuance of Tax Credits The bill requires owners holding a tax credit voucher to file it with their state tax return.

It allows (1) nonprofit corporations to claim the credits against the unrelated business income tax and (2) all other taxpayers to claim them against the personal income tax.

Credits applied against the income tax are refundable for any amount of the credit that exceeds that taxpayer’s liability.

Nonprofits applying them against the unrelated business income tax may carry forward any unused credits for up to four income years.

The bill requires DOH to give DRS a copy of the voucher upon request.

Under the bill, owners are Connecticut taxpayers or nonprofits with title to a commercial building (or prospective title in the form of a purchase agreement or option to purchase a commercial building to be converted into a residential development).

§ 6 — REAL ESTATE CONVEYANCE TAX Increases state real estate conveyance tax rates for conveyances of residential dwellings to buyers that are not individuals Under current law, all conveyances of residential dwellings are subject to the state real estate conveyance tax at the following marginal rates:

1.

0.75% on the first $800,000 of the sales price;

2.

1.25% on any portion of the sales price that exceeds $800,000, up sSB6 / File No.

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92 to $2.5 million;

and 3.

2.25% on any portion of the sales price that exceeds $2.5 million.

Beginning October 1, 2024, the bill increases the tax rate for conveyances of residential dwellings where the buyer is not an individual.

Specifically, it sets a tax rate for these conveyances of (1) 1.75% onthefirst $800,000ofthesalesprice and(2)2.25%onany portion of the sales price that exceeds $800,000.

By law, the seller pays the tax when he or she conveys the property (CGS § 12-495).

The bill also appears to limit the conveyance tax credit against the income tax so that itappliesonlywhenthesellerconveysthe propertytoanindividual(see Background).

The bill also makes a technical change.

EFFECTIVE DATE:

October 1, 2024, and applicable to conveyances occurring on or after that date.

Background — Conveyance Tax Credit Against the Income Tax Existing law allows taxpayers who pay the conveyance tax at the 2.25% marginal rate to claim a property tax credit against their state income tax liability based on the amount they paid in conveyance tax at this rate (CGS § 12-704c(d)).

Taxpayers may use this basis for the property tax credit for three years, beginning in the third year after the year in which they paid the conveyance tax.

§§ 7-9 — REDUCED SALES AND USE TAX RATE FOR CERTAIN DEVELOPMENTS Decreases, to 3%, the sales and use tax rate for tangible personal property purchased for constructing certain new residential development projects Existinglawimposesa6.35%salesandusetax,withsome exceptions, on tangible personal property and select services purchased in the state or purchased outside the state for use in Connecticut.

The bill decreases thesalesandusetaxrateto3%fortangiblepersonalpropertypurchased for constructing a new residential development project that has at least dwelling units of affordable housing (see below).

It also makes a conforming change.

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92 Under the bill, the 3% rate does not apply to projects that qualify for a sales and use tax exemption under existing law.

For example, the law exempts from the sales and use tax personal property incorporated into, or used and consumed in the operation of, housing for low- and moderate-income individuals if a nonprofit housing organization or housing authority sponsors the construction and owns and operates the facilities (CGS § 12-412(29)).

Under existing law, “affordable housing” is housing for which households earning no more than the host municipality’s area median income, as determined by the U.S.

Department of Housing and Urban Development, spend 30% or less of their annual income on it (CGS § 8- 39a).

EFFECTIVE DATE:

July 1, 2024, and applicable to sales occurring on or after this date.

§ 10 — DOH STUDY OF ADVANCE RENTAL PAYMENTS Requires DOH to study the impacts of allowing landlords to accept advance rental payments and report its findings and recommendations to the Housing Committee by January 1, 2025 The bill requires DOH, within available appropriations, to study the potential impacts of allowing landlords to accept advance rental payments from residential tenants.

It requires the study to examine the following:

1.

the likelihood that prospective tenants whose rental applications have been denied would get approval if they were allowed to provide advance rental payments in addition to a security deposit, 2.

potential reasons a landlord might require advance rental payments, 3.

potential financial burdens for tenants due to allowing advance rental payments, and 4.

the effect of advance rental payments on housing availability.

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92 Under the bill, DOH must report its findings and any legislative recommendations to the Housing Committee by January 1, 2025.

EFFECTIVE DATE:

Upon passage § 11 — PROPERTY TAX EXEMPTION Exempts from the property tax real property belonging to, held in trust for, or leased to a municipality and used for workforce housing or affordable housing The bill exempts from the property tax real property belonging to, held in trust for, or leased to a municipality and used for workforce housing (presumably, a “workforce housing development project”) or affordable housing (see above definition).

By law, a “workforce housing development project” is one to construct or substantially rehabilitate rental housing meeting the following criteria:

1.

50% of the units are market rate units (i.e., set at the rate the unit would probably command on the open market based on comparable units in the same area);

2.

40% are rented to the workforce population designated by the developer in consultation with the host municipality;

and 3.

10% are affordable housing (CGS § 8-395(a)(3)).

EFFECTIVE DATE: