HB 5681 — AN ACT CONCERNING MUNICIPAL OPPORTUNITY REIMBURSEMENT AND EDUCATIONAL EQUITY.

House of Representatives General Assembly CommitteeFile Bill No.

5681148 January Session, 2021 LCOHouse Bill No.

44205681 ReferredHouse toof Representatives, March 29, 2021 The Committee on HOUSINGHousing Introducedreported by:through REP.

(HSG)MCGEE ANof ACTthe CONCERNING5th MUNICIPALDist., OPPORTUNITYChairperson REIMBURSEMENTof ANDthe EDUCATIONALCommittee EQUITY.on the part of the House, that the bill ought to pass.

AN ACT CONCERNING MUNICIPAL OPPORTUNITY REIMBURSEMENT AND EDUCATIONAL EQUITY.

(3) has adopted and maintained zoning regulations that (A) promote fair housing, as determined by said department, (B) provide a streamlined process for multifamily housing of three units or more, (C) permitHB5681 mixed-use/ development,and(D)allowFile accessoryNo. dwelling units;

LCO148 44201 \\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-05681-R021HB5681 ofFile 2 HB.docx Committee Bill No.

5681148 andpermit (4)mixed-use hasdevelopment,and(D)allow constructedaccessory newdwelling affordableunits; housing units that (A) are restricted, through deeds, covenants or other means, to individuals or families that are at or below eighty per cent of the state median income, and (B) equal at least one per cent of such town's total housing units in the three years immediately preceding the submission of an application under this section.

and (4) has constructed new affordable housing units that (A) are restricted, through deeds, covenants or other means, to individuals or families that are at or below eighty per cent of the state median income, and (B) equal at least one per cent of such town's total housing units in the three years immediately preceding the submission of an application under this section.

Section 1 from passage 10-285a HSG Joint Favorable LCOHB5681 4420/ {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-05681-File 2No. of 2 R02-HB.docx }

148 2 HB5681 File No.

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

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

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

OFA Fiscal Note State Impact:

Agency Affected Fund-Effect Out Years Treasurer, Debt Serv.

GF - Potential See Below Cost Note:

GF=General Fund Municipal Impact:

Municipalities Effect Out Years Various Municipalities Potential See Below Revenue Gain Explanation The bill, which increases school construction reimbursement rates for projects within "inclusive municipalities" after FY 23, represents a potential cost to the state and potential revenue gain to municipalities.

To the extent municipalities qualify and are named "inclusive municipalities" and undertake eligible school construction projects in or after FY 24, municipal reimbursements from the state for such projects would be 10 percentage points higher than they would be otherwise.

To the extent additional bond funds are authorized and used due to the increased rates, there is potential for additional debt service costs paid by the state.

This bill does not approve school construction projects or authorize additional bond funds for school construction.

Specific costs from eligible projects, including the marginal increase from increased HB5681 / File No.

148 3 HB5681 File No.

148 reimbursement rate, would be determined when projects are approved.

The Out Years The ongoing fiscal impact identified above would continue subject to project approval and bond fund authorization.

HB5681 / File No.

148 4 HB5681 File No.

148 OLR Bill Analysis HB 5681 AN ACT CONCERNING MUNICIPAL OPPORTUNITY REIMBURSEMENT AND EDUCATIONAL EQUITY.

SUMMARY Thisbillincreasestherate at whichthestate reimburses certaintowns for school building projects.

Specifically, it increases a town’s reimbursement rate by 10 percentage points for projects approved on or after July 1, 2023, if the Department of Housing (DOH) deems the town an “inclusive municipality” (e.g., a project that would normally receive a 50% reimbursement rate for eligible project costs would instead receive 60%).

The bill establishes criteria for DOH to use in determining whether a town is an inclusive municipality but does not appear to establish any deadlines or frequency for DOH to make this determination.

By law, the Department of Administrative Services (DAS) provides towns and regional school districts with reimbursement grants for school building projects on a sliding scale depending on the town’s property wealth (wealthy towns receive a lower reimbursement rate, while poorer towns receive a higher rate).

Generally, for new construction, these rates range from 10% to 70% of eligible costs (CGS § 10-285a(a)).

However, it is unclear how DAS would know that a town is considered an inclusive municipality, since the bill does not require DOH to notify DAS about eligible towns.

EFFECTIVE DATE:

Upon passage INCLUSIVE MUNICIPALITY The bill defines an inclusive municipality as a town that has:

1.

a population exceeding 6,000 people;

HB5681 / File No.