You asked for a summary of the Select Committee on Housing bills referred to the Finance, Revenue and Bonding Committee.

SB 98 - AN ACT INCREASING FUNDING FOR THE STATE HOUSING TAX CREDIT CONTRIBUTION PROGRAM, EXPANDING ELIGIBILITY FOR EMPLOYER-ASSISTED HOUSING LOANS AND REQUIRING FINANCING TO BE PROVIDED FOR THE PURCHASE OF COOPERATIVE HOUSING

This bill makes changes to three different housing programs:

1. It raises the ceiling, from $ 5 million to $ 8 million, on the total amount of business tax credits the state can provide under the low-income housing tax credit contribution program. By law businesses can make cash contributions to nonprofit housing developers and receive a tax credit voucher for an equal amount.

2. It makes employees of municipalities, nonprofit corporations, and small businesses eligible for loans through the employer-assisted housing tax credit program. Under current law, the loans are available only to the employees of the corporations that contribute to the program's revolving loan fund. The bill also requires the Connecticut Housing Finance Authority (CHFA) to establish a mechanism for (1) distributing loans to the newly eligible employees and (2) allocating credits generated by these loans.

3. It requires CHFA to provide financing (the form is unspecified) for individuals to purchase shares of, or memberships in, cooperative housing. CHFA currently provides financing for developers to build cooperative housing. Individual residents in a cooperative housing development buy shares or membership in the cooperative and, unlike condominium owners, do not actually own the unit they live in.

Effective Date: July 1, 2002

SB 115 - AN ACT AUTHORIZING STATE BONDS FOR THE RENOVATION OF RENTAL HOUSING IN DISTRESSED MUNICIPALITIES AND FOR A WINDOW REPAIR AND REPLACEMENT PROGRAM

This bill creates three new housing-related programs to be funded with bond issues.

1. It authorizes up to $ 10 million in bonds for a Rental Housing Revolving Loan Fund in the Department of Economic and Community Development (DECD). DECD may use the funds to provide low-interest loans for repairs or renovations that bring residential buildings into compliance with the State Building Code if they are (a) located in distressed municipalities and (b) of 20 or fewer units.

2. It authorizes up to $ 2 million in bonds for a DECD window repair-and-replacement demonstration program. The program provides matching grants of up to $ 100 per window to replace wooden windows in two- to six-family buildings constructed before 1950. DECD must establish the program in at least three municipalities (two must be with populations above 100,000 and one must have a population below 100,000). By February 1, 2005 the DECD commissioner must report to the Housing Committee on the program. The bill requires the program end on June 30, 2005.

3. It authorizes up to $ 2 million in bond funds for housing rehabilitation tax credits in neighborhood revitalization zones. To be eligible the buildings must have no more than six dwelling units and rehabilitation costs must exceed $ 25,000. The credits are equal to 50% of the qualified rehabilitation expenses and are available to the property owner or to a taxpayer named by the owner as making a contribution to rehabilitation expenses. It sets a $ 2 million limit in credits for any one fiscal year.

HB 5453 - AN ACT AUTHORIZING STATE BONDS FOR THE CONSTRUCTION OF ELDERLY HOUSING IN THE TOWN OF CLINTON

This bill authorizes $ 330,000 for a DECD grant to Clinton to construct elderly housing.

Effective Date: July 1, 2002

JM: ro