You asked for a brief summary of bills the Housing Committee favorably reported to the Finance, Bonding and Revenue Committee.

SB 196 — AAC AUTHORIZATION OF BONDS OF THE STATE TO ASSIST MODERATE INCOME PUBLIC HOUSING DEVELOPMENTS N HARTFORD

The bill authorizes up to $ 15 million in bonds for the Department of Economic and Community Development (DECD) to assist state owned moderate-income public housing developments in Hartford pay for capital improvements and modernization.

SB 197 — AAC THE URBAN RENEWAL HOUSING PROGRAM

The bill authorizes up to $ 5 million in bonds for DECD to provide the Connecticut Housing Finance Authority (CHFA) the ability to provide grants for the Urban Renewal Housing Program (UR HOME). The UR HOME program was an affordable purchase and rehabilitation program aimed at encouraging state, municipal, and private sector employees to live where they work, thereby increasing homeownership in cities.

Sixteen municipalities (or areas of municipalities) with “targeted area residences,” as defined under § 33 of PA 01-9 of the June 30 special session and § 143(j) of the Internal Revenue Code, were eligible.

SB 5383 — AA ESTABLISHING PILOT PROGRAMS TO ENCOURAGE MIXED INCOME HOUSING

The bill establishes a three-year pilot that sets a goal for CHFA to award 30% of state or federal tax credits for affordable housing development to municipalities that have the least mixed-income housing stock.

CHFA allocates $ 5 million in Housing Tax Credit Contribution (HTCC) credits annually (CGS § 8-395). Applicants are rated and ranked, and credits are then reserved for the highest scoring proposals, according to CHFA's website. A nonprofit that is developing, sponsoring, or managing housing for very low-, low-, and moderate-income people and families may apply to CHFA for up to $ 400,000 in state tax credits. The nonprofit then offers the credits to businesses that make cash contributions to support the development. (Businesses receive a dollar-for-dollar reduction in their state tax liability. )

CHFA also allocates federal Low Income Housing Tax Credits (LIHTC) on a competitive basis (through one or more funding rounds each year). To be eligible for LIHTC, the developer must set aside a percentage of units for low-income residents. The percentage must be maintained for the extended use period, normally at least 30 years. Developers who qualify typically sell the credits to private investors who benefit from a reduction in tax liability. The developer uses the profit from the sale to generate equity for the development, which reduces the need for debt financing and allows the owner to charge affordable rents.

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