OLR Bill Analysis

sHB 5225

AN ACT CONCERNING SECURITY DEPOSITS OF SENIOR CITIZENS AND PERSONS WITH DISABILITIES IN PUBLIC HOUSING.

SUMMARY:

This bill lowers the annual interest rate that housing authorities, community housing authorities, and other corporations must pay on security deposits made by senior citizens and individuals with disabilities residing in public housing.

Current law requires housing authorities and other corporations to pay an annual rate of 5. 25%. Starting January 1, 2013, the bill instead requires them to pay at least the average savings deposit interest rate paid by insured commercial banks as published in the Federal Reserve Board Bulletin in November of the prior year (i. e. , deposit index). (The deposit index for calendar year 2012 is 0. 16%. )

By law, housing authorities and other corporations must return security deposits to these tenants after they have resided in the housing for at least one year.

EFFECTIVE DATE: October 1, 2012

COMMITTEE ACTION

Housing Committee

Joint Favorable Substitute