Substitute House Bill No. 5450
          Substitute House Bill No. 5450

              PUBLIC ACT NO. 98-114


AN ACT CONCERNING  AN INCOME EXCLUSION FOR CERTAIN
HOUSING  TENANTS  AND   EVICTIONS   FROM   HOUSING
PROJECTS FOR THE ELDERLY.


    Be it enacted  by  the  Senate  and  House  of
Representatives in General Assembly convened:
    Section  1.  Section   8-72   of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    Each  developer  or  housing  authority  shall
manage and operate  its  housing  projects  in  an
efficient manner so  as  to  enable  it to fix the
rentals for dwelling  accommodations at the lowest
possible rates consistent  with  providing decent,
safe and sanitary  dwelling accommodations, and no
housing authority or  nonprofit  corporation shall
construct or operate  any such project for profit.
To  this  end   an   authority   or   a  nonprofit
corporation shall fix  the rentals for dwelling in
its projects at  no  higher rates than it finds to
be necessary in  order  to produce revenues which,
together with all other available money, revenues,
income and receipts  of the authority or nonprofit
corporation from whatever sources derived, will be
sufficient (a) to pay, as the same become due, the
principal  and  interest   on  the  bonds  of  the
authority or nonprofit  corporation;  (b)  to meet
the cost of,  and  to provide for, maintaining and
operating the projects,  including the cost of any
insurance, and the  administrative expenses of the
authority  or  nonprofit   corporation;   provided
nothing in this  section  shall  be  construed  as
prohibiting any authority or nonprofit corporation
from  providing  for  variable  rentals  based  on
family income. In  the  operation or management of
housing  projects  an   authority   or   nonprofit
corporation shall, at all times, rent or lease the
dwelling accommodations therein  at rentals within
the financial reach of families of low income. The
Commissioner of Economic and Community Development
may establish maximum  income limits for admission
and continued occupancy  of tenants, provided such
maximum income limits  and  all  revisions thereof
for  housing projects  operated  pursuant  to  any
contract with any agency of the federal government
shall be subject  to  the  prior  approval of such
federal agency. The  Commissioner  of Economic and
Community Development shall define the income of a
family  to  provide   the  basis  for  determining
eligibility for the admission, rentals and for the
continued occupancy of  families under the maximum
income limits fixed  and  approved. The definition
of family income,  by the Commissioner of Economic
and Community Development,  may  provide  for  the
exclusion of all  or  part of the income of family
members   which,   in   the   judgment   of   said
commissioner, is not  generally  available to meet
the cost of  basic  living needs of the family. No
housing authority or  developer  shall  refuse  to
rent any dwelling  accommodation  to  an otherwise
qualified applicant on the ground that one or more
of the proposed occupants are children born out of
wedlock.  Each  housing  authority  and  developer
shall provide a  receipt  to  each  applicant  for
admission to its housing projects stating the time
and date of  application and shall maintain a list
of such applications,  which  shall  be  a  public
record as defined  in  section  1-18a, AS AMENDED.
The  Commissioner  of   Economic   and   Community
Development shall, by  regulation, provide for the
manner  in  which  such  list  shall  be  created,
maintained and revised.  No provision of this part
shall be construed  as  limiting  the right of the
authority to vest  in an obligee the right, in the
event of a  default  by  such  authority,  to take
possession  of a  housing  project  or  cause  the
appointment of a receiver thereof or acquire title
thereto through foreclosure proceedings, free from
all the restrictions  imposed by this chapter with
respect to rental  rates and tenant selection. The
Commissioner of Economic and Community Development
shall approve an  operation  or management plan of
each  housing  project,  which  shall  provide  an
income  adequate  for   debt   service,   if  any,
administration, including a  state service charge,
other  operating  costs   and   establishment   of
reasonable reserves for  repairs,  maintenance and
replacements, vacancy and  collection losses. Said
commissioner shall have the right of inspection of
any housing during  the period between the date on
which construction thereof begins and the date the
state loan is  fully  paid  or,  in  the case of a
grant, during the  period  for  which  any housing
project built pursuant  to  such grant is used for
housing for families  of  low and moderate income.
An  authority  or   developer  shall  semiannually
submit  to said  commissioner  a  sworn  statement
setting forth such information with respect to the
tenants  and  rentals  for  each  housing  project
hereunder and the  costs of operating each housing
project   under   its    jurisdiction    as   said
commissioner  requires. Any  person  who  makes  a
false  statement  concerning  the  income  of  the
family for which  application  for admission to or
continued occupancy of  housing  projects  is made
may be fined not more than five hundred dollars or
imprisoned not more  than six months or both. WITH
REGARD TO A  FAMILY  WHO,  SINCE  THE  LAST ANNUAL
RECERTIFICATION, RECEIVED ANY  PUBLIC  OR  GENERAL
ASSISTANCE AND RECEIVED  EARNINGS FROM EMPLOYMENT,
THE AUTHORITY OR  DEVELOPER  SHALL NOT REQUIRE ANY
INTERIM  RECERTIFICATION  DUE   TO   AN   EARNINGS
INCREASE.  AT  THE   ANNUAL  RECERTIFICATION,  THE
AUTHORITY OR DEVELOPER  SHALL  BASE RENT LEVELS ON
SUCH  FAMILY'S  AVERAGE   INCOME   THROUGHOUT  THE
PRECEDING  TWELVE MONTHS.  DURING  THE  SUBSEQUENT
TWELVE-MONTH PERIOD, THE  AUTHORITY  OR  DEVELOPER
SHALL NOT REQUIRE ANY INTERIM RECERTIFICATIONS DUE
TO INCREASED EARNINGS FROM EMPLOYMENT. HOWEVER, IF
A FAMILY'S INCOME  HAS  DECREASED, NOTHING IN THIS
SECTION SHALL PRECLUDE  AN INTERIM RECERTIFICATION
OR RECERTIFICATION BASED  ON  THE  REDUCED  INCOME
LEVEL.
    Sec. 2. Subsection  (m)  of  section 8-113a of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (m) "Elderly persons"  means persons sixty-two
years of age  and  over  who  lack  the  amount of
income which is  necessary,  as  determined by the
authority  or nonprofit  corporation,  subject  to
approval  by  the  Commissioner  of  Economic  and
Community Development, to  enable  them to live in
decent,  safe  and   sanitary   dwellings  without
financial assistance as  provided under this part,
or persons who  have  been certified by the Social
Security Board as being totally disabled under the
federal Social Security  Act  or  certified by any
other federal board  or  agency  as  being totally
disabled. [, except  persons  (1)  currently using
illegal drugs, (2)  currently  abusing alcohol and
who  have  a   recent  history  of  disruptive  or
dangerous  behavior whose  tenancy  constitutes  a
direct threat to  the  health or safety of another
individual  or  whose   tenancy  would  result  in
substantial physical damage  to  the  property  of
another or (3) with a recent history or disruptive
or   dangerous  behavior   whose   tenancy   would
constitute  a direct  threat  to  the  health  and
safety  of another  individual  or  whose  tenancy
would result in substantial physical damage to the
property of another.]
    Sec.  3.  (NEW)  (a)  An  elderly  person,  as
defined in subsection (m) of section 8-113a of the
general statutes, as  amended by section 2 of this
act, shall not  be eligible to move into a housing
project, as defined  in  subsection (f) of section
8-113a of the  general statutes, if the person (1)
is currently using illegal 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)  has a recent history of
disruptive or dangerous behavior and 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 of the
general statutes, as  amended,  within  the  prior
twenty-four-month period.
    (b)   Any  authority,   municipal   developer,
nonprofit corporation or  other  lessor  may evict
any individual from  such  housing  project who is
convicted of the  illegal  sale or possession of a
controlled substance as defined in section 21a-240
of the general  statutes,  as  amended, during the
period of time  the individual is residing in such
housing. Such eviction shall be in accordance with
the  provisions of  chapter  832  of  the  general
statutes,  as amended.  Nothing  in  this  section
shall be construed  to  limit  the remedies of any
such  authority,  municipal  developer,  nonprofit
corporation or lessor  under  chapter  832  of the
general statutes, as amended.

Approved May 22, 1998