Substitute House Bill No. 5236
Substitute House Bill No. 5236
PUBLIC ACT NO. 98-176
AN ACT CONCERNING LIMITS FOR MODERATE RENTAL
HOUSING AND AUTHORIZING THE TRANSFER OF RICE
HEIGHTS.
Be it enacted by the Senate and House of
Representatives in General Assembly convened:
Section 1. Section 8-72a of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) THE MAXIMUM INCOME LIMITS UNDER SECTION
8-72 SHALL BE EIGHTY PER CENT OF THE AREA MEDIAN
INCOME ADJUSTED FOR FAMILY SIZE.
(b) NOTWITHSTANDING THE PROVISION OF
SUBSECTION (a) OF THIS SECTION, EACH DEVELOPER OR
HOUSING AUTHORITY MAY PROPOSE DIFFERENT MAXIMUM
INCOME LIMITS. In fixing EXCEPTIONS TO maximum
income limits under section 8-72, the Commissioner
of Economic and Community Development shall take
into consideration (1) the latest average wage as
computed by the Labor Commissioner for the city or
town served by the authority, (2) the number of
vacancies in the projects under the authority's
control, (3) the number of applications for
admission to tenancy or for continued occupancy
which are refused because of income
disqualification and (4) the latest area median
income, as determined by the United States
Department of Housing and Urban Development.
Sec. 2. (NEW) Notwithstanding any other
statute to the contrary, the Department of
Administrative Services may administer a master
property and casualty insurance program for state
funded and federally funded housing units
operating under the jurisdiction of local housing
authorities. The department may charge the housing
authorities a reasonable fee to provide for the
administrative costs of the program.
Sec. 3. (a) The Housing Authority of the City
of Hartford may transfer to the Commissioner of
Economic and Community Development, and the
Commissioner of Economic and Community Development
may accept from the Housing Authority of the City
of Hartford, the premises and buildings comprising
the housing development known as Rice Heights. The
commissioner may operate and manage Rice Heights.
As consideration for such transfer, the state
shall cancel the outstanding note and mortgage,
including principal, interest and late charges,
owed by the Housing Authority of the City of
Hartford to the state with respect to Rice
Heights. The state shall hold the Housing
Authority of the City of Hartford harmless for any
claims, causes of action or liability arising from
the operation of Rice Heights by the state after
such transfer. The Housing Authority of the City
of Hartford shall hold the state harmless for any
claims, causes of action or liability arising from
the operation of Rice Heights by the Housing
Authority of the City of Hartford.
(b) The commissioner may plan for and carry
out the demolition or renovation of the existing
buildings on the premises of Rice Heights or the
construction of new buildings on said premises.
(c) The commissioner shall plan for and carry
out the development of housing on the premises of
Rice Heights.
(d) The commissioner may select a developer or
developers to carry out all or a part of the
provisions of this section, on a competitive
basis, from proposals solicited and submitted
before or after the effective date of this
section.
(e) The commissioner may sell any housing
units developed at Rice Heights under this section
only to eligible families who meet minimum
qualifying standards, subject to deed restrictions
approved by the commissioner and in compliance
with the provisions of this section. Families
living in Rice Heights prior to demolition or sale
shall have priority for purchase or rental of all
units, and no unit shall be sold or rented to any
other family unless the commissioner determines
that there are no families who lived in Rice
Heights prior to demolition or sale who desire and
qualify to purchase or rent such units. The
commissioner shall assist such families,
regardless of income, to meet all qualifying
conditions for purchase or rental of such units,
including, but not limited to, (1) linking
families to public or private mortgage and down
payment assistance programs, (2) adjusting
interest rates and minimum payment requirements so
as to make instalment payments affordable to
eligible families who wish to purchase or rent,
(3) providing direct mortgage assistance, (4)
providing state or federal rental assistance, and
(5) engaging in other actions so as to make it
possible for any family living in Rice Heights
prior to demolition or sale to purchase or rent a
unit. If the number of families desiring to
purchase or rent a unit is greater than the number
of units available, the commissioner may devise an
equitable system, by lottery or otherwise, for
determining which families shall be permitted to
purchase or rent, provided such system shall not
be based on the family's employment status or
amount of income, subject to the provisions of
subsection (f) of this section. If there is an
insufficient number of eligible families who wish
to purchase or rent units on the land that is
subject to this section, the commissioner may
permit the purchase or rental of such units by
persons who meet the initial occupancy standards
for admission to moderate rental housing, but who
did not previously reside in Rice Heights. As used
in this subsection, (A) "eligible families" means
low or moderate income families who lived in Rice
Heights within the four years prior to the
acquisition of title by the commissioner under
this section, and (B) "minimum qualifying
standards" means (i) family income from all
sources which, when combined with the assistance
that the commissioner is required to provide
pursuant to this section, is sufficient to pay the
monthly mortgage and other costs of housing
developed at Rice Heights under this section,
taking into consideration any reduction in such
costs which arise from assistance required to be
provided pursuant to this subsection, and (ii)
commitment to participating in an ownership
program. If, after fully providing the assistance
required under this subsection to an eligible
family, such family is unable to obtain financing
to purchase a housing unit developed under this
subsection due to lack of credit worthiness, the
commissioner may sell such housing unit to another
eligible family selected pursuant to the
provisions of this subsection.
(f) For the purposes of this section, deed
restrictions approved by the commissioner shall
require for thirty years that (1) at the time of
purchase by or rental to each new owner or tenant
family, the owner or family shall be a family of
low and moderate income, as defined in section
8-39 of the general statutes, and eligible for
admission to moderate rental housing pursuant to
part II of chapter 128 of the general statutes,
(2) the resale price of the premises shall be
limited to their original purchase price, adjusted
for inflation and improvements to the premises, as
determined by the commissioner, and (3) the rental
price for each rental unit shall not exceed the
current fair market rents for the area established
by the United States Department of Housing and
Urban Development.
(g) The commissioner may lease, convey or
grant a license for the premises for the purpose
of carrying out the provisions of this section.
(h) Notwithstanding the provisions of chapters
59 and 60 of the general statutes and subject to
all other provisions of the general statutes, the
commissioner may, within available appropriations,
bond authorizations and bond fund consolidations,
do all things necessary to carry out the
provisions of this section, including, but not
limited to, (1) entering into contracts and
agreements for the provision of services, (2)
securing federal funds or program participation,
(3) providing for relocation and rehousing
assistance in accordance with the uniform
relocation assistance act and other applicable
laws regarding the displacement of tenants, (4)
establishing a moratorium on rents, as the
commissioner deems necessary or appropriate, and
(5) providing for the payment or reimbursement to
the Department of Economic and Community
Development for the administrative expenses of
such department in carrying out the purposes of
this section.
Sec. 4. This act shall take effect from its
passage, except that sections 1 and 2 shall take
effect July 1, 1998.
Approved May 28, 1998