AN ACT CONCERNING HOUSING DEVELOPMENTS WITHIN INCENTIVE HOUSING ZONES.

OFFICE OF FISCAL ANALYSIS

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SB-892

AN ACT CONCERNING HOUSING DEVELOPMENTS WITHIN INCENTIVE HOUSING ZONES.

Agency Affected	Fund-Effect	FY 16 $	FY 17 $
Treasurer, Debt Serv.	GF - Acceleration of Debt Service Costs	Potential	Potential

Municipal Impact: None

Explanation

The bill modifies the Housing for Economic Growth Program (also known as the Incentive Housing Zone program) but does not change General Obligation (GO) bond authorizations relevant to the program.

The bill, among other changes, (1) expands eligibility for grant recipients to municipalities and (2) modifies the building permit grant amounts available to recipients. Future General Fund debt service costs may be incurred sooner under the bill to the degree that the bill causes authorized GO bond funds to be expended more rapidly than they otherwise would have been.

The Incentive Housing Zone program is funded through GO bonds authorized to the Department of Housing. As of March 4, 2015, the unallocated bond balance for the Incentive Housing Zone program is $3.5 million.

The Out Years

The potential shift in debt service costs indicated above would impact the outyears.