OLR Bill Analysis

sHB 5340 (as amended by House "A")*

AN ACT CONCERNING THE REPLACEMENT OF HOUSING PROJECTS BY HOUSING AUTHORITIES.

SUMMARY:

The law generally prohibits housing authorities that receive or have received state assistance from selling, leasing, transferring, or destroying a housing project if the project would no longer be available for low- or moderate-income rental housing. However, the Department of Housing (DOH) commissioner may approve the action if she finds, after a public hearing, that various conditions are met (see BACKGROUND).

This bill requires the commissioner, in deciding whether to grant such an approval, to consider the extent to which the project's housing units will be replaced with housing that is affordable to households with incomes less than (1) 25% of the area median income (AMI) and (2) 50% of the AMI.

*House Amendment “A” eliminates provisions in the underlying bill that (1) expand the requirements under one of the conditions required to approve a housing project action; (2) require the commissioner, in deciding whether to grant an approval, to consider the extent to which the project's housing units will be replaced with housing that is affordable to households in the same income groups as those that last occupied the project; and (3) define “income groups.”

EFFECTIVE DATE: October 1, 2016

BACKGROUND

Conditions Required for Approval to Sell, Lease, Transfer, or Destroy a Housing Project

The law authorizes the housing commissioner to approve the sale, lease, transfer, or destruction of a housing project upon finding that:

1. an adequate supply of low- or moderate-income rental housing exists in the municipality where the project is located;

2. the action is in the best interest of the state and the municipality;

3. the housing authority developed the plan in consultation with the project's residents and municipal representatives and made adequate provision for the residents' and representatives' participation in the plan; and

4. anyone who is displaced by the action will receive assistance under the Uniform Relocation Assistance Act (URAA) and will (a) be relocated to a comparable public or subsidized housing dwelling unit in the municipality or (b) receive a tenant-based rental subsidy. (Subject to certain conditions, the URAA requires municipalities to pay relocation assistance benefits when they displace people from their homes.)

COMMITTEE ACTION

Housing Committee

Joint Favorable Substitute

Yea

7

Nay

4

(03/08/2016)