Connecticut Seal

General Assembly

File No. 144

    February Session, 2016

Substitute House Bill No. 5340

House of Representatives, March 23, 2016

The Committee on Housing reported through REP. BUTLER of the 72nd Dist., Chairperson of the Committee on the part of the House, that the substitute bill ought to pass.

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

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Section 8-64a of the 2016 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2016):

(a) No housing authority that receives or has received any state financial assistance may sell, lease, transfer or destroy, or contract to sell, lease, transfer or destroy, any housing project or portion thereof in any case where such project or portion thereof would no longer be available for the purpose of low or moderate income rental housing as a result of such sale, lease, transfer or destruction, except the Commissioner of Housing may grant written approval for the sale, lease, transfer or destruction of a housing project if the commissioner finds, after a public hearing, that (1) the sale, lease, transfer or destruction is in the best interest of the state and the municipality in which the project is located, (2) an adequate supply of low or moderate income rental housing exists in the municipality in which the project is located that is affordable to households of the same income group, as defined in section 8-37aa, as those households which most recently occupied the housing project or portion thereof being sold, leased, transferred or destroyed, (3) the housing authority has developed a plan for the sale, lease, transfer or destruction of such project in consultation with the residents of such project and representatives of the municipality in which such project is situated and has made adequate provision for said residents' and representatives' participation in such plan, and (4) any person who is displaced as a result of the sale, lease, transfer or destruction will be relocated to a comparable dwelling unit of public or subsidized housing in the same municipality or will receive a tenant-based rental subsidy and will receive relocation assistance under chapter 135. The commissioner shall consider the extent to which the housing units that are to be sold, leased, transferred or destroyed will be replaced with housing that is affordable to households of the same income group, as defined in section 8-37aa, as those households which most recently occupied the housing project or portion thereof being sold, leased, transferred or destroyed, in ways that may include, but need not be limited to, newly constructed housing, rehabilitation of housing that is abandoned or has been vacant for at least one year, or new federal, state or local tenant-based or project-based rental subsidies. The commissioner shall give the residents of the housing project or portion thereof that is to be sold, leased, transferred or destroyed written notice of said public hearing by first class mail not less than ninety days before the date of the hearing. Said written approval shall contain a statement of facts supporting the findings of the commissioner. This section shall not apply to the sale, lease, transfer or destruction of a housing project pursuant to the terms of any contract entered into before June 3, 1988. The commissioner shall not impose a one-for-one replacement requirement on King Court in East Hartford. This section shall not apply to phase I of Father Panik Village in Bridgeport, Elm Haven in New Haven, Pequonnock Gardens Project in Bridgeport, Evergreen Apartments in Bridgeport, Quinnipiac Terrace/Riverview in New Haven, Dutch Point in Hartford, William V. Begg Apartments in Waterbury, Southfield Village in Stamford, Marina Village in Bridgeport and, upon approval by the United States Department of Housing and Urban Development of a HOPE VI revitalization application and a revitalization plan that includes at least the one-for-one replacement of low and moderate income units, Fairfield Court in Stamford.

(b) For purposes of this section, housing that is affordable is housing for which persons and families pay thirty per cent or less of their annual income.

This act shall take effect as follows and shall amend the following sections:

Section 1

October 1, 2016

8-64a

HSG

Joint Favorable Subst.

 

The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose. In general, fiscal impacts are based upon a variety of informational sources, including the analyst's professional knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note

State Impact: None

Municipal Impact: None

Explanation

The bill has no fiscal impact to the Department of Housing by clarifying when the Department may approve a proposed sale, lease transfer or destruction of a housing facility.

Under the bill, the Department may approve such an action if there is an adequate supply of housing in the same municipality that is affordable, as defined in the bill, for those households living in the housing facility proposed to be sold, leased, transferred or destroyed.

The Out Years

State Impact: None

Municipal Impact: None

OLR Bill Analysis

sHB 5340

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

SUMMARY:

The law generally prohibits housing authorities that 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. This bill expands the requirements under one of these conditions; it leaves the others unchanged (see BACKGROUND).

Currently, to approve such an action, the commissioner must find that an adequate supply of low- or moderate-income rental housing exists in the municipality where the housing project is located. The bill additionally requires that this rental housing be affordable to households in the same income groups as those that last occupied the project. Under the bill, housing is “affordable” when individuals or families pay no more than 30% of their annual income for it.

The bill similarly requires that the commissioner, in deciding whether to grant an approval, 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.

The bill defines “income groups” in the same way that the law on fair housing choice and racial and economic integration does. The five income groups are those with household incomes:

EFFECTIVE DATE: October 1, 2016

BACKGROUND

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

In addition to finding that an adequate supply of low- or moderate-income rental housing exists in the municipality where the housing project is located, the commissioner must find that:

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)

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