Connecticut Seal

General Assembly

File No. 259

    February Session, 2016

Substitute Senate Bill No. 153

Senate, March 29, 2016

The Committee on Housing reported through SEN. WINFIELD of the 10th Dist., Chairperson of the Committee on the part of the Senate, that the substitute bill ought to pass.

AN ACT CONCERNING SECURITY DEPOSITS FOR AGE-RESTRICTED PUBLIC HOUSING.

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

Section 1. Section 47a-22a of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2016, and applicable to any tenant who first commenced occupancy on or after October 1, 2016):

(a) Any housing authority, community housing development corporation, or other corporation approved by the Commissioner of [Social Services] Housing for state financial assistance to provide public housing for senior citizens and disabled persons under the provisions of part VI or VII of chapter 128 shall return any security deposit with interest, [at a rate of not less than four per cent per annum and, on and after October 1, 1982, at a rate of not less than five and one-quarter per cent per annum, and, on and after January 1, 2013, at the rate calculated in accordance with the provisions of subsection (i) of section 47a-21, to any tenant who has resided in such housing for at least one year] to any tenant or former tenant at the time the tenancy is terminated in accordance with the provisions of section 47a-21.

(b) Any housing authority, community housing development corporation or other corporation approved by the Commissioner of Housing for state financial assistance to provide public housing for senior citizens and disabled persons under the provisions of part VI or VII of chapter 128 shall permit the payment of a security deposit in installments that are reasonable in light of the income of the tenant. Such installments shall be payable in equal amounts at approximately equal intervals not exceeding one month over a period of at least twelve months. Nothing in this section shall preclude any such housing authority or corporation from waiving the payment of the security deposit, or agreeing to extend the installment payments over a period of more than twelve months.

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

Section 1

October 1, 2016, and applicable to any tenant who first commenced occupancy on or after October 1, 2016

47a-22a

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 requires housing authorities, developers, and corporations providing state-funded public housing to elderly and disabled citizens to allow residents to pay the security deposit in installments. The bill also changes when housing authorities and corporations are required to return security deposits to tenants. There are no fiscal impacts to the state or municipalities from these provisions.

Housing authorities are autonomous governmental entities which are financed through rental collections (CGS 8-45) and the issuance of bonds (CGS 8-52). They may also accept federal and state grants (CGS 8-56) as well as donations from municipalities (CGS 8-61).

The Out Years

State Impact: None

Municipal Impact: None

OLR Bill Analysis

sSB 153

AN ACT CONCERNING SECURITY DEPOSITS FOR AGE-RESTRICTED PUBLIC HOUSING.

SUMMARY:

This bill requires housing authorities, community housing development corporations, and other corporations providing state-assisted public housing to the elderly and individuals with disabilities to allow these tenants to pay security deposits in installments. The installments must be (1) reasonable in light of the tenant's income and (2) paid in equal amounts and at approximately equal intervals not exceeding one month, over a period of at least 12 months. The bill specifies that it does not prohibit a housing authority or corporation from waiving a security deposit requirement or extending installments beyond 12 months.

The bill eliminates the requirement that housing authorities and the corporations noted above return security deposits to elders and individuals with disabilities after the tenant has lived in the housing for at least one year. It instead requires them to return security deposits when the tenancy terminates.

By law, housing authorities and corporations must pay an annual interest rate on these tenants' security deposits equal to the deposit index (0.08% for calendar year 2016).

Lastly, the bill makes a technical change.

EFFECTIVE DATE: October 1, 2016 and applicable to individuals whose tenancy begins on or after that date.

COMMITTEE ACTION

Housing Committee

Joint Favorable Substitute

Yea

11

Nay

0

(03/08/2016)

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