Legislature Passed New Bond Authorizations for FY 20 and FY 21: Authorizing Significant New Resources to Create Affordable Housing
March 12, 2020
On Wednesday, March 11th, the legislature passed new bond authorizations for FY 20 and FY 21. House Bill 5518 authorizes significant new resources to create a variety of affordable housing in Connecticut.
"Yesterday the Legislature passed new bond authorizations that align closely with Governor Lamont's proposed authorizations and provide new significant resources for the creation of affordable housing in Connecticut. These authorizations are a firm step in the right direction, and we applaud the Governor and Legislature for demonstrating that they understand and support the need for safe, stable housing for all." said Kiley Gosselin, Executive Director of the Partnership for Strong Communities.
The Governor had recommended a total of $205 million over the biennium in new bond authorizations for affordable housing development for the state Housing Trust Fund and the Affordable Housing Flex Fund, aligning with H.B. 5518.
Total new bond authorizations are $1.5 billion in each year of the biennium.
In addition, there currently remains $63 million in available authorizations in the state Housing Trust Fund, and $50 million in the Affordable Housing Flex fund. There is also $12 million available for the Homeless Prevention Response Fund.
The Bond Package Includes:
Department of Housing
- New bond authorizations for the Affordable Housing Flex Fund are funded at $100 million for FY 20 and $75 million for FY 21, which includes $30 million each year for the State Sponsored Housing Portfolio. The authorizations require DOH to prioritize areas with low homeownership rates, and to use up to $170,000 in FY20 to conduct planning and data analysis on state housing needs, subsidized housing inventory, and tenant-based subsidy usage.
- New bond authorizations for the Housing Trust Fund are funded at $30 million in FY 20 and $0 in FY 21.
- Rental Assistance vouchers to support the Department of Social Services' Long-Term Care Rebalancing Strategy remain at levels in the enacted budget, providing $1.3 million for FY 21.
- New bond authorizations for the Down Payment Assistance Program at Connecticut Housing Finance Authority at $4.5 million in each year of the biennium, including $500,000 for the Mortgage Assistance Program for teachers.
Department of Economic and Community Development
- Provides new bond authorizations for the Brownfield Remediation and Revitalization Program at $30 million in new bonding authorizations for FY 20 and $17 million in FY 21.
Office of Policy and Management
- New Urban Act bond funding is provided at $100 million in each year of the biennium.
- Small Town Economic Assistance Program (STEAP) funded at $0 for FY 20 and $30 million in FY 21 in new bonding authorizations.
- Provides new bond authorizations for grants to nonprofits, funded at $25 million each year of the biennium.
Capital Region Development Authority
- New bond authorizations for projects outside of the Capital Region Development Authority boundaries funded at $0 in FY 20 and $10 million in FY 21.
- New bond authorizations for East Hartford development, including housing, funded at $10 million in each year of the biennium.
Department of Labor
- Provides new bond authorizations for the Workforce Training Authority Fund at $20 million in each year of the biennium.
- New bond authorizations for the Technology Strategic Plan Project to implement the Clean Slate initiative, funded at $2 million in each year of the biennium.
Connecticut Municipal Redevelopment Authority
- Provides new bond authorizations for capitalization of the Connecticut Municipal Redevelopment Authority (CMRA) at $0 for FY 20 and $45 million in FY 21.
The bond package also expands eligibility for the Smart Start grant program for infants and toddlers where a demonstrated need exists, as determined by the Office of Early Childhood.