House Bill No. 5278, reported by the Committee on Planning and Development, proposes an act concerning incentives for transit-oriented development. The bill includes changes to the general statutes, effective October 1, 2024. It authorizes the commissioner to make planning grants to municipalities for development projects, with an amendment that allows grants to cover up to 100% of planning costs for projects that qualify as transit-oriented development, as defined in section 13b-79o, if there is a substantial likelihood that the project will be completed. This is in addition to the existing provision that allows distressed municipalities to receive grants covering up to 100% of planning costs. The bill also permits noncash contributions to be used for the municipal share of planning costs, with the value determined by the commissioner.

Furthermore, the bill requires the Secretary of the Office of Policy and Management, in consultation with various commissioners and regional councils, to develop recommendations for the boundaries of priority funding areas in the state, considering areas suitable for transit-oriented development among other factors. These recommendations are to be submitted to the Continuing Legislative Committee on State Planning and Development and then reported to the General Assembly. The bill's fiscal note indicates a potential revenue gain for municipalities beginning in FY 25, as they may be awarded larger grants from the Department of Economic and Community Development (DECD). The bill's impact on DECD is anticipated to be neutral, as it will award grants based on project qualifications and available funding. The Office of Policy and Management is not expected to incur additional costs as it already has the necessary resources to make the required recommendations. The bill's effective date is October 1, 2024, and it amends sections 8-190 and 16a-35c(b) of the general statutes.

Statutes affected:
Raised Bill: 8-190
PD Joint Favorable: 8-190
File No. 403: 8-190