House Bill No. 5278, reported by the Committee on Planning and Development, proposes an act concerning incentives for transit-oriented development. The bill amends Section 8-190 of the general statutes, effective October 1, 2024, to authorize the commissioner to make planning grants to municipalities for development projects. The bill includes changes to the existing law, such as the deletion of subsection labels (a) and (b) and their replacement with (1) and (2). It also inserts provisions allowing for planning grants to cover up to 100% of planning costs for distressed municipalities or for projects that qualify as transit-oriented development, as defined in section 13b-79o, if there is a substantial likelihood that the planned development project will be completed.

Additionally, the bill amends subsection (b) of section 16a-35c of the general statutes, also effective October 1, 2024, to require the Secretary of the Office of Policy and Management to consider areas suitable for transit-oriented development when developing recommendations for the boundaries of priority funding areas in the state. The bill's fiscal note indicates that there is no state impact but a potential revenue gain for various municipalities beginning in FY 25, as they may be awarded larger grants from the Department of Economic and Community Development (DECD). The bill does not change the availability of funding for DECD's various programs and requires the Office of Policy and Management to consider transit-oriented development without resulting in a fiscal impact, as they already have the necessary resources. The bill's effective date is October 1, 2024, and it amends sections 8-190 and 16a-35c(b).

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