House Bill 5337 (sHB5337 File No. 65) addresses amendments to affordable housing development practices in the state. The bill mandates that developers applying for affordable housing projects under section 8-30g of the general statutes provide a $100,000 surety bond to ensure the project's development as outlined in the application. This bond is to be held in favor of the municipality for a period of one year, and if the developer withdraws the application without a valid reason, the municipality can claim the bond. The proceeds from the bond are designated for use in affordable housing development, capital improvements, or the acquisition and preservation of open space. The bill also makes technical changes, such as replacing "which" with "that" and clarifying the definition of "assisted housing."

Furthermore, the bill amends section 7-339hh to expand the permissible uses of the district master plan fund to include environmental remediation and site preparation costs. It allows for these funds to be used for improvements outside the tax increment district if they are directly related to the district's establishment or operation. The bill removes the conjunction "and" from the list of costs, indicating that the list may be inclusive but not exhaustive. The bill is slated to become effective on October 1, 2024, and has a potential revenue gain for municipalities beginning in FY 25, depending on the collection of surety bonds. The bill has been favorably reported by the Housing Committee.

Statutes affected:
Raised Bill: 7-339hh
HSG Joint Favorable: 7-339hh
File No. 65: 7-339hh