The bill sSB456 File No. 587 establishes a pilot program to combat concentrated poverty in Connecticut by creating 10-year plans for areas where at least 30% of households live below the federal poverty level. It sets up the Office of Neighborhood Investment and Community Engagement (ONICE) within the Department of Economic and Community Development (DECD) to oversee the program's implementation, and the Office of Community Economic Development Assistance (OCEDA) to assist organizations in becoming certified community development corporations (CDCs). The bill mandates the development of these plans, which include measurable steps and educational benchmarks, and requires the Commissioner of Economic and Community Development to report progress to the General Assembly. It also allows CDCs to take legal action against officials who fail to meet their responsibilities and requires annual progress reports starting in 2027.

The bill includes provisions for the issuance of bonds by the State Bond Commission to fund eligible projects, with a cap of $875 million over five fiscal years and the possibility of an additional $1.25 billion over another five years. It amends the definition of "high poverty-low opportunity census tract" to "concentrated poverty census tract," focusing on household income levels. The bill outlines the application process for municipalities, the review process by the DECD, and the Governor's authority to approve or modify applications. It also establishes the Community Investment Fund 2030 Board to review and fund projects, with an emphasis on local hiring and community impact. The bill requires an annual report on funded projects and biennial audits. It has fiscal implications, including an annualized cost of $1.8 million for the pilot program and potential revenue gains or costs for municipalities. The bill takes effect upon passage and amends several sections of the general statutes.

Statutes affected:
Raised Bill: 32-7s
FIN Joint Favorable Substitute: 32-7s
File No. 587: 32-7s