CT HB05337

Effective October 1, 2024, applicants submitting affordable housing applications to municipal commissions must provide a $100,000 surety bond issued by a licensed insurance company, banking institution, or surety company authorized to do business in Connecticut.

Municipalities may claim proceeds from the surety bond if an applicant withdraws an affordable housing application without good cause as determined by the commission; recovered funds must be used solely for affordable housing development, capital improvements to public property, or acquisition or preservation of open space.

Expands the definition of "commission" to explicitly include combined planning and zoning commissions for consistency with statutory language.

Amends section 7-339hh to add a new category of allowable costs from tax increment district master plan funds: improvements made outside the district for renovation or rehabilitation of expiring set-aside housing developments, provided the owner agrees to renew deed covenants or restrictions for at least 40 years.