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Connecticut Public Acts 1996

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Substitute House Bill No. 5081

PUBLIC ACT NO. 96-189

AN ACT CONCERNING THE FEE FOR ADMINISTRATIVE OVERSIGHT OF HOUSING.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Section 8-37tt of the general statutes, as amended by section 1 of public act 95-250, is repealed and the following is substituted in lieu thereof:

(a) As used in this section, "administrative oversight charge" means any fee payable to the Department of Economic and Community Development from sources other than (1) the proceeds from the sale of the state's general obligation bonds or (2) the housing repayment and revolving loan program established pursuant to subsection (e) of section 8-37qq, AS AMENDED that is imposed to pay all or a portion of the costs and expenses of the Department of Economic and Community Development in monitoring facilities developed with financial assistance pursuant to any bond-financed state housing program as defined in subsection (a) of said section 8-37qq, and ensuring compliance with requirements and restrictions applicable to such facilities.

(b) The commissioner shall adopt regulations in accordance with the provisions of chapter 54 describing procedures to be employed in calculating administrative oversight charges and establishing the amount of such charges.

(c) NOTWITHSTANDING THE PROVISIONS OF THIS SECTION OR ANY REGULATIONS ADOPTED THEREUNDER, THE AMOUNT OF THE ADMINISTRATIVE OVERSIGHT CHARGE PER UNIT SHALL BE AS FOLLOWS: (1) FOR THE PERIOD FROM JULY 1, 1997, TO JUNE 30, 1998, NOT MORE THAN TWELVE DOLLARS, (2) FOR THE PERIOD FROM JULY 1, 1998, TO JUNE 30, 1999, NOT MORE THAN SEVEN DOLLARS AND (3) ON AND AFTER JULY 1, 1999, THERE SHALL BE NO CHARGE.

Sec. 2. Section 8-435 of the general statutes is repealed and the following is substituted in lieu thereof:

(a) In accordance with regulations adopted pursuant to section 8-437, the commissioner shall review and approve the site, the estimated total development budget, including the nature and amount of financial assistance to be provided by the state, and the proposed initial operating budget of each housing development prior to providing financial assistance pursuant to section 8-433. The commissioner may review and approve any additional factors determined by the commissioner to be necessary or appropriate to the protection of the state's programmatic intent and financial interests.

(b) Prior to providing financial assistance for any proposed housing development pursuant to section 8-433, the commissioner shall provide written notice describing the proposed housing development to the chief executive officer of the municipality in which the proposed housing development is to be located.

(c) At least biennially, after financial assistance is provided with respect to a housing development pursuant to section 8-433, the commissioner shall review and approve the proposed operating budget, income limitations applicable to eligible households, other standards for resident eligibility, methods of resident selection, standards for continued resident occupancy, procedures for certifying annual household income, administrative and management procedures and rents or carrying charges, and may review and approve any additional factors determined by the commissioner to be necessary or appropriate to the protection of the state's programmatic intent and financial interests. Limited equity cooperatives receiving financial assistance pursuant to section 8-433 shall be self-managed except that the commissioner may require a limited equity cooperative to engage the services of a management company upon determination that such action is necessary to achieve the state's programmatic intent under sections 8-430 to 8-438, inclusive AS AMENDED. The commissioner may establish terms and conditions pursuant to section 8-436 allowing residents to continue occupancy of units in housing developments that receive financial assistance pursuant to section 8-434 regardless of an increase in the annual household income of such residents. Housing developments that receive financial assistance pursuant to section 8-433 shall be managed so as to enable rents and carrying charges to be set or established at the lowest level consistent with the provision of habitable units and sound property management, taking into consideration the state's programmatic intent as determined by the commissioner. In accordance with regulations adopted pursuant to section 8-437 the operating budget of each housing development that receives financial assistance pursuant to section 8-433 shall identify income, from all available sources, sufficient to provide, as applicable, funds for: Debt service; administrative and management costs and expenses of the entity or entities managing the housing development; [the department's administrative oversight charge;] other operating costs and expenses; contributions towards reserves for repairs, maintenance, replacement, and vacancy and collection losses; and any other items determined by the commissioner to be necessary or appropriate to the protection of the state's programmatic intent and financial interest.

[(d) The commissioner may from time to time impose and collect an administrative oversight charge, determined by regulations adopted pursuant to section 8-437, with respect to any housing development that receives financial assistance pursuant to section 8-433.

(e)] (d) The commissioner may request, inspect and audit reports, books and records with respect to housing developments that receive financial assistance pursuant to section 8-433, including, without limitation, resident information and financial and operating statements, and shall have the power to investigate the accuracy and completeness of such reports, books and records.

[(f)] (e) The intentional submission of false information with respect to any housing development that receives financial assistance pursuant to section 8-433 shall subject the person making the submission to the penalty for making a false statement under section 53a-157.

Sec. 3. This act shall take effect July 1, 1996.

Approved May 31, 1996. Effective July 1, 1996.

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