AN ACT REQUIRING STATE AND LOCAL AGENCIES AND UTILITIES TO ADOPT A HOUSING AFFORDABILITY IMPACT ANALYSIS.

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

Section 1. (NEW) (Effective July 1, 2018) (a) As used in this section and section 8-30j of the general statutes, as amended by this act:

(1) "Agency", "proposed regulation" and "regulation" have the same meanings as provided in section 4-166 of the general statutes;

(2) "Local agency" means any zoning, planning, housing or economic and community development commission or board, or any combination, variant or agent thereof exercising authority under title 8 of the general statutes, any inland wetlands and watercourses commission, conservation commission, or any combination, variant or agent thereof exercising authority under chapter 103 of the general statutes, or any other board or commission, or other authority adopting any municipal land use regulation or taking any land use action;

(3) "Local land use regulation" means any regulation, ordinance, guideline, standard or other enactment adopted by a local agency that restricts, or places requirements on, the production of housing within this state; and

(4) "Utility company" means any municipal, regional or investor-owned company that provides water, sewage, telecommunications, electric, natural gas or other fuel services to residential dwellings in this state.

(b) Prior to or concomitant with the posting of a notice of intent to adopt (1) any proposed state agency regulation pursuant to section 4-168 of the general statutes, as amended by this act, (2) any local land use regulation, or (3) any restriction or requirement from any utility company or, if no such notice is required, the implementation of any restriction or requirement from any utility company, each state agency, local agency or utility company shall prepare a housing affordability impact analysis in which such agency or utility company shall identify, as the case may be:

(A) The scope and objectives of the proposed state regulation, local land use regulation or utility restriction or requirement;

(B) The types of housing developments potentially affected by the proposed state regulation, local land use regulation or utility restriction or requirement;

(C) The total number of housing units estimated to be subject to the proposed regulation, local land use regulation or utility restriction or requirement, and the estimated cost per unit of housing affected by such regulation, restriction or requirement;

(D) Whether any business or individual who develops residential property or constructs housing, in order to comply with the proposed state regulation, local land use regulation or utility restriction or requirement, may be required to: (i) Create, file or issue additional reports; (ii) implement additional recordkeeping procedures; (iii) provide additional administrative oversight; (iv) hire additional employees; (v) hire or contract with additional professionals, including, but not limited to, lawyers, accountants, engineers, auditors or inspectors; (vi) purchase any product or make any capital investment; (vii) conduct additional training, audits or inspections; or (viii) pay additional taxes or fees;

(E) Whether and to what extent the state agency, local agency or utility company communicated with any business or individual who develops residential property or constructs housing, or organizations or associations that represent such businesses or individuals, in developing or pursuing the proposed state regulation, local land use regulation or utility restriction or requirement, and the housing affordability impact analysis, if applicable;

(F) Whether and to what extent the proposed state regulation, local land use regulation or utility restriction or requirement provides alternative compliance methods for businesses or individuals who develop residential property or construct housing that will accomplish the objectives of applicable statutes while minimizing adverse impact on such businesses and individuals. Such methods shall be consistent with public health, safety and welfare and may include, but not be limited to:

(i) The establishment of less stringent compliance or reporting requirements for such businesses and individuals;

(ii) The establishment of less stringent schedules or deadlines for compliance or reporting requirements for such businesses and individuals;

(iii) The consolidation or simplification of compliance or reporting requirements for such businesses and individuals;

(iv) The establishment of performance standards for such businesses and individuals to replace design or operational standards required in the proposed state regulation, local land use regulation or utility restriction or requirement; and

(v) The exemption of such businesses or individuals from all or any part of the requirements contained in the proposed state regulation, local land use regulation or utility restriction or requirement.

(c) The requirements contained in this section shall not apply to emergency regulations issued pursuant to subsection (g) of section 4-168 of the general statutes or regulations that do not directly affect businesses or individuals who develop residential property or construct housing, including, but not limited to, regulations concerning the administration of federal programs, regulations concerning costs and standards for service businesses such as nursing homes, long-term care facilities, medical care providers, child care centers, as described in section 19a-77 of the general statutes, group child care homes, as described in section 19-77 of the general statutes, group homes and residential care facilities, and regulations adopted to implement provisions of sections 4a-60g to 4a-60i, inclusive, of the general statutes.

(d) The housing affordability impact analysis prepared under this section shall be posted on the Internet web site of the applicable state agency, local agency or utility company that prepares such analysis and made part of the record of the state agency regulation, local land use regulation or proposed utility company rule, policy or requirement.

(e) A state agency, local agency or utility company required to prepare a housing affordability impact analysis under this section shall use any draft or interim housing affordability impact analysis, or information used to prepare such housing affordability impact analysis, to make its best effort to reduce the cost on housing production impacted by the proposed state agency regulation, local land use regulation or utility restriction or requirement, as the case may be.

(f) The housing affordability impact analysis prepared under this section or section 8-30j of the general statutes, as amended by this act, shall not be appealable by any person or entity, and shall not be used in any appeal of a final decision on a regulation, ordinance or other requirement by the state agency, local agency or utility company that produced such analysis.

Sec. 2. Section 8-30j of the 2018 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2018):

(a) At least once every five years, each municipality shall prepare or amend and adopt an affordable housing plan for the municipality. Such plan shall (1) specify how the municipality intends to increase the number of affordable housing developments in the municipality, and (2) include a housing affordability impact analysis, as described in section 1 of this act, of the municipality's local land use and other regulations, ordinances and requirements that impact the cost of housing within the municipality.

(b) The municipality may hold public informational meetings or organize other activities to inform residents about the process of preparing the plan. If the municipality holds a public hearing, at least thirty-five days prior to the public hearing on the adoption, the municipality shall file in the office of the town clerk of such municipality a copy of such draft plan or any amendments to the plan, and if applicable, post such draft plan on the Internet web site of the municipality. After adoption of the plan, the municipality shall file the final plan in the office of the town clerk of such municipality and, if applicable, post the plan on the Internet web site of the municipality.

(c) Following adoption, the municipality shall regularly review and maintain such plan. The municipality may adopt such geographical, functional or other amendments to the plan or parts of the plan, in accordance with the provisions of this section, as it deems necessary. If the municipality fails to amend such plan every five years, the chief elected official of the municipality shall submit a letter to the Commissioner of Housing that explains why such plan was not amended.

Sec. 3. Subsection (a) of section 4-168 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2018):

(a) Except as provided in subsections (g) and (h) of this section, an agency, not less than thirty days prior to adopting a proposed regulation, shall (1) post a notice of its intended action on the eRegulations System, which notice shall include (A) a specified public comment period of not less than thirty days, (B) a description sufficiently detailed so as to apprise persons likely to be affected of the issues and subjects involved in the proposed regulation, (C) a statement of the purposes for which the regulation is proposed, (D) a reference to the statutory authority for the proposed regulation, (E) when, where and how interested persons may obtain a copy of the small business impact and regulatory flexibility analysis required pursuant to section 4-168a, [and] (F) when, where and how interested persons may obtain a copy of the housing affordability impact and affordability analysis required pursuant to section 1 of this act, and (G) when, where and how interested persons may present their views on the proposed regulation; (2) post a copy of the proposed regulation on the eRegulations System; (3) give notice electronically to each joint standing committee of the General Assembly having cognizance of the subject matter of the proposed regulation; (4) prior to January 1, 2017, give notice electronically or provide a paper copy notice, if requested, to all persons who have made requests to the agency for advance notice of its regulation-making proceedings; (5) provide a paper copy or electronic version of the proposed regulation to persons requesting it; and (6) prepare a fiscal note, including an estimate of the cost or of the revenue impact on (A) [on] the state or any municipality of the state, [and] (B) [on] small businesses in the state, including an estimate of the number of small businesses subject to the proposed regulation and the projected costs, including, but not limited to, reporting, recordkeeping and administrative, associated with compliance with the proposed regulation and, if applicable, the regulatory flexibility analysis prepared under section 4-168a, and (C) businesses and individuals who develop residential property or construct housing in the state, including an estimate of the number of such businesses and individuals subject to the proposed regulation and the projected costs, including, but not limited to, reporting, recordkeeping and administrative, associated with compliance with the proposed regulation and, if applicable, the housing affordability impact analysis prepared under section 1 of this act. The governing body of any municipality, if requested, shall provide the agency, within twenty working days, with any information that may be necessary for analysis in preparation of such fiscal note. On and after January 1, 2017, each such agency shall mail a paper copy of the notice posted pursuant to subdivision (1) of this subsection, not later than five days after posting such notice, to any person who has requested advance notice of the agency's regulation-making proceedings on or after October 1, 2016.

Statement of Purpose:

To require state agencies, local agencies and utility companies to produce a housing affordability impact analysis of any proposed regulation, restriction or requirement.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]