July 24, 2008
On April 1, 2008, the Office of Policy and Management ("OPM") began accepting applications from municipalities interested in obtaining a HOMEConnecticut technical assistance grant.
We have prepared this memo based on our involvement in the process by which HOMEConnecticut was created. Shipman & Goodwin attorney Tim Hollister has served as a member of the HOMEConnecticut Steering Committee since its inception and was an active participant in drafting the HOMEConnecticut legislation. Each Shipman & Goodwin attorney listed on the cover of this memo is familiar with HOMEConnecticut and ready to provide assistance.
II. HOMEConnecticut: BACKGROUND.
The HOMEConnecticut legislation, now codified as Conn. Gen. Stat. §§ 8-13m et seq. (see link below) provides financial incentives for municipalities that create IHZs for the construction of mixed-income housing. The IHZs must permit development at prescribed, minimum densities that are intended to promote affordability by lowering per unit costs, but towns control design standards and location. At least 20 percent of the homes in the IHZ must be deed-restricted for a term of 30 years for households earning 80 percent or less of the area median income.
For a summary of the HOMEConnecticut program, you may view the PowerPoint presentation referenced below or visit the Partnership for Strong Communities website, www.ctpartnershiphousing.com/, which sponsored the HOMEConnecticut legislation.
III. PLANNING GRANT APPLICATIONS.
As noted above, we believe that OPM grants will most likely be made to municipalities that "do their homework" and prepare a relatively detailed plan for an IHZ. The following is a list of components that we believe will comprise a successful grant application:
1. Identification Of An "Eligible Location." All applicants will need to identify the area proposed for the IHZ, which must be in an "eligible location." Is the property served by public water and sewer? Is it close to public transportation? Be sure to consult the statutory definition of this term. In addition, the location must be "consistent with the State Plan of Conservation and Development."
2. Clear Plan For Funding. How will the grant money to be spent? OPM wants a detailed line-item budget of consultants / services / expenditures. In addition to explaining how the grant funds will be used, a town must identify the consultants it has selected, describe the consultant selection process, and include copies of consultant contracts. A town will need to demonstrate to OPM that an IHZ is "highly likely" to result after receiving technical assistance, so as much as possible the funds should be spent to prepare a project-specific plan.
3. Draft Density Calculation. How many homes can potentially be constructed in the proposed IHZ? HOMEConnecticut requires towns to base density calculations on "developable land," as defined by Conn. Gen. Stat. § 8-13m. Providing this calculation will serve as more evidence that an IHZ is likely to result from the receipt of funding.
4. Housing Plan. How many residential units can potentially be built in the IHZ? What type? Will the IHZ development be mixed-use?
5. Timetable. When will the grant money be used? When will the IHZ be approved? Towns should have a clear timetable in mind, and should create a management plan for the use of the funds and creation of the IHZ.
6. Legislative Authorization For The Grant. Filing the application requires collaboration among town agencies: grant applications must be authorized by the town's legislative body, and endorsed by the town's zoning commission within 60 days of filing the grant application.
7. Transit-Oriented Development. This is one definition of an "eligible" location. Because this is a smart growth concept, we expect transit-oriented plans to be favored.
8. More Than One Site. If a town is considering more than one IHZ and can use consultants to evaluate multiple sites, this will be efficient.
9. Affordability Plan. An Affordability Plan for administration of the deed restriction for mixed income units should be part of the Project Plan.
IV. LINKS.
1. HOMEConnecticut statute, Conn. Gen. Stat. §§ 8-13 et seq., http://www.cga.ct.gov/2008/sup/chap124b.htm
2. March 27, 2008 letter from OPM Secretary Robert L. Genuario
3. OPM HOMEConnecticut Technical Assistance Grant Application Form
4. Shipman & Goodwin updated HOMEConnecticut PowerPoint presentation
IV. CONCLUSION.
The HOMEConnecticut legislation offers financial incentives for municipalities that can efficiently compile the right information. If you are interested in speaking with us about how we can assist you with an application for a planning grant, or if you would like more information about the HOMEConnecticut legislation, please contact one of the following attorneys:Tim Hollister (860) 251-5601 Joe Williams (860) 251-5127 Matt Ranelli (860) 251-5748 Chris Smith (860) 251-5606 Beth Critton (860) 251-5662 Ryan McKain (860) 251-5011