Sec. 8-169jj. Purposes of authority. Powers.
Sec. 8-169kk. Written procedures for conduct of board of directors.
Sec. 8-169ll. Member municipalities; joint member entities.
Sec. 8-169oo. Bonds, notes and other obligations of the authority.
Sec. 8-169tt. Approval of housing growth zones.
Sec. 8-169hh. Definitions. For purposes of this section and sections 8-169ii to 8-169vv, inclusive:
(1) “As of right” has the same meaning as provided in section 8-1a;
(2) “Authority” means the Connecticut Municipal Development Authority established in section 8-169ii;
(3) “Authority development project” means a project occurring within the boundaries of a Connecticut Municipal Development Authority development district;
(4) “Connecticut Municipal Development Authority development district” or “development district” means the area determined by a memorandum of agreement between the authority and the chief executive officer of the member municipality, or the chief executive officers of the municipalities constituting a joint member entity, as applicable, where such development district is located, provided such area shall be considered a downtown or does not exceed a one-half-mile radius of a transit station;
(5) “Designated tier III municipality” has the same meaning as provided in section 7-560;
(6) “Designated tier IV municipality” has the same meaning as provided in section 7-560;
(7) “Downtown” means a central business district or other commercial neighborhood area of a community that serves as a center of socioeconomic interaction in the community, characterized by a cohesive core of commercial and mixed-use buildings, often interspersed with civic, religious and residential buildings and public spaces, that are typically arranged along a main street and intersecting side streets and served by public infrastructure;
(8) “Member municipality” means any municipality that opts to join the Connecticut Municipal Development Authority in accordance with section 8-169ll. “Member municipality” does not include the city of Hartford or the town of East Hartford;
(9) “Middle housing” has the same meaning as provided in section 8-1a;
(10) “Joint member entity” means two or more municipalities that together opt to join the Connecticut Municipal Development Authority in accordance with section 8-169ll, provided no such municipality is the city of Hartford or the town of East Hartford;
(11) “Project” means any or all of the following: (A) The design and construction of transit-oriented development, as defined in section 13b-79kk; (B) the creation of housing units through rehabilitation or new construction; (C) the demolition or redevelopment of vacant buildings; and (D) development and redevelopment;
(12) “State-wide transportation investment program” means the planning document developed and updated at least every four years by the Department of Transportation in compliance with the requirements of 23 USC 135, listing all transportation projects in the state expected to receive federal funding during the four-year period covered by the program; and
(13) “Transit station” means any passenger railroad station or bus rapid transit station that is operational, or for which the Department of Transportation has initiated planning or that is included in the state-wide transportation investment program.
(P.A. 19-117, S. 212; P.A. 23-120, S. 1; 23-204, S. 194; P.A. 24-81, S. 83; P.A. 25-168, S. 102; Nov. Sp. Sess. P.A. 25-1, S. 50.)
History: P.A. 23-120 made a technical change in Subdiv. (10), effective June 26, 2023; P.A. 23-204 added reference to Sec. 8-169tt in the introductory clause, defined the terms “as of right” and “middle housing”, redefined the terms “member municipality” and “joint member entity” and made conforming changes, effective July 1, 2023 (Revisor's note: In codifying section 194 of public act 23-204, an incorrect reference to “section 195 of this act” was deemed by the Revisors to be a reference to “section 198” and therefore replaced “8-169ss” with “8-169tt” in the introductory clause); P.A. 24-81 amended introductory clause to add references to Secs. 8-169uu and 8-169vv; P.A. 25-168 changed “Connecticut Municipal Redevelopment Authority” to “Connecticut Municipal Development Authority” throughout and redefined “transit station”; Nov. Sp. Sess. P.A. 25-1 redefined “joint member entity” to exclude the city of Hartford and the town of East Hartford, effective November 26, 2025.
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Sec. 8-169ii. Connecticut Municipal Development Authority established. Board of directors; appointments; record of proceedings; action. Authority's procedures for conduct. Termination. (a) There is hereby established and created a body politic and corporate, constituting a public instrumentality and political subdivision of the state established and created for the performance of an essential public and governmental function, to be known as the Connecticut Municipal Development Authority. The authority shall not be construed to be a department, institution or agency of the state.
(b) The powers of the authority shall be vested in and exercised by a board of directors, which shall consist of the following members: (1) One appointed by the speaker of the House of Representatives who has expertise in housing development; (2) one appointed by the president pro tempore of the Senate who has expertise in planning and zoning; (3) one appointed by the majority leader of the House of Representatives who is a certified planner; (4) one appointed by the majority leader of the Senate who has expertise in transit-oriented development; (5) one appointed by the minority leader of the House of Representatives who has expertise in regional planning; (6) one appointed by the minority leader of the Senate who has expertise in economic development; (7) three appointed by the Governor; and (8) the Secretary of the Office of Policy and Management, the Labor Commissioner and the Commissioners of Transportation, Energy and Environmental Protection, Public Health, Housing and Economic and Community Development, or their designees, who shall serve as ex-officio, voting members of the board.
(c) The Governor shall designate the chairperson of the board from among the members. All initial appointments shall be made not later than sixty days after October 1, 2023. All members shall be appointed by the original appointing authority for four-year terms. Any member of the board shall be eligible for reappointment. Any vacancy occurring other than by expiration of term shall be filled in the same manner as the original appointment for the balance of the unexpired term. The appointing authority for any member may remove such member for misfeasance, malfeasance or wilful neglect of duty.
(d) Each member of the board, before commencing such member's duties, shall take and subscribe the oath or affirmation required by section 1 of article eleventh of the Constitution of the state. A record of each such oath shall be filed in the office of the Secretary of the State.
(e) The board of directors shall maintain a record of its proceedings in such form as it determines, provided such record indicates attendance and all votes cast by each member. Any appointed member who fails to attend three consecutive meetings or who fails to attend fifty per cent of all meetings held during any calendar year shall be deemed to have resigned from the board. A majority of the members of the board then in office shall constitute a quorum, and an affirmative vote by a majority of the members present at a meeting of the board shall be sufficient for any action taken by the board. No vacancy in the membership of the board shall impair the right of a quorum to exercise all the rights and perform all the duties of the board. Any action taken by the board may be authorized by resolution at any regular or special meeting and shall take effect immediately unless otherwise provided in the resolution. The board may delegate to three or more of its members, or its officers, agents or employees, such board powers and duties as it may deem proper.
(f) The board of directors shall annually elect one of its members as a vice-chairperson, and shall elect other of its members as officers, adopt a budget and bylaws, designate an executive committee, report semiannually to the appointing authorities with respect to operations, finances and achievement of its economic development objective, be accountable to and cooperate with the state whenever the state may audit the Connecticut Municipal Development Authority or an authority development project or at any other time as the state may inquire as to either, including allowing the state reasonable access to any such project and to the records of the authority.
(g) The chairperson of the board, with the approval of the members of the board of directors, shall appoint an executive director of the authority who shall be an employee of the authority and paid a salary prescribed by the members. The executive director shall be the chief administrative officer of the authority and shall supervise the administrative affairs and technical activities of the authority in accordance with the directives of the board. The executive director shall not be a member of the board.
(h) No member of the board of directors may receive compensation for the performance of such member's official duties.
(i) Each member of the board of directors of the authority and the executive director shall execute a surety bond in the penal sum of at least one hundred thousand dollars, or, in lieu thereof, the chairperson of the board shall execute a blanket position bond or procure an equivalent insurance product covering each member, the executive director and the employees of the authority. Each surety bond or equivalent insurance product shall be conditioned upon the faithful performance of the duties of the office or offices covered, issued by an insurance company authorized to transact business in this state for surety or such insurance product. The cost of each such bond or insurance product shall be paid by the authority.
(j) No board member, or member of his or her immediate family, as defined in section 1-91, shall have or acquire any financial interest in (1) any authority development project, or (2) any property included or planned to be included in any such project or in any contract or proposed contract for materials or services to be used in such project.
(k) The authority shall have perpetual succession and shall adopt procedures for the conduct of its affairs in accordance with section 8-169kk. Such succession shall continue as long as the authority has bonds, notes or other obligations outstanding and until its existence is terminated by law, provided no such termination shall affect any outstanding contractual obligation of the authority and the state shall succeed to the obligations of the authority under any contract. Upon the termination of the existence of the authority, all its rights and properties shall pass to and be vested in the state.
(P.A. 19-117, S. 213; P.A. 23-204, S. 195; P.A. 25-168, S. 103.)
History: P.A. 23-204 amended Subsec. (b) by substantially modifying membership of the board of directors and amended Subsec. (c) by replacing “October 1, 2019” with “October 1, 2023”; P.A. 25-168 changed “Connecticut Municipal Redevelopment Authority” to “Connecticut Municipal Development Authority” in Subsecs. (a) and (f).
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Sec. 8-169jj. Purposes of authority. Powers. (a) The purposes of the Connecticut Municipal Development Authority shall be to: (1) Stimulate economic and transit-oriented development, as defined in section 13b-79kk, within Connecticut Municipal Development Authority development districts; (2) encourage residential housing development within development districts; (3) manage facilities through contractual agreement or other legal instrument; (4) stimulate new investment within development districts and provide support for the creation of vibrant, multidimensional downtowns; (5) upon request of the legislative body of a member municipality, or the legislative bodies of the municipalities constituting a joint member entity, as applicable, in which a development district is located, work with such municipality or municipalities to assist in development and redevelopment efforts to stimulate the economy of such municipality or municipalities; (6) upon request of the Secretary of the Office of Policy and Management and with the approval of the chief executive officer of a member municipality, or the chief executive officers of the municipalities constituting a joint member entity, as applicable, in which a development district is located, enter into an agreement to facilitate development or redevelopment within such development district; (7) encourage development and redevelopment of property within development districts; (8) engage residents of member municipalities, or municipalities constituting a joint member entity, as applicable, and other stakeholders in development and redevelopment efforts; (9) market and develop development districts as vibrant and multidimensional; and (10) provide financial support and technical assistance to municipalities to develop housing growth zones.
(b) For the purposes enumerated in subsection (a) of this section, the authority is authorized and empowered to:
(1) Have perpetual succession as a body politic and corporate and to adopt procedures for the regulation of its affairs and the conduct of its business, as provided in section 8-169kk;
(2) Adopt a corporate seal and alter the same at pleasure;
(3) Maintain an office at such place or places as it may designate;
(4) Sue and be sued in its own name, plead and be impleaded;
(5) Contract and be contracted with;
(6) (A) Employ such assistants, agents and other employees as may be necessary or desirable to carry out its purposes, which employees shall be exempt from the classified service and shall not be employees, as defined in subsection (b) of section 5-270; (B) establish all necessary or appropriate personnel practices and policies, including those relating to hiring, promotion, compensation, retirement and collective bargaining, which need not be in accordance with chapter 68. For the purposes of this subdivision, the authority shall not be an employer as defined in subsection (a) of section 5-270, and for the purposes of group welfare benefits and retirement, including, but not limited to, those provided under chapter 66 and sections 5-257 and 5-259, the officers and all other employees of the authority shall be state employees; and (C) engage consultants, attorneys and appraisers as may be necessary or desirable to carry out its purposes in accordance with sections 8-169ii to 8-169ss, inclusive;
(7) Acquire, lease, purchase, own, manage, hold and dispose of personal property, and lease, convey or deal in or enter into agreements with respect to such property on any terms necessary or incidental to carrying out the purposes set forth in this section;
(8) Procure insurance against any liability or loss in connection with its property and other assets, in such amounts and from such insurers as it deems desirable and procure insurance for employees;
(9) Invest any funds not needed for immediate use or disbursement in obligations issued or guaranteed by the United States or the state, including the Short Term Investment Fund, and in other obligations that are legal investments for savings banks in this state, and in-time deposits or certificates of deposit or other similar banking arrangements secured in such manner as the authority determines;
(10) Enter into such memoranda of agreement as the authority deems appropriate to carry out its responsibilities under this section; and
(11) Do all acts and things necessary or convenient to carry out the purposes of, and the powers expressly granted by, this section.
(c) In addition to the powers enumerated in subsection (b) of this section, the Connecticut Municipal Development Authority shall have the following powers with respect to authority development projects:
(1) (A) To acquire by gift, purchase, lease or transfer, lands or rights-in-land and to sell and lease or sublease, as lessor or lessee or sublessor or sublessee, any portion of its real property rights, including air space above, and enter into related common area maintenance, easement, access, support and similar agreements, and own and operate facilities associated with authority development projects, provided such activity is consistent with all applicable federal tax covenants of the authority; (B) to transfer or dispose of any property or interest therein acquired by the authority at any time; and (C) to receive and accept aid or contributions from any source of money, labor, property or other thing of value, to be held, used and applied to carry out the purposes of this section, subject to the conditions upon which such grants and contributions are made, including, but not limited to, gifts or grants from any department, agency or instrumentality of the United States or this state for any purpose consistent with this section, provided (i) the authority shall provide opportunity for public comment prior to any acquisition, transfer or disposal in accordance with this subdivision, and (ii) any land or right-in-land, aid or contribution received by the authority under this subdivision shall be subject to the provisions of chapter 10;
(2) To formulate plans for, acquire, finance and develop, lease, purchase, construct, reconstruct, repair, improve, expand, extend, operate, maintain and market facilities associated with authority development projects, provided such activities are consistent with all applicable federal tax covenants of the authority;
(3) To contract and be contracted with, provided if management, operating or promotional contracts or agreements or other contracts or agreements are entered into with nongovernmental parties with respect to property financed with the proceeds of obligations, the interest on which is excluded from gross income for federal income taxation, the board of directors shall ensure that such contracts or agreements are in compliance with the covenants of the authority upon which such tax exclusion is conditioned;
(4) To fix and revise, from time to time, and to charge and collect fees, rents and other charges for the use, occupancy or operation of authority development projects, and to establish and revise from time to time procedures concerning the use, operation and occupancy of facilities associated with such projects, including parking rates, rules and procedures, provided such arrangements are consistent with all applicable federal tax covenants of the authority, and to utilize net revenues received by the authority from the operation of such facilities, after allowance for operating expenses and other charges related to the ownership, operation or financing thereof, for other proper purposes of the authority, including, but not limited to, funding of operating deficiencies or operating or capital replacement reserves for such facilities and related parking facilities, as determined to be appropriate by the authority;
(5) To engage architects, engineers, attorneys, accountants, consultants and such other independent professionals as may be necessary or desirable to carry out authority development projects;
(6) To contract for construction, development, concessions and the procurement of goods and services, and to establish and modify procurement procedures from time to time in accordance with the provisions of section 8-169kk to implement the foregoing;
(7) To borrow money and to issue bonds, notes and other obligations of the authority to the extent permitted under section 8-169oo, to fund and refund the same and to provide for the rights of the holders thereof and to secure the same by pledge of assets, revenues and notes;
(8) To do anything necessary and desirable, including executing reimbursement agreements or similar agreements in connection with credit facilities, including, but not limited to, letters of credit or policies of bond insurance, remarketing agreements and agreements for the purpose of moderating interest rate fluctuations, to render any bonds to be issued pursuant to section 8-169oo more marketable; and
(9) To engage in and contract for marketing and promotional activities for authority development projects under the operation or jurisdiction of the authority.
(d) The Connecticut Municipal Development Authority and the Capital Region Development Authority, established pursuant to chapter 588x, may enter into a memorandum of agreement pursuant to which: (1) Administrative support and services, including all staff support necessary for the operations of the Connecticut Municipal Development Authority may be provided by the Capital Region Development Authority, and (2) provision is made for the coordination of management and operational activities that may include: (A) Joint procurement and contracting; (B) the sharing of services and resources; (C) the coordination of promotional activities; and (D) other arrangements designed to enhance revenues, reduce operating costs or achieve operating efficiencies. The terms and conditions of such memorandum of agreement, including provisions with respect to the reimbursement by the Connecticut Municipal Development Authority to the Capital Region Development Authority of the costs of such administrative support and services, shall be as the Connecticut Municipal Development Authority and the Capital Region Development Authority determine to be appropriate.
(e) The authority shall have the power to negotiate, and, with the approval of the Secretary of the Office of Policy and Management, to enter into an agreement with any private developer, owner or lessee of any building or improvement located on land in a development district providing for payments to the authority in lieu of real property taxes. Such an agreement shall be made a condition of any private right of development within the development district, and shall include a requirement that such private developer, owner or lessee make good faith efforts to hire, or cause to be hired, available and qualified minority business enterprises, as defined in section 4a-60g, to provide construction services and materials for improvements to be constructed within the development district in an effort to achieve a minority business enterprise utilization goal of ten per cent of the total costs of construction services and materials for such improvements. Such payments to the authority in lieu of real property taxes shall have the same lien and priority, and may be enforced by the authority in the same manner, as provided for municipal real property taxes. Such payments as received by the authority shall be used to carry out the purposes of the authority set forth in subsection (a) of this section.
(f) Nothing in sections 8-169ii to 8-169ss, inclusive, shall be construed as limiting the authority of the Connecticut Municipal Development Authority to enter into agreements to facilitate development or redevelopment of municipal property or facilities.
(P.A. 19-117, S. 214; P.A. 23-204, S. 196; P.A. 24-62, S. 9; P.A. 25-168, S. 104.)
History: (Revisor's note: In codifying this section, an incorrect reference to “section 8 of this act” was deemed by the Revisors to be a reference to “section 219” and codified as section 8-169oo); P.A. 23-204 amended Subsec. (a) to add Subdiv. (10) re development of housing growth zones; P.A. 24-62 amended Subsec. (b)(9) to delete reference to Tax-Exempt Proceeds Fund, effective July 1, 2024; P.A. 25-168 changed “Connecticut Municipal Redevelopment Authority” to “Connecticut Municipal Development Authority” throughout.
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Sec. 8-169kk. Written procedures for conduct of board of directors. The board of directors of the Connecticut Municipal Development Authority shall adopt written procedures, in accordance with the provisions of section 1-121, for: (1) Adopting an annual budget and plan of operations, which shall include a requirement of board approval before the budget or plan may take effect; (2) hiring, dismissing, promoting and compensating employees of the authority, which shall include an affirmative action policy and a requirement of board approval before a position may be created or a vacancy filled; (3) acquiring real and personal property and personal services, which shall include a requirement of board approval for any nonbudgeted expenditure in excess of ten thousand dollars; (4) contracting for financial, legal, bond underwriting and other professional services, including a requirement that the authority solicit proposals at least once every three years for each such service that it uses; (5) issuing and retiring bonds, notes and other obligations of the authority; (6) providing loans, grants and other financial assistance, which shall include eligibility criteria, the application process and the role played by the authority's staff and board of directors; and (7) the use of surplus funds.
(P.A. 19-117, S. 215; P.A. 25-168, S. 105.)
History: P.A. 25-168 changed “Connecticut Municipal Redevelopment Authority” to “Connecticut Municipal Development Authority”.
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Sec. 8-169ll. Member municipalities; joint member entities. (a)(1) Any municipality, except the city of Hartford or the town of East Hartford, may, by certified resolution of the legislative body of the municipality, or by the board of selectmen in a municipality where the legislative body is the town meeting, opt to join the Connecticut Municipal Development Authority as a member municipality, provided such municipality holds a public hearing or otherwise provides for public comment prior to any vote on such certified resolution.
(2) Any municipality that opts to join the authority as a member municipality or that is deemed a member municipality pursuant to this subsection shall enter into a memorandum of agreement with the authority for the establishment of one or more development districts.
(b) (1) Any two or more municipalities, except for the city of Hartford or the town of East Hartford, may, by certified concurrent resolutions of the legislative bodies of each such municipality, or by the board of selectmen in a municipality where the legislative body is the town meeting, together opt to join the Connecticut Municipal Development Authority as a joint member entity, provided each such municipality holds a public hearing or otherwise provides for public comment prior to any vote on the certified resolution from such municipality. The concurrent resolutions shall set forth an agreement of such municipalities as to authority for decisions concerning projects in development districts within such municipalities.
(2) Any two or more municipalities that together opt to join the authority as a joint member entity shall jointly enter into a memorandum of agreement with the authority for the establishment of one or more development districts.
(P.A. 19-117, S. 216; P.A. 23-204, S. 197; P.A. 24-81, S. 82; P.A. 25-168, S. 106.)
History: P.A. 23-204 amended Subsecs. (a)(1) and (b)(1) by deleting criteria re population of seventy thousand or more as determined by most recent decennial census and further amended Subsec. (a)(1) by deleting provision re designated tier III or tier IV municipality deemed a member municipality; P.A. 24-81 deleted former Subsecs. (a)(2), (b)(2) and (c) re local development boards and redesignated existing Subsec. (a)(3) as Subsec. (a)(2) and existing Subsec. (b)(3) as Subsec. (b)(2); P.A. 25-168 amended Subsec. (a) by replacing exception re any municipality part of capital region with town of East Hartford, adding reference to board of selectmen in municipality with town meeting and adding “or otherwise provides for public comment”, amended Subsec. (b)(1) by adding exception re Hartford or East Hartford, adding reference to board of selectmen in municipality with town meeting, removing Subpara. (A), removing Subpara. (B) designator and adding therein “or otherwise provides for public comment” and changed “Connecticut Municipal Redevelopment Authority” to “Connecticut Municipal Development Authority” throughout.
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Sec. 8-169mm. Reports to the Governor, Auditors of Public Accounts and General Assembly. Annual compliance and independent financial audits. Contract compliance officer; report. (a) In lieu of the report required under section 1-123, within the first ninety days of each fiscal year of the Connecticut Municipal Development Authority, the board of directors of the authority shall submit a report to the Governor, the Auditors of Public Accounts and the joint standing committee of the General Assembly having cognizance of matters relating to finance, revenue and bonding. Such report shall include, but not be limited to, the following: (1) A list of all bonds issued during the preceding fiscal year, including, for each such issue, the financial advisor and underwriters, whether the issue was competitive, negotiated or privately placed, and the issue's face value and net proceeds; (2) a description of each authority development project in which the authority is involved, its location and the amount of funds, if any, provided by the authority with respect to the construction of such project; (3) a list of all outside individuals and firms, including principal and other major stockholders, receiving in excess of five thousand dollars as payments for services; (4) an annual comprehensive financial report prepared in accordance with generally accepted accounting principles for governmental enterprises; (5) the cumulative value of all bonds issued, the value of outstanding bonds and the amount of the state's contingent liability; (6) the affirmative action policy adopted pursuant to section 8-169kk, a description of the composition of the workforce of the Connecticut Municipal Development Authority by race, sex and occupation and a description of the affirmative action efforts of the authority; and (7) a description of planned activities for the current fiscal year.
(b) The board of directors of the authority shall annually contract with a person, firm or corporation for a compliance audit of the authority's activities during the preceding authority fiscal year. The audit shall determine whether the authority has complied with the authority's policies and procedures concerning affirmative action, personnel practices, the purchase of goods and services and the use of surplus funds. The board shall submit the audit report to the Governor, the Auditors of Public Accounts and the joint standing committee of the General Assembly having cognizance of matters relating to finance, revenue and bonding.
(c) The board of directors of the authority shall annually contract with a firm of certified public accountants to undertake an independent financial audit of the Connecticut Municipal Development Authority in accordance with generally accepted auditing standards. The board shall submit the audit report to the Governor, the Auditors of Public Accounts and the joint standing committee of the General Assembly having cognizance of matters relating to finance, revenue and bonding.
(d) The authority shall designate a contract compliance officer from its staff to monitor compliance of the operations of facilities and parking facilities associated with authority development projects that are under the management or control of the authority, with (1) the provisions of state law applicable to such operations, and (2) applicable requirements of contracts entered into by the authority relating to spending allocation goals for small contractors and minority business enterprises and required efforts to hire available and qualified members of minorities, as defined in section 32-9n. Each year during the period of operations of facilities associated with authority development projects, such officer shall file a written report with the authority as to findings and recommendations regarding such compliance.
(P.A. 19-117, S. 217; P.A. 23-197, S. 5; P.A. 25-168, S. 107, 224.)
History: P.A. 23-197 amended Subsec. (a)(4) to change “a comprehensive annual financial report” to “an annual comprehensive financial report”; P.A. 25-168 changed “Connecticut Municipal Redevelopment Authority” to “Connecticut Municipal Development Authority” throughout and amended Subsec. (d) to replace reference to “set-asides” with reference to “spending allocation goals”.
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Sec. 8-169nn. Application or request for funds re authority development project. Economic development statement. Expenditure of funds. Coordination of resources. (a) Any person, including, but not limited to, a state or municipal agency, requesting funds from the state, including, but not limited to, any authority created by the general statutes or any public or special act, with respect to any authority development project shall, at the time it makes such request for funds from the state, present a full and complete copy of its application or request along with any supporting documents or exhibits to the authority for its recommendation and to the Secretary of the Office of Policy and Management. The Connecticut Municipal Development Authority shall, not later than ninety days after receipt of such application or request, prepare and adopt an economic development statement summarizing its recommendations with respect to such application or request and deliver such statement to the state officer, official, employee or agent of the state or authority to whom such application or request was made. The recommendations in such statement shall include contract provisions regarding performance standards, including, but not limited to, project timelines.
(b) Notwithstanding any provision of the general statutes, public or special acts, any regulation or procedure or any other law, no officer, official, employee or agent of the state or any authority created by the general statutes or any public or special act shall expend any funds on any authority development project, unless such officer, official, employee or agent has received an economic development statement prepared by the Connecticut Municipal Development Authority pursuant to subsection (a) of this section, except that if no such statement is received by the ninetieth day after the date of the initial application or request for such funds, such funds may be expended. If funds are expended pursuant to this subsection in a manner not consistent with the recommendations contained in an economic development statement for such expenditure, the officer, official, employee or agent of the state expending such funds shall respond in writing to the authority, providing an explanation of the decision with respect to such expenditure.
(c) The Connecticut Municipal Development Authority shall coordinate the use of all state, municipal and quasi-public agency planning and financial resources that are made available for any authority development project in which the authority is involved, including any resources available from any quasi-public agency.
(d) All state agencies, departments, boards, commissions and councils and all quasi-public agencies shall cooperate with the Connecticut Municipal Development Authority in carrying out the purposes enumerated in section 8-169jj.
(P.A. 19-117, S. 218; P.A. 25-168, S. 108.)
History: P.A. 25-168 changed “Connecticut Municipal Redevelopment Authority” to “Connecticut Municipal Development Authority” throughout.
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Sec. 8-169oo. Bonds, notes and other obligations of the authority. (a) The board of directors of the Connecticut Municipal Development Authority is authorized from time to time to issue its bonds, notes and other obligations in such principal amounts as in the opinion of the board shall be necessary to provide sufficient funds for carrying out the purposes set forth in section 8-169jj, including the payment, funding or refunding of the principal of, or interest or redemption premiums on, any bonds, notes and other obligations issued by it, whether the bonds, notes or other obligations or interest to be funded or refunded have or have not become due, the establishment of reserves to secure such bonds, notes and other obligations, loans made by the authority and all other expenditures of the authority incident to and necessary or convenient to carry out the purposes set forth in section 8-169jj.
(b) Every issue of bonds, notes or other obligations shall be a general obligation of the authority payable out of any moneys or revenues of the authority and subject only to any agreements with the holders of particular bonds, notes or other obligations pledging any particular moneys or revenues. Any such bonds, notes or other obligations may be additionally secured by any grant or contributions from any department, agency or instrumentality of the United States or person or a pledge of any moneys, income or revenues of the authority from any source whatsoever.
(c) Notwithstanding any other provision of any law, any bonds, notes or other obligations issued by the authority pursuant to this section shall be fully negotiable within the meaning and for all purposes of title 42a. Any such bonds, notes or other obligations shall be legal investments for all trust companies, banks, investment companies, savings banks, building and loan associations, executors, administrators, guardians, conservators, trustees and other fiduciaries and pension, profit-sharing and retirement funds.
(d) Bonds, notes or other obligations of the authority shall be authorized by resolution of the board of directors of the authority and may be issued in one or more series and shall bear such date or dates, mature at such time or times, in the case of any such note, or any renewal thereof, not exceeding the term of years as the board shall determine from the date of the original issue of such notes, and, in the case of bonds, not exceeding thirty years from the date thereof, bear interest at such rate or rates, be in such denomination or denominations, be in such form, either coupon or registered, carry such conversion or registration privileges, have such rank or priority, be executed in such manner, be payable from such sources in such medium of payment at such place or places within or without this state, and be subject to such terms of redemption, with or without premium, as such resolution or resolutions may provide.
(e) Bonds, notes or other obligations of the authority may be sold at public or private sale at such price or prices as the board shall determine.
(f) Bonds, notes or other obligations of the authority may be refunded and renewed from time to time as may be determined by resolution of the board, provided any such refunding or renewal shall be in conformity with any rights of the holders of such bonds, notes or other obligations.
(g) Bonds, notes or other obligations of the authority issued under the provisions of this section shall not be deemed to constitute a debt or liability of the state or of any political subdivision thereof other than the authority, or a pledge of the faith and credit of the state or of any such political subdivision other than the authority, and shall not constitute bonds or notes issued or guaranteed by the state within the meaning of section 3-21, but shall be payable solely from the funds as provided in this section. All such bonds, notes or other obligations shall contain on the face thereof a statement to the effect that, unless otherwise provided by law, neither the state of Connecticut nor any political subdivision thereof other than the authority shall be obligated to pay the same or the interest thereof except from revenues or other funds of the authority and that neither the faith and credit nor the taxing power of the state of Connecticut or of any political subdivision thereof other than the authority is pledged to the payment of the principal of, or the interest on, such bonds, notes or other obligations.
(h) Any resolution or resolutions authorizing the issuance of bonds, notes or other obligations may contain provisions, except as limited by existing agreements with the holders of bonds, notes or other obligations, which shall be a part of the contract with the holders thereof, as to the following: (1) The pledging of all or any part of the moneys received by the authority to secure the payment of the principal of and interest on any bonds, notes or other obligations or of any issue thereof; (2) the pledging of all or part of the assets of the authority to secure the payment of the principal and interest on any bonds, notes or other obligations or of any issue thereof; (3) the establishment of reserves or sinking funds, the making of charges and fees to provide for the same, and the regulation and disposition thereof; (4) limitations on the purpose to which the proceeds of sale of bonds, notes or other obligations may be applied and pledging such proceeds to secure the payment of the bonds, notes or other obligations, or of any issues thereof; (5) limitations on the issuance of additional bonds, notes or other obligations, the terms upon which additional bonds, bond anticipation notes or other obligations may be issued and secured, the refunding or purchase of outstanding bonds, notes or other obligations of the authority; (6) the procedure, if any, by which the terms of any contract with the holders of any bonds, notes or other obligations of the authority may be amended or abrogated, the amount of bonds, notes or other obligations the holders of which must consent thereto and the manner in which such consent may be given; (7) limitations on the amount of moneys to be expended by the authority for operating, administrative or other expenses of the authority; (8) the vesting in a trustee or trustees of such property, rights, powers and duties in trust as the authority may determine, which may include any or all of the rights, powers and duties of any trustee appointed by the holders of any bonds, notes or other obligations and limiting or abrogating the right of the holders of any bonds, notes or other obligations of the authority to appoint a trustee or limiting the rights, powers and duties of such trustee; (9) provision for a trust agreement by and between the authority and a corporate trustee which may be any trust company or bank having the powers of a trust company within or without the state, which agreement may provide for the pledging or assigning of any assets or income from assets to which or in which the authority has any rights or interest, and may further provide for such other rights and remedies exercisable by the trustee as may be proper for the protection of the holders of any bonds, notes or other obligations of the authority and not otherwise in violation of law. Such agreement may provide for the restriction of the rights of any individual holder of bonds, notes or other obligations of the authority. All expenses incurred in carrying out the provisions of such trust agreement may be treated as a part of the cost of operation of the authority. The trust agreement may contain any further provisions which are reasonable to delineate further the respective rights, duties, safeguards, responsibilities and liabilities of the authority, individual and collective holders of bonds, notes and other obligations of the authority and the trustees; (10) covenants to do or refrain from doing such acts and things as may be necessary or convenient or desirable in order to better secure any bonds, notes or other obligations of the authority, or which, in the discretion of the authority, will tend to make any bonds, notes or other obligations to be issued more marketable, notwithstanding that such covenants, acts or things may not be enumerated herein; and (11) any other matters of like or different character, which in any way affect the security or protection of the bonds, notes or other obligations.
(i) Any pledge made by the authority of income, revenues or other property shall be valid and binding from the time the pledge is made. The income, revenue, such state taxes as the authority shall be entitled to receive or other property so pledged and thereafter received by the authority shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act, and the lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the authority, irrespective of whether such parties have notice thereof.
(j) The board of directors of the authority is authorized and empowered to obtain from any department, agency or instrumentality of the United States any insurance or guarantee as to, or of or for the payment or repayment of, interest or principal or both, or any part thereof, on any bonds, notes or other obligations issued by the authority pursuant to the provisions of this section and, notwithstanding any other provisions of sections 8-169ii to 8-169ss, inclusive, to enter into any agreement, contract or any other instrument whatsoever with respect to any such insurance or guarantee except to the extent that such action would in any way impair or interfere with the authority's ability to perform and fulfill the terms of any agreement made with the holders of the bonds, bond anticipation notes or other obligations of the authority.
(k) The board of directors of the authority may purchase bonds, notes or other obligations of the authority out of any funds available for such purpose. The authority may hold, cancel or resell such bonds, notes or other obligations subject to and in accordance with agreements with holders of its bonds, notes and other obligations.
(l) All moneys received pursuant to the authority of this section, whether as proceeds from the sale of bonds or as revenues, shall be deemed to be trust funds to be held and applied solely as provided in this section. Any officer with whom, or any bank or trust company with which, such moneys shall be deposited shall act as trustee of such moneys and shall hold and apply the same for the purposes of section 8-169jj and the resolution authorizing the bonds of any issue or the trust agreement securing such bonds may provide.
(m) Any holder of bonds, notes or other obligations issued under the provisions of this section, and the trustee or trustees under any trust agreement, except to the extent the rights herein given may be restricted by any resolution authorizing the issuance of or any such trust agreement securing such bonds, may, either at law or in equity, by suit, action, mandamus or other proceeding, protect and enforce any and all rights under the laws of the state or granted under this section or under such resolution or trust agreement and may enforce and compel the performance of all duties required by this section or by such resolution or trust agreement to be performed by the authority or by any officer, employee or agent of the authority, including the fixing, charging and collecting of the rates, rents, fees and charges herein authorized and required by the provisions of such resolution or trust agreement to be fixed, established and collected.
(n) The authority may make representations and agreements for the benefit of the holders of any bonds, notes or other obligations of the state which are necessary or appropriate to ensure the exclusion from gross income for federal income tax purposes of interest on bonds, notes or other obligations of the state from taxation under the Internal Revenue Code of 1986 or any subsequent corresponding internal revenue code of the United States, as amended from time to time, including agreement to pay rebates to the federal government of investment earnings derived from the investment of the proceeds of the bonds, notes or other obligations of the authority. Any such agreement may include: (1) A covenant to pay rebates to the federal government of investment earnings derived from the investment of the proceeds of the bonds, notes or other obligations of the authority; (2) a covenant that the authority will not limit or alter its rebate obligations until its obligations to the holders or owners of such bonds, notes or other obligations are finally met and discharged; and (3) provisions to (A) establish trust and other accounts which may be appropriate to carry out such representations and agreements, (B) retain fiscal agents as depositories for such funds and accounts, and (C) provide that such fiscal agents may act as trustee of such funds and accounts.
(P.A. 19-117, S. 219; P.A. 24-62, S. 1, 2; P.A. 25-168, S. 109.)
History: P.A. 24-62 amended Subsec. (g) to delete reference to Sec. 8-169qq, deleted former Subsec. (k) re exemption from personal liability of board of directors and indemnification of directors, officers and employees and redesignated existing Subsecs. (l) to (o) as Subsecs. (k) to (n) and made a technical change in redesignated Subsec. (k), effective June 4, 2024; P.A. 25-168 amended Subsec. (a) to change “Connecticut Municipal Redevelopment Authority” to “Connecticut Municipal Development Authority”.
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Sec. 8-169pp. State's pledge to not limit or alter rights of authority or holders of bonds, notes and obligations or parties to contracts. The state of Connecticut does hereby pledge to and agree with the holders of any bonds, notes and other obligations issued under section 8-169oo and with those parties who may enter into contracts with the Connecticut Municipal Development Authority or its successor agency, that the state will not limit or alter the rights hereby vested in the authority or in the holders of any bonds, notes or other obligations of the authority to which contract assistance is pledged pursuant to this section until such bonds, notes or obligations, together with the interest thereon, are fully met and discharged and such contracts are fully performed on the part of the authority, provided nothing contained herein shall preclude such limitation or alteration if and when adequate provision shall be made by law for the protection of the holders of such bonds, notes and other obligations of the authority or those entering into contracts with the authority. The authority is authorized to include this pledge and undertaking for the state in such bonds, notes and other obligations or contracts.
(P.A. 19-117, S. 220; P.A. 25-168, S. 110.)
History: P.A. 25-168 changed “Connecticut Municipal Redevelopment Authority” to “Connecticut Municipal Development Authority”.
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Sec. 8-169qq. Establishment and use of special capital reserve funds. Required minimum capital reserve. Conditions for bond issuance. (a) For the purposes of this section, “required minimum capital reserve” means the maximum amount permitted to be deposited in a special capital reserve fund by the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time, to permit the interest on the bonds of the Connecticut Municipal Development Authority secured by such special capital reserve fund to be excluded from gross income for federal tax purposes.
(b) The authority may, in connection with the issuance of bonds, the refunding of bonds previously issued by the authority or the issuance of bonds to effect a refinancing or other restructuring with respect to one or more projects, establish one or more special capital reserve funds. The authority may pay into such special capital reserve funds (1) any moneys appropriated and made available by the state for the purposes of such special capital reserve funds, (2) any proceeds of the sale of bonds or notes of the authority, to the extent provided in the resolution of said authority authorizing the issuance of such bonds or notes, and (3) any moneys made available to the authority from any other source for the purposes of such special capital reserve funds. The amount of bonds of the authority secured by special capital reserve funds shall not exceed fifty million dollars in the aggregate.
(c) (1) Except as otherwise provided in this section, the moneys held in or credited to any special capital reserve fund established under this section shall be used for:
(A) The payment of the principal and interest as such payments become due, whether due at maturity or by mandatory sinking fund installments, on bonds of the authority secured by such special capital reserve fund; or
(B) The purchase of such bonds and the payment of any redemption premium required to be paid when such bonds are redeemed prior to maturity, including reimbursement of a provider of bond insurance or of a credit or liquidity facility that has paid such redemption premium.
(2) The authority may prohibit, except for the purpose of paying the principal of and interest and redemption premium on bonds of the authority secured by a special capital reserve fund for which other moneys of the authority are not available, the withdrawal of moneys in any special capital reserve fund in an amount that would result in the balance of such special capital reserve fund being less than (A) the maximum amount of principal and interest becoming due by reason of maturity or a required sinking fund installment on the bonds of the authority outstanding in the then current or any succeeding calendar year, or (B) the required minimum capital reserve.
(3) The authority may provide at any time that it shall not issue bonds secured by a special capital reserve fund if the required minimum capital reserve on the bonds outstanding and the bonds to be issued and secured by the same special capital reserve fund at the time of issuance exceeds the moneys in the special capital reserve fund, unless the authority deposits proceeds from the bonds to be issued or moneys from other sources into such special capital reserve fund, in an amount that, together with the amount then in such special capital reserve fund, will be not less than the required minimum capital reserve.
(d) (1) (A) Prior to December first, annually, the authority shall deposit, for any special capital reserve fund for which the balance is below the required minimum capital reserve, the full amount required to meet the required minimum capital reserve for such special capital reserve fund. Such deposit shall be made from any resources available to the authority not otherwise pledged or dedicated to another purpose.
(B) On or prior to December first, annually, but after the authority has made any deposits required under subparagraph (A) of this subdivision, there shall be deemed appropriated from the General Fund any sums necessary to restore the balance of each such special capital reserve fund to the required minimum capital reserve amount. The amount of any such sum shall be allotted and paid to the authority upon the certification of such sum by the chairperson or vice-chairperson of the authority to the Secretary of the Office of Policy and Management, the Treasurer and the joint standing committees of the General Assembly having cognizance of matters relating to planning and development and finance, revenue and bonding.
(C) For the purposes of this subdivision, obligations acquired as an investment for any special capital reserve fund shall be valued at amortized cost.
(2) Subject to any agreement or agreements with holders of outstanding bonds or notes of the authority, any amount allotted and paid to the authority pursuant to subdivision (1) of this subsection shall be repaid to the state from moneys of the authority, at such time as such moneys are not required for any other corporate purposes of the authority. Such repayment shall occur not later than one year after the date the following liabilities are met and fully discharged by the authority: (A) All bonds and notes of the authority that were issued before, on or after the date such allotted amount was paid to the authority; (B) all interest on such bonds and notes and on any unpaid installments of interest; and (C) all costs and expenses incurred in connection with any action or proceeding by or on behalf of the holders of such bonds or notes.
(e) (1) The authority shall not issue bonds secured by a special capital reserve fund until and unless:
(A) The authority has determined, and has provided such determination to the Secretary of the Office of Policy and Management or the secretary's deputy and to the Treasurer or the Deputy Treasurer, that the revenues from the project shall be sufficient to (i) pay the principal of and interest on the bonds issued to finance the project, (ii) establish, increase and maintain any reserves deemed advisable by the authority to secure the payment of the principal of and interest on such bonds, (iii) pay the cost of maintaining the project in good repair and properly insured, and (iv) pay such other costs of the project as may be required;
(B) The issuance has been approved by the Secretary of the Office of Policy and Management or the secretary's deputy; and
(C) The authority has provided the documentation required under subsection (a) of section 1-124 to the Treasurer or the Deputy Treasurer and the issuance has been approved by the Treasurer or the Deputy Treasurer pursuant to said subsection.
(2) The approval by the Secretary of the Office of Policy and Management or the secretary's deputy may provide for the waiver or modification of the requirements of this section as the secretary deems necessary or appropriate to effectuate such issuance, subject to any applicable tax covenants of the authority and the state.
(f) Nothing in this section shall preclude the authority from establishing other debt service reserve funds that are not special capital reserve funds in connection with the issuance of bonds or notes of the authority.
(P.A. 19-117, S. 221; P.A. 24-62, S. 3; P.A. 25-168, S. 111.)
History: P.A. 24-62 deleted former Subsec. (a) re state indemnification of authority directors, officers and employees and former Subsec. (b) re state assumption of certain authority debt and added new Subsec. (a) defining “required minimum capital reserve”, new Subsec. (b) re authority to establish special capital reserve funds, Subsec. (c) re use of any moneys in such funds, Subsec. (d) re required minimum capital reserve amount, Subsec. (e) re conditions for bond issuance and Subsec. (f) re establishing other debt service reserve funds, effective June 4, 2024; P.A. 25-168 amended Subsec. (a) to change “Connecticut Municipal Redevelopment Authority” to “Connecticut Municipal Development Authority”.
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Sec. 8-169tt. Approval of housing growth zones. (a) As used in this section, “housing growth zone” means (1) any area within a municipality in which applicable zoning regulations adopted pursuant to section 8-2 are designed to facilitate substantial development of new dwelling units consistent with subsection (c) of this section, or (2) any transit-oriented district established by a municipality pursuant to section 8-13hh. Any housing growth zone shall encompass an entire development district and may include areas outside such district.
(b) Notwithstanding section 8-169jj, prior to the execution of any memorandum of agreement that establishes a development district, any chief executive officer of a member municipality, or the chief executive officers of the municipalities constituting a joint member entity, shall create a proposal for a housing growth zone and submit such proposal, including proposed zoning regulations applicable to such zone, for the Connecticut Municipal Development Authority's review and approval.
(c) (1) The authority shall approve any proposal submitted pursuant to subsection (b) of this section if the authority determines that the proposed zoning regulations applicable to the housing growth zone are likely to substantially increase the production of new dwelling units necessary to meet housing demand within the region.
(2) In making its determination pursuant to subdivision (1) of this subsection, the authority shall presume that any proposal that includes the following provisions is likely to substantially increase the production of new dwelling units: (A) The proposal permits middle housing as of right, and (B) except as provided in subparagraph (iv) of this subdivision, the proposal requires only the approval of the zoning board of appeals, planning commission, zoning commission or combined planning and zoning commission for the issuance of any applicable permits for any application that would result in a net increase of dwelling units other than middle housing units, provided such zoning board of appeals, planning commission, zoning commission or combined planning and zoning commission, with respect to any application submitted pursuant to this section, shall (i) have the same power to issue any permit or approval as any other municipal body or official who would otherwise act with respect to such application, (ii) hold a single public hearing not later than thirty days after the receipt of any such application, (iii) by majority vote, determine whether to approve or deny such application not later than thirty days after such public hearing, and (iv) upon the recommendation of the zoning board of appeals, planning commission, zoning commission or combined planning and zoning commission, require concurrent approval from any sewer commission, water commission, municipal wetlands commission, municipal conservation commission or board or municipal historic preservation commission of the municipality pursuant to a joint review process for such application by any such commission or board, as applicable, not later than thirty days after receipt of such application. The applicant shall file any such application with the zoning board of appeals, the planning commission, zoning commission or combined planning and zoning commission, which shall forward such application to such applicable commission or board to provide for such joint review if such review is recommended by such zoning board of appeals, planning commission, zoning commission or combined planning and zoning commission.
(3) In making its determination pursuant to subdivision (1) of this subsection whether a housing growth zone proposal is likely to substantially increase the production of new dwelling units, the authority shall consider whether the proposal (A) allows the development of new dwelling units without the requirement of any off-street parking spaces, (B) requires that ten per cent of units be sold or rented at, or below, prices which will preserve the units as housing for which persons and families pay thirty per cent or less of their annual income, where such income is less than or equal to eighty per cent of the median income, for any application involving a net increase of ten or more dwelling units, and (C) generally promotes residential diversity.
(d) Notwithstanding this chapter, no member municipality, nor the municipalities constituting a joint member entity, shall submit an application or request for funds for any authority development project pursuant to section 8-169nn, nor shall any bonds, notes or other obligations of the authority be issued to carry out such project, pursuant to section 8-169oo, until the member municipality, or the municipalities constituting a joint member entity, enacts all of the zoning regulations proposed in the housing zone growth proposal approved by the authority.
(P.A. 23-204, S. 198; P.A. 25-168, S. 112; Nov. Sp. Sess. P.A. 25-1, S. 12.)
History: P.A. 23-204 effective July 1, 2023; P.A. 25-168 amended Subsec. (b) to change “Connecticut Municipal Redevelopment Authority's” to “Connecticut Municipal Development Authority's”; Nov. Sp. Sess. P.A. 25-1 redefined “housing growth zone” to include transit-oriented districts, effective January 1, 2026.
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