AN ACT CONCERNING THE RESERVATION OF SECURITY DEPOSIT GUARANTEES TO ASSIST PARTICIPANTS IN THE SECTION 8 HOUSING CHOICE PROGRAM AND THE RENTAL ASSISTANCE PROGRAM WITH MOBILITY MOVES.

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

Section 1. Section 17b-802 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2011):

(a) The Commissioner of Social Services shall, within available appropriations, establish [, within available appropriations,] and administer a security deposit guarantee program for persons who (1) (A) are recipients of temporary family assistance, aid under the state supplement program, or state-administered general assistance, or (B) have a documented showing of financial need, and (2) (A) are residing in emergency shelters or other emergency housing, cannot remain in permanent housing due to any reason specified in subsection (a) of section 17b-808, or are served a notice to quit in a summary process action instituted pursuant to chapter 832, or (B) have a rental assistance program or federal Section 8 certificate or voucher. Under [such] the security deposit guarantee program, the [Commissioner of Social Services] commissioner may provide security deposit guarantees for use by such persons in lieu of a security deposit on a rental dwelling unit. Eligible persons may receive a security deposit guarantee in an amount not to exceed the equivalent of two months' rent on such rental unit. No person may apply for and receive a security deposit guarantee more than once in any eighteen-month period without the express authorization of the [Commissioner of Social Services] commissioner, except as provided in subsection (b) of this section. The [Commissioner of Social Services] commissioner may deny eligibility for the security deposit guarantee program to an applicant for whom the commissioner has paid two or more claims by landlords during the [immediately preceding] five-year period preceding the date of the application. The [Commissioner of Social Services] commissioner may establish priorities for providing security deposit guarantees to eligible persons described in subparagraphs (A) and (B) of subdivision (2) of this subsection in order to administer the program within available appropriations.

(b) Not less than ten per cent of the security deposit guarantees issued during each quarter of a fiscal year shall be reserved for participants in the federal Housing Choice Voucher Program 42 USC 1437f(o), and the rental assistance program who, with the assistance of the Department of Social Services or a contractor acting on behalf of the department, make mobility moves from an area of low opportunity to an area of significantly higher opportunity, as prescribed by the department. Any portion of the security deposit guarantees that is reserved during any fiscal quarter and is not used for such purpose shall, after the end of such fiscal quarter, be available for issuance by the commissioner for other security deposit guarantees under the program.

[(b)] (c) In the case of any person who qualifies for a guarantee, the Commissioner of Social Services, or any emergency shelter under contract with the Department of Social Services to assist in the administration of the security deposit guarantee program established pursuant to subsection (a) of this section, may execute a written agreement to pay the landlord for any damages suffered by the landlord due to the tenant's failure to comply with such tenant's obligations as defined in section 47a-21, provided the amount of any such payment shall not exceed the amount of the requested security deposit. Notwithstanding the provisions of subsection (a) of this section, if a person who has previously received a grant for a security deposit or a security deposit guarantee becomes eligible for a subsequent security deposit guarantee within eighteen months after a claim has been paid on a prior security deposit guarantee, such person may receive a security deposit guarantee. The amount of the subsequent security deposit guarantee for which such person would otherwise have been eligible shall be reduced by (1) any amount of a previous grant which has not been returned to the department pursuant to section 47a-21, or (2) the amount of any payment made to the landlord for damages pursuant to this subsection.

[(c)] (d) Any payment made pursuant to this section to any person receiving temporary family assistance, aid under the state supplement program or state-administered general assistance shall not be deducted from the amount of assistance to which the recipient would otherwise be entitled.

[(d)] (e) On and after July 1, 2000, no special need or special benefit payments shall be made by the commissioner for security deposits from the temporary family assistance, state supplement, or state-administered general assistance programs.

[(e)] (f) The Commissioner of Social Services may, within available appropriations, on a case-by-case basis, provide a security deposit grant to a person eligible for the security deposit guarantee program established under subsection (a) of this section, in an amount not to exceed the equivalent of one month's rent on such rental unit provided the commissioner determines that emergency circumstances exist which threaten the health, safety or welfare of a child who resides with such person. Such person shall not be eligible for more than one such grant without the authorization of said commissioner. Nothing in this section shall preclude the approval of such one-month security deposit grant in conjunction with a one-month security deposit guarantee.

[(f)] (g) The Commissioner of Social Services may provide a security deposit grant to a person receiving such grant through any emergency shelter under an existing contract with the Department of Social Services to assist in the administration of the security deposit program, but in no event shall a payment be authorized after October 1, 2000. Nothing in this section shall preclude the commissioner from entering into a contract with one or more emergency shelters for the purpose of issuing security deposit guarantees.

[(g)] (h) The Commissioner of Social Services shall adopt regulations, in accordance with the provisions of chapter 54, to administer the program established pursuant to this section and to set eligibility criteria for the program, but may implement the program until June 30, 2003, while in the process of adopting such regulations provided notice of intent to adopt the regulations is published in the Connecticut Law Journal within twenty days after implementation.

Statement of Purpose:

To reserve a portion of security deposit guarantees for participants in the Section 8 Housing Choice Voucher Program and Rental Assistance Program who make mobility moves.

[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.]