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SB 890

Relating to auctioneers

2025 Regular Session Introduced by Darren Thorne

Creates a Division of Just Communities within DHCD to identify disinvested neighborhoods, shift designation from the Governor to DHCD, and coordinate targeted funding.

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Bill Summary · SB 890

SB 890 — Housing and Community Development: Division of Just Communities (Summary)

Status: Introduced (Jan. 2025); hearing noted 2/25/2025.
Primary purpose: Establish a permanent Division of Just Communities (DJC) within the Department of Housing and Community Development (DHCD) and revise how “Just Communities” are identified and supported.

Main intent

The bill codifies and expands state efforts to identify neighborhoods that experienced historical disinvestment or discriminatory housing policies and to coordinate targeted housing, economic, health, and community support to remediate those harms. It shifts some decision‑making from the Governor to DHCD and creates a dedicated divisional structure to secure funding, administer programs, and coordinate technical assistance.

Key provisions

  • Establishes the Division of Just Communities (DJC) inside DHCD and defines its core responsibilities:
    • Identify and secure grants and funding for initiatives that remedy historical disinvestment and exclusionary zoning; promote community health, public safety, and capacity building; and provide technical assistance to local agencies, nonprofit organizations, and community groups.
    • Administer programs assigned by statute, the Governor, or the DHCD Secretary, and perform functions the Secretary assigns to carry out DJC’s mission.
    • Coordinate activities with existing funds/programs (e.g., the Continuing the CORE Partnership Fund and the Community Health and Safety Works Grant Program).
  • Transfers authority to designate a geographic area as a “Just Community” from the Governor to DHCD and revises designation criteria. New/detailed criteria include (among others):
    • Presence of “separate and unequal” neighborhoods with disparities in private/public resource allocation (home mortgages, small business lending, commercial real estate).
    • A foreclosure rate above the State average and the presence of a “foreclosure hot spot” (defined in the bill).
    • Historical residential segregation from redlining, exclusionary zoning, racially restrictive covenants, demolition via eminent domain, and unequal exposure to environmental/health hazards.
    • Other measures of disinvestment and adverse outcomes (foreclosures, housing/investment disparities, incarceration/parole metrics, elevated asthma rates).
  • Repeals the prior statutory requirement that the Governor identify state programs that must give priority funding to Just Communities.
  • Recodifies and transfers administration of the Community Health and Safety Works Grant Program to the new Division.

Definitions added/clarified

  • “Division” — Division of Just Communities.
  • “Foreclosure hot spot” — community with >10 foreclosure events in a quarter and a foreclosure concentration ratio >100.
  • “Underserved community” — as defined in the Environment Article (census‑tract criteria for low income, nonwhite population, or limited English proficiency).

Fiscal and operational impact

  • Fiscal note (state-level estimate): General Fund expenditures increase (estimated ~$151,600 in FY2026; higher in subsequent years for annualization, inflation, and ongoing costs). The Division is expected to pursue grants and federal funds; any additional federal/other revenues depend on successful grant applications.
  • Local governments: overall fiscal effect not expected to be material, though designated Just Communities may receive additional funding and technical assistance.
  • Affected parties: DHCD (new internal division and responsibilities), local governments, nonprofit/community organizations, grant recipients, and communities eligible for designation and targeted programs.

Timeline / Effective date

  • The bill text indicates an effective date in mid‑2025 (bill materials state “takes effect July 1, 2025”). (Implementation timing may depend on final enactment language and appropriations.)

Practical effect

If enacted, SB 890 centralizes and institutionalizes a state office focused on identifying areas harmed by historical housing discrimination and disinvestment, broadens the criteria for designation, shifts designation authority to DHCD, and places state grant and technical assistance activities under the new Division—with modest state administrative costs and potential to leverage additional federal/grant funding for targeted community recovery.

Compiled from official sources — confirm details with the bill’s official record.

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