Bills aim to promote affordable housing

HOMEConnecticut has developed a plan that will provide incentives to towns and developers to build more affordable housing. The state legislature now is considering a bill (SB-1057) to implement the plan, “Connecticut Housing Program for Economic Growth.”

Under the plan, if a town agrees to create housing incentive zones where (a) 20% of the units are affordable for people making 80% of the area median income, and (b) where the minimum densities are six single-family units per acre, 10 duplex or townhouse units per acre, or 20 multifamily units per acre, the town can receive the following guaranteed incentive payments:

$2,000 for every unit the town would permit in the zone it creates for new housing

$2,000 to $5,000 for every building permit issued in the zone

Reimbursement for any net additional costs the town incurs from educating children who live in the new housing

The plan also would provide project-based rental assistance for developers to make units affordable for households at 50% of area median income.

According to HOMEConnecticut, the plan will result in more housing for municipal workers and volunteers that towns need, and for young adults who want to live in the towns they grew up in. It can also create the residential density in town centers needed to support local businesses such as restaurants and stores.

HOMEConnecticut says the bill will pay for itself by producing $2 in sales and income tax revenue for every $1 invested. Plus, housing is an economic driver, producing jobs and higher state revenues.

‘Live Here, Learn Here’ bill would stem ‘brain drain’

Another bill, proposed by the House Republicans, would establish a “Live Here, Learn Here Initiative” to encourage home ownership and education and stem the “brain drain” of young people leaving the state.

Under the bill, the state would deposit income taxes from college and technical high school graduates into an interest-bearing account and use that money to help participants buy their first home. The young adults could access the account up to 10 years after graduating.

Competitor states already creating affordable housing

According to HOMEConneticut, Connecticut is already behind the efforts of competitor states in creating housing that will attract workers, families and young professionals. New Jersey Gov. Jon Corzine is pledging 100,000 new affordable units over the next 10 years. New York City Mayor Michael Bloomberg is creating 165,000 new affordable homes over the same period. Massachusetts has an incentive program similar to HOMEConnecticut’s, and Rhode Island has both incentives and a recently approved $50 million housing bond. Maryland, Virginia, Maine, New Hampshire and Vermont all have programs in place or proposals on the table.