Legislation aims to promote affordable housing

(May 11, 2007) Keeping and attracting more young adults to Connecticut is a very important issue affecting the state’s economic competitiveness. One important part of that effort has to be creating more housing that young people can afford.

Lawmakers are considering a bill (SB-1057) that will provide incentives to towns and developers to build more affordable housing. The bill implements the recommendations of the “Connecticut Housing Program for Economic Growth ” developed by HOMEConnecticut.

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 they incur 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.

HOMEConnecticut says 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.

Similarly, CBIA has also supported House Republicans’ “Live Here, Work Here” first-time home buyers’ program designed to keep college graduates in Connecticut.

Affordable housing is a concern of Connecticut businesses, in order to ensure they have skilled workers into the future. And Connecticut is already behind the efforts of competitor states in creating housing to attract workers, families and young professionals.

And Connecticut is already behind the efforts of competitor states in creating housing that will attract workers, families and young professionals.

For more information about HOMEConnecticut and affordable housing, visit www.homeconnecticut.org.

CBIA Action Center

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