Closing Housing Shortage by Revitalizing Vacant Properties 

The General Assembly’s Housing Committee is revisiting a proposal from last session that both addresses vacant commercial properties and the lack of available housing in Connecticut.

SB 254 represents a strategic response to one of the most significant constraints on the state’s economic expansion—the shortage of workforce‑accessible housing.  

The bill establishes a tax credit program aimed at stimulating private investment in housing creation.

Owners converting commercial properties into residential developments are eligible for tax credit vouchers equal to 10% of their qualified conversion expenditures, with limits designed to support substantial unit creation across both nonprofit and private developers.

Nonprofit developers may receive up to $50,000 per dwelling unit, while other owners may receive up to $30,000 per unit, and the program allows a total of $3 million in credits per fiscal year.

These incentives not only reduce redevelopment costs but also expand the availability of affordable and workforce housing statewide.  

Workforce Issue

At a Feb.24 public hearing, CBIA’s Grace Brangwynne urged the committee to consider the relationship between access to housing and workforce growth. 

“We’re hearing from many businesses that they want to grow and expand, but they are unable to do so because there’s simply no housing for their prospective employees”, she said.  

The bill’s economic benefits extend beyond increasing unit counts.

Converting existing commercial properties into residential spaces is faster and more cost‑efficient than pursuing new construction, allowing communities to bring units online more rapidly.

Housing availability is a top factor workers consider when relocating.

This supports talent attraction and retention—key concerns in a state where workforce shortages already constrain growth.

By enabling mixed‑use redevelopment, municipalities can also revitalize downtown and commercial corridors, improving quality of life and strengthening local economies. 

SB 254 also contributes to long‑term competitiveness.

Housing availability is a top factor workers consider when relocating, and administration‑aligned economic strategies repeatedly underscore that workforce investments are ineffective without adequate, affordable places for workers to live.

Public‑private partnerships encouraged through this bill respond directly to that challenge.  

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For more information, contact CBIA’s Grace Brangwynne (860.244.1163).