Legislators Focus on Housing Affordability, Inventory

Housing affordability and availability is drawing lawmakers’ attention this General Assembly session, with the issue impacting the labor shortage and the state’s economic outlook.
Currently, Connecticut has a 3.5% rental vacancy rate and lacks 98,000 affordable housing units.
Legislators in the Housing Committee, Planning and Development Committee, and Insurance and Real Estate Committee will consider hundreds of bills this session as potential solutions to alleviate the housing crisis.
Adaptive Reuse
Adaptive reuse is a process that rehabilitates old properties for a new purpose.
Conversion of commercial to residential property is just one example of an adaptive reuse project.
In a state where housing inventory is extremely low, lawmakers are turning to adaptive reuse initiatives to increase the number of available units.
Conversion of commercial to residential property is just one example of an adaptive reuse project.
SB 778 and HB 6121 provide building owners with tax credits for adaptive reuse development.
Similarly, SB 755 creates tax credits for creation of residential units above retail property.
CBIA supports incentives for conversion of commercial to residential property to revitalize urban centers in the post-pandemic age.
Property Tax Abatement
The average age for a first-time homebuyer is at an all-time high of 38 while Connecticut’s median home price soared to $422,933 last year, highlighting the need to ease the financial burden of homeownership.
HB 5244 and HB 5451 create property tax abatements of up to $500 a year for five years for first-time homebuyers who obtain a loan through the Connecticut Housing Financial Authority.
Both bills are awaiting action in the Housing Committee.
CBIA’s ReimagineCT policy solutions include recommendations the creation of first-time homebuyer tax incentives and leveraging councils of governments to share services and take advantage of federal grant opportunities to reduce property taxes.
For more information, contact CBIA’s Grace Brangwynne (860.244.1163).
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