Housing Issues Draw Lawmakers’ Attention

The housing debate remains a major conversation at the state Capitol. 

With record high home prices and a historic low in available inventory, first-time homebuyers are struggling to purchase a home and invest in Connecticut.

Coming off a year centered on zoning reform, CBIA is advocating for a focus on immediate solutions to help expand housing options in the state.

CBIA is calling for creative solutions to make housing and home ownership more affordable and address one of the key factors driving the labor shortage. 

As CBIA president CEO Chris DiPentima said during a housing roundtable over the summer, “our state is in need of all types of housing—affordable, low income, and market rate—as well as home ownership opportunities.”

“Thirty five percent of our higher education grads leave Connecticut every year,” he said. “There’s a lot of opportunity here—how do we capitalize on that?”  

Homebuyers Savings Account

CBIA supports a proposal implementing a first-time homebuyers savings account that would help incentivize home ownership.

The legislature’s Banking Committee is considering the proposal, which allows individuals to contribute to an account and receive tax deductions.

The proposal also allows employers to make contributions to accounts, with accompanying tax deductions.

This legislation is designed to give employers an advantage over businesses in neighboring states when recruiting young workers from trade schools, colleges, and universities.

Property Tax Abatement

The Planning and Development Committee is considering HB 5167, which lowers property taxes for certain homebuyers.

CBIA supports the bill, which provide municipalities with the option to abate $500 a year for up to five years for first-time homebuyers who purchase a home using a Connecticut Housing Finance Authority loan.

Similar legislation drew unanimous approval from the state House last year, but was not called for a vote in the Senate.

HB 5167 has received broad bipartisan support as a creative way to lower the cost of living and to create more affordable housing options.

The business community believes this bill will also support workforce recruitment.

Tax Credits

Senate Democrats this week announced legislation that features tax credits for developers that convert commercial buildings into residential properties.

SB 6 provides a 10% tax credit for conversion projects and is structured in a way to incorporate affordable housing as well as market rate housing.

A conversion project must consist of at least 50 units, with 20% deed restricted affordable housing units, to qualify for the credit.

CBIA supports the tax credit proposal, as it incentivizes the development of much-need housing inventory.

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For more information, contact CBIA’s Pete Myers (860.244.1921).