Bill Takes Creative Approach to Home Ownership

Connecticut lawmakers are reviewing bipartisan legislation that takes a first-in-the-nation approach to home ownership.

HB 5344 creates a first-time home buyers savings account, designed to incentivize home ownership and address one of the factors driving the state’s labor shortage.

Modeled after successful first-time home buyers’ savings accounts in other states, the bill also leverages tax credits to incentivize employers to contribute to employee accounts.

CBIA’s Pete Myers told a March 5 Banking Committee hearing that the bill was “creative way to address Connecticut’s workforce and housing shortages.”

“Not only will this bill help our state’s residents save for purchasing a home, it will also be a workforce recruitment tool for employers to utilize,” he said.

“Currently, our state has over 90,000 job openings, and this type of savings account would be an added benefit that employers could use to recruit and retain workers.

“These types of accounts are also a great way to incentivize recent graduates to stay here and work here.”

Bipartisan Support

Similar bills have drawn unanimous committee support in recent years in a unanimous fashion.

HB 5344 has the support of committee co-chair Rep. Jason Doucette (D-Manchester) and ranking member Rep. Tom Delnicki (R-South Windsor).

During the public hearing, Delnicki thanked CBIA for taking the lead on the bill, adding that the addition of an employer contribution “will help it cross the finish line this year.”

The bill is co-sponsored by Rep. Jamie Foster (D-Ellington) and Rep. Gary Turco (D-Newington).

Property Tax Abatement

The Planning and Development Committee unanimously approved another bipartisan bill March 1 that’s designed to make home ownership more affordable.

HB 5167 allows a municipality to abate $500 in property taxes annually for five years for first-time home buyers who purchase a home using a CHFA home loan.

Meyers told lawmakers that the bill will “help move the needle on establishing more affordable housing options for Connecticut workers.”

CBIA has supported similar proposals in recent years, with the House unanimously approving a bill last year.

The Senate failed to act on that measure.

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