Lawmakers Act on Housing Solutions

The Connecticut General Assembly has seen no shortage of bills aimed at solving the state’s housing crisis this session.

SB 4, which includes tax credits for investments in workforce housing developments, was among the more prominent proposals.

The legislature’s Housing Committee approved the measure on a 10-5 vote earlier this month, sending it to the Senate.

Incentivizing and developers and municipalities to build housing is among CBIA’s 2023 Transform Connecticut policy solutions, designed to address the factors driving the state’s worker shortage.

“The lack of affordable workforce housing in our state, especially in underserved communities, is one of the factors contributing to our workforce crisis,” CBIA’s Pete Myers told the committee.

“CBIA believes that incentivizing the building of workforce housing in a manner that maintains local control is the best solution to our workforce housing crisis.”

Homebuyer Incentives

The Planning and Development Committee unanimously approved HB 6558, which provides property tax abatements up to $500 annually for five years for first-time homebuyers with Connecticut Housing Finance Authority loans.

Introduced by Rep. Joe Zullo (R-East Haven), the bill was cosponsored by Rep. Andre Bumgardner (D-Groton), Rep. Nicole Klarides-Ditria (R-Seymour), Rep. David Michel (D-Stamford), and Rep. Gary Turco (D-Newington).

“This would be an economic driver for the state as well as helping to create an affordable housing option to keep our workforce here,” Myers said.

SB 1020 creates a first-time homebuyers savings account and related tax credits.

The Banking Committee unanimously approved SB 1020, which creates a first-time homebuyers savings account and related tax credits.

The bill was introduced by Rep. Tom Delnicki (R-South Windsor) and cosponsored by Turco.

“This legislation incentivizes residents to stay in Connecticut and to invest in the state and in our businesses,” Myers said.

Administration Initiatives

The Planning and Development Committee is reviewing SB 985, which implements the housing initiatives that Gov. Ned Lamont outlined in his budget proposal.

The lack of available housing, one of the factors driving the worker shortage, drew special attention in Lamont’s budget recommendations.

“Millions of dollars for workforce training will go to naught if we don’t have enough housing where workers can afford to live,” he told lawmakers Feb. 8.

“Millions of dollars for workforce training will go to naught if we don’t have enough housing where workers can afford to live.”

Gov. Ned Lamont

Lamont proposed nearly doubling state investment in affordable housing development to $600 million over the next two years, increasing the number of new housing units by 6,400.

Myers told the committee March 10 that CBIA supported the governor’s emphasis on urban redevelopment and transit-oriented development.

“Developing housing in our downtowns will help stimulate economic growth in those areas,” he said.

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