HOMEConnecticuts Plan to Increase Housing Options in Connecticut

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HOMEConnecticuts Plan to Increase Housing
Options in Connecticut
The Connecticut Housing Program for Economic
Growth
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The goal Beautiful, functional, affordable
housing that fits well in Connecticuts
communities
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• Housing prices have risen 64 since 2000, more
  than 3x the increase in wages.

The Gap Has Widened
HOUSING COSTS
Percent Increase
WAGES
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• In 2005, the median household income in 157 of
  CTs 169 municipalities could not qualify for a
  mortgage to buy the median sales price home.

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• In 2006, a worker needed to earn 20.42/hour (or
  about 42,000/year) to afford a typical 2-bedroom
  apartment without paying more than 30 income on
  housing.

Median wage for workers in 321 of the 630 CT
occupations is less than this.
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• Three important constituencies now care about the
  problem more than ever, and they are all over
  the state
• business
• municipalities
• Baby Boom parents

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Why?
CT leads nation in loss of 25-34 year olds.
Business and municipalities cant find labor,
and kids cant come home to buy or rent in the
towns they grew up in.
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Reason for high housing costs Theres not
enough supply
CT has been 48th in housing units built per
capita the last three years. Weve produced about
10,000 units annually, but we need 15,000.
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Reason for high housing costs Theres not
enough supply
Were building mostly 4-5 bedroom McMansions
and 55 housing.
We need more starter homes and affordable rentals.
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Reason for high housing costs Theres not
enough supply
Towns dont allow housing creation because they
believe housing costs them money. Developers
cant afford to build housing thats affordable
if no density is allowed they have to be able
to spread their land costs over more units.
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Solutions to high housing costs

• Get towns to allow density
• Help towns cover their costs

HOMEConnecticuts plan does both.
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HOMEConnecticuts plan was produced by a large
coalition to ensure all interests were
considered.It is patterned after a law already
in effect and producing housing in
Massachusetts.
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Plan is simple and voluntary

• Town would create incentive housing zones, and
  in those zones agree to 2 requirements
• Higher densities 6 units/acre single-family10
  units/acre duplexes or townhouses20 units
  per/acre multifamily
• Mixed-income housing 80 market rate units,
  20 units affordable at 80 of area median income

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Plan is simple and voluntary

• In return, town gets
• Zoning adoption payments for every new housing
  unit possible within the zone.
• Building permit payments once building permits
  are issued.
• Education cost reimbursement for 15 years for any
  net additional school costs incurred due to new
  housing in the Incentive Housing Zone.
• Project-based rental assistance will be increased
  to help developers target a portion of the
  housing to families earning 50 of Area Median
  Income or less.
• Technical assistance will be provided to help
  towns and developers use the program.
• Infrastructure loans at low interest (1) will
  help to fix sidewalks and streets, provide new
  lighting and other amenities to enhance
  development.

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Create 5000 units a year, for a total of 15,000
enough to support creation of 20,000 jobs.
The Plan would

• Bring the state 2 in revenue for every 1
  invested.

• Never endanger the state fiscally most
  incentives wouldnt be paid out unless housing
  was built and sales/income taxes came in.

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The Plan would

• Promote responsible growth housing would be in
  town centers, near existing infrastructure or
  transit, or using underutilized facilities.
• Allows towns to control the LOCATION, APPEARANCE
  and AMOUNT of the new housing.

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Summary
A new, but tested approach. Comprehensive.
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Summary
Not sticks many carrots. Towns can allow
housing without concerns about fiscal impact.
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Summary
Voluntary. Towns can use these tools if they
wish.
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Summary
Critical to our economy. Retains and attracts
workers and businesses. Allows job growth.
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HOMEConnecticut is an initiative of
thePartnership for Strong Communities at The
Lyceum227 Lawrence StreetHartford, CT
06106 860/244-0066 David Fink
david_at_ctpartnershiphousing.comShelby Mertes
shelby_at_ctpartnershiphousing.comChristina Smith
christina_at_ctpartnershiphousing.com
www.HOMEConnecticut.org