Legislature Cuts HOMEConnecticut,
Other Housing Programs In Deficit Mitigation Plan

December 22, 2009 -- The General Assembly reduced or delayed funding for supportive housing, HOMEConnecticut and other affordable housing programs Dec. 21, when it passed a deficit mitigation plan -- SB2101 -- for the fiscal year ending June 30, 2010.  The bill has been sent to Gov. Rell for her approval. 

The bill identifies a number of budget cuts meant to address the state’s projected $470 million budget deficit.  Cuts related to housing and homelessness services include the following:

• Reduces funds to the HOMEConnecticut program (the Housing Program for Economic Growth) by $380,000.  Of that total, $319,200 will be taken from the account administered by the Office of Policy and Management for technical assistance grants and incentive payments.  The remaining $60,800 will be taken from the funds set aside for technical assistance grants to non-profits administered by the Department of Economic and Community Development.  
  
  
• Cuts a total of $478,900 from Community Investment Act (CIA) funding, including $119,725 designated for affordable housing programs adminstered by the Connecticut Housing Finance Authority.  
  
  
• Delays Round III funding for the Next Steps Initiative for one year, including funds appropriated to the Department of Social Services and the Department of Mental Health and Addiction Services for rental assistance and services and to the State Treasurer’s Office for debt service payments.  Funding allocated for FY11 remains.