HOMEConnecticut Wins Temporary Reprieve; Future Unclear

January 5, 2010 -- Gov. Rell's veto of a deficit mitigation plan passed by the General Assembly over the holidays provided the HOMEConnecticut program with a temporary reprieve. The program was slated for a $380,000 reduction under the plan passed by Democratic majorities in the House and Senate.

That would have left $2 million for planning and technical assistance grants, and incentive payments, to municipalities taking part in the program. But because the bill cut spending by only about $12 million and also delayed a reduction in the estate tax, Gov. Rell vetoed the measure.

There are no current plans for the General Assembly to come back into special session before they convene for the 2010 regular session Feb. 3. It is unclear whether OPM, which has notified 15 municipalities that they will receive $20,000 planning grants will spend that money.

Meanwhile, the first two towns to create Incentive Housing Zones under the statute, Wallingford and Old Saybrook, have resubmitted their applications for approvals by OPM that would qualify them for incentive payments based on the number of housing units allowed to be built in each zone.

Under the program, a town must meet density minimums of 20 multi-family, 10 townhouse or duplex, or 6 single-family units per acre and must guarantee that 20% of the units are deed-restricted so they remain affordable for owners or tenants earning 80% or less of the area median income.