HOMEConnecticut's proposal to provide incentives to municipalities that allow creation of higher density, affordable housing successfully made it through the budget process, although it was not authorized in full.  HOMEConnecticut's Housing Program for Economic Growth is now embodied in Sections 33 and 38-49 of SB 1500, and includes:

• Authorization to create incentives for municipalities that create zones allowing higher density housing and that issue building permits in those zones.
• $4 million for technical assistance and planning grants to towns, non-profit developers, housing assistance organizations and regional planning agencies and for zoning and building permit incentive payments.
• Authorization for a focused Blue Ribbon study of housing development barriers, additional incentives for municipalities, the need for rental assistance for low-income residents, and ways to improve state housing finance, to report by Feb. 1 in time for the next legislative session.  Gov. Rell will appoint the chairman of the Blue Ribbon study.

The legislation does not include two key elements - state reimbursement of additional school costs incurred by towns that create housing, and project-based Rental Assistance Payments for help developers make units affordable to residents earning 50% AMI or less - that municipalities and developers have said will be vital to making the bill work. But the study is expected to review ways to provide and finance those or other instruments to accomplish those goals.

Click here to read a complete summary of the Housing Program for Economic Growth.