Housing & Economic Development

The creation of more housing, affordable and cost competitive with other regions in the nation, is a top priority for the HBA of CT.  The lack of affordable and workforce housing is driving young people out of the state to areas where the price of homes is within reach of younger families.  The lack of affordable and workforce housing hurts businesses in the state who have difficulty hiring workers due to the high price of housing and the lack of "starter" homes. 

On this page you'll find updates, resources, and links to other sites with information on affordable and workforce housing and what the HBA of CT and others are doing to push for the development of the housing Connecticut needs.

HBACT outlines major state agency regulatory hurdles for the legislature's Regulations Review Committee (1-26-2010)

Development and Construction in Connecticut - Many Steps, Many Stops (Nov. 2009) - earlier versions provided to the legislature's Blue Ribbon Commission on Affordable Housing and to the Department of Economic & Community Development in 2008, and to the legislature's Planning & Development Committee in early 2009.

HOME Connecticut News - links and information on CT's groundbreaking workforce housing law adopted in 2007 (Incentive Housing for Economic Development)

Regulatory Barriers Clearinghouse - from HUD (highlighting the regulatory barriers to affordable housing).

Housing Myths & Facts  - From the Partnership for Strong Communities, see reports and links that will help you make informed decisions about housing.

Fact Sheets on Housing and HOME Connecticut - From the Partnership for Strong Communities.

Connecticut Housing Information - From the CT Dept. of Economic & Community Development (annual/monthly permits, housing sales, census bureau stats)

 Homes Do Pay for Themselves! 

 When considering the impact of new homes on a community, consider both sides of the equation, i.e., all the taxes and fees paid by or from new homes, including from the new economic activity and job creation resulting from new homes, plus the true costs to service those homes.  In particular, let facts dissolve the myth that homes produce too many public school children.  The links below to articles and research reports reveal a factual truth: New Housing More Than Pays for Itself and Are Economic Engines for Our Communities!

See how the Cost of Community Services ("COCS") "studies," usually cited for the proposition that homes are economic losers for local governments, are economically flawed.

Residential Demographic Multipliers from Rutgers University - New Home Occupant Estimates for Connecticut  - See how many public school children really come from new housing.  Rutgers University, Center for Urban Policy Research, demonstrates that one or two bedroom apartments bring a community small numbers of school age children.  Even three, four and five bedroom homes bring much fewer public school children to a community than most people assume.

University of Massachusetts, Donahue Institute - Fiscal Impact of Mixed-Income Housing on MA Communities  - This study demonstrates that school costs in Massachusetts rose independently of school enrollment.  Increased costs on local school systems were usually due to rises in health care costs and pensions expenses.

Deconstructing the Myths: Housing Development Versus School Costs  - Federal Reserve Bank of Boston confirms what numerous studies prove: Housing Pays Its Own Way!

Massachusetts Institute of Technology, Center for Real Estate, Effects of Multi-Family Housing on Single Family Home Values  - This MIT study found that mixed-income rental developments did not negatively impact the sale prices of houses in the neighborhoods surrounding the rental developments.

From the Partnership for Strong Communities - see Housing and Municipal Budgets: Figures, Facts and Phenomena

NAHB Study Quantifies Contributions Home Building & Related Activities Make to the Economy (Oct 2008).   Understanding housing's importance to state and local economies is particularly important as our leaders seek innovative ways to stabilize and rejuvenate communities across the nation.  This report is done in terms that policymakers at every level can understand and appreciate.  The study estimates the direct economic impacts of new residential construction and remodeling, including the number of jobs and income created as well as the amount of government revenues generated. In 2008, NAHB estimates that: Construction of 1,000 new single-family homes creates 3,049 jobs and generates more than $89 million in tax and other revenues for federal, state and local governments; Construction of 1,000 new multifamily rental units creates 1,155 jobs and generates more than $33 million in tax and other government revenues; $100 million worth of residential remodeling activity creates 1,109 jobs and generates more than $30 million in tax and other government revenues.

Local Impact of Home Building in a Typical Metro Area (June 2009).  From Executive Summary: "Home building generates substantial local economic activity, including new income and jobs for residents, and additional revenue for local governments. The National Association of Home Builders has developed a  model to estimate the economic benefits. The model captures the effect of the construction activity itself, the ripple impact that occurs when income earned from construction activity is spent and recycles in the local economy, and the ongoing impact that results from new homes becoming occupied by residents who pay taxes and buy locally produced goods and services. In order to fully appreciate the positive impact residential construction has on a community, it’s important to include the ripple effects and the ongoing benefits. Since the NAHB model was initially developed in 1996, it has been successfully applied to construction in over 500  projects, local jurisdictions, metropolitan areas, non-metropolitan counties, and states across the country.

This report presents estimates of the local impacts of building 100 single family units, 100 rental apartments, and $10 million worth of spending on residential remodeling (equivalent to 100 remodeling jobs at $100,000  each) in a typical U.S. metropolitan area, with the key inputs (such as new home prices, raw land values, and construction related fees) set equal to national averages." 

This NAHB report documents that nationally, the one-year local impacts of building 100 SF homes in a typical metro area include $21.1 million in local income, $2.2 million in taxes and other revenue for local gov't, and 324 jobs.  The additional, annually recurring impacts of building 100 SF homes equal $3.1 million in local income, $743,000 in taxes and other revenue for local gov't, and 53 local jobs.  Building 100 rental apartments produce income taxes and jobs in these amounts:  In the first year: $7.9 million in local income, $827,000 in taxes and other revenues for local gov't, and 122 local jobs; annually recurring amounts: $2.3 million in local income, $395,000 in taxes and other revenue, and 32 local jobs.  Also, the impacts of $10 million spent on remodeling in a typical metro area include $6.9 million in local income, $577,000 in taxes and other revenue for local government, and 78 local jobs.  Since taxes and fees are generally higher in CT, all these amounts would typically be higher in CT.

Housing & Economic Development

AD&C Financing - see NAHB's resources; Fannie Mae's new guidance on appraisals (June 30, 2010) - which actually encourages appraisers to talk with builders.

Transportation & Housing Policy - Vital Economic Links Yet Huge Policy Disconnects in CT (Oct. 2003).

Connecticut Market Reports - See quarterly and other updates on how housing is actually doing in CT.

Doing 55+ Housing?  See HUD's information on Seniors and Housing - From U.S. Dept. of Housing & Urban Development.

Affordable & Workforce Housing

Inclusionary Housing: Policy, Practical, and Legal Challenges to Inclusionary Zoning - a Resource Manual from NAHB, for NAHB Members Only

Testimony on Affordable Housing Appeals Act  before the state legislature's Housing Committee.  Liz Verna, HBACT First Vice President and Chair, Government Affairs Committee, convincingly defends the affordable housing appeals act, sec. 8-30g of the CT General Statutes, on 2-17-09.

Senator Dodd's press conference on housing, attended by HBA of CT & HOMEConnecticut supporters (July 7, 2008)