Housing in Connecticuts Communities

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Housing in Connecticuts Communities
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What is HOMEConnecticut? Statewide affordable h
ousing campaign Overseen by bankers, business e
xecutives, planners, policymakers, land-use and
housing experts, builders, realtors and others
Have come together to solve an acute housing
affordability problem confronting our state
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Whats the problem with housing in Connecticut?
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The bottom line problem
Connecticut suffers from a shortage of housing
rentals and starter homes that workers,
families, young professionals and retirees can
afford.
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Why is there a shortage?
Supply is low Were not creating the starter h
omes and rental units that we need for our
children, our workers, our families and our
parents.Connecticut was 48th among the states
in construction of units per capita between 2000
and 2004.
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What problems does the shortage cause?
Dangerous exodus Connecticut has lost higher
percentage of its 20 to 34 year-old population
than any other state since 1990.
This is hard on businesses, organizations and
municipalities seeking skilled, affordable labor.
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What problems does the shortage cause?
Mounting unaffordability HOMEConnecticut analys
is 2005 157 of Connecticuts 169 cities and t
owns, median family income cant qualify for the
median sales price home 2004 102 of 169 cities
and towns
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What problems does the shortage cause?
Mounting unaffordability One-fifth of Connectic
ut households (257,000) earn less than 80 of
median income, and pay 30 or more of that income
for housing.
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Why does housing cost so much?
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Housing costs rise faster than wages
From 2000 to 2005, Connecticut housing costs rose
63.6, outstripping the 18.5 wage gain by 3½
times.
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Why does housing cost so much?
High demand, low supply Low interest rates have
brought more buyers into the market, driving up
property costs. But there has been a low supply o
f rentals and starter homes.
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Why does housing cost so much?
Expensive land Developers who pay for expensive
land have to make a profit they cant afford to
build small starter homes. They must either b
uild large, unaffordable homes- or
be allowed by towns to put more units on each
acre density that towns sometimes fear.
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Why does housing cost so much?
Municipal costs Towns fear housing will bring h
igh service and education costs.
Often when towns allow housing to be built, its
low-density/large lot size single family homes,
and 55 developments that bring no children to
educate.
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What will happen if we dont respond?
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What will happen if we dont respond?
Worker shortage The 20 to 34 year-old exodus wi
ll continue. Businesses wont come, stay or expan
d here if they cant find skilled labor.
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What will happen if we dont respond?
16 of the 20 occupations projected to grow
fastest in Connecticut through 2012 wont be able
to afford a typical 2BR apartment.
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What will happen if we dont respond?
Of 620 occupations in Connecticut, 294 of them
earn less than the 19.30 per hour pay needed to
afford that 2BR apartment.
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What will happen if we dont respond?
State revenues fall 2005 Klepper-Smith study f
ound workers leaving Connecticut because of high
housing prices could cost the state up to 133
million annually in state income and sales tax
revenue.
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What will happen if we dont respond?
Poll responses underscore problem
May 2006 UConn/Courant poll found
43 of state residents have considered leaving
Connecticut because of high housing costs
66 say housing in their communities is not
affordable 55 say housing prices are a very seri
ous problem Most think theyll be unable to affor
d housing here when they retire, or that their
kids will be unable to afford housing here
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What is HOMEConnecticut doing to help solve
the problem?
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What is HOMEConnecticut doing to help solve the
problem?
Showing people that Affordable housing isnt th
e projects. It looks beautiful, fits well into
its neighborhood, enhances its surroundings, and
increases nearby property values.
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What is HOMEConnecticut doing to help solve the
problem?
Showing people that People who live in affordabl
e housing are hard-working, well-educated,
skilled workers that every community needs
teachers, public safety workers, EMTs, auto
mechanics, landscapers and many more.
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What is HOMEConnecticut doing to help solve the
problem?
Deflating myths..
Affordable housing will lower my property
values No, it wont Recent MIT study in 8 Mass
achusetts communities found that multi-family,
mixed-income housing development had no impact on
property values. This replicates other studies.

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What is HOMEConnecticut doing to help solve the
problem?
Deflating myths
Affordable housing will increase my towns
education budget No, it wont 4-5-bedroom home
s generate more school costs than mixed-income
housing Northeastern Univ. study for Massachusett
s legislature showed additional education cost of
affordable housing is negligible.
Connecticuts school-age population (5-17) will
shrink from 590,000 in 2000 to 562,000 by 2015.
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What is HOMEConnecticut doing to help solve the
problem?
Deflating myths...
Age-restricted housing will avoid school costs
No, it wont As empty-nesters move into 55 hous
ing, typically in the same town, the home they
leave is often bought by a family, resulting in a
net increase in students.
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What is HOMEConnecticut doing to help solve the
problem?
Helping people understand that
The stakes are very large. If we dont fix this
problem, there will be serious consequences
Family members leaving Town residents leaving
Workers leaving Jobs and businesses leaving
State revenues leaving
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What is HOMEConnecticut doing to help solve the
problem?
Research and policy analysis to produce a 4-part
package of ideas
Part 1 Fix the financing system for affordable
housing development Ensure the state is
providing loans, grants, tax credits and other
instruments that leverage private financing from
banks, foundations and other sources.
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What is HOMEConnecticut doing to help solve the
problem?
Research and policy analysis to produce a 4-part
package of ideas
Part 2 Clear administrative and regulatory
roadblocks Shorten the time that state agencies
and municipalities take to issue permits and
approvals, and clear up other delays that deter
developers.
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What is HOMEConnecticut doing to help solve the
problem?
Research and policy analysis to produce a 4-part
package of ideas
Part 3 Help municipalities foster more housing
Provide cities and towns with ideas,
information, visualization and mapping software,
toolkits and other technical assistance so they
can work with developers to generate housing.
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What is HOMEConnecticut doing to help solve the
problem?
Research and policy analysis to produce a 4-part
package of ideas
Part 4 Provide incentives to help
municipalities creating housing Use fiscal and
other incentives to cover services,
infrastructure and education costs, and otherwise
encourage cities and towns to allow more housing
to be built.
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Old Farms CrossingAvon, CT Metro Realty Group
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Watch Factory CondominiumsCheshire, CT
Berardino Realtors
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Heritage GlenFarmington, CT Metro Realty
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Southwood Square(HOPE VI public housing
redevelopment)Stamford, CT Stamford Housing Auth
ority
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before
after
Mortsen Putnam HeightsHartford, CT
Broad Park Development Corporation for
Independent Living
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before
after
215/225 Sheffield AvenueNew Haven, CT
Neighborhood Housing Services of New Haven
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Flagg RoadWest Hartford, CT West Hartford Interf
aith Housing Coalition
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Hubbard WoodsGuilford, CT Mutual Housing Associa
tion of South Central Connecticut
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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_ctpartners
hiphousing.comShelby Mertes shelby_at_ctpartnershi
phousing.comChristina Smith christina_at_ctpartner
shiphousing.com
www.HOMEConnecticut.org