HARTFORD, CT – Housing, schools, and roads were the top priorities during a special meeting of the state Bond Commission on Tuesday at the Legislative Office Building.
Gov. Ned Lamont laid out his spending priorities for the Bond Commission at the top of the meeting.
“In this bonding session, we have $1.4 billion, including a big commitment yet again to housing, including supportive housing, including the Time to Own initiative, which is really key to our economic growth as well as fairness,” Lamont said. “We have $250 million for schools. We had some catching up coming out of COVID and we’re doing that. Transportation – that’s probably by far the biggest piece of what we’re doing right now, making sure that we put up our share of all the federal money coming our way to fix and speed things up.”
The commission’s agenda included 43 items that provided funding for everything from hazardous waste mitigation for the state Department of Energy and Environmental Protection to a study for developing a site in Rocky Hill to house the new State Archives.
Overall, the big winner of the day was the Department of Transportation, which will receive over $650 million for various projects around the state. The Department of Administrative Services will receive $250 million to finance the state’s share of the cost of current payments for the construction of local school building projects and technical high schools. There was also funding for several state agencies to complete renovations and repairs to state facilities.
The one item for which the vote was not unanimous was a $40 million bond allocation for the state’s Time to Own program, which provides forgivable down payment assistance for first-time homebuyers. State Sen. Henri Martin, R-Bristol, expressed concerns that the program does not address the affordability crisis in the state.
State Sen. Henri Martin, R-Bristol, expresses concerns about the Time to Own housing program that provides down-payment assistance for low-income residents during the state Bond Commission meeting on Tuesday, Oct. 22, 2024. Credit: Screengrab / CT-N
“Regarding this program, I have my reservations regarding it in particular,” Martin said. “It is a program that helps people own their homes. However, I don’t see how it helps us in making Connecticut affordable. We have a lack of supply in the state of Connecticut and obviously we have more buyers out there than we have homes on the market. We have a pent-up demand that goes back to 2008. It’s going to take us a while – a long time – to catch up to the demand. I see this program as a contributing factor to that demand in particular.”
Martin also said that he fears that the program will lead to the kind of moral hazard that contributed to the housing crash and Great Recession in 2008, because homeowners aren’t putting in their own earned money to purchase the homes.
State Comptroller Sean Scanlon disagreed with the senator, and read from a letter he received from a state resident who was hoping the program would be funded.
“‘I’m a 25 year old first-time home buyer living in Windsor with my spouse, and our six-month old son,’” the letter said. “‘In early August, we found a charming house in Windsor that fell within a high opportunity zone qualifying for this program. This loan made homeownership financially feasible, comparable to the steadily rising rent in our area which, like many, has been affected by inflation and stagnant wages.’”
Scanlon also discussed Martin’s point about homeowners not putting in their own money, referencing the young family in the letter.
“I won’t disclose how much he said, but they were putting a lot of money into this, and I think a lot of individuals that benefit from this amazing program are in that category where this is the final leg that gets them over the hurdle that they have been facing that made homeownership not possible for them.”
The bonding measure passed, with Martin registering the only “no” vote. So far, the program has been used to purchase 4,800 homes across 140 towns and cities in the state, according to Housing Commissioner Seila Mosquera-Bruno. Half of those who have purchased homes are minorities.
Asked who would be happy with the bond funding passed today in a news conference after the meeting, Lamont said he hoped the whole state would be pleased.
“Honestly, what you see in terms of us putting up our share of transportation, what that’s gonna mean in terms of safety, what that’s gonna mean in terms of speeding up here to be at home, what that’s gonna mean in terms of getting some cars off the road, what that’s gonna mean in terms of fixing up those flooded areas like the Waterbury rail line,” he said. “You know, I care deeply about housing and housing affordability and providing affordable housing funding for thousands of new additional units that are more affordable for people. Workforce housing to bring our cities back to life.”