by Karla Ciaglo
HARTFORD, CT – Gov. Ned Lamont’s biennial budget address on Wednesday sparked mixed reactions, with housing policy advocates like Open Communities Alliance (OCA) offering both recognition and suggestions for moving forward.
OCA, a Hartford-based nonprofit focused on advancing housing opportunities across Connecticut, commended Lamont for prioritizing the housing crisis, a major concern for residents statewide.
“We will continue investing $400 million per year in housing – workforce, affordable, supportive, and multi-family,” Lamont stated. “People want to live in Connecticut, and the only thing holding us back is a lack of housing. Last year, we built 70% more homes than eight years ago, and we will keep expanding our Time to Own program, which has already helped over 5,000 first-time homeowners – from Stafford Springs to Danbury – build wealth and invest in their communities.”
The Time To Own program, administered by the Connecticut Housing Finance Authority, offers up to $50,000 in forgivable down payment assistance to eligible first-time homebuyers. The interest-free loan requires no monthly payments, with 10% of the principal forgiven annually over 10 years. It covers up to 20% of the down payment and 5% of closing costs. The program primarily targets Connecticut residents, especially first-time homebuyers, though non-first-time buyers in select areas may also qualify. Since its launch in 2022, it has assisted over 4,800 buyers, with more than half identifying as people of color.
Despite this progress, the housing crisis persists. OCA Executive Director Erin Boggs emphasized the need for zoning reform to address ongoing challenges. She argued that outdated zoning laws are obstructing home construction and economic growth.
“People want to live in Connecticut, but outdated zoning laws are holding back home construction and hindering economic growth,” Boggs said. “If we reform these policies, we can not only address the housing shortage but also give the state’s economy a much-needed boost, with local towns leading the charge.”
A study by ECOnorthwest shows that Connecticut’s housing market is one of the most constrained in the nation, with a vacancy rate of just 7%, well below the national average of 11%. Experts estimate the state needs at least 110,000 more housing units to meet demand. Since the COVID-19 pandemic, home values have surged by 60% and rents have increased by 40% to 50%, according to the study. The state also faces a shortage of more than 98,000 affordable rental units, and homelessness continues to rise.
OCA advocates for zoning reform through the Towns Take the Lead initiative, which ensures municipalities actively plan for their share of affordable housing. The proposal aligns with state housing goals while maintaining local control. Boggs emphasized the importance of modernizing zoning laws to support economic growth and create more affordable housing options.
The initiative builds on existing laws like the Affordable Housing Plan statute (8-30j) and the Zoning Enabling Act (CGS Sec. 8-2). It requires municipalities to designate areas for mixed-income housing, especially in downtowns and near transit hubs, with state oversight to ensure accountability.
Despite support from some lawmakers, there is resistance within the Department of Housing to a “fair share” policy. In June 2024 leaked emails from 2023 revealed opposition to the policy, which aims to distribute affordable housing needs equitably across towns. Housing Department officials expressed concerns that the policy could unfairly mandate housing and hinder efforts to end segregation, leading to friction with Democratic lawmakers. House Majority Leader Jason Rojas, D-East Hartford, criticized the resistance, highlighting the difficulty in advancing housing reform when the agency responsible for housing obstructs progress.
The same report stated that Lamont’s office distanced itself from the Housing Department’s stance, advocating for incentive-based policies.
“The governor believes in incentivizing towns and cities to pre-zone areas that are prime for housing development with municipalities taking the lead on where they want those units to go,” said Julia Bergman, a spokesperson from the governor’s office.