Governor Ned Lamont on June 23 signed Connecticut’s biennial state budget for FY22 and FY23, which includes significant funding for housing initiatives. The governor also signed a bond bill, H.B. 6690, which funds affordable housing development and the Community Investment Fund 2030. The budget and bond bills will create and preserve affordable housing supply, provide tenant services, and increase accessibility of existing programs to low-income households.
Before the pandemic, nearly 20,000 Connecticut households faced the threat of eviction. Most of these households did not have legal representation, even though it significantly increases their ability to remain in their homes. Under budget bills H.B. 6689 and S.B. 1202, the Department of Housing will receive $10 million per year from the American Rescue Plan Act (ARPA) Coronavirus State and Fiscal Recovery Funds to support legal representation costs for tenants facing eviction, assistance to tenants at notice-to-quit stage, increases in tenants appearing in cases, and outreach to tenants.
The Department of Housing will also receive $85.3 million in each year of the biennium for housing and homeless services – a $3.4 million increase from the budgets proposed by the Appropriations Committee and Governor Lamont. The Homeless Youth Program will receive $2.6 million in FY22 and $ 2.9 million in FY23, representing a $351,975 increase in FY22 and a $641,975 increase in FY23.
The Department of Energy and Environmental Protection will receive $7 million over three years for the Health and Safety Barrier Remediation Program, which will serve 875 homes. This program will enable households to address asbestos, mold, gas leaks, and other hazards so they can benefit from weatherization measures, reducing future energy bills and improving indoor air quality. The Efficient Energy Retrofit for Affordable Housing Program will also receive $7 million over three years and will complement the Health and Safety Barriers to Housing Remediation Program by funding energy efficiency upgrades. This will ensure that low-income residents can afford their utility bills and take part in clean energy programs.
The bond bill, H.B. 6690, includes a robust package of new bond authorizations of $1.7 billion in each year of the biennium, including $305 million for affordable housing development. New bond authorizations for the Housing Trust Fund are funded at $55 million in FY22 and $50 million in FY 23, consistent with the Finance, Revenue and Bonding Committee and the Governor's proposed budgets. New Bond authorizations for the Affordable Housing Flex Fund are funded at $100 million for each year of the biennium, which includes $30 million each year for the State Sponsored Housing Portfolio, consistent with the Finance, Revenue and Bonding Committee and the Governor's proposed budgets. The bill also funds the Community Investment Fund 2030, which finances projects that are “promoting economic or community development.” Affordable housing projects are listed as potential recipients.
Partnership for Strong Communities, an NLIHC state partner, advocated for these necessary resources through its leadership of the Reaching Home and HOMEConnecticut campaigns. These campaigns represent a diverse group of over 100 cross-sector stakeholders advocating for every resident to have safe, stable homes in Connecticut. Annually, Partnership for Strong Communities works with the campaigns to develop legislative priorities to address critical housing needs in the state. Advocacy efforts supporting these legislative priorities included written and oral testimony before the legislature, targeted action alerts to mobilize advocacy efforts, informational webinars, and meetings with legislators.
“We are pleased to see that Connecticut's budget and bond package contain robust investment in new affordable housing construction, as well as an increase in funding for homeless services,” said Kiley Gosselin, executive director of the Partnership for Strong Communities. “These investments are a necessary step to fixing Connecticut's shortage of affordable homes, and we thank the Legislature and Governor Lamont for recognizing that need. We look forward to building on these investments in the years to come to ensure that every Connecticut resident has a safe, stable place to call home.”