Connecticut Senate Bill SB00155

Connecticut 2016 Regular Session

• Introduced: 2/18/16
• Refer: 2/18/16
• Report Pass: 3/8/16
• Refer: 3/21/16
• Report Pass: 3/29/16

Caption

An Act Concerning The Allocation Of Low Income Housing Tax Credits.

Impact

The passage of SB00155 is expected to directly impact state laws pertaining to housing finance and development. By creating a structured priority system for tax credit allocation, the bill aims to stimulate construction activity in both high-opportunity areas and lower-income neighborhoods. This refined approach could lead to improved access to affordable housing for low-income residents in Connecticut, enhancing economic development by fostering local employment opportunities. However, it also raises considerations about balancing economic growth with the need to ensure equitable support for all communities.

Summary

SB00155 is a legislative act that aims to modify the allocation of Low Income Housing Tax Credits in Connecticut. The bill introduces a new framework under which the Connecticut Housing Finance Authority is tasked with designing a Qualified Allocation Plan that prioritizes certain housing proposals. Specifically, the bill establishes tiers for allocating tax credits based on the opportunity areas of the proposals, with a strong emphasis on those that can demonstrate a high likelihood of initiating construction within a year of receiving the credit, categorized as 'feasible proposals'. Furthermore, it aims to incentivize development in economically challenged areas without raising local poverty levels.

Sentiment

The sentiment surrounding SB00155 has been predominantly positive among supporters who view the bill as a necessary measure to address Connecticut's housing challenges. Proponents argue that by directing resources towards high-potential development areas, the bill could lead to substantial improvements in urban and suburban housing markets. Conversely, there are criticisms from those concerned about potential inequities and the effectiveness of prioritizing certain neighborhoods over others. This debate highlights the ongoing need to consider local community needs alongside broader economic objectives.

Contention

Notable points of contention regarding SB00155 involve concerns over the allocation of credits and the criteria used to define 'opportunity areas.' Critics argue that the bill's reliance on market analysis could favor certain developments while neglecting others that may also address significant housing needs. As some lawmakers and advocacy groups voice apprehensions about the potential for increased displacement or gentrification, the discussions point to the broader implications of urban development policies in maintaining affordability for vulnerable populations.