State lawmakers are looking for creative ways to increase Connecticut’s housing, while making use of existing buildings.
Two bills being considered by state lawmakers to expand housing would work to increase housing options without increasing the state’s urban footprint.
Developers would receive tax breaks for building housing over retail spaces, and rehabbing unused commercial buildings, like hotels and offices, into apartments.
John Souza is president of the Connecticut Coalition of Property Owners and a full-time landlord. He spoke in favor of the bills Tuesday during a public hearing before the state’s Housing Committee.
“In Hartford, there's a lot of empty office space. I think the world has changed a lot where people are working from home,” Souza said. “This would encourage developers to build housing in those units, and I think that's a no-brainer for both of them.”
Using a “carrot” approach, by providing a kickback to developers in the form of a tax break, is a good way to get more investment in Connecticut, Souza said.
The tax credit vouchers developers would receive for under both bills would not exceed $30,000 for each unit, or $50,000 for nonprofit developers.
As the commercial property bill is currently written, vacant industrial properties are not included, due to concerns over environmental remediation that may be needed for former factory sites.
Adding apartments over retail space would increase the number of homes available for a range of income levels, said Lauren Tagliatela, a landlord and member of the Connecticut Apartment Association.
“This bill encourages smart growth by increasing housing density without expanding urban footprints,” Tagliatela said. “It strengthens local economies by adding residential units in commercial corridors and increasing foot traffic for small businesses.”
Almost all public comment was in favor of the bills as a way to both increase the state’s housing stock and take advantage of existing, underutilized buildings.
The two bills are expected to come up for a vote before the Housing Committee.
