Gov. Malloy: State Awards Grants for Affordable Housing Developments

Press Release

Governor Dannel P. Malloy, joined by Department of Housing Commissioner Evonne M. Klein, today announced that nine towns have each been awarded grants for predevelopment costs associated with establishing Incentive Housing Zones (IHZ) in their communities. The towns are Andover, Barkhamsted, Canaan, Clinton, Enfield, Guilford, North Stonington, and Windsor Locks.

"Incentive Housing Zones are good public policy because they promote both affordable and market-rate housing and mixed-use developments in residential and business districts," said Governor Malloy. "These zones can help communities relieve congestion and avoid sprawl by creating more vibrant neighborhoods near businesses and existing transportation connections -- allowing people to walk or take public transit to work, to visit cultural attractions, or just to enjoy an evening out."

The Department of Housing will award a total of $210,000 in funding through the Housing for Economic Growth Program, also known as HomeCT. This is a voluntary program that provides financial incentives such as technical assistance grants, predevelopment funds, zone adoption grants and building permit grants to municipalities that create affordable housing by designating areas as an IHZ within the municipality.

An IHZ allows for residential or mixed-use developments that set aside a minimum of 20% of the units for households earning 80% or less of the area median income (AMI) for minimum of 30 years. A unit is affordable if it costs no more than 30% of a person's annual income.

"This funding is vitally necessary and an important tool for those municipal leaders that are taking on the issues of housing and affordability within their communities," said Commissioner Klein. "Incentive Housing Zones are still a relatively new concept. These grants help communities better understand their needs, plan and analyze developments, and establish the structure and framework that can help them move projects quickly from the planning stage to the permit and construction phase."

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