Housing Opportunities for Everyone
Introduction:
Affordable housing has become a critical concern in Eastern Connecticut as prices continue to rise and zoning restrictions make it more and more difficult to build homes that the average person can afford.
What do we mean by affordable housing? To us, it means providing housing that all levels of the socio-economic spectrum can afford, whether it be rental or homeownership. It means children having the ability to purchase homes in the community that they grew up in when they enter the workforce.
What are some of the common myths about "affordable" housing?
Myth #1: "Affordable housing will lower property values in my community."
Response: A number of studies have documented that contemporary affordable housing developments have no impact on nearby property values, and in some cases contribute to increased property values. Studies conducted have found that "proximity to nonprofit-developed subsidized housing actually enhances property values." Studies of low-income family housing developments in suburban areas have even revealed that affordable housing can have a positive impact on surrounding property values. Numerous studies over time from around the country support the general notion that affordable housing has no negative impact on surrounding property values.
Myth #2: "Affordable housing residents won't ‘fit in' to our community; or affordable housing will lead to an increase in crime in my community."
Response: This objection is often a code term for racist attitudes against blacks and Latinos since the media paints people of color, particularly those in public housing, as "the face" of affordable housing. In most cases, however, people who need affordable housing are already members of the community no matter what their race. They are senior citizens living on fixed incomes and families working entry-level and low-wage jobs. They are preschool teachers, travel agents, food service workers, clergy, and medical assistants. There is no evidence that affordable housing brings crime to a neighborhood. Whether a development will be an asset or a detriment to a community more often turns on basic management practices: careful screening, prudent security measures, and regular upkeep.
Myth #3: "Affordable housing developments are a waste of taxpayer money."
Response: The largest subsidy for housing in the United States is the federal homeowner mortgage interest tax deduction which totaled $108 billion in FY 2003. This is more than three-and-half times the entire budget for the U.S. Department of Housing and Urban Development, and larger than the budgets of every state except California. And it's high-income families who benefit - approximately 50% of these benefits went to the top 11% of all U.S. taxpayers. [ 3 ] Homeownership, therefore, is not the embodiment of self-sufficiency and independence from public subsidy as the rhetoric purports. The reason units at a redeveloped or newly constructed "affordable housing" building can be offered at below-market rents or purchase prices is that the up-front acquisition and development costs of financing would be reduced by federal tax credits and grants. In other words, the day-to-day operating costs and the rental income would not be subsidized by the municipality.
Myth #4: "Land in my community is too expensive for affordable housing."
Response: Expensive land doesn't automatically exclude the development of affordable housing. Sometimes it's a better bargain because the land is in better shape. Less expensive land is often in poorer shape and requires more site preparation and increases the overall development costs.
Myth #5: "Affordable housing will look like "cheap housing."
Response: Affordable housing must comply with the same building restrictions and design standards as market-rate housing. Because it is often funded in part with public money, sometimes it needs to comply with additional restrictions and higher standards than market-rate housing. Affordable housing is not affordable because it's built with "sub-quality" materials; it is affordable in the sense that it is less costly to live in because it is supported by additional public and private funds.
Myth #6: "Affordable housing will bring more traffic to the community."
Response: Studies show that affordable housing residents own fewer cars and drive less often than those in the surrounding neighborhood.
Myth #7: "Affordable housing will bring lots of large families to the community, thereby increasing the burden on schools and roads."
Response: According to the U.S. Census Bureau, rental apartments have fewer children per unit on average than owner-occupied, single-family housing; rental apartments contain a lower percent of units with one or more school aged children; and rental units have a lower average number of motor vehicles per unit. Although not all multi-family rental units are affordable, they make up the bulk of affordable housing.
Myth #8: "Affordable housing doesn't contribute to the local tax base and overburdens the local property tax system."
Response: Nationwide, the effective tax rate (property tax paid relative to the market value) for multi-family complexes is significantly higher than single family homes. Thus, multi-family developments pay their "fair share" in local property taxes. Furthermore, as stated above, multi-family housing actually produces less burden on the local tax system in terms of new services generated than single family homes.
EMPLOYER ASSISTED HOUSING PROGRAM
The Eastern Connecticut Association of REALTORS® joined the National Association of REALTORS® (NAR) Home from Work campaign ON April 26, 2007 by offering a continuing education training program to member REALTORS®. Home From Work is an innovative effort to increase affordable homeownership opportunities for the Eastern Connecticut workforce through access to housing information and education, homeownership assistance, and low-cost financing options. Through the combined efforts of real estate professionals, lending, and business partners, this initiative will work with employers to utilize Employer-Assisted Housing (EAH) benefit plans to achieve the goal of increasing housing and economic development opportunities throughout the state. For more information on the Employer Assisted Housing program click here.
UPCOMING HOUSING EVENTS, SEMINARS & MORE
Partnership for Strong Communities Events
PROGRAMS OF CURRENT INTEREST TO HOME BUYERS, HOME SELLERS AND RENTERS
Watch 3 videos about the home buying process prepared by the U.S. Department of Housing and Urban Development
FORECLOSURE PREVENTION
View a variety of Federal and State programs that assist homeowners in avoiding foreclosure on our Foreclosure Prevention page.
THINKING OF MAKING AN OFFER ON A SHORT SALE?
If you are thinking about making an offer on a short sale property, then the NAR publication "Thinking of Making an Offer on a Short Sale? What You Need to Know" is essential reading.
HOMEOWNERSHIP PROGRAMS
The Connecticut Housing Investment Fund, Inc. (CHIF) is a private, nonprofit organization established to finance affordable housing and neighborhood revitalization projects throughout Connecticut. Programs for homeowners and home buyers include:
Energy Conservation Loan Program
The CHIF/USDA Rural Services Homeownership Program
To view these programs and more information go to: http://www.chif.org/
CHIF is located at 121 Tremont St., Hartford, CT 06105. Phone: 800-992-3665
Habitat For Humanity of Southeastern Connecticut's home ownership program
is located at http://www.habitatsect.org/homeownership/
Habitat For Humanity of Southeastern Connecticut is located at 377 Broad St., New London, CT 06320. Phone: 860-442-7890
CREDIT COUNSELING
Money Management International
225 Pitkin Street, Suite 300
East Hartford, CT 06108
OR
57 Plains Road, Suite 2-A
Milford, CT 06460
1-866-917-2227
OTHER HOUSING PROGRAMS
Southeastern Connecticut Housing Alliance (SECHA) - http://www.secha.org/
SECHA believes that the regions' workforce is entitled to quality affordable housing as well as a real choice in selecting that housing. The people that constitute our growing job base, thereby strengthening our economy, need affordable, safe and decent housing within reasonable commuting distances from their jobs. Topics on this site include: Housing Facts, Resources for Developers, Resources for Towns, Legislation, and more.
Download a brochure about the Southeastern Connecticut Housing Alliance.
Thames Valley Council for Community Action
provides housing programs include:
Eviction Prevention Program
Supportive Housing Program
Section 8 Program
TVCCA Shelter for the Homeless
For details go to http://www.tvcca.org/services
TVCCA is located at 83 Huntington St., New London, CT 06320. Phone: 860-444-0006. The main program office is located at 401 West Thames Street, Unit 201, Norwich, CT 06360. Phone: 860-889-1365.
MORTGAGE FORECLOSURE ASSISTANCE
Hotline at 877-472-8313
Citizens Bank, Sovereign Bank, TD Banknorth, Webster Bank and Bank of America have committed $125 million in funds to create the Mortgage Relief Fund. Our goal is to help eligible homeowners in New England refinance into more conventional fixed-rate loans that will better meet their needs. To learn if you are eligible go to Click Here
For more information check out the State of Connecticut, Dept of Banking website to learn about avoiding foreclosure.
Steps to Buying a Home
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The first step in buying a home should be to begin working with a REALTOR®.
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Before you begin looking for a home, you should sit down with a mortgage lender who is an Affilate Member of the Eastern Connecticut Association of REALTORS®. ECAR Affiliate Member Mortgage Lenders have access to a wide variety of mortgage financing programs, including those listed below.
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For more information on the financing process go to the BUY page and explore the Mortgage Calculator, Qualifying, 20 Terms To Know, and Which Mortgage is Best? links on the left hand side of the page.
The first step in buying a home should be to begin working with a REALTOR®.
Before you begin looking for a home, you should sit down with a mortgage lender who is an Affilate Member of the Eastern Connecticut Association of REALTORS®. ECAR Affiliate Member Mortgage Lenders have access to a wide variety of mortgage financing programs, including those listed below.
For more information on the financing process go to the BUY page and explore the Mortgage Calculator, Qualifying, 20 Terms To Know, and Which Mortgage is Best? links on the left hand side of the page.
The Eastern Connecticut Association of REALTORS® created a Housing Opportunity Committee in 2003 to act as a "clearing house" for information regarding affordable housing financing programs and to disseminate the information to the members and the public. That is the purpose of this page. We are interested in posting information on all types of programs: grants, special lending products and local municipal incentives are examples. If you have specific information regarding a lending or housing program please contact John Bolduc.
Housing Solution Web Sites
REALTOR®
State of Connecticut
