February 1, 2012

GOV. MALLOY: COMMITMENT TO AFFORDABLE HOUSING MOST SIGNIFICANT IN DECADES

Invests Nearly $500 Million to Improve Quality of Life, Spur Economic Growth

(HARTFORD, CT) - Governor Dannel P. Malloy today announced that he is substantially increasing the state's commitment to affordable housing by adding more than $330 million to bolster affordable and supportive housing across the state. The funding builds on last year's commitment, which allocated more than $130 million to this effort, bringing the total commitment to nearly $500 million over the next ten years.

The proposal emphasizes the Governor's commitment to creating housing for low and moderate-income residents as a driver of economic growth and making Connecticut a more vibrant place to work and live.

"For the past twenty years, the State of Connecticut has languished in its affordable housing commitments, not investing in this critical area that is needed to help individuals and families find stability and employment. It's time we changed that approach and made Connecticut a better, more affordable place to live," Governor Malloy said. "As many studies have shown, every dollar spent on affordable housing generates multiple times that amount in private economic activity. Housing is going to be a key component of our success to get Connecticut moving again."

The package builds upon the initiatives Governor Malloy included in last year's budget, including an increase of $30 million in bonding for each of the next ten years for public housing to bring deteriorated and vacant units back on line; an additional $20 million that will increase affordable housing options; an additional $12.5 million in capital funding to re-invigorate the state's elderly congregate housing; and an annualized $1.5 million for the Rental Assistance Program (RAP) to support an additional 150 RAPs for scattered site supportive housing, which assists low-income families with securing affordable decent, safe and sanitary housing.

It is estimated that these housing initiatives included in the two-year budget will create or retain over 6,700 construction and other related jobs.

Governor Malloy is also proposing a reorganization of the state's housing functions into a new State Office of Housing within the Department of Economic & Community Development to provide leadership and facilitate coordination, consolidating a number of offices from several state agencies in order to strengthen the state's structure and vision on housing initiatives.

"It also must be said that the need for this type of housing is necessary to help our state retain young professionals and graduates of our colleges and trade schools who cannot afford the high costs of housing," Governor Malloy added. "While I was serving as mayor of Stamford, the city became a statewide leader in these housing efforts, understanding that this issue is vital in creating stability and a strong economic base."

Lt. Governor Nancy Wyman called the level of homelessness in Connecticut unacceptable - and expensive.

"By making this investment in a wide range of solutions, we will improve thousands of lives, build stronger communities and realize savings in expensive services like emergency room care," Wyman said. "This initiative is not only the right thing to do - it is the smart thing to do."

Senate President Donald E. Williams, Jr. (D-Brooklyn) said, "It is critical that we have high quality, affordable and accessible housing across Connecticut. As Connecticut moves forward with economic development, our residents need affordable housing close to their jobs. This investment will help strengthen urban and rural communities and benefit thousands of residents."

"Our commitment to increasing the availability of affordable housing is an investment in families and our economy that will result in a solid return for Connecticut residents," Speaker of the House Christopher G. Donovan (D-Meriden) said. "I look forward to working with the Governor on this important initiative."

"Today's commitment to improve public housing and make it available to more people will make an enormous difference in the lives of hundreds of struggling families. In these hard times, affordable housing is more important than ever. Also, streamlining many of the state's housing functions will make them more efficient, and more responsive to the most pressing needs," said Housing Committee Co-Chair State Senator Ed Gomes (D-Bridgeport).

"I applaud Governor Malloy's commitment across this wide range of affordable housing issues," said Housing Committee Co-Chair State Representative Larry B. Butler (D-Waterbury). "I look forward to assisting in achieving these goals in the House and through the entire legislative process."

State Senate Minority Leader and Housing Committee Ranking Member John McKinney (R-Fairfield) said, "In 2008, I worked with advocates, state agencies and public officials to craft Connecticut's first comprehensive plan to end homelessness and have worked to make that plan a reality. As a strong advocate for affordable and supportive housing, I applaud Governor Malloy for the progress he has made on these issues and for giving attention to this important cause. I look forward to working with him on this initiative in the upcoming legislative session."

Details on the Governor's affordable housing initiative are attached , as is a chart on the state's bond authorizations for housing programs since 1991.

**Attached: Governor Malloy's Affordable Housing Initiative

**Attached: Chart of Bond Authorizations for Housing Programs from FY1991 to FY2013

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For Immediate Release: February 1, 2012

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