Rep. Morris Announces Residential Housing Legislation
State Rep. Bruce Morris
July 27, 2007

Legislation sponsored by state Representative Bruce Morris (D-Norwalk) to require that the Connecticut Housing Finance Authority (CHFA) use at least 10% in calendar 2008 and at least 15 percent in following years of its allocated private activity bonds for multifamily residential housing was approved by the Connecticut General Assembly as part of the state budget and recently signed into law by Governor M. Jodi Rell.

This will help ensure that there is funding for the construction and preservation of affordable housing for individuals and families and assisted housing for the elderly and handicapped persons.

"Persons earning 50% of the area median income or 25% of the area median income are sorely in need of affordable housing," said Rep. Morris. "However, when considering affordable housing, most developers focus on building for those with 80% or higher incomes. In order to maintain a diverse workforce, it is essential for the state to subsidize the development of "truly" affordable multifamily housing. This law, to some degree, re-enforces the states commitment to this segment of our population. At the same time, this law requires CHFA to preserve multifamily housing in our state."

By law, sixty percent of the private activity bonds that state issuers may issue must be allocated to CHFA. Private activity bonds (also known as industrial development bonds) are issued by quasi-public authorities and municipalities. They are backed by the credit of private borrowers or pools of borrowers, who pay the debt service on the bonds.

The new law also requires the Connecticut Housing Authority board to study its programs to promote such housing and determine how to do more.

The new law was effective on July 1, 2007.

Rep. Morris is serving his first term in the Connecticut General Assembly. He is a member of the Select Committee on Housing, Human Services, and Judiciary committees.

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