Housing For Economic Growth Program

Overview

Requirements

Funding Incentives

Application Requirements

Housing for Economic Growth Program – 2010 Annual Report {adobe}

HEG Zone Adoption Funding Application & Instructions (.doc)

 Housing for Economic Growth Program Policies  {adobe}

Authorizing Statutes

PUBLIC ACT 07-4, AN ACT IMPLEMENTING THE PROVISIONS OF THE BUDGET CONCERNING GENERAL GOVERNMENT, Sections 38 to 50 inclusive

 Program Overview

This act provides incentives to municipalities for creating Incentive Housing Zones (IHZ) in eligible locations, such as, near transit facilities, an area of concentrated development or an area that because of existing, planned or proposed infrastructure is suitable for development as an IHZ.  Developable land excludes public and privately owned property slated for public uses, parks, recreation areas, dedicated open space land, other land where restrictions prohibit development, wetlands or watercourses and areas exceeding one-half or more acres of contiguous land where steep slopes or other topographic features make it unsuitable for development.

Incentive Housing Development (IHD) means a residential or mixed-use development that meets the following criteria – is located within an approved IHZ, is eligible for financial incentive payments, and sets aside lower cost units for a minimum of 20% of the households earning 80% or less of area median income (AMI) for 30 years.  A unit is affordable if it costs no more than 30% of a person’s annual income to live there.

The town’s zoning commission must establish the IHZ as an overlay zone.  The town receives the incentives only for IHDs that are developed in a state-approved IHZ.

Letter to Municipalities   {adobe}  31 KB

Incentive Housing Zone Requirements (shall satisfy 1 thru. 7)

1.    The zone shall be consistent with the State Plan of Conservation and Development and be located in an eligible location

2.    Regulations of the zone shall permit, as of right, incentive housing development

3.     Zone must comply with minimum allowable density requirements

·       6 units/acre for single-family housing

·       10 units/acre for duplex or townhouse housing

·       20 units/acre for multifamily housing

·       For smaller communities – lower densities – 4/6/10 – OPM approval required

·       OPM may waive density requirements for land “owned or controlled” by  a municipality, land trust, housing trust fund, or non-profit housing agency, provided development will be 100% set aside at 80% of AMI 

4.    Minimum as of right density allowed by the zone must increase the density allowed by the underlying zone by at least 25%

5.    Zone requirement is subject to site plan or subdivision procedures, but not subject to special permit or special exception procedures/requirements/standards

6.    IHZ may consist of one or more sub-zones

7.    IHZ land area may not exceed 10% of the total land area or aggregate area comprised of IHZ and sub-zones in a municipality may not exceed 25%

Other considerations

·       In order to support the requirements of the IHZ, the zoning commission may modify, waive or delete dimensional standards contained in the zones that underlie the IHZ

·       The regulations of an IHZ may allow for a mix of business, commercial or other nonresidential uses provided that these uses comply with the requirements of PA 07-4, and are consistent with the density requirements

·       An IHZ may overlay all or any part of an existing historic district or districts

·       An applicant for site plan or subdivision approval may exceed the minimum requirements of the IHZ

·       A zoning commission, at the time of its adoption of regulations for an IHZ, may adopt design standards for the IHD

Funding Incentives

Funding for this program is capped, so municipalities will receive funding on a “first come, first served” basis for the following incentives:

Technical Assistance Grants

The Secretary may make technical assistance grants to municipalities for planning of IHZs, the adoption of IHZ regulations and design standards, and the review and revision, as needed, of applicable subdivision regulations and applications.

Zone Adoption Grants

Subject to availability of funds, OPM shall make a zone adoption payment in the amount of $2,000 to each municipality that has complied with the requirements of PA 07-4, sections 38-49 for each unit of housing to be built.

Building Permit Grants

Subject to availability of funds and municipal compliance with PA 07-4, sections 38-49, the Secretary shall issue a one-time building permit payment for each building permit issued for a residential housing unit in an approved IHD

·       The amount shall be $2,000 for each multifamily housing unit, duplex unit or townhouse unit

·       The amount shall be $5,000 for each single-family detached unit

·       Such payments shall be made no later than 60 days after receipt of proof as required by the statute

·       Residential units related to housing for older persons permitted by the federal Fair Housing Act, or sections 46a-64c and 46a-64d of the CGS shall not be eligible for payments under this statute
 

Application Process

Technical Assistance Grants

·        As of April 1, 2008, OPM is accepting applications for technical assistance from municipalities.  Grant awards will be limited to $50,000 per community.  Towns can use the funds for planning of IHZs, the adoption of IHZ regulations and design standards, the review and revision, as needed, of applicable subdivision regulations.  Towns can also use the funds to prepare applications to the Secretary for preliminary determination or final approval. 

• Technical Assistance Application and Instructions (.doc)
• Activities Eligible for Funding   {Adobe icon}  (141 KB)
• Resolution of the Local Legislative Body  {Adobe icon}  (191 KB)
• Resolution of the Local Zoning Authority  {Adobe icon}  (191 KB)
• Requisition for Payment (.xls)

Zone Adoption Application Process

·       On or before June 30, 2017, a municipality may file an application for preliminary determination of eligibility for a zone adoption payment

·      Applicant shall meet the requirements of PA 07-4, Sec. 41

·       60 days after receipt, OPM issues in writing, a preliminary determination of the eligibility of the municipality for the financial incentive payments

·       30 days before such determination, the Secretary shall electronically give notice of the application to all persons who have provided the Secretary with a current electronic mail address and a written request to receive such notices

·       If determination is made that the application is not eligible, incomplete, etc., the Secretary must notify the municipality of the reasons for such determination within 60 days

·       Municipality may reapply after addressing the reasons for ineligibility

·       The Secretary’s failure to issue a written response within 60 days of receipt shall be deemed to be a disapproval, and the municipality may reapply

·       After receipt of the preliminary letter of eligibility, the zoning commission may adopt the IHZ regulations and design standards

·       Within 30 days after receipt from the municipality of a written statement that its zoning commission has adopted the proposed regulations and standards, the Secretary shall issue a letter of final approval of the IHZ

·       Amendments to the regulations or design standards – the municipality shall notify the Secretary of any amendments and the Secretary shall approve or disapprove such amendments within 60 days