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Eastern Connecticut Lawmakers Oppose Development Tax Credit Changes

A bipartisan group of lawmakers from Eastern Connecticut said their part of the state will get frozen out, by a change in the formula used to select low income housing projects for a special tax credit.

State Senator Catherine Osten says the loss of the low-income housing tax break in her part of the state might hamper other developments, as well.

"This puts a question in the minds of developers: 'Why would we want to develop in an area that the department of housing and Connecticut Housing Finance Authority do not recognize as worthy of these low income tax credits?'" Osten said.

Osten says Eastern Connecticut lawmakers may pursue a change in state law to address the issue.

But Connecticut Housing Finance Authority CEO Nandini Natarajan said there are other resources that her agency can make available to communities that want affordable housing.

"There has to be a certain level of scale in the developments that are being built using the 9 percent credit," Natarajan said. "So certain rural communities may not be suitable for the 9 percent credit."

She says some small towns may not have the infrastructure for larger developments.

The changes to the 9% Low Income Housing Tax Credit Program were approved by the Connecticut Housing Finance Authority board last week as part of the 2022 and 2023 Qualified Allocation Plan.

Matt Dwyer is an editor, reporter and midday host for Connecticut Public's news department. He produces local news during All Things Considered.

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SOMOS CONNECTICUT es una iniciativa de Connecticut Public, la emisora local de NPR y PBS del estado, que busca elevar nuestras historias latinas y expandir programación que alza y informa nuestras comunidades latinas locales. Visita CTPublic.org/latino para más reportajes y recursos. Para noticias, suscríbase a nuestro boletín informativo en ctpublic.org/newsletters.

The independent journalism and non-commercial programming you rely on every day is in danger.

If you’re reading this, you believe in trusted journalism and in learning without paywalls. You value access to educational content kids love and enriching cultural programming.

Now all of that is at risk.

Federal funding for public media is under threat and if it goes, the impact to our communities will be devastating.

Together, we can defend it. It’s time to protect what matters.

Your voice has protected public media before. Now, it’s needed again. Learn how you can protect the news and programming you depend on.

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