Members of Connecticut’s Legislative Banking Committee approved three proposed bills intended to make it easier for people to buy and build houses in Connecticut at its March 6 meeting.
The first of these bills, An Act Establishing First-Time Homebuyer Savings Accounts and A Related Tax Deduction and Credit (HB6876), would establish a saving account and tax deduction for first-time homebuyers and create a related tax deduction and credit.
“You know the American dream is buying a home and we want people to stay in Connecticut. What better way to actually have people stay in Connecticut?” Ranking Member Tom Delnicki (R-South Windsor) said at the meeting. “If they have an opportunity, they’re able to save money up, there’s a tax credit and the opportunity to have up to four family homes so an individual can conceivably buy that home and be a landlord, could have relatives move in, could do a variety of things to actually be able to afford the American dream.”
There are signs indicating that families in Connecticut have given up on buying homes—at least for a while. A recent study from Point2Homes found an increasing demand for long-term rentals of 3-bedroom homes, which the study attributed to people settling down in rentals, because of the poor housing market.
By some estimates, the state is short 100,000 housing units. One of the biggest hurdles to providing more housing is the cost of construction. Connecticut is one of the most expensive states in the country to build a house.
The second bill, An Act Establishing the Homes for CT Loan Program (HB 6992) might change that. This proposed bill would help people borrow money to build residential facilities.
“I think it’s a great opportunity to advance a discussion happening throughout the legislature with respect to housing and improving opportunity in the world of housing,” Committee Chair Jason Doucette (D-Glastonbury, Manchester) said.
Doucette called the bill a “work in progress,” but said he was hopeful that it will be passed.
“I’ve had several fruitful discussions at the public hearing and since the public hearing about creative ways to move this forward and to make sure we have the funding and state report behind it,” he said.
The third and final housing legislation that was passed to the Legislative Commissioners’ Office is An Act Concerning Mortgage Foreclosures and Undischarged Mortgages (HB6878). If passed, the bill will make it easier for people who have already paid off their mortgages to prove they own their property.
It might seem obvious that a person who paid off their mortgage owns their property, but legally, that could be hard to prove. Sometimes, a person won’t release the lien.
“Some of the public testimony we listened to regarding this matter was actually pretty disturbing with respect to perhaps some predatory things going on in the mortgage world,” Ranking Member Eric Berthel (R-Washington, Southbury) said.
This proposed law would make it so mortgagers cannot foreclose a residential property if it has been ten years since the date fixed for the last payment or 40 years since the mortgage was first recorded, with some stipulations.
Doucette also described this bill as a “work in progress,” but also said, “I think it’s important to get this one out of this committee for further discussion.”
“I think we’re taking a step in the right direction for two reasons,” Berthel said. “Obviously, in a large part we’re responsible for representing the people we serve in our district and protecting our consumers, but also I think we hold the mortgage companies a bit more responsible with making sure they’re doing what they’re supposed to.”
In total, 13 proposed bills were voted on, and unanimously approved, at the March 6 meeting.
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