As redevelopment projects at the former Borough and Witt Schools march on, the term “affordable housing” will be coming up a lot and, inevitably, be misunderstood. Some people seem to see the words “affordable housing” and confuse it with “Section 8” housing. These are two important but very separate things, and we have to distinguish between them when we’re talking about housing.
First, let’s talk a little bit about housing prices in Connecticut. According to a 2022 CT Insider article, “Overall, estimates from Apartment List show the average rent in Connecticut has risen about 12 percent to $1,512 from $1,350 in January 2021.” Compared to the national average, where prices rose about 18%, Connecticut seems to have gotten off easy, but tell that to renters who see prices going up and up.
According to an editorial on CTMirror.org, “The inventory of active real estate listings has declined 79% –from 18,610 in June of 2018 to 10,228 in 2020, to 3,932 in 2023 while the state’s population has increased 1.4%.” In other words, there’s a general housing shortage. So, it’s no surprise that affordable housing is on many minds across the state. But what does "affordable" really mean?
Affordable Housing
Financial experts suggest people spend no more than 30% of their monthly income on housing. According to a 2023 town profile, the median household income in Stafford is $85,684, which theoretically puts affordable rent or mortgage payments around $2,142 per month.
Affordable housing units — of the type we talk about at the Borough School — simply mean they are priced in accordance with what is “affordable” in that area. This means they consider the median household income in the area, the size of the apartment, and, therefore, the size of a family, before setting the rent for those units accordingly. Tenants who live in units that are set aside for affordable housing must still pay their own rent but also must meet income limits — up to 80% of the median income in the area. Put simply, setting aside affordable housing units is essentially a way to control rents that would otherwise be priced in accordance with whatever the market can handle.
Proponents of affordable housing often talk about making it possible for people like teachers and firefighters to live in the communities where they work. And Bluebird Construction — the company redeveloping the Borough School — says its affordable housing units will list for:
1 bedroom - $1,159
2 bedrooms - $1,296
3 bedrooms - $1,699
On the landlord’s part, there are some benefits to providing affordable housing, even if it means collecting less in rent. For instance, state statute “8-30g includes an appeals procedure to override local zoning denials of affordable housing proposals without just cause: 8-30g ensures that municipalities cannot deny an affordable housing proposal unless there is a specific significant health or safety concern.” In the case of the Borough School, Bluebird Construction sought a Special Permit to put 20 units into a building that would otherwise have only been zoned for 12 units, and 8-30g made it easier for them to do so. There are also tax credits available to developers who choose to create affordable housing.
Section 8 Housing
“Section 8” housing, as it is commonly referred to, is a voucher program. Low-income families are given vouchers for a portion of their rent, which essentially means the state is paying all or some of the family’s rent.
Funded through the Department of Housing and Urban Development (HUD), “The Housing Choice Voucher program is the federal government's major program for assisting very-low-income families to afford decent, safe, and sanitary housing in the private market. Participants are able to find their own housing, including apartments, townhouses, and single-family homes. The participant is free to choose any private rental housing that meets the requirements of the program.”
The requirements for voucher eligibility are very different than those for affordable housing. Generally speaking, the household income may not exceed 50 percent of the median income for the county (or metro area) where they live, and families typically pay 30-40% percent of their monthly income toward the rent and utilities.
If I decided I wanted to start renting my house tomorrow, I could get it approved by the state’s housing voucher program and accept tenants with Section 8. In many ways, this benefits landlords, who can rely on the steady income of the vouchers. Normal rental agreements still apply, tenants must keep the unit in good condition, and tenants may have to pay their own rental deposit.
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