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Background: As housing costs rise in Connecticut and development lags affordable housing has drawn more focus in recent years, not only at the state and national level, but also here at home in New Canaan.

Multigenerational and multicultural towns and cities are more vibrant. When there are more housing options or a variety of housing from which individuals and families can choose these towns and cities attract young professionals, young families, and are able to keep seniors who built their communities. When businesses are considering where to establish their business, they also consider if they are able to attract a workforce who will have access to housing nearby from the lowest paying position to the highest. New Canaan has small businesses, restaurants and Waveny, not all of these jobs are high paying, but staffing is critical for them to deliver their services.

Connecticut 50% of renters and 30% of homeowners are housing cost burdened, which means they pay more than 30% of their income on housing. 250,000 households pay more than 50% on housing. The need is greater as we know approximately 30% of our residents are housing cost burdened, which means that New Canaan residents are spending more than 30% of their income on housing costs.

It is a statute that assists and encourages towns to comply with their obligation under the Zoning Enabling Act State Statute 8-2 to “promote housing choice and economic diversity in housing. Enacted in 1990, the Affordable Housing Land Use Appeals Act allows developers whose application includes units with long term affordability for low- and moderate-income individuals and families to challenge the town’s decision to deny the application. At least 30% of the units must be deed restricted for people earning less than 80% or 60% of the State Median Income (SMI). The developments must restrict at least 30% of the units as for at least 40 years. The burden of proof is placed on the municipality/ local zoning commission by CGS 8-30g. The town must prove that the development significantly threatens public health and safety. Connecticut municipalities in which less than 10% of the housing stock is affordable must allow affordable or mixed-income housing proposals to be constructed unless they can prove to the Superior Court that the rejection is necessary to protect substantial public interests in health, safety or other similar matters.

Impact on property values is not a consideration of planning and/or planning and zoning commissions when reviewing any application. There is over a decade of data that states the impact on property values is not negative in fact in some cases has a positive effect.

Current Housing Needs in New Canaan

30%

of New Canaan Home Owners are moderately to severely burdened with housing costs

47%

of New Canaan Renters are moderately to severely burdened with housing costs

51%

is how much higher The New Canaan housing wage is compared to the CT average

3x

The average cost of a home in New Canaan versus the average cost in Fairfield County

  • The New Canaan Plan of Conservation and Development (POCD) (2014) states throughout the document the need to increase housing opportunities and achieve a diverse housing portfolio.
  • POCD (2014) calls to provide for workforce housing (housing for local teachers, firefighters, restaurant workers, shop employees, etc.).
  • POCD (2014) in the section “Increase Housing In and Near Downtown” on page 66 – it states in the last paragraph: “Multi-family (and/or higher density) developments should be discouraged in other areas unless there is some significant community benefit that will result.” So not only does the POCD encourage multi-family housing downtown, it also encourages it elsewhere in town, if appropriate.
  • From The Partnership for Strong Communities (PSC) 2020 Housing Data Profiles New Canaan – 30% of New Canaan homeowners & 47% of renters are moderately to severely burdened with housing costs.
  • From PSC – Median household income for New Canaan renters – $62,000.
  • From PSC – the New Canaan “Housing Wage” is $39.98 while the state wage is $26.42 (51% higher than the CT average).
  • From PSC – the average cost of a home in Fairfield County – $420,080, while the average cost of a home in New Canaan – $1,223,310, almost 3 times as much.
  • From the New Canaan Planning & Zoning Commission (PZC) 6-28-2011 “Diversifying our Housing Portfolio” articulates the need for greater housing diversity in New Canaan. Since that time, some modest steps have been taken and progress has been made, but the unmet need for housing opportunities in New Canaan has continued to grow over the last decade.
  • PZC recently approved to amend their regulations to incentivize the creation of more affordable housing units in New Canaan, indicating acknowledgement of the unmet housing diversity need and also the willingness to work toward meeting that need.
  • Connecticut ranks as the 48th state for affordability in the U.S., per U.S. News and World Report.

Current Housing Stock in New Canaan

82%

of all living units are single-family dwellings

17%

of all living units are multi-family dwellings

20%

of all living units are rentals

71%

of renters live in multi-family dwellings

  • From PSC – 82% of all living units are single-family dwellings.
  • From PSC – 17% of all living units are multi-family dwellings.
  • From PSC – 20% of all living units are rentals.
  • From PSC – 71% of renters live in multi-family dwellings.
  • From PSC – 59% of all living units are more than 50 years old.
  • The majority of living units are single family, while the majority of renters live in the few aging multi-family structures available, highlighting the need for more diverse types of housing.
  • The State has set a goal that 10% of the housing stock of each municipality needs to achieve affordability status – yet New Canaan still remains under 3%.

Some Benefits of Housing Diversity

  • Housing diversity provides opportunities for moderate income families to live in New Canaan.
  • Housing diversity provides opportunities for the local workforce sector to live in New Canaan, including teachers, municipal government workers, local shops and restaurant workers – “work in New Canaan and live in New Canaan”.
  • Housing diversity provides opportunities for seniors, often on fixed incomes, to stay and live in New Canaan and not be forced to leave friends, family, and the community they’ve lived in for years. One-floor living is particularly appropriate for this sector.
  • Housing diversity provides opportunities for Veterans, including those with special needs, to live in New Canaan – and one-floor living helps better serve those needs.
  • Provides housing for recent college graduates returning to New Canaan to live while job searching or working at their first job.
  • Provides housing for young couples returning to New Canaan to live while starting a new family.
  • Provides housing for families in a transitional phase (moving to town to look for a home to purchase, selling/sold a home and need to stay in town, among other family circumstances).
  • Facilitates the use of the commuter railroad due to the walkability of strategically placed developments.
  • Nurtures the local shops, restaurants and the downtown area, and helps maintain New Canaan’s vibrancy without adversely impacting traffic and parking, due to the walkability of strategically placed developments.

Conclusions

  • New Canaan has a demonstrated unmet need for diverse housing – that need includes housing opportunities for modest income families and individuals.
  • Creating greater housing diversity can provide homes for groups such as employees in the local workforce, seniors on a fixed income, veterans with special needs, among others, in such a way that would include them into our New Canaan community.
  • These housing opportunities could help address the barrier of the current high housing cost of living in New Canaan, including many already living here.
  • The New Canaan renters that are housing cost-burdened (47%) live mostly in multi-family units (71%).
  • Building new multi-family rental housing units of sufficient density is necessary to address the housing cost burden – it’s not economically feasible to do so by building more single-family homes, of which there is an abundance of (82% of all units), or small multi-family developments.
  • Strategically sited multi-family housing developments close to, or in, downtown New Canaan benefits the residents in need of this kind of housing in particular, as well as residents of the wider community.
  • Providing this type of housing in the New Canaan portfolio allows for greater diversity of its residents, in its culture, in its age groups, and truly enriches our entire community.