Appropriations Committee Proposed Budget Hearing H.B. 5048: An Act Adjusting the State Budget For The Biennium Ending June 30, 2025 Conservation And Development – Department of Housing
February 23, 2024
Senator Osten, Representative Walker, Senator Hartley, Representative Exum, Representative Paris, Senator Berthel, Representative Nuccio, and distinguished members of the Appropriations Committee:
As the President and CEO of United Way of Coastal and Western Connecticut, I am grateful for the opportunity to present our case in support of H.B. 5048, aiming for an essential adjustment in the state budget to significantly enhance the State Rental Assistance Program (RAP) by an additional $16 million. This increase is critically divided into two segments: $8 million to address the rent increases for currently served families, and another $8 million intended to extend rental assistance to approximately 650 additional low-income families.
Across Connecticut, nearly 40% of households live at or below the ALICE® threshold (Asset Limited, Income Constrained, Employed). This scenario is widespread, touching every community and legislative district across the state. ALICE households earn above the federal poverty level yet struggle to cover essential expenses such as food, child care, housing, transportation, and others. In the regions of Fairfield and Southern Litchfield Counties alone, 40% of households fall under the ALICE category, facing challenges in meeting basic needs, including housing.
DataHaven's Fairfield County Community Wellbeing Report starkly illustrates the dire housing affordability crisis in our region. From June 2020 to June 2022, the cost of renting a typical apartment or house in Fairfield County surged by 22%. When comparing rents, a typical apartment in Connecticut cost $1,800, whereas in Fairfield County, the figure was a staggering $2,500. This discrepancy is not matched by corresponding income levels, with Fairfield County's median household income only 22% higher than the statewide median, whereas rent is 39% higher. This disparity places an unbearable strain on ALICE households, pushing them further away from financial stability.
Investing in rental assistance not only provides immediate relief to families, but also offers long-term societal benefits. National studies have shown that housing vouchers contribute to increased housing stability, household income, reduced racial disparities, and enhanced health and educational outcomes. Moreover, economically, every dollar invested in housing stability programs yields considerable returns by improving public health, reducing reliance on emergency services, and fostering stronger economies.
I urge the Appropriations Committee to recognize the profound impact that an increased investment in the State Rental Assistance Program would have. Not only will it directly support the well-being of our state's most vulnerable families, but it will also contribute to the broader societal and economic health of Connecticut.
Sincerely,
Isabel Almeida, President & CEO