FOR IMMEDIATE RELEASE                                                                    Thursday, May 15, 2008

Contact: Senator Sylvia Larsen

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SENATE PRESIDENT PRAISES HOUSE FOR PASSING WORKFORCE HOUSING BILL

CONCORD – Senate President Sylvia Larsen thanked the House for passing legislation today that will encourage more low- and moderate-income housing for working people.

Senate Bill 342 passed the House 172-93. It embraces a major goal of the state’s Business and Industry Association, which identified expanded opportunities for workforce housing as a top priority this year.

“The lack of varied housing poses a threat to our state’s economic growth. It creates a barrier to the expansion of our labor force and hurts our ability to attract new businesses,” said Senate President Sylvia Larsen (D-Concord). “Our workers are the backbone of our economy and we need to ensure they have decent and affordable options for housing.”

The legislation clarifies existing law requiring municipalities to provide reasonable opportunities for the development of workforce housing. It also recognizes communities that have already provided their fair share of workforce housing.

Lawmakers heard testimony about local zoning strategies – for example those that require large lot sizes – that made it impossible for developers to build anything but luxury homes or age-restricted housing for elders in some communities.

Senate Bill 342 also creates a new and expedited appeal process for developers to challenge the decisions of planning or zoning boards that unfairly deny a project that would include moderately-priced housing for working families

Affordable housing advocates say developers don’t want to take on the expense of a time-consuming court challenge and instead limit any projects that include workforce housing to communities that will accept them – putting an unfair burden on certain municipalities when workforce housing opportunities need to be spread throughout the state.

Senate Bill 342 is one of two key bills this year intended to encourage a more balanced housing market.

Senate Bill 199, which already passed the Senate, would change how taxes are assessed on rent-restricted properties that meet certain conditions. The goal is to assist those who offer subsidized housing and encourage the development of additional subsidized units.