Model Policy: The Connecticut Community Investment Act
About the Community Investment Act
In 2005, Connecticut passed Public Act 228, commonly known as the Community Investment Act, which provided a dedicated stream of funding to address quality of life issues. The proceeds from this groundbreaking legislation promote historic preservation, encourage creation of affordable housing, protect the environment and preserve agricultural lands. The act has generated approximately $19 million per year towards protecting and preserving the unique character of Connecticut.
The impetus for the legislation was a need to address rapid loss of farmland across the state. The sponsor of the legislation, Senator Donald E. Williams Jr., drew inspiration from a program in Massachusetts that not only addressed farmland and open space preservation, but looked holistically at quality of life issues by incorporating historic preservation and affordable housing. Unlike the Massachusetts model, which gives municipalities the option of participation, the Connecticut legislation proposed a statewide fee.
Connecticut's Windsor Locks Passenger Station is a classic example of the small-town railroad stations built in America during the latter half of the 19th century. The station is one of many restoration projects that benefited from funding generated by the Community Investment Act.
Credit: Windsor Locks Preservation Association, Inc.
How the Community Investment Act Works
With the passage of the act, a $30 recording fee is collected for all municipal land records including deeds, mortgages, condominium declarations, name change certificates and notices of variances. A small portion of each $30 fee collected is distributed to town clerks for administrative fees and to local governments to help fund capital improvement projects. The remaining portion ($26 of every $30 collected) is submitted to the state for deposit into its land protection, affordable housing and historic preservation account, which is distributed equally among the Commission on Culture and Tourism (which includes historic preservation), the Housing Finance Authority, the Department of Environmental Protection and the Department of Agriculture.
Approximately $5 million has been generated each year for historic preservation. A portion is allocated for historic restoration fund grants for the restoration, rehabilitation, or acquisition of historic buildings and structures. Support is also given through local government program grants for municipal preservation programs. Basic operational support grants are provided to advance the mission of historic preservation organizations in the state. And finally, endangered properties grants are available for properties facing immediate threats or demolition.
The Connecticut Trust for Historic Preservation receives a flat $200,000 annually which supports its preservation programs and its historic buildings financing fund, a gap loan fund for historic houses being rehabbed for affordable housing.
For additional information on the administration of the fund, please visit the Connecticut Commission on Culture and Tourism.
The Impact of the Community Investment Act
In just a few years of existence, the policy has produced remarkable results in virtually all parts of the state. The program has provided hundreds of grants to municipalities that have resulted in infrastructure improvements, job creation, and preservation of natural and cultural assets. On the historic preservation front, the type of projects funded range from supporting Main Street-related projects to assisting with pre-development renovation plans. More importantly, the program has provided dependable and steady funding to address historic preservation needs throughout the state. For full project listings, please visit the Connecticut Trust for Historic Preservation.
Using the Community Investment Act as a Model
One of the keys to the success of this policy was the tremendous bi-partisan support it had within the state legislature. A broad coalition of housing advocates, preservationists, environmentalists and farmers joined forces to promote the viability of the act. The interdependence of these four disciplines was a critical part of the proposal, with all parties working toward a common goal – protecting and enhancing the unique character of Connecticut. A long-term result of the policy is the continued collaboration between the disciplines in working to improve the quality of life in Connecticut. The passage of the Community Investment Act has served as a catalyst for a larger, more comprehensive project called the Face of Connecticut Campaign.
Threats to the Community Investment Act
Thanks to an outpouring of support from preservation advocates, proposed cuts to the Community Investment Act were not included in the Connecticut deficit reduction bill that passed the General Assembly on January 14, 2009. The original proposal from Governor Rell would have included a $10 million line item to suspend payments from the Community Investment Act, instead depositing the funds into a general fund. The governor is expected to sign the bill into law.
