Pursuant to an Act Concerning Responsible Growth (PA 07-239)

Submitted to Department of Economic and Community Development

January 22, 2008

By
Ken DelVecchio
President

Good evening. My name is Ken DelVecchio and I'm the President of the Connecticut Association of REALTORS® (CAR).

As a trade association with 19,000 Connecticut members, CAR has long promoted the balanced and wise use of our land and other resources to provide for the diverse needs of our communities. Just a few years ago, some of our Local Associations of REALTORS® co-sponsored with the chambers of commerce three forums on smart growth in Norwich, Branford, and Meriden. Each included a presentation by UConn's Cooperative Extension Service and Center for Land Use and Education Research.

Back in December, REALTOR® Norm Krayem testified at your hearing in Groton, so my remarks will avoid duplicating his.

We are leaving with you our Statement of Policy. It embodies detailed prescriptions, ranging from protection of agricultural land, Connecticut tax policies, and of course, promotion of a vibrant real estate market. It even contains a definition of "smart growth" on page 3.

My comments are built around Five Smart Growth Principles approved by our board of directors. I think you'll find that these dovetail nicely with the "responsible growth legislation "passed last year and with the requirements of the Economic Strategic Plan.

FIVE SMART GROWTH PRINCIPLES ENDORSED BY REALTORS
1.  PROVIDE HOUSING OPPORTUNITY AND CHOICE. We advocate here "a wide range of housing choices(including rental) to suit a diverse population."

Mr. Krayem pointed to the threat to our labor force if we don't do more to provide both rental and homeownership accommodations. Since 1990 we lost 30% of our 25-to-34year olds. To compete in a global economy, this must stop!

There are several ways to meet this challenge. Over a 10-year period, 64,000 new units can be built if the complete HOMEConnecticut proposal is adopted by the State legislature. And our valuable stock of existing housing can be more fully utilized under the proposal that died last year, known as "Learn Here, Live Here." We favor this approach that encourages graduates of Connecticut's post secondary schools to remain and work in our state (by pledging to stay for 10 years, they would qualify to set aside a portion of their income tax into a starter home trust fund).

One thing Norm did not mention was something called "Location Efficient Mortgages", or LEM's. These are loans that reward homebuyers who purchase in a neighborhood within easy access of public transportation. A participating bank, for example, recognizes an additional $3,000 per year as qualifying mortgage income for a dual-income family who buys within two miles of a bus stop or train station. CAR has advocated LEM's as a way to increase ridership of public transit and reduce single-occupancy vehicle congestion.

2.  BUILD BETTER COMMUNITIES. This speaks to "a strong employment base, viable commercial sector, efficient transportation systems, and good schools."

The State doesn't have to re-invent the wheel. In many instances, towns and regional planning agencies have already created good plans of conservation and development. At the REALTOR® Smart Growth Forums mentioned earlier, the UConn Cooperative Extension Service showed how valuable it has been in assisting towns take an inventory of "natural treasures" and simultaneously drawing a blueprint to strengthen the employment base without harming those treasures.

A Regional Planning Agency, or a Chamber of Commerce like Middlesex County's, can be especially helpful in prioritizing industry clusters for job creation.

Under Principles 1 and 2, we clearly see the benefits of "Transit Oriented Development." This is compact, pedestrian-friendly, mixed use development near public transportation. It accommodates a greater share of growth in a smaller footprint. Bridgeport's railroad station and new bus terminal could conceivably spur A TOD on the 50-acre Steel Point harbor site.

3.  PROTECT THE ENVIRONMENT. "Control pollution, protection of agricultural lands, natural areas, properties of historic significance" government must recognize the importance of local decision-making and private property rights."

Connecticut's REALTORS® recognize that our quality of life depends significantly on drinkable water, clean beaches and streams, the protection of working farms, and the preservation of open space and recreational areas. Many don't know it, but our Association has lobbied for programs to assist farmers in holding onto their property, including transferable development rights and purchase of development rights.

Besides esthetic and scenic considerations, there is sometimes a vital economic benefit of protecting the environment. For example, Connecticut dairy farms produce nearly half the milk we drink. The nursery industry is a $1 billion state enterprise.

4.  PROTECT PRIVATE PROPERTY RIGHTS. Private property rights are fundamental to our free-market economic system and are protected by the 5th and 14th Amendments of the United States Constitution. The continued strength of our nation's economy depends on the preservation of the right to freely own, use and transfer real property.

Remember Kelo v. New London? Need I say anything more? We cannot aggressively pursue economic growth in such a manner to the detriment of our individual's ownership of private property. The public interest must clearly and substantially outweigh the individual's interest, and a taking should only be a last resort.

5.  IMPLEMENT FAIR AND REASONABLE PUBLIC SECTOR FISCAL MEASURES. Clearly, the emergency real estate conveyance tax imposed in 2003 has outlived its temporary purpose. At a time when thousands of Connecticut residents are threatened with losing their homes due to the subprime crisis, and many more are forced to sell at a loss, the Governor, legislators, and town officials should honor the June 30, 2008, sunset date.

Further, imposing a double conveyance tax in 18 urban areas and distressed municipalities is not conducive to "responsible growth." It makes no sense to impose higher barriers to homeownership in the communities needing it the most! Having a lower transfer tax in the exurbs simply encourages the sprawl political leader's claim they abhor.

Government at all levels must be more efficient in controlling spending. Elected officials should cooperate in adopting balanced, fair, equitable, and incentive-based approaches to finance and pay for schools, infrastructure, and other community needs.