Gov. Ned Lamont addresses legislators at the State Capitol during his annual budget address on Feb. 9, 2022. Photo courtesy of the office of the governor.

With the state in a housing inventory crunch and short significant numbers of affordable rental units, Gov. Ned Lamont told state legislators last week that he wants to add $200 million to the state’s spending on housing creation.

That investment, unveiled in his budget speech to the General Assembly, would let the state invest in private developments with loans and grants and help close financing gaps.

“Millions of dollars for workforce training will go to naught if we don’t have enough housing where workers can afford to live,” Lamont said, touting the increase in people moving to Connecticut since the start of the pandemic. “Having just climbed out of a fiscal crisis, I don’t want to fall into a housing crisis.”

In total, Lamont wants the state to build 6,400 new homes over the next two years

“Time is money and the housing trust fund will allow developers to move quickly, with an emphasis on multi-unit housing in downtown areas close to transportation,” Lamont said.

With suburbs’ exclusionary zoning coming under attack from several quarters, and partly blamed for the state’s housing shortfall, Lamont said he would try to use the bully pulpit of his office to get towns and cities to move the needle on allowing more multifamily development by right. However, he stopped short of promising new legislation or aggressive executive actions that would further this goal.

“I will also urge mayors and first selectmen to develop and act on a plan of their own where they will allow more housing in their community through friendlier zoning and expedited approvals. Towns may submit their plans to facilitate housing on their terms,” he said. “Doing nothing is not an acceptable strategy.”

Lamont’s budget also would boost the state Time-to-Own down payment assistance program by $50 million.