Employer provides affordable housing

In response to lobbying from employers, the General Assembly passed legislation this year aimed at incentivizing investment in “workforce housing” — developments that set aside a portion of units for teachers, police officers, emergency medical personnel and other professions specific to a local area.

The legislation, tucked into this year’s omnibus housing bill, offers a tax break to individuals and businesses that invest in new “workforce housing” and eases permitting and tax requirements for developers.

But for some employers, the legislative solution wasn’t bold enough.

Proposed developments would have to gather investors, find a qualifying site, get approval from the state and then begin construction, which could take up to three years. And tenants ultimately occupying the new units would still have to pay rent — at varying rates.

Amid Connecticut’s acute housing shortage, one New Haven employer found a quicker way to remedy its problem: by purchasing property outright and housing its staff for free.

“It helps with our rates of retention … and it’s a good way to attract talent,” said Allyx Schiavone, executive director of Friends Center for Children, a child care provider in the city’s Fair Haven Heights neighborhood.

With a gift of $750,000, the Friends Center purchased and refurbished two properties (a total of four units) in late 2020. Within three months, four teachers and their families had moved in. The teachers’ salaries remained the same and they are paying only the cost of utilities on the properties they occupy. The organization budgets about $10,000 a year for maintenance, and the school provides financial counseling to resident teachers, guiding them through debt repayment and saving up for their own homes.

Friends Center has also undertaken new construction on the land adjacent to one of its teacher housing properties. With assistance from a class of students at the Yale School of Architecture, they’ll be adding two more units in the next few months and several more in the years to come.

“We eventually want to have 22 units, which will be 30% of our staff,” Schiavone said.

The child care sector has faced particularly steep financial challenges as declining unemployment strained the labor force in recent years.

Providers say they can’t raise tuition on struggling parents, which means they can’t raise teacher salaries to compensate for the rapidly rising cost of living. Increasingly, many child care operators say they’re competing for staff with the retail sector, where hourly wage rates have gone up to as much as $20 or $22 at some businesses.

Meanwhile, inflation has driven up the cost of food and other supplies that child care providers need in order to keep their doors open. Since tuition and state funding only cover a portion of their costs, most providers cover the gap with fundraising and in-kind donations.

“We’ve wrestled with the essential question of, ‘How do we raise teacher salaries without charging families more?’” Schiavone said. Her solution was to make a one-time investment in housing property in order to offset a major personal expense for the center’s teachers — similar to the benefit health care insurance provides.

“We can go buy a house, which will then allow us to ‘raise’ four teachers’ salaries forever,” she said. “Forever.”

The model may not appeal to other types of businesses. The Connecticut Business and Industry Association supported the “workforce housing” tax incentive in part because many of its employer members don’t want the extra hassle of being landlords. Instead, they hope incentivizing investment might accelerate new housing development.

But leaders in the child care sector say ensuring their teachers can afford to live locally is too urgent.

Earlier this year Gov. Ned Lamont established a “Blue Ribbon Panel” of public and private sector leaders, early childhood experts, educators and parents tasked with designing a strategic plan to stabilize the state’s child care system.

Schiavone said she hopes the panel considers infrastructure investments like teacher housing. She said the Friends Center’s teacher housing program is “absolutely scalable” as a state or federal initiative, making one-time investments in housing allocated by each municipality to their local child care providers based on need.

By building and owning the housing asset, rather than incentivizing an outside developer to build it, child care operators and their staff would glean the most value from it. “The impact is really in the ‘free,’” Schiavone said, referring to workforce housing. “That really is what will significantly change salaries to a level that is closer to a professional wage.”

The Journal occasionally will offer articles from CTMirror.org, a source of nonprofit journalism and a partner with The Lakeville Journal.

Latest News

Housatonic softball beats Webutuck 16-3

Haley Leonard and Khyra McClennon looked on as HVRHS pulled ahead of Webutuck, May 2.

Riley Klein

FALLS VILLAGE — The battle for the border between Housatonic Valley Regional High School and Webutuck High School Thursday, May 2, was won by HVRHS with a score of 16-3.

The New Yorkers played their Connecticut counterparts close early on and commanded the lead in the second inning. Errors plagued the Webutuck Warriors as the game went on, while the HVRHS Mountaineers stayed disciplined and finished strong.

Keep ReadingShow less
Mountaineers fall 3-0 to Wamogo

Anthony Foley caught Chase Ciccarelli in a rundown when HVRHS played Wamogo Wednesday, May 1.

Riley Klein

LITCHFIELD — Housatonic Valley Regional High School varsity baseball dropped a 3-0 decision to Wamogo Regional High School Wednesday, May 1.

The Warriors kept errors to a minimum and held the Mountaineers scoreless through seven innings. HVRHS freshman pitcher Chris Race started the game strong with no hits through the first three innings, but hiccups in the fourth gave Wamogo a lead that could not be caught.

Keep ReadingShow less
The artist called ransome

‘Migration Collage' by ransome

Alexander Wilburn

If you claim a single sobriquet as your artistic moniker, you’re already in a club with some big names, from Zendaya to Beyoncé to the mysterious Banksy. At Geary, the contemporary art gallery in Millerton founded by New Yorkers Jack Geary and Dolly Bross Geary, a new installation and painting exhibition titled “The Bitter and the Sweet” showcases the work of the artist known only as ransome — all lowercase, like the nom de plume of the late Black American social critic bell hooks.

Currently based in Rhinebeck, N.Y., ransome’s work looks farther South and farther back — to The Great Migration, when Jim Crow laws, racial segregation, and the public violence of lynching paved the way for over six million Black Americans to seek haven in northern cities, particularly New York urban areas, like Brooklyn and Baltimore. The Great Migration took place from the turn of the 20th century up through the 1970s, and ransome’s own life is a reflection of the final wave — born in North Carolina, he found a new home in his youth in New Jersey.

Keep ReadingShow less
Four Brothers ready for summer season

Hospitality, ease of living and just plain fun are rolled into one for those who are intrigued by the leisure-time Caravana experience at the family-owned Four Brothers Drive-in in Amenia. John Stefanopoulos, pictured above, highlights fun possibilities offered by Hotel Caravana.

Leila Hawken

The month-long process of unwrapping and preparing the various features at the Four Brothers Drive-In is nearing completion, and the imaginative recreational destination will be ready to open for the season on Friday, May 10.

The drive-in theater is already open, as is the Snack Shack, and the rest of the recreational features are activating one by one, soon to be offering maximum fun for the whole family.

Keep ReadingShow less