Honeycomb Real Estate Partners, an affordable housing developer based in Avon, is amplifying its development efforts in response to strong demand for housing in Connecticut. Recently, the company successfully transformed a former West Hartford hotel into 44 apartments, achieving full occupancy shortly after completion.
To meet the growing need for affordable housing, Honeycomb aims to escalate its project output from one or two developments every 18 to 24 months to three or four within the same timeframe. This initiative may be bolstered by the recently signed One Big Beautiful Bill Act, which includes expansion of affordable housing tax credits and various incentives designed to stimulate real estate development.
Key modifications to the federal Low-Income Housing Tax Credit (LIHTC) program under this legislation may significantly benefit developers in Connecticut. The state is set to see an increase in its allocation of competitive 9% LIHTC credits, rising to approximately $12.3 million in 2026. This is expected to fund three additional developments next year, enhancing the capacity to create more affordable housing options.
Additionally, the One Big Beautiful Bill Act changes the requirements for the 4% LIHTC program, reducing the necessary financing from tax-exempt bonds from 50% to 25% of a project’s cost, potentially unlocking even more affordable housing projects across the state.
While proponents of the legislation highlight its benefits, some industry experts express caution. Concerns remain about potential hurdles that might arise from the reallocation and implementation of these programs. Despite mixed opinions, there’s a hopeful outlook that the combination of tax incentives and increased funding could pave the way for a more robust affordable housing landscape in Connecticut.
As Honeycomb Real Estate Partners prepares to break ground on a new 57-unit affordable housing project in Montville, the company anticipates leveraging the 9% LIHTC program to secure significant funding, which underscores the importance of governmental support and policy decisions in facilitating development.
This initiative reflects a broader commitment to addressing the urgent need for affordable housing, showcasing how legislative changes can support such critical efforts.