Some may wonder, what impact does affordable housing have on the economy? If so, read on... A new study by economist Bruce Blakey done with the help of the Connecticut Economic Resource Center indicates that Connecticut would create thousands of new jobs and hundreds of millions of dollars of new revenues if it created workforce housing in the form of condominiums, starter homes and other options for workers, families and young professionals. Connecticut's housing market is remarkably similar to Washington's.* The Washington Low Income Housing Alliance has asserted that there are 250,000 families in Washington who are in need of affordable housing. To create that many residences will require a total statewide investment on the order of $50 billion. Of course only a fraction of that money-only 10 to 15% ($5-8 billion)-would be State funds, the balance would come from federal programs, local governments, private-sector investors and philanthropy. And the payout in terms of economic impacts is phenomenal. Blakey, the former chief forecaster for Northeast Utilities, found that:

• The construction of 500 starter homes (@ $262,500) would annually produce 950 jobs and over $60 million of disposable personal income.
• The construction of 500 starter condominiums or apartments (@ $150,000) would annually produce 620 jobs and over $40 million of disposable personal income.
• Assuming 500 people living in 500 starter residences earn 75 percent of the Connecticut average annual wage, 630 jobs and over $30 million of disposable personal income would annually result.
• Construction of the hypothetical starter home would produce roughly $10,125 in taxes, the hypothetical multi-family home $6,000 of taxes.
• Personal taxes paid by occupants of that housing would range from $2,593 annually by a household earning $25,000 a year to $20,255 annually by a household earning $150,000 a year.

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*The Washington Low Income Housing Alliance estimates, "For every 1,000 affordable units developed, $77 million is generated in local revenue and $22 million in taxes and fees for state & local governments. $86.7 million in new personal and business income is generated, and 1,160 new jobs are created."  Read WLIHA's 2009 legislative agenda.