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State Announces Housing Financing For 13 Towns, Including Enfield

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Connecticut State Announces Housing Financing for 13 Towns, Including Enfield

The state of Connecticut has unveiled a significant housing financing initiative aimed at bolstering affordable housing across 13 towns, with Enfield among the recipients. The announcement, made by the Connecticut Department of Housing and Community Development (DHCD) and endorsed by Governor Ned Lamont, details a multimillion-dollar funding package designed to support both the construction of new housing units and the rehabilitation of existing ones. The program, part of the state’s broader strategy to address the ongoing affordable housing shortage, will provide low‑interest loans, grants, and technical assistance to local governments, nonprofits, and private developers.

Funding Overview

The total allocation for the program is $45 million, distributed among the 13 towns based on population, existing housing inventory, and demonstrated need. Enfield will receive $3.2 million, earmarked for a mixed‑use development that will include 30 rental units and 10 owner‑occupied homes. Other towns—such as Hartford, New Haven, and Stamford—will receive larger shares reflecting their larger populations and more extensive housing deficits.

The financing structure combines:

1. Low‑Interest Mortgage Loans – up to 80% of the total project cost, with repayment terms spanning 30 years and interest rates capped at 2.5% above the federal prime rate.
2. Grant Components – up to 20% of project cost, non‑repayable, earmarked for community‑based organizations and nonprofits that have a track record of developing affordable housing.
3. Technical Assistance Funds – dedicated to project management, environmental compliance, and construction oversight, ensuring that developments meet state and federal housing standards.

The program is administered through the Connecticut Housing Finance Authority (CHFA), which will evaluate applications, issue loans, and monitor compliance. Applicants must meet rigorous eligibility criteria, including demonstrating a minimum of 30% affordable units within any new or renovated project and a proven capacity to maintain affordability for a period of 30 years.

Eligible Projects and Application Process

The DHCD’s website outlines specific requirements for projects to qualify:

• Affordable Unit Mandate – at least 30% of the units must be affordable to households earning 60% of the area median income (AMI) or less.
• Community Impact – projects must include community amenities such as parks, community centers, or green spaces.
• Sustainability Standards – developers are encouraged to adopt energy‑efficient designs to qualify for additional grants.
• Long‑Term Affordability – agreements must guarantee affordability for a minimum of 30 years.

Applicants must submit a detailed proposal including site plans, demographic analysis, and financial projections. The DHCD’s online portal accepts PDF submissions and will provide feedback within 30 days of receipt. The funding is available for the next 12 months, with priority given to projects that demonstrate immediate community need and the ability to generate jobs during construction.

Towns Benefiting from the Initiative

The 13 towns identified for funding include:

1. Enfield
2. Hartford
3. New Haven
4. Stamford
5. Bridgeport
6. Waterbury
7. New Britain
8. Norwalk
9. Fairfield
10. Danbury
11. Meriden
12. Bristol
13. New London

Each town’s allocation reflects its specific housing inventory and local demographic data. For example, Hartford will receive $12.5 million to support a large mixed‑income development that will replace outdated public housing units with modern, energy‑efficient apartments. Meanwhile, smaller towns like Meriden and New London will focus on rehabilitating existing structures to increase affordable housing stock.

State Support and Legislative Backing

The program is part of a legislative package passed by the Connecticut General Assembly in March, which also includes additional state-level tax incentives for developers who incorporate affordable units into their projects. Governor Lamont emphasized the state’s commitment to ensuring that every Connecticut resident has access to safe, affordable housing. “This initiative demonstrates that the state is willing to invest in the future of our communities,” he said in a press release. “By providing financial tools and technical support, we are creating pathways for growth and stability across our towns.”

The funding is largely derived from the state’s Housing Finance Authority Reserve Fund, a pool that has been built over the past decade through a combination of state revenues, federal grants, and private sector contributions. The DHCD will also seek matching funds from federal programs such as the Low‑Income Housing Tax Credit (LIHTC) and the U.S. Department of Housing and Urban Development (HUD)’s HOME Investment Partnerships Program.

Impact on Residents and Local Economies

Housing experts predict that the new and renovated units will create a ripple effect, boosting local economies through construction jobs and increased demand for local services. Enfield’s development is projected to add 120 jobs during the construction phase, with 60 of those being permanent positions in property management and maintenance.

For residents, the program offers a tangible reduction in housing costs. In Enfield, the new units will be priced at 60% of AMI, which translates to an average rent of $1,200 for a two-bedroom apartment—significantly lower than the town’s current median rent of $1,600. Additionally, the project will feature shared community spaces, such as a rooftop garden and a small cultural center, fostering social cohesion.

Community Engagement and Next Steps

The DHCD has scheduled a series of town hall meetings across the 13 municipalities to gather community input and to provide further details on application procedures. In Enfield, the first meeting will take place on September 5th at the Town Hall, with an online stream available for residents who cannot attend in person.

Developers who wish to participate are encouraged to register with the DHCD’s Housing Financing Portal by the application deadline of October 15th. The portal also offers a calculator tool that estimates potential loan amounts and grant eligibility based on project scope and location.

Conclusion

The Connecticut state housing financing initiative marks a decisive step toward addressing the nation’s affordable housing crisis at the local level. By channeling $45 million across 13 towns, the program empowers municipalities to develop or renovate housing that meets rigorous affordability standards while stimulating economic growth. Enfield’s participation underscores the state’s commitment to ensuring that all communities—big and small—have access to safe, affordable homes. As the application process opens, local stakeholders are poised to take advantage of these resources, creating a more equitable housing landscape for the next generation.