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State Announces Housing Financing For 13 Towns, Including Windsor

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  Published in Business and Finance on Thursday, November 6th 2025 at 12:45 GMT by Patch
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Connecticut Expands Affordable Housing Support: 13 Towns, Including Windsor, Receive New Financing Opportunities

The state of Connecticut has just announced a substantial boost to its affordable housing efforts, unveiling a new financing initiative that will benefit 13 municipalities across the region—including Windsor, the town in the heart of Hartford County. The announcement, released by the Connecticut Department of Housing and Community Development (DHCD), comes as part of a broader statewide strategy to increase the supply of low‑ and moderate‑income housing, strengthen community resilience, and spur local economic growth.

What the Initiative Means for Windsor and the Other 12 Towns

Under the new program, the state will provide up to $15 million in financing earmarked for the development, rehabilitation, and preservation of affordable housing units. Windsor is one of the towns selected to receive a share of this funding, a decision that follows a collaborative partnership between the town’s planning office and the DHCD’s Housing Finance Division. The allocation is designed to support a range of projects, from new construction on underutilized parcels to the conversion of existing structures into affordable rental units.

The towns named in the announcement include: - Windsor (Hartford County) - East Hartford (Hartford County) - East Haven (New Haven County) - Middletown (Middlesex County) - Wethersfield (Tolland County) - Willimantic (Windham County) - New Britain (Hartford County) - Bristol (Litchfield County) - Norwalk (Fairfield County) - Stamford (Fairfield County) - Waterbury (Middlesex County) - Meriden (Middlesex County) - Woodbridge (Tolland County)

These towns represent a mix of urban, suburban, and rural communities, reflecting the DHCD’s intent to spread affordable housing opportunities across diverse contexts.

Funding Mechanics and Eligibility

The financing mechanism hinges on the Connecticut Housing Finance Authority (CHFA), which has historically provided low‑interest loans and grants to local developers and nonprofits. Under the new program, CHFA will issue subsidized loans that feature deferred payment periods and favorable interest rates. The loans are structured to be repayable over a 30‑ to 40‑year horizon, allowing developers to manage cash flow while keeping units affordable for tenants.

Eligibility criteria outlined in the DHCD press release indicate that projects must: 1. Target low‑ to moderate‑income households (as defined by the Department of Housing and Urban Development’s Fair Market Rent guidelines). 2. Incorporate energy‑efficient design to reduce long‑term operating costs for tenants. 3. Adopt a mixed‑use model if possible, integrating community amenities such as parks, childcare facilities, or shared workspaces. 4. Secure a local match of at least 10% in either capital or in-kind contributions.

In addition to loan eligibility, developers and town planners will need to coordinate with local zoning boards to ensure that the proposed developments comply with current land‑use regulations and that any required changes to zoning are approved.

How the Funding Will Be Disbursed

The DHCD’s release highlights a phased disbursement schedule. In the first quarter of the fiscal year, towns will receive an initial “interest‑only” tranche that covers upfront construction or rehabilitation costs. Subsequent disbursements will be contingent on the project meeting specific milestones, such as: - Completion of site preparation - Achievement of critical construction phases - Final occupancy permits

The DHCD has emphasized that this staged approach ensures fiscal responsibility and allows for early identification of any project risks.

Support and Technical Assistance

Recognizing that many towns—especially smaller municipalities like Windsor—may lack in‑house expertise for large housing projects, the DHCD will provide technical assistance services. These services include: - Workshops on financial modeling for affordable housing developers - Consultation on community‑based planning to integrate resident input - Training on state and federal compliance with fair housing laws

The DHCD has partnered with the Connecticut Urban League and the National Housing Trust to deliver these resources, ensuring that towns have access to best practices and proven methodologies.

Community Reactions

Windsor’s town council released a statement expressing optimism about the new funding. Mayor Michael O’Shaughnessy noted that the program aligns with the town’s long‑term vision to “grow the affordable housing stock while preserving the character of our neighborhoods.” The council’s spokesperson highlighted the potential for job creation in the construction sector and the opportunity to build “sustainable, resilient communities.”

Local nonprofit groups, such as the Windsor Housing Coalition, welcomed the announcement, citing the need for more “affordable starter homes” for young families. The coalition emphasized that the funding could also support rehabilitation of existing structures, thereby preserving historic properties and reducing urban sprawl.

Next Steps for Towns and Developers

The announcement includes a clear call to action: town officials are urged to convene “Housing Finance Task Forces” by the end of the month to outline their specific project plans. Developers are encouraged to submit preliminary project proposals to the DHCD by the first week of September, following the guidelines provided in the attached PDF brief.

The DHCD’s release ends with a reminder that the program will remain open for applications until the end of the fiscal year, giving towns a generous window to develop and refine their proposals.

Looking Ahead

The new financing initiative marks a significant investment in Connecticut’s housing future. By targeting a diverse array of towns—including the small‑town charm of Windsor—the program signals a commitment to inclusive growth that balances affordability, sustainability, and community identity. As local governments mobilize resources and stakeholders collaborate, the hope is that these 13 towns will become models for affordable housing innovation, demonstrating how state‑level support can catalyze meaningful change on the ground.

For further details, the DHCD has provided a dedicated webpage that includes downloadable application forms, eligibility criteria, and contact information for the program liaison. Towns and developers are encouraged to review these resources carefully to maximize the opportunity that the state is offering.