Affordable Housing, Announcements, Community Development, State News

Budget, Bond Bills Include Critical Support for Housing


Aiming to address Connecticut’s many affordable housing needs, Gov. Dannel P. Malloy and the General Assembly have produced state budget and bonding bills that will provide huge assistance for the preservation of existing affordable housing, creation of new affordable housing, incentives for the development of higher-density mixed-income housing zones and rental assistance for low-income renters and those with disabilities.

The $20.7 billion state budget, approved by the House of Representatives early Tuesday, would establish a Department of Housing as a stand-alone agency with an interagency council to decide which housing functions in existing agencies would be put under the new agency’s control.

The appropriations bill also includes:

  • 300 new Rental Assistance Payment certificates, half of which would be devoted to scattered-site permanent supportive housing residents.
  • $1.9 million for a Department of Transportation transit improvement program that could provide funding for transit-oriented development planning – including affordable and mixed-income housing – near commuter rail and Busway stations.

The bond bill, approved in the legislative session’s final minutes Wednesday night,  will provide capital support in many areas:

  • $60 million for the Connecticut Housing Finance Authority’s Emergency Mortgage Assistance Program.
  • $87.5 million to the Department of Economic and Community Development. It would include $30 million to rehabilitate units in the states low and moderate rental housing portfolio, the first of 10 annual installments proposed by Gov. Malloy to restore the state’s public housing; $1 million for accessibility modification for people transitioning from institutions to care at home under the Money Follows the Person program; $12.5 million for the development of congregate housing; and $20 million on top of $25 million approved last year for the affordable housing Flex program.
  • $60 million to the new Capital Region Development Authority for residential housing development
  • $2 million in predevelopment funding and other incentives for municipalities that are considering the adoption of Incentive Housing Zones under the HOMEConnecticut program.
  • $10 million to DECD for conversion of nursing homes to alternative housing options.

In addition, legislation was passed separately by the General Assembly to permit bond funds authorized for the Regional Brownfield Redevelopment Loan Fund to be used to finance affordable housing projects. 


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