As housing costs in Connecticut continue to climb, the state has launched a $30 million initiative aimed at making homeownership more accessible and helping existing homeowners maintain their properties.

State’s Strategy to Address Housing Affordability

Governor Ned Lamont announced the initiative, called CT Home Funds, during a press conference in Hartford. The program takes a three-pronged approach to tackle affordability: promoting homeownership, assisting with home repairs, and supporting new housing construction.

“Nothing like ownership. All of a sudden you have pride in what's going on in your community,” Lamont said. “Too many of these buildings are owned by landlords from out of state. They don't really care. You have ownership in a community like this, you care.”

The initiative consists of three key programs:

The Connecticut Home Improvement Program

‍Provides low-interest loans for homeowners to make energy-efficient upgrades and housing code repairs.

The Time to Own Rehabilitation Program

‍Offers forgivable loans to income-qualified families for home down payments and necessary home repairs.

The Homeownership Construction Program

‍Provides grants to small developers and nonprofits to construct or rehabilitate affordable homes.

Implementation and Economic Impact

The Connecticut Department of Housing will administer the funds through Capital for Change and the Housing Development Fund. Housing Commissioner Seila Mosquera-Bruno emphasized the program’s role in retaining homeowners and preventing financial hardships.

“Existing homeowners contribute significantly to the fabric of our communities. They maintain properties, invest in local businesses, and foster community spirit. However, many financial challenges can threaten the ability to remain in their homes,” Mosquera-Bruno said.

The Home Improvement Program will allow homeowners to address essential home repairs, such as installing new roofs, upgrading septic systems, and enhancing energy efficiency.

Meanwhile, the Time to Own Rehabilitation Program, run by the Connecticut Housing Finance Authority, provides down payment assistance and funding for home repairs.

“By offering targeted financial support, we can help reduce the risk of foreclosure, ensure home repairs are made, and ultimately preserve property values,” Mosquera-Bruno added.

Investment in Community Development

The third component, the Homeownership Construction Program, incentivizes small developers and nonprofits to create more affordable housing options. Developers can receive up to $150,000 per home to cover the costs of building or rehabilitating up to ten homes.

State Senator Doug McCrory highlighted the significance of investing in historically underdeveloped areas.

“There has not been a lot of investment in this community for a long time,” McCrory said.

The initiative also includes a targeted effort in Hartford, where $2 million is allocated to a pilot program focused on increasing homeownership opportunities for Black and Brown residents.

Hartford Mayor Arunan Arulampalam underscored the importance of bridging economic disparities.

“The gap in household wealth between Black and white families in this country has actually grown since the Civil Rights Act was passed. It is larger now than it was in 1965, and this is an investment in reversing that trend,” Arulampalam said.

A Path Forward for Connecticut Housing

With a growing demand for affordable housing, CT Home Funds represents a significant effort to stabilize communities, empower homeowners, and support small developers in creating sustainable housing options. The investment aims to ensure that more Connecticut residents can achieve homeownership while preserving and improving the state's housing stock.

Originally reported by Connecticut Public Radio.