Housing Trust Fund provides financing annually on a competitive basis to eligible developers for the development and/or preservation of safe, decent, quality housing for low and moderate-income families and persons at affordable prices. This program is funded from the proceeds of the sale of the state’s general obligation bonds. The funds are awarded as loans and/or grants to eligible sponsors of affordable housing.

Pre-Development Loan Program provides  funds to eligible applicants for pre-development costs associated with constructing, rehabilitating or renovating affordable housing for low-and moderate-income households.

Land Bank & Land Trust Program provides  grants for the costs of acquiring land or interest in land and the costs of holding and managing land to be developed as housing for low and moderate-income families.  DECD contracts with not-for-profit corporations to provide grants for eligible/approved costs.

Housing Support Programs

Affordable Housing Appeals Listing is published  annually by DECD and lists all Connecticut municipalities and the percentage of affordable housing stock in each. The list identifies communities where at least 10% of the housing is affordable, and shows which towns do not meet the 10% threshold. Housing is deemed affordable if it: is governmentally assisted housing; is currently financed through a mortgage by the CHFA; or is legally required to be sold or rented at, or below, prices that will preserve the housing as affordable.  Affordable housing, as defined in C.G.S. Section 8-39a, is for persons and families whose income is less than or equal to 80% of the area median income.

Congregate Facilities Operating Cost Program provides  grants to housing authorities and nonprofit corporations who own and/or operate state-financed congregate rental housing for the elderly to offset the cost of social and supplementary services.

Elderly Rental Assistance Program provides  rental assistance to low income elderly persons residing in state-financed rental housing for the elderly. DECD contracts with not-for-profit organizations as well as housing authorities that provide rental subsidies in accordance with an approved contract.

Assisted Living in Federal Facilities is a joint effort with the Department of Social Services (DSS) and the Office of Policy and Management (OPM) to develop and implement a demonstration program that brings assisted living services to residents of four federal facilities. These facilities, originally funded by HUD under either the Section 202 elderly housing developments or Section 236 elderly housing program, agreed to participate with DECD and the DSS in providing assisted living services to their residents.

State-Assisted Housing Sustainability Fund provides  grants, loans, deferred loans, no interest and low interest loans, loan guarantees, interest subsidies to eligible housing developments pursuant to C.G.S Section 8-37uu.

Incentive Housing Zone Program will provide funds to nonprofit housing development organizations for technical assistance planning and other housing development related activities within approved incentive housing zones once zones are approved by OPM.

Moderate Rental PILOT (Payment in Lieu of Taxes) Program provides grants up to 100% of ad valorem taxes to municipalities in which state-assisted Moderate Rental housing developments are located and are operated by Housing Authorities.  The participating municipalities use this source of funds to offset the cost of municipal services provided to the development’s tenants.  In consideration of the State PILOT grant award, municipalities forgo collecting the payments due to them by the development, as evidenced by a Cooperation Agreement signed by both parties during the properties development.  These funds, which the Housing Authorities otherwise would have paid to the municipality, may equal up to 12.5% of the shelter rent.

Resident Service Coordinator (RSC) Program (also known as the Elderly Rental Registry and Counselor Program) provides grant funds to sponsors of state-financed rental housing for the elderly to hire a Resident Services Coordinator to perform an evaluation of all tenants.

Section 8 New Construction/Substantial Rehabilitation (Section 8 NC/SR) Federal Project-Based Rental Subsidy Program provides project-based federal rental assistance to 21 projects throughout Connecticut.  HUD provides Section 8 project-based assistance to local housing authorities or private owners for up to 20 or 40 years after completion of the construction or substantial rehabilitation of rental housing.

Surplus Property Program examines  excess state land holdings, or interests therein, for use as transitional facilities for the homeless or for the construction or rehabilitation of housing for families with low and moderate incomes.

Tax Abatement Program provides  reimbursement for taxes abated up to $450 per unit per year for up to 40 years for privately owned nonprofit and limited dividend low and moderate-income housing developments.  The abatement of taxes enables the owners to maintain the rents at an affordable level for the tenants.   The program is closed to new developments.

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