Governor Lamont presented his budget proposal for the fiscal year 2026-2027 biennium on Wednesday, February 5, at an address before Connecticut’s General Assembly. As he did during his Opening Day Address in January, the Governor stressed the issues of affordability and opportunity in Connecticut – both essential features of a healthy housing system.
On February 10th, 2025, the Partnership for Strong Communities hosted a briefing on the governor’s budget and explored opportunities for affordable housing advocacy in the 2025 legislative session. The recording is available here and slides from the presentation here.
Partnership for Strong Communities advocates for a Connecticut where everyone has a safe, stable, and affordable home in an equitable community of their choice. This legislative session, we are advocating for policy changes that advance housing affordability, creation, choice, and stability. Governor Lamont’s proposal includes investments that align with two of our key legislative priorities. Learn more about our 2025 Policy Priorities here.
Increased Funding for the Rental Assistance Program
The Partnership proposed $40M over the biennium ($20M per year), to expand the State’s Rental Assistance Program (RAP), with $11.5M to keep pace with rising rents and $8.5M to serve 650 additional families.
The Governor’s budget includes an estimated $26.1M in new RAP funding over the biennium, with an estimated $8.7M annually to keep pace with rising rents and a stated $8.7M starting in FY27 to serve 700 additional households—425 elderly and disabled renters at high risk of homelessness and 275 families with young children through HeadStart on Housing.
“Too many Connecticut households are struggling to keep up with rising rents, resulting in increasing rates of eviction and homelessness — especially among our seniors, families with young children, and people with disabilities. Governor Lamont recognizes the critical importance of the state’s Rental Assistance Program and the proven impact it has on housing affordability and stability for our most vulnerable neighbors,” said Chelsea Ross, Executive Director of Partnership for Strong Communities.
Thousands of eligible families remain without rental assistance, often forcing them into overcrowded or unsafe housing, or putting them at risk of eviction. RAP is a critical tool in preventing homelessness and promoting housing stability.
Continued Commitment to Bonding for Affordable Housing
The Partnership proposed $900M in total new bond authorizations—including $400M for the Housing Trust Fund (HTF) and $500M for the Affordable Housing Program (FLEX), with $300M dedicated to homes affordable to Extremely Low Income (ELI) renters (households below 30% area median income).
The Governor’s budget approaches this, with $800M in proposed new authorizations over the biennium — including $650M for HTF and FLEX with an increased focus on FLEX program (targeting units for households below 100% AMI).
“We greatly appreciate the Governor’s ongoing commitment of State bonding to preserve and create new affordable homes,” Ross said. “The deepest need remains among renter households earning less than 30% of AMI—approximately $39,995 for a family of four. Connecticut has a gap of approximately 92,560 homes affordable to these families.”
While Connecticut needs more homes for all income levels, limited state resources should be prioritized to create homes affordable to those with the lowest incomes and greatest vulnerability.
Budget Summary
Below is a summary of Governor Lamont’s proposed housing-related budget adjustments and expansions, with relevant page references in parentheses. A complete list of documents for Governor Lamont’s proposed budget is available here. The Partnership will continue to review the proposal and if additional relevant information is identified, we will share an update.
Proposed Capital Budget
Department of Housing (DOH)
The Governor proposes $800M in new bonding authorizations for the Department of Housing over the biennium, with $400M each year (25, D-6). The budget maintains bonding authorization levels from the previous biennium but shifts more funding to the Affordable Housing Program (FLEX), which may be used for the construction or rehabilitation of housing affordable to residents with incomes up to 100% of the Area Median Income (AMI). The Governor’s budget documents indicate that much of these funds, once allocated, may be dedicated to preserving and updating existing units in the State-Sponsored Housing Portfolio through redevelopment and rehabilitation (26).
Bond authorizations include:
- $400M for FLEX ($200M each year)—Estimated to fund 7,500 affordable homes over the biennium, doubling the previous biennium’s FLEX investment. Supports construction and rehabilitation of housing for households up to 100% AMI. (26, D-6)
- $300M for Housing Trust Fund (HTF) ($150M each year)—Includes $130M for the Build for CT program, which targets for middle income housing projects ), which may be used for housing affordable to residents between 60% – 120% AMI. (26, D-6)
- $100M for the Time-to-Own down payment assistance program ($50M each year)—Provides forgivable down payment assistance averaging $21,500, for eligible first-time homebuyers (26, D-6).
- $25M in FY26 for Crumbling Foundations Assistance Fund—To assist homeowners with concrete foundations that have been damaged from pyrrhotite. Unlike the previously listed bond authorizations, which are new to this budget, this bond allocation is a carryover from the 2017 Legislative Session. (D-3)
Department of Energy and Environmental Protection
- $24M for Urban Brownfield Remediation ($12M each year) for management of contaminated industrial sites in urban areas. The governor’s recommendation is roughly half of the agency’s $25M (FY26) and $22M (FY27) requested authorization (D-5).
Office of Policy and Management
- $35M in FY27 for the Small Town Economic Assistance Program (D-5).
- $150M for Urban Development Grants-in-Aid ($75M each year) for urban development projects (D-5).
Department of Economic and Community Development
- Eliminates $100M for the Concentrated Poverty Grant Program created by Public Act 24-151, ($50M each year), as well as cancelling $100M in existing unallocated authorizations. This grant program would have funded eligible projects, including construction of mixed-income rental housing and owner-occupied housing, among others, in areas where 30% or more of residents had incomes below the federal poverty line.
- $70M for the Brownfield Remediation and Revitalization Program ($35M each year) (D-6).
- $50M for the Greyfield Revitalization Program ($20M FY26 and $30M FY27). This new program will be used to redevelop underutilized commercial retail and office spaces to increase the state’s housing stock (27, D-6).
- $350M for the Community Investment Fund ($175M each year)—A carryover allocation (28, D-3).
Capital Region Development Authority
- $50M for “encouraging development” ($25M each year) (D-6).
Municipal Redevelopment Authority
- $30M in FY27 to further capitalize MRDA (D-7).
Proposed Appropriations Budget
Department of Housing (DOH)
- $90K annually for one new position for the DOH’s Asset Management Unit to monitor the state portfolio of affordable housing and support record retention requirements. This funding is appropriated to the Personal Services line item (B-46).
- In the FY25 midterm adjustment budget, the Governor proposed adding two additional DOH positions – one position in the Asset Management Unit to monitor the state’s portfolio of affordable housing and one position in the Planning Unit to support planning and reporting obligations. The General Assembly declined to include these positions in the final budget last session. The Governor’s request for this biennium aims to fulfill both needs as department needs increase with the expansion of bonding investments in affordable housing. (FY 2025 Governor’s Midterm Budget Adjustments, B-44).
- $5M annually for Opportunity HUBs and eviction prevention in the Housing/Homeless Services line item (B-46).
- Opportunity HUBs serve as centralized access points for public resources and programs, including homeless services.
- Eviction prevention funding supports tenants with an active eviction complaint with up to three months of rental assistance payments to cover rental arrears. This funding is appropriated to the Housing/Homeless Services line item.
- $8.7M annually (beginning FY27) to expand the Rental Assistance Program (RAP) in the Housing/Homeless Services line item (B-46). Funding will provide a total of 700 new housing vouchers:
- 425 elderly and disabled renters at high risk of homelessness
- 275 families with young children through HeadStart on Housing.
- Baseline adjustments of $10.3M (FY26) and $10.5M (FY27) to adjust funding for various programs due to increased housing costs, and $613K annually for a 3% private provider Cost of Living adjustment (B-46,47). Increases include:
- $9.2M increase annually for Housing and Homeless Services (includes RAP)
- $1.2M increase in FY26 and $1.4M increase in FY27 for Congregate Facilities Op Costs
- $240K increase annually for Project Longevity – Housing
- $160K increase annually for Elderly Congregate Rent Subsidy
- $80K increase annually for Homeless Youth
- $467K annually to adjust baseline funding for the Subsidized Assisted Living Demonstration to reflect revised debt service subsidy costs (B-46).
Department of Economic and Community Development (DECD)
- $500K in FY26 and $700K in FY27 and annually thereafter to the Municipal Redevelopment Authority (MRDA) for operating expenses to enable economic development projects outside of the Capital Region. These investments nearly double the initial baseline funding of $600K in FY25 (B-43).
Governor’s Legislative Proposals
Governor Lamont has proposed three housing-related bills:
- SB 1248: An Act Expanding Consumer Protections—Proposes requiring “all-in pricing,” on the front end of a priced quote and price transparency from all businesses, corporations, and landlords. Landlords would be required to disclose any fees up front in advertising and in conversations with tenants. Fact sheet
- SB 1252: An Act Establishing Priority Housing Development Zones—Proposes to remove specific local barriers to housing development in exchange for offering municipalities an easier path to a moratorium under Section 8-30g, the state’s Affordable Housing Appeals law. Further analysis is needed to assess its impact on the supply of affordable housing. Fact sheet
- SB 1245: An Act Establishing a Resilient Connecticut Strategy—Proposes policies to prepare and respond to the impacts of climate change by development to less risky areas. Further review is needed to evaluate effects on overall housing supply and, specifically, the creation and preservation of affordable housing. Fact sheet