April 28, 2025
Partnership for Strong Communities advocates for a Connecticut where everyone has a safe, stable, and affordable home in an equitable community of their choice. We advocate for policy changes that advance housing affordability, creation, choice, and stability. Both Governor Lamont and the General Assembly have proposed budgets that include investments that align with our key legislative priorities. Learn more about our 2025 Policy Priorities here.
With the Appropriations Committee’s passage of its budget bill and the Finance Committee’s passage of revenue and bonding bills, final budget negotiations with the Lamont administration can begin ahead of the legislative session’s conclusion on June 4th.
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 Appropriations Committee budget retains an estimated $26.1M in new RAP funding over the biennium proposed in the Governor’s budget, with approximately 8.8M each year of the biennium (~$17.6M total) to keep pace with increased rental costs and $8.7M beginning in FY27 for 700 new vouchers.
The Governor’s allocation of new vouchers was split between (a) 275 families with young children for HeadStart on Housing and (b) 425 elderly or disabled individuals, with priority for those at most risk of homelessness.
The Legislature’s allocation of vouchers differs from the Governor’s proposal and has the following split: (a) 275 families with young children for HeadStart on Housing; (b) 325 elderly or disabled individuals, with priority for those at most risk of homelessness; and (c) 100 for Department of Developmental Services supportive housing for individuals with intellectual disabilities.
“Rental assistance is one of the most effective tools we have to prevent homelessness and help families stay housed,” said Chelsea Ross, Executive Director of Partnership for Strong Communities. “The Appropriations Committee’s investment in RAP sends a clear message: Connecticut is willing to step up to protect our most vulnerable residents and ensure more people have access to the stability of a safe, affordable home.”
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 our request, 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). The Finance Revenue and Bonding Committee matched the Governor’s proposal for new bond authorizations for the Housing Trust Fund and FLEX.
“We greatly appreciate the Governor and Legislature’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, and limited state resources must continue to be prioritized to create homes that are affordable for those with the lowest incomes and greatest risk of housing insecurity.”
Budget Summary
Below is a detailed summary of housing-related funding proposed in budget bills passed by the Appropriations Committee and the Finance Revenue and Bonding Committee with differences from Governor Lamont’s proposed budget noted in bold. You can find our previous summary of the governor’s budget here. A complete list of documents for Governor Lamont’s proposed budget is available here. Click here to see a table breakdown.
Proposed Capital Budget
Maintained investment in several key housing programs without proposed changes:
- $400M for FLEX ($200M each year) through the Department of Housing (DOH) — 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. (p. 4, Bond Authorization Summary)
- Partnership supported $500M bond authorization over the biennium with $300M dedicated to the construction of homes affordable to Extremely Low Income (ELI) renters, or households below 30% area median income. Neither the Governor’s proposed budget nor the General Assembly’s budget substitutes include dedicated funding for ELI renters.
- $300M for Housing Trust Fund (HTF) ($150M each year) through DOH. The governor’s proposed budget included $130M for the Build for CT program, which targets middle income housing project affordable to residents between 60% – 120% AMI.
- Details forthcoming on whether the Build for CT dedicated funding remains the same. In the previous biennium, the Bond Commission allocated the full $200M set aside for Build for CT units but declined to allocate any of the remaining $200M HTF authorization that could be used for lower income renters.
- $50M for the Greyfield Revitalization Program ($20M FY26 and $30M FY27) through the Department of Economic and Community Development (DECD). This new program will be used to redevelop underutilized commercial retail and office spaces to increase the state’s housing stock.
- $350M for the Community Investment Fund ($175M each year) through DECD —A carryover allocation. DECD transfers housing proposals awarded through Community Investment Fund to DOH for management.
- $50M to the Capital Region Development Authority for “encouraging development” ($25M each year)
- $30M to the Municipal Redevelopment Authority in FY27 for further capitalization
Proposed Capital Budget Increases by Agency:
Department of Housing
The General Assembly proposed an increase of $207M over the governor’s initial $825 proposed investment for a total of over $1B in housing investments.
- Increase for Time to Own (TTO) downpayment assistance program from proposed $100M to $120M ($60M each year). Time to Own provides forgivable down payment assistance capped at $25K/household for eligible first-time homebuyers. Data provided by CHFA indicates that half of recipients were above 60% of the State Median Income (SMI), while less than 3% of recipients were below 30% SMI.
- Continued investment in TTO Rehabilitation program with an additional new $5M in FY27. Funds help new TTO homeowners with forgivable loans for repairs and improvements on their new homes, including replacing a well or septic tank, a new roof, or improvements to plumbing and electrical systems. The program received an initial $10M investment in the previous biennium, but the Governor’s bond bill does not include any additional investment. Governor Lamont recently announced that Capital for Change will administer the initial $10M.
- Continued investment in Crumbling Foundations Assistance Fund of $125M ($25M each year for five years). The program received $25M/year in bond funding in FY26 as a carryover from previous year’s authorizations. The Governor’s bill did not extend the program, while the General Assembly’s adjustment continues annual funding at $25M/year for four additional years through FY30
- Transfer $10M authorization one-time in FY26 from DDS to DOH for supportive housing for adults with an intellectual disability. This transfer builds on a similar $15M transfer in FY24; $6.5M from that initial authorization has been allocated to date.
- Funding for three new programs
- $20M for the “Home for CT” Loan Program ($10M each year) proposed in HB 6992. This funding will allow the state to operate as a lender of last resort and guarantor to facilitate the creation of affordable starter homes. Partnership supported additional amendments to the program to better target funding to facilitate homeownership opportunities for lower income households.
- $50M for “Building Equitable and Affordable Connecticut Housing.” ($12.5M each year for four years). Currently, there are not any additional details available for this new proposed authorization.
- $2M in FY26 for PROPEL CT, a pilot program through the New Haven Public Housing Authority. The PROPEL CT program is an affordable housing real estate investment trust concept included in Section 1 of HB 7112. Currently, there are not any additional details available for this new proposed pilot program.
Department of Energy and Environmental Protection
- Significant increase for Urban Brownfield Remediation program from proposed $24M to $40M ($20M each year). Funds are used for management of contaminated industrial sites in urban areas. The General Assembly’s proposal comes closer to matching the agency’s initial $47M request.
- Reinstates an existing $25M bond authorization for Heat Pump Rebates that was eliminated in the Governor’s budget.
- New $100M one-time investment in FY26 for Multifamily Retrofitting Projects in Environmental Justice Communities. Additional details forthcoming.
Office of Policy and Management
- Modest increase for Small Town Economic Assistance Program from proposed $35M by the Governor to $40M in FY27.
- Significant increase for Urban Act Funding from $150M to $400M ($200M in each year). This level of funding for the Urban Act would be comparable to the historic investments in the state’s Housing Trust Fund. We applaud investments into revitalizing the state’s population centers which also include high levels of concentrated poverty and residential segregation. We ask that the General Assembly include new, more detailed reporting requirements on eligibility and prioritization criteria for the program.
Department of Economic and Community Development
- Reinstated existing $100M bond authorization for Concentrated Poverty Grant Program created by Public Act 24-151 ($50M each year) that had been eliminated in the governor’s proposed budget. This grant program funds eligible projects, including construction of mixed-income rental housing and owner-occupied housing, among others, in areas where 30% or more of residents have incomes below the federal poverty line.
- Modest increase for Brownfield Remediation and Revitalization Program from $70M to $80M ($40M each year).
- New one-time $30M funding for Economic Development and Housing Infrastructure Project in Rural Areas. Currently, we have no additional details on this newly proposed program.
Department of Aging and Disability Services
- New one-time $5M funding for Aging in Place program in FY26.
Green Bond Fund (PURA)
- New $2.4 billion proposal ($800M/year for three years) to capitalize the Green Bond Fund as proposed in SB 1560. Funding would cover the cost of state-mandated energy-efficiency programs, clean energy investments, and support for low-income ratepayers by using bonding in place of current fees on residential energy bills. Some of these programs help fund the development or rehabilitation of affordable single family and multifamily housing (see the Partnership’s Affordable Housing Development Resources Tool for more details).
Proposed Appropriations Budget Items Maintained by Agency
Department of Housing
- Maintains the governor’s proposed $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.
- 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).
- $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:
- 325 elderly and disabled renters at high risk of homelessness
- 100 for Department of Developmental Services supportive housing for individuals with intellectual disabilities
- 275 families with young children through HeadStart on Housing.
Judicial Department
- Continues the pandemic-era “Right to Counsel” program at $1.75M in FY26 and $2.5M in FY27. Currently funded by ARPA, the program will end absent new investments at the end of 2026. The Right to Counsel model has received national-level attention for its effectiveness in eviction prevention, including a report released April 2025 from The Eviction Lab.
Other proposed increases in the Governor’s budget that were maintained in the Appropriation Committee’s budget include:
- $1.2M total biennial increase for a private providers cost of living adjustment (p. 124)
- $20.8M total biennial increase across programs to account for rising housing costs (p. 124)
- $1.1M total biennial increase ($470K in FY26 and $670K in FY27) to cover debt service needed to subsidize rent for the DSS’s CT Home Care Program for Elders supportive housing program (p. 124)
- Required adjustments for existing wage agreements and IT Centralization (p. 123, 125)
Proposed Appropriations Budget Items Reduced by Agency
Department of Housing (DOH)
- A decrease for Opportunity HUBs/Eviction Prevention Fund from $5M each year of the biennium ($10M total) to $3.5M in FY26 and $5M in FY27 ($8.5M total) (p. 122) Opportunity HUBs serve as centralized access points for public resources and programs, including homeless services. Opportunity HUBs previously offered three programs designed to assist with housing insecurity, funded with federal pandemic dollars from the Emergency Rental Assistance program. Despite high demand and success rates, all three programs stopped accepting applications on Feb 28th due to the lack of an ongoing funding source.
- Eviction Prevention Fund, which supported tenants with an active eviction complaint with up to three months of rental assistance payments to cover rental arrears;
- Moving Assistance Program, which provided security deposit assistance to tenants who were recently evicted, have a voucher, are housing insecure, below 50% of AMI; and
- Workforce Rental Assistance Program, which provided up to 3 months rental assistance for people registered in a workforce training program in CT; In February the Partnership for Strong Communities hosted a program participant at our IForum on Affordable Housing as Economic Strategy to discuss their experience in the program.
- Shifts funds to support Cold Weather Emergency Response from Opioid Settlement Fund (off budget) to General Fund, while reducing total funding by $500K (p. 123) Governor Lamont proposed $4.5M each year using Opioid Settlement Funds. The General Assembly shifted this allocation to the General Fund and decreased it to $3.5M in FY26 and $5M in FY27.