Connecticut Approves $19M for Housing in Four Towns

Connecticut took a major step forward in solving its housing shortage, approving $19 million to build hundreds of apartments in towns connected by public transit.

The funding will create over 260 new homes in Enfield, Norwich, and New London. Each project transforms underused buildings or empty lots into mixed-use spaces where people can live, work, and shop without needing a car.

The Connecticut Municipal Development Authority made this possible. Created in 2019 but only funded in 2024, the agency helps towns rezone areas to allow more housing near train stations and downtown areas. More than 40 Connecticut towns have already joined.

In Enfield, $9.4 million will build over 150 apartments near a planned Hartford Line station. One in five units will be designated as workforce housing, meaning working families can actually afford them.

Norwich is getting $3 million to turn an old office building into 58 apartments with commercial space on the ground floor. New London scored two projects: a $5 million conversion of the former New London Day newspaper campus into apartments, a museum, and retail space, plus a $2 million development near the train station featuring apartments and a public market.

"This is kind of the greatest place that we could have hoped to have been at, which is within two years, starting to move funding into housing development," said David Kooris, the authority's executive director. The projects hit multiple goals at once: more housing, revitalized downtowns, economic growth, and increased transit use.

The Ripple Effect

These four projects represent something bigger than new buildings. They're proof that Connecticut towns are willing to rethink how they grow and where people can live.

For decades, restrictive local zoning made it nearly impossible to build apartments in many Connecticut communities. That drove up housing costs and pushed young people and working families out of the state. The Municipal Development Authority gives towns a reason to change those rules and the money to make housing happen fast.

The state's economy is already responding to this shift. Connecticut's economy grew 2.4% in 2025, ranking 12th in the nation and second in New England. That growth comes partly from redirecting economic development money away from big corporations and toward small businesses and startups that create jobs.

When people can afford to live near where they work, take transit instead of driving, and walk to local shops, everyone benefits. The train stations get more riders, downtowns get more foot traffic, and families get more affordable options.

These first four projects prove the model works and open the door for dozens more towns to follow.