Issue link: https://nebusinessmedia.uberflip.com/i/1544936
30 HARTFORDBUSINESS.COM | MAY 18, 2026 Opinion & Commentary OTHER VOICES CT's economic future hinges on affordable housing By Michael Weinstock A ffordable housing is not only a social priority, it's increasingly an economic one that impacts the overall competitiveness of our state. Employers across sectors — from restaurants and healthcare systems to school districts and public safety departments — rely on workers who need housing near their jobs. However, while Connecticut's need for more affordable housing is widely known, the challenge when it comes to building that housing is making the numbers work. Rising construction costs, land prices, zoning regulations and affordability require- ments often create a gap between what it costs to build a home and what local families can afford to pay for it once it's built. That gap is why many projects depend on layered financing struc- tures that combine tax credit equity, construction loans, public grants and permanent financing. Programs such as the Low-Income Housing Tax Credit remain among the most important tools available to close those gaps. Federal Home Loan Bank grants and state housing initia- tives can provide additional support, while public-private partnerships help bring together developers, municipali- ties and lenders. But these tools are not inter- changeable, and they are rarely sufficient on their own. Each project requires a financing structure tailored to its economics, location and affordability goals. This is where financial institutions can and should play a broader role. Lenders often work with developers early in the process to structure financing packages, coordinate tax credit investments and assemble the multiple funding sources required to move projects from concept to construction. Local lenders can also bring other advantages, including established relationships with developers and community stakeholders and expe- rience navigating complex tax credit financing. This kind of expertise is especially important in Connecticut. With 169 municipalities that often have their own unique planning priorities, zoning considerations and approval processes, projects often require sustained engagement with local officials and community stakeholders while also ensuring the financing remains workable. In Hartford alone, roughly 27% of federally assisted housing units face expiring affordability restrictions in the coming years, underscoring the chal- lenge of preserving existing housing as well as building new supply. Facing these challenges, commu- nities across Connecticut are increasingly exploring development approaches that expand housing while strengthening local business districts. Mixed-use projects that combine resi- dential space with retail or community uses can help bring activity back to downtown areas. Recent developments such as Hillside Village, a 64-unit affordable housing development in Glastonbury, and 540 New Park in West Hartford, a transit-oriented development with 41 affordable units, illustrate how these types of projects can create afford- able housing while strengthening the surrounding community. Projects like these rarely move forward without sustained collabora- tion, and it's incumbent upon lenders to not only be at the table, but to be there with an open mind. That means working with developers, housing authorities and community organiza- tions to ensure affordable units are part of new developments, and to actively navigate complex tax credit financing. Closing the housing gap is not a distant goal, it is an urgent economic need. Every stalled project deepens the strain on workers and employers and weakens communities that are already under pressure. Progress will only come from continued partnerships across the public and private sectors and a shared vision and focus on moving developments from concept to completion. The sooner we act, the stronger and more resilient Connecticut's economy will be. Michael Weinstock is Hartford regional president at M&T Bank. Michael Weinstock NMLS ID: 510148 Businesses bank on us to build on their success. nwcommunitybank.com Jeff Borghesi Borghesi Building & Engineering Torrington, CT artnett Twenty2 Wallpaper Textiles Naugatuck, CT