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February 6, 2025

Lamont allocates tens of millions of dollars for economic development agencies focused on multifamily development

HBJ PHOTO | MICHAEL PUFFER David Kooris is the first executive director of the Connecticut Municipal Redevelopment Authority, a quasi-public state agency that aims to promote multifamily development in the state.
By Michael Puffer

A new quasi-public agency tasked with fostering dense multifamily developments in downtown centers and near mass transit hubs has such intense interest that Gov. Ned Lamont’s two-year budget proposal seeks to add tens of millions of dollars to its toolbox. 

Connecticut Municipal Redevelopment Authority (MRDA) Executive Director David Kooris, who was hired last July to launch the organization, said 25 municipalities are in various stages of signing up to partner with his agency. He expects the first to be approved by early March. 

Interest has been so robust for what MRDA has to offer — which includes financing incentives for multifamily projects — that he expects his agency’s initial $60 million in funding to run dry before satisfying demand. 

So, Kooris said he asked the Lamont administration for more. The governor’s budget includes an additional $30 million allocation in fiscal year 2027.

“The signal sent by the continued support of Gov. Lamont and his administration certainly helps as we go out to recruit municipalities,” Kooris said. “They know they are signing onto something that has a long-term commitment.”

Established by state lawmakers in 2019 and armed with an initial $60 million allocation, MRDA is just now getting organized. Kooris said he expects to begin disbursing development aid before the end of 2025.

MRDA can use its funding to provide grants for demolition ahead of redevelopment projects, or low-interest loans to incentivize development. It can also pay for infrastructure upgrades in targeted zones.

To tap these resources, municipalities need to formally agree through a vote of their local legislative body -- like a town council -- to tap MRDA’s services. Kooris said he expects the first sign-ups by early March.

Naugatuck, Torrington and Danbury are among the front-runners, Kooris said. Waterbury, New Haven, Bridgeport and West Hartford have also shown strong interest, he noted.

West Hartford’s inclusion would require a change in the 2019 legislation that authorized MRDA’s formation, Kooris said.

That legislation excluded Hartford and six surrounding communities that fall within the coverage area of another state-funded, quasi-public development agency – the Capital Region Development Authority.

Kooris said only Hartford and East Hartford have dedicated development funding through CRDA, and there have been relatively few CRDA-assisted projects in the other communities. Kooris expects legislation to advance this year to allow MRDA to partner with the other CRDA communities, including West Hartford, Newington, Wethersfield, Bloomfield, Windsor and South Windsor.

More CRDA funding

MRDA was modeled after the CRDA, which, since its launch in 2012, has used state bond funds to incentivize hundreds-of-millions of dollars in multifamily development, mostly in downtown Hartford.

Lamont’s budget proposal adds another $50 million to CRDA’s housing development fund over the next two years. Lamont also allocated $10 million over two years for upkeep and operations of seven CRDA-run parking garages. 

The budget proposal also includes $34 million over two years for the upkeep and renovations to the CRDA-run Connecticut Convention Center in Hartford, and the Pratt & Whitney Stadium at Rentschler Field in East Hartford. 

CRDA Executive Director Michael Freimuth said those funding allocations are consistent from previous years.

MRDA has not yet rented office space, but Kooris said he has contracted with outside companies to provide IT, legal, audit and communications services. Kooris said he has also developed a “deep bench” of consultants to help towns align their zoning to meet MRDA goals. 

He expects to hire two project managers mid-year.
 

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