Stonington Launches Housing Rehabilitation Loan Program

Starting on Thursday May 5, 2022, Stonington residents will have access to a new Town program that will enhance access to quality housing.

Working in collaboration the Directors of Human Services, Finance, and Economic and Community Development, along with the Board of Selectmen and other issue experts, were able to put forward a concept for a positive new program for Stonington. Thanks to support from the Board of Finance and ultimately residents, the program will be funded with $150,000 from the American Rescue Plan to launch the Housing Rehabilitation Program.

“Programs, such as this, have the potential to not only address critical safety issues within a home, but also stand to greatly improve the physical and mental wellness of its residents. We look forward to being able to open doors to repair opportunities that will allow residents to remain in their respective homes for many years to come,” shared Director of Human Services, Leanne Theodore.

The objective of the program is to improve housing occupied by low- and moderate-income households in the Town of Stonington. The revolving loans will enable residents to make home improvements that they otherwise may not be able to afford. In Stonington, 34.8% of all households and 46.6% of rental households are cost-burdened, spending more than 30% of their income on housing. Housing impacts so many areas of a person’s life, and without access to quality housing the related stressors can reach into so many aspects of a person’s life.

The program will offer loans for specific home improvements and in exchange the Town will hold a mortgage and put in an affordable housing deed restriction for the length of the loan. The loan can be repaid through a payment plan, or for resident-owned properties can be repaid when the borrower sells, refinances, or transfers the property.

There are two types of loans available. First, no-interest deferred loans are available to owner-occupied households earning 80% or less of median household income for the Norwich-New London Metropolitan Statistical Area. Secondly, low-interest loans are available to Investor-Owners, whose tenets meet income criteria and agree to specific affordable rent requirements. The loan rate shall be at 3%, payable monthly, over a five-year term.  

Program guidelines and procedures will be available on the Town of Stonington’s website by the end of the week and anyone interested in learning more about the program can fill out a Social Service Intake Form or contact the Human Services Department.

The Human Services team will be available to meet with property owners and/or tenants to explain the program, its requirements, and the rehabilitation process. Applicants will be considered on a first come, first served basis with one exception—an applicant needing rehabilitation work to correct an emergency condition affecting the health and safety of the household will be moved to the top of the waiting list.

“Getting the new program off the ground took 11 months of a great deal of work from many people. We are so fortunate in Stonington to have such dedicated staff who truly care about the community they serve. We are optimistic about the positive impact this new program will have, and its potential to sustain over time,” shared Danielle Chesebrough, Stonington First Selectman