🔒High demand could soon tap new state development agency’s $90M funding

As the Connecticut Municipal Development Authority approved its first loan Thursday, early demand signaled the relatively new agency’s $90 million funding pool could be quickly absorbed. The CMDA Board of Directors unanimously approved a $9.36 million loan at 3% interest to support a $53 million brownfield redevelopment near the Connecticut River in Enfield. The project, led by Honeycomb Real Estate Partners and Grava Properties, will deliver a 156-unit apartment building, with completion targeted for spring 2028. Even as the agency closed its first deal, CMDA officials highlighted a growing project pipeline that could rapidly occupy available funds. Natalie Deduck, CMDA’s director of operations and finance, said the agency has received 27 project proposals representing 915 apartment units and seeking a combined $54.6 million in low-interest financing. Gov. Ned Lamont launched the CMDA in mid-2024 with the appointment of Executive Director David Kooris. The quasi-public agency was authorized by state lawmakers with $60 million in bonding, with an additional $30 million becoming available July 1. CMDA officials acknowledged demand could soon meet available funding. Board member Laura Francis, who also leads the South Central Regional Council of Governments, praised the agency’s rapid progress Thursday but warned of a near-term funding squeeze. “So, this is just such great news that we're at this point already,” Francis said. “And I can already see that we're going to get to a point where we're going to run out of money.” Francis added that ensuring equitable access across the 43 member municipalities will be critical. Kooris and other board members emphasized the CMDA’s role extends beyond project financing. The agency also provides technical assistance to help municipalities prepare for high-density, multifamily development in downtowns and near transit, including zoning updates and predevelopment work. The CMDA is also updating its website, wearecmda.com, to better guide developers and municipalities and highlight those services. Board Chair Felix Reyes, who also serves as economic development director for New London, said cities often need extensive groundwork before they can attract investment, including zoning reforms, tourism strategies and stakeholder engagement. “I understand that we don’t have a David Kooris in every municipality that has the ability to start from scratch and build up to where you’re essentially bringing in investment,” Reyes said. “We talk a lot about funding projects, but what we really should also be talking about every day is how we’re bringing up these other municipalities that have the potential to build, but don’t have the tools, the resources or the personnel to unlock that potential.” Kooris has previously said he anticipates the agency’s early successes could help justify additional state funding. CMDA Board member Paul Hinsch, an appointee from the state Office of Policy and Management, noted later Thursday the CMDA anticipates committing its current allocations by the end of fiscal 2027 with the anticipation of additional state funding for future investments. Returns from loans will eventually be used for future CMDA investments.