Connecticut is expanding its effort to increase affordable housing after a new round of state tax credits was announced to support the construction, preservation and rehabilitation of housing across the state.

The latest funding will help developers and housing organizations move forward with hundreds of affordable homes and apartments, adding to a state program that has played a significant role in Connecticut’s housing pipeline.

The Housing Tax Credit Contribution program has helped create or preserve more than 12,000 housing units since 2010, directing private investment toward projects that serve lower-income households.

The investment comes as Connecticut continues to face a substantial shortage of affordable housing. State housing officials and housing advocates have estimated that the state needs roughly 100,000 additional affordable homes to close the gap between supply and demand.

For renters, the shortage has translated into higher housing costs and fewer options. Connecticut apartment rents reached record levels in August, adding to the pressure on households already struggling to find housing within their budgets.

The new tax credits are designed to help close some of the financial gap that can prevent affordable housing projects from getting built. By combining tax-credit financing with other public and private funding, developers can make projects financially viable while keeping rents affordable for qualifying households.

The program also supports the rehabilitation and preservation of existing housing, which can be just as important as new construction. Preserving older affordable properties helps prevent existing units from being lost as rents and property values increase.

Connecticut’s housing challenge will require more than a single funding round, but the latest tax-credit investment represents another step toward increasing the state's affordable housing supply.

With demand continuing to exceed supply, expanding the number of affordable homes could remain one of Connecticut’s most important housing priorities in the years ahead.