Hartford city employees may soon be able to purchase a home in the city without a down payment.
Eligible employees may receive up to $40,000 in the form of a forgivable loan to support down payment costs, Hartford Mayor Arunan Arulampalam announced Monday.
“Because if you teach our kids, if you keep our streets safe, if you run into burning buildings to keep people safe, you deserve to be able to afford a home in this city, and we're going to help you do it,” Arulampalam said.
To combat the rising cost of homeownership, Arulampalam is looking to boost the employee homebuyer assistance program, which began in 2023 and provides a forgivable loan of up to $10,000 toward a down payment.
The proposal comes as current home prices in Hartford rose more than 17% compared to October 2023, Arulampalam said.
Police, fire and public school workers would all be eligible for the program, funded using $1.25 million in previously appropriated COVID-19 relief money.
Former Mayor Luke Bronin initiated the forgivable loan program in late 2023, with hopes for Arulampalam to continue the homeownership opportunity.
“As interest rates have gone up, and the cost of buying a home is harder for most families to bear, this little extra help – we understand it may not be enough for everybody – but maybe it'll make the difference for some,” Bronin said at the time.
Hartford has one of the lowest home ownership rates in the state, at about 23%, Arulampalam said.
“The roots of our housing affordability crisis come from decades of disinvestment,” Arulampalam said. “Hartford families are locked out of pathways to generational wealth creation that families all around us and surrounding communities have had access to for decades. But we are going to change that.”
The mayor’s proposal will still need to be approved by the Hartford City Council.
Expansion of the employee homeownership program was announced Monday as part of Arulampalam’s state of the city address and proposed 2026 fiscal year budget.
Arulampalam touted a $6.5 million investment in housing construction and homeownership programs over the last year.
In the upcoming fiscal year, the city will continue to crack down on absentee landlords and increase proactive work with landlords, Arulampalam said. The city formed a housing task force aimed at addressing neglectful landlords last year.
“Housing in the city of Hartford isn't just about owning a home, it's about being able to afford to rent an apartment and having that apartment be clean and safe and provide you with a sense of peace of mind,” Arulampalam said. “I'm working with the council to make sure that renters insurance is more accessible and affordable to all Hartford residents in the year ahead.”
Housing affordability was a featured issue in Gov. Ned Lamont’s proposed budget as well, with a focus on making up for housing social services where the federal government is drawing back.
“The feds are pulling back on rent support, and at the same time strong demand and little inventory are driving up housing prices, and rents, and homelessness,” Lamont said.
Arunan Arulampalam's father-in-law is Gregory B. Butler, who is a member of the Board of Trustees of Connecticut Public.
