Connecticut Minority Homebuyers: Hartford Foundation $600K Grant Supports BIPOC Down Payment Assistance

The Hartford Foundation for Public Giving announced on November 21, 2023 that it had awarded $600,000 to the Housing Development Fund (HDF) to expand the Homeownership Equity Fund CT, a statewide initiative designed to close the racial homeownership gap through zero-percent down payment and closing-cost loans for first-time BIPOC homebuyers.

How the Grant Is Structured

The $600,000 commitment combines a $500,000 grant from the Hartford Foundation with an additional $100,000 contributed through Foundation donor advised funds, including the Beatrice Fox Auerbach Foundation Fund and the Jackson-Batchelder Family Fund. HDF will deploy the capital as no-interest loans for down payment and closing costs, with repayments recycled back into the fund to support additional buyers over time.

The award is projected to help between 25 and 35 households in the towns served by the Hartford Foundation complete home purchases. Since the Homeownership Equity Fund launched in July 2022, HDF has closed loans for 66 households statewide, 12 of them in Greater Hartford.

Who Qualifies

To access the assistance through HDF, applicants must meet the program's core eligibility criteria:

• Be a first-time homebuyer
• Identify as a Black, Indigenous, or Person of Color (BIPOC) household
• Have a household income at or below 80% of Area Median Income (AMI) for the purchase area
• Purchase a primary residence in Connecticut, with the Foundation-funded tranche prioritizing the Greater Hartford region

The Greater Hartford service area covers the City of Hartford plus 28 surrounding towns that fall within the Hartford Foundation's historical giving footprint.

What the Loan Covers

The Homeownership Equity Fund CT provides zero-percent interest loans that can be stacked with a first mortgage to cover:

• Down payment toward the home purchase
• Closing costs, including lender fees, title charges, and prepaid escrow items

Because the loans carry no interest and are designed to revolve, repayments from earlier participants help finance future borrowers, stretching the original philanthropic capital well beyond the first cohort of buyers.

Why the Foundation Is Targeting BIPOC Homeownership

The grant is part of the Hartford Foundation's broader strategy to dismantle structural barriers and advance equitable economic mobility for Greater Hartford's Black and Latine communities. Increasing access to homeownership in higher-opportunity neighborhoods is one of the Foundation's stated levers for building generational wealth and closing persistent gaps in household net worth between white and BIPOC families in the region.

Kiley Gosselin, HDF's President and CEO, framed the partnership around that shared goal, saying, "The Foundation's alignment with HDF's mission to support wealth building among BIPOC homebuyers makes this an exciting partnership."

How to Apply

Prospective buyers interested in the Homeownership Equity Fund CT should:

1. Contact the Housing Development Fund directly to confirm current funding availability and eligibility requirements.
2. Complete a HUD-approved homebuyer education course, which HDF offers alongside other Connecticut housing counseling agencies.
3. Get pre-qualified for a first mortgage with a participating lender, then work with HDF staff to layer the zero-percent equity loan on top of the primary financing.
4. Confirm that the target property is within the Hartford Foundation's service area if applying for the Foundation-funded tranche.

Why It Matters

For Connecticut households who have been priced out of ownership by up-front cash hurdles rather than monthly affordability, the Homeownership Equity Fund CT is one of the few state-level programs specifically structured to tackle the BIPOC homeownership gap with recycled, no-interest capital. The Hartford Foundation's $600,000 investment materially expands the pipeline of buyers HDF can serve in Greater Hartford, and because the fund revolves, each closed loan creates capacity to help the next family. Buyers should pair this assistance with Connecticut's statewide Time to Own program and CHFA first mortgage products to maximize the combined down payment and closing-cost support available at the closing table.