Waterbury Turns Historic School into Housing with Help from State Grants

In the heart of Waterbury, a long-closed Catholic grammar school is poised for a second lifem as housing for working families and hospital staff. The transformation of St. Mary’s School into 80 modern apartments is more than a local real estate story. It’s a case study in how historic preservation, public-private collaboration, and targeted state housing grants can align to revitalize communities across Connecticut.

A Second Life for a Storied Site

St. Mary’s Catholic Grammar School, shuttered in 2018, has sat quietly on its 2.2-acre lot, until now. In 2023, the city acquired the property using federal pandemic relief funds, and now plans to sell it to Kaybar Development Corp. for $1.6 million. The New York–based firm, with deep ties to Waterbury, intends to invest up to $20 million to create 80 apartments, blending adaptive reuse of historic buildings with new construction.

The development plan includes converting the school, convent, and gym into housing while adding green space, a playground, and off-street parking. The units will be a mix of one- to three-bedroom apartments, with the proportion of income-restricted housing tied directly to how much the project receives from a new state housing initiative.

How State Housing Grants Are Driving Innovation

This redevelopment is one of the first major attempts to tap into Connecticut’s new $20 million program to support housing for health-care workers. The grant program offers flexible funding to communities that can demonstrate both housing need and shovel-ready opportunities.

In Waterbury, the proximity of St. Mary’s to St. Mary’s Hospital makes this project a natural fit. According to the developer, both St. Mary’s and Waterbury Hospital confirmed the need for local housing to support staffing retention and recruitment. Depending on how much the state contributes, ranging from $6 million to $16 million, between 50% and 100% of the units could be income-restricted to keep housing affordable.

This model demonstrates how thoughtful planning can turn targeted grants into tangible housing outcomes.

Connecticut’s School-to-Housing Movement

The St. Mary’s project is part of a larger trend: reimagining old schools as new homes. Historic schools offer strong architectural bones, central locations, and deep community roots, making them ideal candidates for adaptive reuse.

Manchester’s former Nathan Hale School is undergoing a similar transformation. In Waterbury itself, the historic Webster School was converted into apartments, showing that this model is not only feasible but desirable. These projects strike a balance between preserving the past and building for the future.

Urban Renewal with Long-Term Benefits

Turning a dormant property into active housing offers cascading benefits. Neighborhood safety and aesthetics improve almost overnight when neglected buildings are restored. Local economies benefit from construction jobs and increased population density that supports small businesses. Most importantly, residents, including essential health-care workers, gain access to stable, nearby housing.

By reducing commute times and housing stress for hospital employees, the city is also improving health care outcomes indirectly, a compelling, if often overlooked, side effect.

A Trusted Developer with Local Roots

Kaybar Development Corp. isn’t new to Waterbury. Its renovation of the historic Brown Building and Odd Fellows Hall helped redefine parts of downtown. That experience, and local credibility, will be critical in turning the St. Mary’s vision into a vibrant residential community.

The company plans to apply for state funding this August, with hopes to close on the property by December. A public hearing is scheduled for August 11, after which the Board of Aldermen will vote on the sale.

A Model for Communities Across Connecticut

The St. Mary’s redevelopment is more than a local success, it’s a template. With the right incentives, partners, and vision, Connecticut’s towns and cities can repurpose dormant landmarks into community assets.

If you're a homeowner, investor, developer, or policymaker wondering how these kinds of projects might work in your neighborhood, this is the moment to act.

Contact us below to explore how you can be part of Connecticut’s next chapter of revitalization, whether it’s buying, selling, investing, or leading community-driven development.

How the “One Big Beautiful Bill” Just Reshaped Homeownership

With President Trump’s recent signing of the “One Big Beautiful Bill,” Americans are now adjusting to a sweeping package of tax and policy changes. While the bill touches a wide range of issues, several provisions will have a direct and lasting effect on real estate decisions, particularly for current homeowners, potential buyers, and those looking to sell.

This article walks through the key changes and what they could mean for individuals navigating the housing market.

Mortgage Interest and SALT Deduction Caps Become Permanent

One of the most widely felt impacts comes from the solidification of two tax provisions that were originally set to expire in 2025:

• Mortgage interest deduction cap: Homeowners can continue deducting interest on mortgage debt, but only up to $750,000, rather than the previous $1 million cap.

• State and Local Tax (SALT) deduction limit: A new cap—$40,400 for most joint filers—is now permanent and gradually phases out for higher earners.

Implications:

• Buyers may find that the after-tax cost of owning a more expensive home has increased slightly, especially in higher-tax areas.

• Sellers in regions with steep property taxes or premium home prices may face slightly softened demand, as buyers adjust to reduced tax offsets.

• Homeowners, particularly in states like Connecticut, where property taxes are above the national average, could feel this in their annual returns.

Energy Efficiency Incentives Repealed

The bill also ends several federal tax credits aimed at promoting residential energy upgrades. This includes incentives for installing solar panels, energy-efficient windows, insulation, and advanced HVAC systems.

Implications:

• Buyers might now face higher up-front costs for green home features.

• Sellers may find that eco-friendly improvements offer less of a financial incentive for prospective buyers.

• In colder states like Connecticut, where heating bills drive energy upgrades, this change may slow the pace of home retrofits unless state or utility incentives are expanded to fill the gap.

Casualty Loss Deductions Remain Restricted

The bill also extends the rule that allows deductions for personal property losses only if they occur in a federally declared disaster area. This limits the potential for tax relief following events like fires, floods, or wind damage unless those events trigger an official disaster designation.

Implications:

• Homeowners and sellers in storm-prone or wildfire-prone areas must ensure they have robust insurance, as tax relief won’t be available for uncovered losses outside of declared disaster zones.

• Buyers evaluating risk-prone areas may place a higher premium on newer homes with resilient construction or comprehensive insurance protections.

What This Means for the Market

None of these changes are expected to cause sudden disruptions. However, they do reinforce some ongoing market trends:

• Tax-sensitive buyers may shift preference toward homes in lower-tax regions or below deduction caps.

• Home improvements could be more value-driven than incentive-driven going forward.

• Price growth in high-cost markets could moderate slightly as buyers recalculate long-term affordability.

In Connecticut and similar states, the combined impact of capped deductions and repealed green incentives could have a more pronounced effect on tax planning, home valuations, and energy upgrade decisions.

Bottom Line

The “One Big Beautiful Bill” may not have been targeted specifically at real estate, but its effects will be felt by millions of homeowners, buyers, and sellers. The permanence of key tax limits brings clarity, while the removal of energy credits shifts the financial calculus for many households.

Whether you’re navigating your first purchase, considering upgrades, or planning to sell, understanding how these changes affect your bottom line is essential.

Need help analyzing how these new rules affect your plans? Contact us below for expert guidance on buying, selling, renting, or managing your property under the updated framework.

Connecticut's Property Tax Surge, What Every Homeowner Needs to Know

If you’re a homeowner in Connecticut, chances are your mailbox has brought some unwelcome news: higher property taxes. Across the state, cities and towns are updating property assessments, and the results have been eye-opening. Home values are up—and so are tax bills.

Whether you’re planning to stay in your home or wondering if it’s time to sell, here’s what’s happening and how you can respond strategically.

Why Property Taxes Are Rising Now

Every five years, Connecticut towns are required to reassess property values to reflect current market conditions. With home prices having surged over the past few years, some towns have seen average residential property values jump 45% to 70%.

• In Hamden, assessments rose as much as 71% in some neighborhoods according the the New Haven Register.

• Torrington saw home values nearly double in some areas.

• Wallingford experienced a 45% increase in residential values according to CT Insider.

To soften the blow, many towns have lowered their mill rates (the tax rate applied to assessed value) or phased in assessment increases over several years. But even with these adjustments, homeowners are still facing higher tax bills.

What Towns Are Doing to Help—And Why It Might Not Be Enough

Some communities are getting creative to manage the backlash:

• Mill rate reductions: Towns like Fairfield and Waterbury have lowered their rates to reduce the total tax burden.

• Phase-ins: Cities like Hamden and Torrington are spreading the impact over two to five years.

• Rainy-day funds: Torrington is tapping into its reserves to provide temporary relief.

Despite these efforts, many homeowners are feeling squeezed. Especially in areas where property values skyrocketed, the math still leads to bigger bills.

How This Affects Your Finances

Let’s say your property assessment jumped from $200,000 to $300,000. Even if your town reduced its mill rate, your new tax bill could still be significantly higher than last year’s—potentially by thousands of dollars annually.

This increase hits harder when coupled with rising costs of living, higher utility bills, and in many cases, stagnant incomes.

Should You Stay, Sell, or Refinance?

Here’s the good news: property values have risen, which means your equity has too. That opens the door to new opportunities—but also important decisions.

• Staying put: Most homeowners aren’t moving. If you locked in a low mortgage rate (under 4%) during the pandemic, upgrading or relocating now could mean taking on a 6–7% mortgage—an unattractive tradeoff.

• Selling: If you’ve built substantial equity and are considering downsizing, relocating, or cashing out, this could be an ideal time—especially while buyer demand remains strong.

• Refinancing: For those facing steep tax increases, tapping into home equity through refinancing may help manage cash flow or fund improvements.

What You Can Do Now

1. Appeal your assessment: If you think your new property value is too high, you can file an appeal with your local assessor’s office. Be prepared with comps or an appraisal.

2. Estimate your new taxes: Multiply your new assessment (or 70% of market value) by your town’s mill rate to see the likely bill.

3. Talk to a real estate expert: Understanding your current market value helps you make smart decisions—whether you’re staying or selling.

4. Explore refinancing options: If monthly costs are getting tight, refinancing might provide short-term relief or unlock home equity for other needs.

Don’t Wait—Act Before You're Overwhelmed

Rising property taxes are here to stay, at least for the near term. The worst move you can make is no move at all. Whether you want to reduce your tax burden, protect your investment, or explore a potential sale, the time to act is now.

Let’s Talk About Your Options

Thinking about buying or selling your home? We can help. Curious if refinancing makes sense for your situation? We’ll connect you with trusted local lenders.📞 Contact us below for personal guidance and smart solutions tailored to you.