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.