New London’s Former Church Site Moves Toward 46-Unit Mixed-Income Housing Project

Construction has begun at 66 Union Street in downtown New London, moving the vacant former First Congregational Church property across from City Hall into a planned 46-unit mixed-income rental development.

Eastern Connecticut Housing Opportunities, or ECHO, held a groundbreaking on July 7 for the project, which CT Insider reported has an estimated cost of $26 million. The development is planned to include apartments with varied rental rates, nine units reserved for tenants with intellectual disabilities and two ground-floor commercial spaces.

From vacant church parcel to construction site

The project occupies the site of the historic church whose steeple and roof collapsed on Jan. 25, 2024. The building was later demolished. Its location beside City Hall and within the downtown business district made the vacant parcel especially visible.

ECHO’s project information identifies the development as 66 Union Street/State Street and says the completed project will have 46 rental units and two commercial spaces. The new building is expected to add housing while returning street-level commercial use to the prominent downtown site.

Housing, commercial space and resident amenities

Plans call for one-, two- and three-bedroom apartments, with a mix of affordability levels. The available records do not provide a complete rent schedule, so the project should not be described as making all 46 apartments affordable.

Planned features include community and green space, a 24-hour fitness room, a rooftop patio or terrace, washers and dryers in the apartments and 19 surface parking spaces. CT Insider reported that about 3,600 square feet of first-floor commercial space will be accessible from the State Street entrance.

The project is planned to meet National Green Building Standard Emerald certification, an energy-efficiency and sustainability standard. About 20 tons of granite salvaged from the former church are expected to be incorporated into the design of the brick building.

State financing actions preceded the groundbreaking

Connecticut Housing Finance Authority records show that major financing actions for the project occurred before construction began. CHFA’s February 2026 board minutes identify 66 Union as a proposed 46-unit New London development and document the allocation of $1.08 million in low-income housing tax credits. The board also authorized a permanent loan of up to $3.9 million, subject to funding availability, required approvals, closing conditions and other requirements.

The board minutes establish affordability restrictions for 44 units over 40 years: 10 units for households at or below 30% of area median income, 17 at or below 50%, 14 at or below 60% and three at or below 80%. The same resolution says the mortgage financing would become void if it did not close by Nov. 30, 2026, unless the deadline was extended.

Those financing actions are separate from the reported $26 million total project cost and do not mean the entire development is publicly funded. CHFA’s 2025 awards release described the project as including 10 supportive-housing units, while current project reporting identifies nine units specifically reserved for tenants with intellectual disabilities. The figures describe related but not necessarily identical categories.

Completion remains a projection

ECHO says construction is expected to take 19 months. CT Insider reported an anticipated opening by November 2027. That is a target, not a guaranteed completion date, and the development remains under construction as of Aug. 2, 2026.

For New London, the immediate change is concrete: a prominent empty downtown parcel is now an active construction site. If the schedule holds, the project will bring new rental homes, dedicated disability housing and two commercial spaces to the former church property in 2027.

Sources

• CT Insider: Site of New London church collapse to become 46-unit mixed-income housing development
• Eastern Connecticut Housing Opportunities: Projects
• Connecticut Housing Finance Authority February 19, 2026 Board Minutes