SECTION 4:

Best Practices & Innovative Models

Despite federal investments in child care subsidies, quality improvements, and stabilization, there is no dedicated federal funding for child care facility development. States and local jurisdictions are stepping up, creatively blending funding streams and treating child care as part of broader infrastructure and economic development. For long-term impact, Connecticut must establish sustainable funding sources for facility development across all phases.

Best Practices

LISC Connecticut’s research and experience administering recent and past facility funding, along with lessons from Massachusetts and Rhode Island, highlights effective long-term models. The Children’s Investment Fund (CIF) in Massachusetts and the LISC Rhode Island Child Care and Early Learning Facilities Fund (RICCELFF) pair public and private funding with technical assistance and training and flexible community-centered design. These public-private initiatives have operated without gap for more than two decades.

Quality Improvements Needed

* Local Initiatives Support Corporation (LISC). (2022). Making Space Matter: Identified Child Care Facility Funds by State. https://riccelff.org/lisc/making-space-matter-map/

Notably, CIF and RICCELFF are steadfast in their convictions to invest in high quality physical environments, pair funding with in-depth technical assistance and training, and focus on flexible community-centered design. Both initiatives have operated without gaps for more than two decades.

SPOTLIGHT ON EARLY CHILDHOOD FACILITIES STATE BOND PROGRAMS

Massachusetts and Rhode Island have used voter-approved bonds to invest in child care facilities. Their programs—MA’s Early Education and Out-of-School Time (EEOST) Capital Fund and RI’s Early Childhood Care and Education (ECCE) Capital Fund Capital Fund— support renovations, new construction, and essential upgrades. Key features include:

  • Strategic Partnerships with state agencies and Community Development Financial Institutions (CDFIs)
  • Targeted Investments in high-need communities across provider types
  • Tailored Grant Structures based on project scale, provider type, and provider needsProgram Examples: Rhode Island ECCE Capital Fund: ∘ Capital Improvements: Grants to address urgent health and safety concerns, enhance program quality, and reconfigure existing spaces. ∘ Expansion: Supports new, high-quality child care spaces, including planning, feasibility studies, new construction, major rehabilitation of vacant properties, and facility expansions. Massachusetts EEOST & Provider Capital Grants (FY25): ∘ EEOST Capital Fund – Small Grant Pool ($200K - $500K) and Large Grant Pool ($500K - $1M): For non-profit center-based providers. ∘ Early Education and Care Provider Capital Grants (EECPCG): For for-profit center-based providers. ∘ Family Child Care Facilities Grants: Administered through MassDevelopment, supporting home-based child care providers.These models demonstrate how state bond programs can expand and modernize child care infrastructure, leverage additional funding, drive economic stability, and invest in the future workforce. A similar approach could help Connecticut create high-quality early learning environments statewide.

States are recognizing the urgency of the child care crisis. In 2025, New York’s Governor Kathy Hochul proposed $110 million for a Child Care Construction Fund. To make child care more accessible and affordable, funding would be available to construct new facilities or improve conditions at existing sites. Grant funds would be paired with technical assistance to support both non-profit and for-profit providers in accessing these dollars. Additionally, a set-aside would be designated for renovations and repairs to family child care homes. Similarly, in Connecticut, H.B. 5003 proposes an allocation of $100M in bond funding to provide grants for capital expenses related to the construction and renovation of early childhood education andchild care facilities.LEARNING THROUGH COLLABORATIONConnecticut can strengthen its approach by partnering with regional leaders and drawing from national models. A collaborative, sustainable strategy will better address access, quality, and affordability.

LEARNING THROUGH COLLABORATION

Connecticut can strengthen its approach by partnering with regional leaders and drawing from national models. A collaborative, sustainable strategy will better address access, quality, and affordability.

“The playground brought children together...This community desperately needed this safe space for children.”

Dawn McQuade, Director

New Heights Early Child Care Program, Windham Regional Community Council

A Playground - and Flooding Solution

Tucked into a public housing development, The Windham Regional Community Council’s New Heights Early Childcare Program has served the community for nearly 50 years. It supports mainly low-income families and single mothers, many without cars.

Director Dawn McQuade is dedicated to enhancing the social and emotional health of all children in the area. Over the years, she’s applied for and received small grants to keep the building in good repair. Still, the ongoing needs of the aging facility exceed the available funding for necessary renovations and repairs. One major concern was the playground. The drainage system was failing, and rainstorms flooded the dirt and cement play area, making it unsafe. Even worse, water flowed into the building, causing repeated classroom flooding. Fixing the problem was beyond the program’s modest budget.

When the Early Childhood Facilities Construction and Renovation Program grant became available, Dawn saw the perfect opportunity. The application addressed the urgent flooding issues and emphasized the importance of outdoor play for children’s social, physical, and mental health.

The grant was awarded, allowing the flooding to be corrected and the playground space to be renovated. Dawn and the staff have already seen improvements in children’s behavior, physical health, and connection to nature from increased outdoor time.

Though the grant made a big impact, many needs remain—including a new HVAC system, working security system, replacing aging metal security doors, and renovating additional outdoor spaces. Dawn remains committed to creating a safe, nurturing space where every child can thrive.

Innovative Models

All children deserve access to safe, developmentally appropriate environments. As programs evolve, so must the facilities that house them. High-quality design supports child development, environmental sustainability, and long-term affordability.

Creative financing—including braided funding and subsidized capital—can reduce costs for providers and enable buildouts, lease savings, and infrastructure improvements.

According to RAPID Survey Project data, surveyed Connecticut parents with a young child with a disability are experiencing particular hardships meeting child care needs. More than two in three Connecticut parents (69%) who have a child under age 6 with a disability report difficulty finding a child care provider who could meet the needs of their child.

SUPPORTIVE DESIGN

Many families with children who have a diagnosed disability struggle to find programming that is a good fit or is willing to accommodate their child. Designing childcare spaces that benefit everyone, including children with disabilities, their peers, and educators, enhances learning outcomes and ensures compliance with legal and ethical standards; creating learning environments where all children can thrive.

SUPPORTIVE DESIGN: INNOVATIVE DESIGN MODELS

The Orchid Montessori Center for Inclusive Education (RI) is a unique model that provides in-building therapeutic services alongside full-day early care and education, minimizing disruption for families. The Center is a collaboration between Orchid Montessori and Access Speech and Allied Therapies, a program of the non-profit Autism Included. Three early childhood classrooms serve toddlers and preschoolers and Access Therapy has a satellite office in the building to provide push-in therapeutic services throughout the day for students who qualify.

SUPPORTIVE DESIGN: INNOVATIVE FUNDING MODELS

  1. State and federal funds such as Medicaid-based programs, Tax Equity and Fiscal Responsibility Act programs, and other programs for children with disabilities or medical needs.14
  2. Partnerships with local professional training colleges and programs (special education, speech, occupational therapy, counseling, etc.).
  3. Private health insurance funding or healthcare network philanthropy that support mission-aligned activities.

STUDIOMLA/ASHLEY MCGRAW. BOSTON UNIVERSITY BY JANICE CHECCHIO

SUSTAINABILITY

Extreme heat, heavy rains and flooding, and poor air quality can create health and safety issues for children and staff. Early child care and education programs struggling to secure funding for basic facility improvements must also contend with finding funding for more expensive but necessary environmentally-resilient infrastructure improvements. The stakes are even higher for home-based providers who are running businesses out of their residences.

SUSTAINABILITY: INNOVATIVE DESIGN MODELS

By integrating environmental resilience into child care facility funding, Massachusetts is creating safer, healthier, and more sustainable learning spaces while reducing long-term costs for providers. This initiative ensures that early education centers are equipped to withstand weather and other environmental challenges, supporting both child well-being and business sustainability.15

SUSTAINABILITY: INNOVATIVE FUNDING MODELS

  1. Indoor Air Quality and Environmental Safety Programs provide funding for HVAC upgrades, ventilation improvements, and water conservation measures to create healthier indoor environments for children and educators.
  2. Disaster Preparedness and Resilient Infrastructure Opportunities provide capital funding that can assist facilities in making emergency repairs (e.g., roof replacements, electrical upgrades) and fortifying spaces against weather-related risks.
  3. Clean Energy and Decarbonization Grants typically can support projects that improve energy efficiency, reduce carbon footprints, and promote sustainable infrastructure.

CONNECTIONS TO NATURE

A substantial body of research indicates that an outdoor learning and play environment with a variety of natural elements advances and enriches all the domains relevant to the development, health, and wellbeing of young children. National Children’s Facilities Network (NCFN) compiled a report, Connecting Children With Nature Through Thoughtful Facilities Design, that highlights how nature supports healthy development and the lasting positive effects of enhanced child care spaces that promote children’s connection to nature.16

CONNECTIONS TO NATURE: NATURE INSPIRED DESIGN MODEL

The Penn State Child Care Center at Hort Woods was designed to meet three key goals: connect children with nature and support a biophilia-infused, child-centered curriculum; create a campus entry that would heal the old edge of Hort Wood and reflect the University’s commitment to sustainability on campus; and, support learning about environmental stewardship through exploration.

CONNECTIONS TO NATURE: INNOVATIVE FUNDING MODELS

  1. Indoor Air Quality and Environmental Safety Programs provide funding for HVAC upgrades, ventilation improvements, and water conservation measures to create healthier indoor environments for children and educators.
  2. Disaster Preparedness and Resilient Infrastructure Opportunities provide capital funding that can assist facilities in making emergency repairs (e.g., roof replacements, electrical upgrades) and fortifying spaces against weather-related risks.
  3. Clean Energy and Decarbonization Grants typically can support projects that improve energy efficiency, reduce carbon footprints, and promote sustainable infrastructure.

Those interested in exploring more on the inherent complexities of creating the spaces that young children need and deserve are encouraged to read “Making Space Matter – the Path to the Child Care and Early Learning Spaces our Kids Deserve”. The report provides comprehensive strategies for improving child care facility development nationwide.

New Opportunities, Waterbury, CT

Co-Location Opportunities

Child care co-location is the integration of child care facilities with commercial, residential, and community spaces, that goes beyond mere proximity to support the holistic development of communities and embraces a promising opportunity to intertwine child care supply building with broader community and economic development.

LISC’s co-location tool was created to support development project teams in planning and quantifying the anticipated social impacts of intentional, thoughtfully planned co-location of child care space within community development projects to better support children and families, so that in predevelopment processes, teams can communicate project benefits, attract funding and cross-sector partnerships, and advocate for stakeholders to support community integrated child care as a component of sound public policy.

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COMMUNITY PARTNERSHIPS

Collaborations with innovative community partners create opportunities for children and families to engage in unique learning experiences. These partnerships can also connect families with resources and support services provided by local organizations.

COMMUNITY PARTNERSHIPS: INNOVATIVE DESIGN MODEL

Maritime Odyssey Preschool (MOP) in Norwalk provides a safe, supportive, and high-quality learning environment for all students, staff, and families, with a strong focus on closing the educational gap and ensuring every child, regardless of their economic background, has the tools and support needed to succeed.

Key partnerships include: The Maritime Aquarium providing STEAM programming; JumpStart Program supporting toddlers with developmental disabilities through 1:1 teaching assistance in inclusive settings; World Drumming and Art introducing children to global music and art; and Family Executive Center empowering families through a two-generational model combining education, economic support, health services, and more. This model provides essential services such as prenatal care, workforce training, technology access, mentoring, and counseling, all designed to support both children and their families in achieving long-term success.

COMMUNITY PARTNERSHIPS: INNOVATIVE FUNDING MODELS

  1. State and federal grant funds including Head Start, Early Head Start, school readinessgrants, and the Child Day Care state grant programs
  2. Local/municipal grant funds
  3. Corporate grant funds
  4. Partnerships with non-profits and businesses
  5. Donations

PHOTO CREDIT: RYAN BERRY

INTERGENERATIONAL SERVICES & HOUSING

Research proves intergenerational day centers (IDCs), or child care spaces co-located within senior centers or senior housing can help children, families, seniors, and providers flourish. These spaces can strengthen communities and build social capital.17

INTERGENERATIONAL SERVICES : INNOVATIVE DESIGN MODELS

Cypress Hills Local Development Corporation & Cypress Hills Child Care Corporation, Brooklyn, NY – A development of 27 units of affordable senior housing co-located with a five- classroom child care center serving as a social and educational hub for families.

Under One Roof, Norwalk – Addresses the needs of older adults and young children through co-location and shared programming.

INTERGENERATIONAL SERVICES : INNOVATIVE FUNDING MODELS

  1. Community Development Block Grants or other state, local economic development or community revitalization funding made available through Economic Development Authorities.
  2. Low Income Housing Tax Credits subsidize the acquisition, construction, and rehabilitation of affordable rental housing for low- and moderate-income tenants; state agencies award the credits to developers through a competitive process.
  3. U.S. Housing and Urban Development provides capital and rent subsidies for supportive housing projects.

AFFORDABLE & SUPPORTIVE HOUSING

Co-locating affordable housing and child care helps working parents maintain employment and supports family economic mobility which in turn strengthens the economy. Mixed-use developments that bring together affordable housing and child care are cost-effective long-term solutions addressing the nationwide lack of affordable housing and child care. 18

AFFORDABLE & SUPPORTIVE HOUSING: INNOVATIVE DESIGN MODELS

King Street Commons, Providence, RI - One Neighborhood Builders (ONE|NB), a local community development corporation (CDC), knew that there was a significant need for additional early learning space in the Olneyville neighborhood of Providence. Vision combined with a vacant and blighted lot provided a unique opportunity to incorporate early learning space into a mixed-use development co-locating Head Start and child care center classrooms serving

72 infant- through preschool-aged children, with 62 units of affordable housing. Because of the child care provider’s status as a non-profit educational institution, it received a property tax exemption, which was a critical component of making this project viable. ONE|NB developed and owns the space, leasing it at below market rates to the local Head Start provider.

Mission District Early Learning, Bay Area - The Mission Economic Development Agency (MEDA), a CDC, constructed two affordable housing buildings that provide 268 affordable apartment units as part of their Mission Promise Neighborhood initiative. These buildings were intentionally designed with child care in mind, with both family providers in residential units and child care centers on the ground floor. MEDA’s strategic plan is based upon an analysis that showed available child care slots met only 17% of the need for children aged 0-2 in the area. The

child care facilities, center and home based, operate in partnership and regularly convene to formalize a local ecosystem of child care options.

AFFORDABLE & SUPPORTIVE HOUSING: INNOVATIVE FUNDING MODELS

  1. State or local community and economic development funds for projects thatincorporate community facilities.
  2. Environmental grant programs to remediate site conditions.
  3. Donations of surplus or tax-foreclosed property from municipalities.
  4. Flexible loan products from community development lenders.
  5. The Federal Internal Revenue Code operates three tax credit financing programs – Historic, Low-Income Housing, and New Markets – that under certain circumstances can be used to raise equity for child care projects. U.S. Department of Health & Human Services, Office of Community Services (OCS) makes grants for projects that create employment opportunities for low-income people in economically distressed areas, including both pre-construction planning grants and capital grants for construction and renovation.

Some states, like Rhode Island, have used Preschool Development Grant Birth through Five (PDG B-5) funds to support planning activities, including architectural, engineering, environmental and legal fees.

TRANSIT ORIENTED DISTRICTS

For many transit-dependent populations, the ability to readily drop off and pick up children going to and from work is both uncommon and exceptionally difficult. Co-location of these services helps reduce these barriers.

TRANSIT ORIENTED DISTRICTS: INNOVATIVE DESIGN MODELS

The Kansas City Area Transportation Authority (KCATA) works with the region’s major employers, industrial park developers, and Full Employment Council to create sustainable models for co-located transit, child care, and employment access. For over 20 years, KCATA has offered a designed transit center that is anchored by a 15,000 square foot child care center on the Troost Max Bus Rapid Transit (BRT) line and at the epicenter of two major transit corridors.

TRANSIT ORIENTED DISTRICTS: INNOVATIVE FUNDING MODELS

  • Department of Transportation grants.
  • State and local Transit Oriented Districts grant and loan programs.
  • Federal, regional, or local infrastructure funds (such as the Infrastructure Investment and Jobs Act) sometimes cover the planning or development of transit adjacent amenities.

INCUBATOR FOR FAMILY CHILD CARE

Family child care (FCC) is vital for expanding access to child care, particularly for families needing flexible care. Nationally, nearly 1/3 of children under 5 are cared for in FCC, while the supply of these sites has declined by 25% since 2013. Recruiting and supporting new providers to the field is necessary to effectively continue to grow and maintain the supply of child care, particularly in home-based settings.19

INCUBATOR FOR FAMILY CHILD CARE: INNOVATIVE DESIGN MODELS

New Britain Childcare Business Incubator (NBCI) with backbone support from the YWCA, serves as a training hub, shared services and coaching space, and physical space available at low- to no-cost for four start-up family child care operations. The location is leased to the YWCA by the New Britain Housing Authority and serves up to 32 children across all programs. The YWCA provides comprehensive and critical business training – including coaching and connections to professional services (legal, accounting, etc.) and serves as an intermediary for grant funding.

INCUBATOR FOR FAMILY CHILD CARE: INNOVATIVE FUNDING MODELS

  1. Private philanthropy can play an instrumental role in new models of care – offering seed funding for innovation.
  2. Public funds available through municipal, state, and federal grants.
  3. Pursuing funding “partners” committed to long-term investments as opposed to one- time donors.

ConnCAT Place at Dixwell Plaza will redevelop to redevelop a blighted strip mall into a bustling mixed-use neighborhood. This project, located in the Dixwell neighborhood - a low-income neighborhood steps from downtown New Haven and the Yale University campus - is anticipated to include approximately 184 mixed-income apartments, a grocery store, performing art center, office and retail space, and a child care facility. The child care facility will run through a partnership with The Friends Center for Children, a non-profit child care provider, and will offer programming for 68 children aged 0-5 in an 11,000 square foot facility. The Friends Center model is unique in that it actively strives to close wealth and employment gaps. For example, income-eligible teachers in its previous projects have been able to access housing along with financial coaching through the Free Teacher Housing Initiative; they hope to offer the same services at this project site as well. This project embodies multiple innovative principles: co-location to other community partners, housing, and transit with 7-day bus service.

Affordable Learning Center, Hartford, CT

Public - Private Partnerships

Accessible, affordable child care is foundational to thriving, healthy communities, and child care opportunities significantly influences children’s long-term health and well-being. Child care is also crucial for economic development as it enables parents to participate fully in the workforce, boosting productivity and economic growth. According to a 2021 National Women’s Law Center report, child care availability increases the earnings for a woman with two children by $97,000 over her lifetime. The increased ability to stay in the workforce generates additional benefits in the form of increased retirement savings; up to $58,000 over a lifetime and a reduction in poverty rate among senior women by nearly 21%.20

Child care is not an issue for only those involved in the child care sector to solve, it requires cross-sector collaboration. Strategic public-private partnerships can expand access to high- quality child care and unlock additional funding opportunities. Connecticut can expand collaboration with economic development entities, housing authorities, employers, and philanthropic organizations to integrate child care into broader community development. As Connecticut seeks to build a more resilient child care system, there is opportunity to push the boundaries of how child care has historically been designed, developed, and funded.

Examples:

• Promise All Atlanta Children Thrive (PAACT) is an Atlanta-wide alliance of public and private partners collaborating to improve learning, health, and well-being outcomes for Atlanta’s youngest children and their families. PAACT was born from a leadership council consisting of leaders from both public and private sectors including local government, state agencies, business, faith, health, philanthropic, and early education communities. The council developed a shared vision, actionable strategies, and citywide commitment needed to sustain this work. GEEARS serves as the lead facilitator and backbone organization to PAACT.

• Based on recommendations cited in Iowa’s child care task force report, the Child Care Business Incentive Grant Program was established to help employers offer or expand child care options as a benefit to their employees. Grant funds support local infrastructure investments and arrangements between employers and child care facilities to expand child care options. Iowa Workforce Development (IWD) also teamed up with Iowa Health & Human Services (HHS) to coordinate the Child Care Challenge Fund, which supports regional and community projects in establishing local child care facilities to increase the availability of quality, affordable child care. IWD made facilities grants available while HHS disbursed grants to support equipment, training, and supplies.

PARTNERING FOR INFRASTRUCTURE

Accessible child care is foundational for healthy communities and economic growth. Strategic public-private partnerships are critical for expanding access and unlocking funding.

Iowa’s Approach

  • Child Care Business Incentive Grant Program – Funds infrastructure for employer- supported child care.
  • Child Care Challenge Fund – Provides both capital and operational funding.
  • Senate Study Bill 1135 (Iowa) – Proposes $16 million in grants for full-day care via Early Childhood Iowa and Child Care and Development Fund Wrap Around funds.

COST-SHARING OPERATING EXPENSES

IOWA’S CHILD CARE SOLUTIONS FUND (CCSF)

Launched in 2021, CCSF invites employers to contribute toward child care staffing. Success in Hamilton County led to state-supported expansion via ARPA funds.

CHAMBLISS CENTER FOR CHILDREN

The Chambliss Center for Children in Chattanooga, TN provides early childhood education and early care programs for the children of teachers in the local schools. The Center also manages five additional off-site early childhood programs throughout the Chattanooga community. While each of the centers has its own board of directors, the back-office management and general support services are merged with the main campus operations. All centers use the same sliding fee scale and follow the same curriculum. This program has helped reduce turnover rates for new teachers from 49% to under 10% in the schools where its classrooms are located.

MICHIGAN TRI-SHARE MODEL

Available across the state of Michigan, the Tri-Share model is a three-way split of child care costs between employers, employees, and the state. Connecticut launched a similar program in New London County in July 2024.21

According to a Child Care Aware of America report released in March 2025, Public-Private Partnerships for Child Care: Examples and Insights, across states that have implemented similar programs, these key takeaways have emerged:

  • Include sufficient funding to cover administrative costs to help market, staff, and run the program.
  • Set-aside a portion of funds for small businesses.
  • Require all programs across the state to have uniform contracts, paperwork, and eligibility requirements to minimize confusion and increase efficiency.
  • Consider leveraging the expertise of an established third-party administrator with experience in similar programs to help streamline efficiency.
  • Dedicate a child care-business liaison who has experience in connecting with employers to help with recruitment and marketing to employers.
  • Include state and local chambers of commerce, child care advocates, and state agency staff to promote the program at business forums, chamber meetings, and in other employer circles.
  • Maintain flexibility for families to decide which care setting and where makes the most sense for them to enroll their child.22

Kiddie Cove, West Haven, CT

OPPORTUNITIES FOR PARTNERSHIPS TO EXPAND REACH & IMPACT

Investment in child care providers and facilities are an integral part of strengthening local economies. Lack of accessible child care options reduces workforce participation and stifles economic growth. A 2023 study by Ready Nation found that the lack of child care options for families across the country results in $120 billion annual economic loss, a figure that has doubled since 2018.23

The following examples lift-up how innovative public and private partnerships and intentional collaborations can increase access and ensure investment in local child care ecosystems.

PUBLIC SECTOR: THE NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY (NJEDA)

The Child Care Facilities Improvement Program (CCFIP) provides grants for facility improvements

that support high-quality early learning environments.

Key Strategies

  • Inclusive Planning: NJEDA released a Request for Information (RFI) before launching CCFIP to gather insight from providers, TA agencies, advocates, child care resource and referral agencies, researchers, and others.
  • Ongoing Engagement: Stakeholders were involved through both program development and implementation.
  • Access: The program underscores the importance of aligning public-sector grant and loan programs with the operational realities of child care.

Takeaway

Effective public agency partnerships require cross-sector coordination, targeted outreach, and thoughtful design to avoid unintentionally excluding child care programs.

PRIVATE SECTOR: CERCLE & MISSION DRIVEN FINANCE

Many child care providers struggle to secure stable, suitable spaces due to high residential and commercial rents, limited financing options, and displacement. Mission Driven Finance’s innovative model, CARE® , a real estate investment trust, infuses private investment dollars to expand access to quality early care.

Key Strategies

  • Private Investment: CARE® purchases properties and in turn leases them to child care providers who include families under 100% of the area median income and those located in communities with insufficient child care supply.
  • Local Ownership Goal: CARE® offers buyout opportunities for providers to be able to access homeownership.
  • Local Collaboration: Partnering with a trusted community organization, such as CERCLE, helps ensure the program meets the needs of local providers. CERCLE, a New Haven- based non-profit, employs a shared services model to deliver services that help improve the sustainability of child care businesses, particularly in communities that lack quality, affordable care.

Takeaway

Investment of private, mission-driven capital can create additional opportunities for facility expansion and potentially leverage other public investment.

Affordable Learning Center, Hartford, CT

PUBLIC/PRIVATE COLLABORATION: HOPE STARTS HERE

Hope Starts Here is a Detroit based initiative to mobilize early childhood efforts across the city.

Key Strategies

  • Multi-Sector Engagement: Several partners across public, private, and philanthropic sectors came together to develop a common vision, coordinate implementation, create infrastructure, and drive collective advocacy.
  • Shared Framework: Three areas of impact – access, quality, and affordability - were identified to further define a six-point imperative framework.

Takeaway

For long-lasting impact, multiple stakeholders must be at the table and developing shared goals. Often, private philanthropy can help seed initiatives, financing a demonstration project to make the case for public investment.

PUBLIC/PRIVATE COLLABORATION: DATA SHARING FOR DECISION MAKING

Lack of timely, accurate facility and enrollment data hinders strategic investment in early care and education.

Key Strategies

  • Multi-Sector Collaboration: Convening stakeholders from government, philanthropy, and the early care sector to discuss data gaps can help determine the tools and resources needed. In Rhode Island, the state Department of Human Services invested in the development of a tool to answer granular level questions about community capacity.
  • Seed Investment for Innovation: Investing time and talent to conduct measurements can often be cost-prohibitive for many local communities. Opportunities Exchange (OppEx) is piloting a tool to measure real-time enrollment.

Takeaway

Better data drives better decisions and investments. But these tools must be designed and implemented with feedback from the multitude of stakeholders who will be the end users.

CONNECTICUT PUBLIC SECTOR COORDINATION

LEAD ABATEMENT

The U.S. Environmental Protection Agency, states, and local municipalities often offer free lead abatement and other services to safely remove lead from residential properties built prior to 1978 and other child-occupied facilities. Lead Free Connecticut is a free lead abatement program to safety remove lead hazards from residential properties, with services specifically catered to family child care homes.

HOME REPAIR

Federal, state and local municipalities may make available home repair assistance that offers homeowners some combination of technical assistance, grants, and loans to make home improvements, often to address health and safety issues. Outside of Connecticut, LISC partners with public and community-based organizations in multiple cities that offer low-income homeowners 0–2% interest rate loans to enable residents to remain in homes that are safe and habitable. LISC has provided $16M in loans to 795 homeowners for critical repairs.

Many programs address research findings that correlate poor housing conditions with higher incidences of asthma and other diseases in children. Program partners should understand if eligibility unintentionally creates a barrier for home-based operators to access funds. Further, program implementation strategies could include priority considerations or carve-outs for family operators or even market these opportunities directly to ensure family educators are aware of these resources.

DOWNPAYMENT ASSISTANCE

Homeownership supports and pathways like Downpayment Assistance Programs (DAP) can serve as powerful tools for ensuring that Family Child Care providers can establish and sustain their businesses without fear of displacement. By removing financial barriers to homeownership, these programs can help secure the future of FCC businesses, improve child care access and quality, and create pathways for economic mobility. The Connecticut Housing Finance Authority (CHFA) offers several programs that could be leveraged to support those educators whose housing situation and businesses are inextricably linked:

  • Downpayment Assistance Program (DAP) Loan Provides low-interest second mortgage loans to help cover downpayment and closing costs.
  • Time to Own Forgivable Downpayment Assistance Offers forgivable downpayment and closing cost assistance for first-time homebuyers, covering up to $50,000 in high-cost areas and $25,000 elsewhere. The loan is fully forgiven after 10 years if the homeowner stays in the property.
  • FHA 203(k) Renovation Mortgage Programs Allows homebuyers to finance the purchase and renovation of a home under a single mortgage. Since many FCCs operate in older homes that may require safety upgrades, accessibility improvements, or better-designed child care spaces, this program would enable them to finance those necessary renovations up front.
  • Potential: Teachers Mortgage Assistance Program If this program were to expand to recognize FCC providers as eligible educators, it could become a powerful tool in offering below-market interest rates and downpayment assistance for those providers to buy homes in the state.

Little Wise Family Daycare Wethersfield, CT

CONNECTICUT COMMUNITY DEVELOPMENT FUNDS

Neighborhood assistance business tax credit programs Corporate grants incentivized through a tax credit equal to 60% of the cash invested is available to business firms that invest in programs that provide child care.

Community Investment Fund (CIF) 2030 A competitive grant program to foster economic development in historically under-resourced communities across the state. Grants are available for capital improvement projects and project planning for eligible municipalities, not-for-profit organizations, and community development corporations.

Urban Act Grant Program Funding to support community development in economically distressed municipalities, including investments in child care facilities and services to improve the quality of life for urban residents. These funds can be awarded as grants to enhance child care infrastructure and services within eligible communities, helping to increase access to high- quality early learning environments.

WANT TO LEARN MORE? Across the country there are dozens of policies, investment models, and technical assistance programs focused on stabilizing the early care and learning industry. This Landscape Analysis contains a curated list of programs that have the potential for replication or influence in Connecticut.

From the Ground Up: Improving Child Care and Early Learning Facilities is a comprehensive catalog of the promising policy and investment models currently in use in communities across the country. Produced by The Bipartisan Policy Center, this report reminds us that

“high quality environments lead to better outcomes for young children and our nation’s children cannot afford to wait for greater investments in early learning infrastructure that support their development.”

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