Alex Farrell, commissioner of the Department of Housing and Community Development, presented a high‑level overview of the Infrastructure Sustainability Fund (ISF) during testimony to the House Committee on General and Housing on Feb. 21. He described the ISF as a municipal vehicle for low‑interest, revolving loans intended to support a range of infrastructure activities, with prioritization for smaller communities.

Farrell told the committee that eligible activities under the ISF would be broad and include transportation (sidewalks and roads), water and wastewater, and site infrastructure that supports housing. He said municipalities would be the eligible entities and that the fund is structured as revolving loans, “so they would be at a low interest rate.” He also said the department is contemplating delayed repayment and potential forgiveness and that the bond bank could have discretion to buy down rates or provide credit enhancements.

The committee referenced testimony from the League of Cities and Towns, which urged expanding eligible uses to cover project and grants management work. Farrell agreed project management capacity is often a practical barrier to small projects and said the administration was considering that suggestion.

Committee members also discussed leveraging the $9.1 billion principal rather than lending it all directly. One witness’ testimony cited green‑bank models with high leverage ratios; the transcript referenced Connecticut’s experience and cited leveraging rates “of, like, 10 to 1.” Department witnesses said the administration expects to stretch the ISF dollars by pairing them with other finance tools rather than relying solely on direct lending.

Ending: The department left detailed program design and loan‑forgiveness options to later drafting and indicated the bond bank would play a key role in implementing rate buy‑downs and credit enhancements. The League’s project‑management expansion suggestion will be considered in further drafting.