Shipman Protects Housing Services for Connecticut Residents with Severe Disabilities

Shipman & Goodwin LLP (“Shipman”) announced a major win for Community Living Arrangements (CLAs), also known as group homes, after the Connecticut Department of Social Services (DSS) agreed to update Fiscal Year 2026 room and board rates using 2024 cost data. This long‑overdue change ends more than a decade of frozen rates and delivers roughly $4.2 million in new statewide funding to help CLA providers continue supporting individuals with severe disabilities and their families.

Community Living Arrangements are small, community‑based homes that typically serve six or fewer residents and provide stable, integrated housing and daily support for individuals with severe disabilities.

For years, CLA room and board rates were effectively stuck at 2013 cost levels. Even as expenses rose, the state continued to apply the outdated statutory freeze, including in the July 1, 2025 rate release for Fiscal Year 2026. Providers warned that without updated rates, they would struggle to maintain staffing, housing quality, and essential services.

A Shipman team led by Christopher Cahill with assists from Joan Feldman, Chair of Shipman’s Health Law Practice Group and Litigation partner Eric Del Pozo filed administrative appeals on behalf of a coalition of CLA providers, challenging the continued freeze, working closely with DSS on rate‑setting and legal teams throughout the appeal process.

“This outcome represents an important step toward ensuring the long‑term sustainability of community‑based services for individuals with severe disabilities and their families across Connecticut,” said Cahill. “We are pleased to have worked constructively with DSS toward a resolution that reflects current costs and supports the essential role these providers play.”

After a rehearing focused on Fiscal Year 2025 rates, DSS concluded in November 2025 that the freeze should no longer apply. On January 29, 2026, the agency announced that Fiscal Year 2026 CLA room and board rates will be recalculated using 2024 cost data, with adjustments applied retroactively to July 1, 2025. Revised rate letters will be issued in waves beginning January 30, 2026.

Crucially, the updated rates will apply statewide, not just to the providers who participated in the appeal, ensuring that all CLA homes benefit from the correction.