Funding for Waveny's Current Renovation
Did you know?
In a closed-door "executive session" in January 2026, the Housing Authority voted unanimously to approve lending up to $45M to Waveny LifeCare. The bond was issued by the Town of New Canaan and purchased by GSC, in partnership with M&T Bank as bond holder, with the proceeds funding the loan created by the New Canaan Housing Authority. The Town of New Canaan carries no liability for these bonds — the loan itself is held by the Housing Authority and secured by revenue and assets from Waveny LifeCare.
In February 2026, the Housing Authority proceeded to loan $32.2M of the approved $45M to Waveny for its current renovation. Yet despite signaling that they are completely independent from the Town, they are not — Waveny benefited from the Town's bond rating to secure financing for its current renovation. This begs the question: they now want more from the Town.
This raises several questions:
Who, beyond the Housing Authority, approved this third-party loan?
In the past, bonds have been raised to purchase Riverwood/Avalon — not to fund a private nonprofit third party.
Was Town Council or the Board of Finance consulted? This loan may not be a liability to the Town, but good governance would suggest another set of eyes before committing $32.2M.
Who assessed the credit risk? Waveny LifeCare secured this funding on the promise of future revenue, and the bond was purchased by an investor group called GSC, in partnership with M&T Bank — yet Waveny LifeCare has repeatedly said it is operating in the red and not turning a profit. According to the documents, Waveny LifeCare leveraged the Town's credit rating to secure this funding. Who performed the credit risk analysis before this $32M loan was made? Did GSC buy the bond because the Town of New Canaan stands behind it — even though the Town claims no formal liability?
Who absorbs the loss if Waveny doesn't repay the Housing Authority? Loan documents were not available at Town Hall.
Why was this handled in executive session? What happened to full transparency and open public forum? Is this related to a Housing Authority member publicly endorsing the future CCRC to Town Council in July 2026?
Couldn't Waveny LifeCare have gone to a bank for a construction loan instead? They've previously obtained a mortgage and an extended line of credit from Bank of America, for example.
Who audits the Housing Authority? Do we need stronger controls in place before they return seeking $200M+ to support their residential CCRC?
All of this is concerning, and there is very little daylight between the Town of New Canaan, the Housing Authority, and Waveny LifeCare. It may be time to pause and review the existing relationship — including the annual lease payment on the existing parcel (reportedly $10K), the loans made to Waveny, and the broader relationship between this private nonprofit and the Housing Authority.
Here are the key documents:
Agreement between the Town , GSC for the initial issuance of the bonds
