Two area towns were awarded grants for predevelopment costs associated with establishing incentive housing zones, Gov. Dannel P. Malloy announced Thursday.

North Stonington and Stonington were among 10 towns that will receive a total of $197,800 in funding through the Housing for Economic Growth Program, also known as HomeCT, which provides incentives to municipalities that create affordable housing by designating areas as Incentive Housing Zones.

Incentive Housing Zones allow for residential and mixed-use developments with a minimum of 20 percent of the household units earning 80 percent or less of the area median income for a minimum of 30 years.

For a unit to be deemed “affordable,” rent must be no more than 30 percent of the household’s income.

“Our state’s ability to attract young workers, families and businesses that provide jobs and increased revenue is dependent on the availability of various types of housing opportunities,” Malloy said in a statement. “Incentive housing zones are an important tool that communities can use to promote high-quality workforce housing, revitalize vacant or underutilized properties, increase pedestrian activity, support businesses, and make better use of existing public infrastructure.”