Dear State-Sponsored Housing Portfolio Property Owners:
WASHINGTON, D.C. – August 19, 2013 – (RealEstateRama) — As you know, Governor Malloy has been a champion for affordable housing in Connecticut. As a result of his leadership, over $500 million has been committed for the development and rehabilitation of affordable rental housing. As part of that commitment, he has demonstrated national leadership by making a significant and specific commitment to the State-Sponsored Housing Portfolio (SSHP) in the amount of $300 million over a ten-year period.
In addition, HUD has allocated approximately $72 million of Community Development Block Grant – Disaster Relief (CDBG-DR) funds to Connecticut to assist areas affected by Hurricane Sandy last year. Owners of SSHP properties that were damaged by Hurricane Sandy and are located in CDBG-DR eligible areas may benefit from this funding as well.
In order to leverage these precious resources, the Department of Housing (DOH) and the Connecticut Housing Financing Authority (CHFA) are encouraging, when feasible, a multi-layered approach that includes financing from CHFA or private sources, equity investment through tax credit allocation, and capital funding from DOH to address the capital needs of the SSHP.
The schedule of competitive multifamily funding rounds that has recently been released includes several funding rounds specifically for SSHP properties. A copy of this schedule is attached for your convenience. The focus of these funding rounds reflects the preliminary results of the SSHP 10-Year Capital Plan prepared on behalf of CHFA and DOH. Going forward, it is expected that this 10-Year Capital Plan will inform and guide the approach of DOH and CHFA in allocating state capital funds for the revitalization of the SSHP.
DOH and CHFA would like to assist SSHP property owners that are ready to apply for 4% Low-Income Housing Tax Credits (LIHTC), CHFA Tax-Exempt Bond financing (TEBs), DOH Flex capital funds, and/or CDBG-DR funds to complete the attached “Application for a Commitment of Funding”.
For this application, DOH and CHFA encourage responses from proposed projects that meet all of the following criteria:
1. Phase I Environmental Report and as necessary, Phase II for remediation pricing
2. 40% Drawings
3. Qualified Construction Estimates
This application must be received by CHFA no later than September 20, 2013, and can be submitted via email to . Respondents will receive joint notification from DOH and CHFA by Oct. 18, 2013 regarding a commitment of DOH Flex capital funds or CDBG-DR funds, and, if applicable, the potential availability of 4% LIHTC and/or CHFA TEB financing. If a commitment of funding is made for a project that also requires 4% LIHTCs and/or CHFA TEB financing, the owner will have to submit a full Consolidated Application for that financial assistance no later than Dec. 31, 2013. To take advantage of the CHFA 4% TEB rate special, full applications must be received no later than Oct. 1, 2013. CDBG-DR eligible applicants will receive additional information from DOH under separate cover.
We also encourage SSHP property owners to consider the following additional funding opportunities available solely for SSHP properties:
• Predevelopment funding available to owners in the SSHP who are not currently prepared to submit an application for funding. Applications are due Sept. 16, 2103
• Funding for properties needing minor to moderate renovations that are not anticipating the use of LIHTC’s. Applications are due Jan. 13, 2014
• Technical assistance funds for selected owners who may benefit from the guidance of a development consultant based on the SSHP 10-Year Capital Plan when it is completed in October. Eligible owners will be contacted in Oct. 2013