CHFA plans to sell $60.3 million in tax exempt bonds to finance affordable multifamily rental housing
CHFA maintains AAA/Aaa ratings from S&P and Moody’s
Rocky Hill, Conn., November 30, 2015 – The Connecticut Housing Finance Authority (CHFA) plans to offer up to $60.3 million in Tax Exempt Bonds to finance six affordable multifamily rental developments: Billings Forge in Hartford, Charles Street Apartments in Meriden, Frost Homestead in Waterbury, Laurelwood Apartments in Bridgeport, Old Talcott Mill in Vernon, and Trinity Park in Stamford, totaling 488 units. “The proceeds from this bond sale will allow us to pursue much needed rehabilitation and redevelopment of some family and elderly housing, and the preservation and conversion of an abandoned mill into affordable housing.
As a quasi-public self-funded agency, CHFA’s tax exempt bond program provides a vehicle to leverage equity from private and corporate investors thereby allowing us to do more in affordable housing and transforms people’s lives,” said Hazim Taib, CHFA’s vice president-Finance.
CHFA’s bond program is also an important tool for housing finance, which generates jobs and tax revenue and economic activity in the state. In addition to affordable multifamily rental housing, bond proceeds are used to finance affordable mortgages for low to moderate-income first-time homebuyers. Of the $60.3 million, about $30.2 million will be directly placed with Bank of America as the investor. The remaining $30.1 million will be publicly offered on Tuesday, December 1, 2015 and the sale will be spearheaded by J.P. Morgan as the lead underwriter. The bonds are rated AAA/Aaa by S&P and Moody’s respectively.
Hawkins, Delafield & Wood LLP, Kutak Rock LLP and Lewis & Munday are acting as co-bond counsel. Underwriters are represented by Tobin, Carberry, O’Malley, Riley & Selinger PC. Lamont Financial Services Corporation is serving as Financial Advisor to CHFA. CHFA maintains a AAA rating with Standard & Poor’s and a Aaa rating with Moody’s Investor Services, which allows the Authority to achieve the lowest cost of funds.
The Connecticut Housing Finance Authority (CHFA) was created in 1969 by the Connecticut Legislature as a self-supporting quasi-public housing agency charged with expanding affordable housing opportunities for the state’s low- and moderate-income families and individuals. CHFA has helped more than 130,000 Connecticut individuals and families become homeowners through its low-interest single-family mortgage programs. In addition, CHFA has financed the creation of nearly 40,000 affordable, rental units throughout the state. To date, the combined mortgage financing for CHFA’s single-and multifamily housing programs exceeds $11 billion. For more information: http://www.chfa.org