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GOV. MALLOY ANNOUNCES FUNDS TO SUPPORT AFFORDABLE HOUSING THROUGHOUT THE STATE

Date Posted: Thursday, October 23, 2014
 
October 22, 2014
 
 
GOV. MALLOY ANNOUNCES FUNDS TO SUPPORT AFFORDABLE HOUSING THROUGHOUT THE STATE
 
(HARTFORD, CT) – Governor Dannel P. Malloy, Department of Housing (DOH) Commissioner Evonne M. Klein, and Connecticut Housing Finance Authority (CHFA) President and Executive Director Eric Chatman today announced investments of over $25 million in six affordable housing projects selected under the Competitive Housing Assistance for Multifamily Properties (CHAMP) initiative.  The plans will build and rehabilitate over 500 affordable apartments.
 
“In this year alone, we’ve made more than $100 million available to help municipalities address one of their most pressing needs – the lack of affordable housing options in their communities,” said Governor Malloy.  “We are doing more to support local efforts to create and rehabilitate affordable housing, which will revitalize neighborhoods and strengthen entire communities. And when we do this across the state, we are enhancing the quality of life for all in Connecticut.  At the same time, these projects will bring in over $22 million in federal tax credit equity through the 4% Low Income Housing Tax Credit (LIHTC) program administered by CHFA.”
 
The projects announced today competed successfully in the fifth round of the CHAMP initiative.  Investments include over $25 million in state capital funding, $22.5 million in federal 4% LIHTC credits and $3.9 million in CHFA tax exempt bond financing.  CHAMP is administered by DOH and helps owners and developers of multifamily rental developments to expand or rehabilitate affordable and supportive housing.
 
“The investments the Governor is announcing today will leverage nearly three times the amount of CHAMP funding.  The total development cost of the projects, with the majority coming from private investment, is expected to be over $100 million,” said Commissioner Klein, who is also chair of CHFA’s Board of Directors.  “It is through these creative partnerships and financing structures that we are finding new ways to extend our public assets and increase the impact of our housing programs.”
 
CHFA administers the 4% LIHTC program, which is a federal tax incentive program designed to stimulate private investment in affordable housing. Under the program, developers can obtain equity financing to acquire, rehabilitate and/or construct new low- or moderate-income housing through the allocation of federal tax credits that may be sold to corporations or investor groups.
 
“The LIHTC program is a catalyst for affordable housing and an important source of gap funding for developers,” said Chatman.
 
The list of recipients is as follows:
 
Bridgeport — Crescent Crossing
DOH will provide up to $5 million in CHAMP funds to assist in the construction of 93 new units of affordable housing. The project is within walking distance to bus routes, grocery stores, a school, a proposed train station, and other retail/commercial activities.  The 93 units will be contained in 6 buildings with a unit mix of one-, two- and three-bedroom units. DOH funding will leverage nearly $7 million in Federal Disaster Recovery (CDBG-DR) funds and over $20 million in other non-CHAMP funds.  Crescent Crossing is the first phase of the replacement of Marina Village, which was heavily damaged by Super Storm Sandy and prior storms.
 
Deep River — Kirtland Commons
DOH will provide up to $4.2 million in funding to assist in the redevelopment of this affordable elderly housing development.  The funding will allow the Deep River Housing Authority to upgrade the existing 26-unit complex to current building and housing codes while also assisting in the development of 18 new units.  This combination of rehabilitation and the creation of new units will make this development economically sustainable. Kirtland Commons is on Route 154 in close proximity to all town services, has regular bus service, and is close to Route 9.
 
Hartford — Billings Forge Apartments
DOH will provide up to $5 million and CHFA will provide $2,575,000 in tax exempt bond financing and $4.4 million in 4% LIHTC net proceeds to assist in the rehabilitation of Billings Forge, a 112-unit affordable housing development located in several buildings near the state capitol in the historic Frog Hollow district.  The primary structure was constructed in 1864 as a manufacturing tool plant and converted to residential use in 1980.   The property also acts as a host to an array of activities, including a farmer’s market, a community garden, and the Firebox Restaurant, which serves the surrounding neighborhood and local office workers as well as the development’s tenants. DOH’s funding will leverage an additional $6.3 million in non-state funds.
 
Meriden — 122 Charles Street
DOH will provide funding of up to $3,590,049 and CHFA will provide approximately $1,341,299 in tax exempt bond financing and $3.4 million in 4% LIHTC net proceeds to assist in the rehabilitation of this property.  The current 4.38-acre site has four attached historic mill buildings as well a stand-alone pump house building currently used as a community center for the residents.  The unit mix at 122 Charles Street will include units at 25%, 50% and 60% of the area median income.  Two units will be targeted for homeless veterans with supportive services being provided by the Veterans Administration of West Haven.  This funding will leverage approximately $4 million in non-state funds.
 
Putnam — Cargill Falls Mill
DOH will provide a loan of up to $5 million to assist in the redevelopment of the historic Cargill Falls Mill complex of 14 buildings.  The ground floors of this mill complex will be dedicated to commercial use while the upper floors will be developed into residential units.  The mill is part of the fabric of Putnam and reported to be both the oldest surviving cotton mill in Connecticut and the oldest mill site in the United States.  The project will include a mix of market rate and affordable residential apartment units in a community setting adjacent to compatible clusters of office, retail, service and restaurant workplaces on a six-acre site with more than a quarter mile of frontage on the Quinebaug River.  The property is within walking distance of the downtown and its shops, restaurants, a grocery store, municipal offices, and other amenities such as recreation, medical care, transportation and employment.  When completed, Cargill Falls Mill will consist of 82 rental units, 30 of which are affordable. Both residential and commercial tenants will enjoy significantly reduced electricity costs from the one megawatt hydroelectric dam and cogeneration facility also being developed at the property.  This funding will leverage approximately $15 million in non-state funds.
 
Torrington — Northside Terraces Apartments
DOH will provide up to $3 million for the rehabilitation of Northside Terraces, a family housing development.  Northside Terraces has 91 units in six buildings originally constructed in 1968. The unit mix consists of 12 one-bedroom, 59 two-bedroom and 20 three-bedroom apartments.  The units will continue to serve low and moderate income families with incomes ranging from 25% to 60% of the area median income. Northside Terraces is less than 1.5 miles from Torrington's downtown with immediate access to large employers and downtown shops.  It abuts the Torrington High School and is served by public transportation and shopping on nearby Winsted Road.  Among the critical improvements, the project will include the creation of 10 new accessible units.  This funding will leverage approximately $6.8 million in non-state funds.
 
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For Immediate Release: October 22, 2014
Contact: David Bednarz
David.Bednarz@ct.gov
860-524-7315 (office)
860-770-9792 (cell)
 
Twitter: @GovMalloyOffice
Facebook: Office of Governor Dannel P. Malloy