Limited Equity Coop (LEC)

CHFA oversees rental housing developments in Connecticut that are subject to various compliance and reporting standards associated with their funding source. Originally administered by the Connecticut Department of Economic and Community Development (DECD), the Limited Equity Cooperative Program was designed to offer deferred or low-interest loans, loans and/or grants to non-profit corporations that develop or own low- to moderate- income housing. Residents must contribute their labor, make a cash contribution, or both, in order to become a cooperative member. Recipients of funds under this program are required to regularly provide CHFA with documentation that demonstrates their compliance with specific financial, insurance, property, tenant and lease requirements.

The Limited Equity Cooperative Program is subject to relevant state of Connecticut statutory regulations, as well as the provisions of the Loan Documents and/or Assistance Agreement(s), applicable between the owner and CHFA. All operating expenses must be paid from the carrying charges collected from the residents.

Some of the Compliance Reporting Requirements are as follows:

Audited Annual Financial Statement (AFS) Note: A pdf copy of the AFS and supplemental forms excel workbook must be uploaded to CHFA via the AFS secured portal.
Annual Budgets Note: All submissions should be uploaded to CHFA via our Budget / Interim secured portal.
Interim Quarterly Statement of Operations Note: All submissions should be uploaded to CHFA via our Budget / Interim secured portal.
Insurance Requirements For additional information please contact our Multifamily Insurance Servicing Group at mfinsurance@chfa.org.
Leases must meet the requirements of Connecticut General Statutes and regulations, as well as federal and state Fair Housing laws. In addition, every lease must contain a rider that clearly states the residency rules and regulations of the development.
Miscellaneous Annual Reporting
Replacement, Maintenance & Reserve Requirements
Tenant Profile Submission (TPS) & Wait List Survey Requirements

Questions? Contact your CHFA Asset Manager.

Financial

AFS Reporting Handbook
This is a list of Frequently Asked Questions about CHFA's Audited Annual Financial Statement Reporting Requirements.

SSHP - Form 6-12LEC
This management plan form provides an estimate of average annual income and expense for a Limited Equity Co-op within the State-Sponsored Housing Portfolio. This form is submitted annually to CHFA.

SSHP - Form 6-10LEC
This form contains semi-annual (January and July) financial information for any Limited Equity Co-Op Program within the State-Sponsored Housing Portfolio. This form must be submitted to CHFA no later than 30 days after the end of each semi-annual period.

SSHP - Affidavit for Financial Statements
This legal statement is signed by designated officers of the Limited Equity Co-operative within the State-Sponsored Housing Portfolio and attests to the truth and accuracy of the financial information concerning that development.

Insurance

State Housing Portfolio - Insurance Requirements for Non Profit and Profit
This summary from DECD/DOH and CHFA sets forth the insurance requirements for Non-Profit and For-Profit owners of developments within the State-Sponsored Housing Portfolio that have not been subordinated to a CHFA Funding Program.

Annual Misc.

State-Sponsored Housing Portfolio - Form 10-4 - Limited Equity Cooperatives Directory 8/25/2017 12:11 PM
This form is requested to be submitted to CHFA when there is a change of contact information for the owner/sponsor, site administrator, accountant, auditor and/or management agent of a Limited Equity Cooperative within the State-Sponsored Housing Portfolio.