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CHFA finances two types of affordable housing

• Affordable mortgages for  first-time homebuyers  with low- to moderate-incomes
• Construction and permanent financing for the development of affordable multifamily rental housing

AAA and AAA Ratings

• CHFA is a self-funded agency, not reliant on State appropriations to fulfill its mission.  To finance its operations, CHFA issues tax exempt bonds, using the proceeds from the sale of these bonds to finance affordable housing in Connecticut. 
• CHFA maintains the highest ratings with S&P Global Ratings and Moody's Investor Services.  The AAA and Aaa ratings allow the Authority to achieve the lowest borrowing costs, which increases the amount of money available to lend to potential borrowers. 
• With  much of its funding earned in the market, CHFA's lending activity is highly regulated by the U.S. Treasury Department and state statues. 

Mortages for first-time homebuyers

• CHFA provides a variety of mortages and a down payment loan program  through a network of Approved Lenders 
• As borrowers pay off their mortgages, the money returns to the loan pool for future borrowers.
• Homebuyer education is an important part of CHFA's loan programs. Borrowers are required to take a homebuyer education class and/or counseling sessions to help them understand the financial aspects of buying and maintaining a home.

Foreclosure Prevention Programs

• CHFA administers the State's Emergency Mortgage Assistance Program (EMAP), a revolving loan fund established by the State Legislature in response to the housing crisis. 
• EMAP provides mortages assistance to borrowers who are experiencing temporary financial difficulties, such as a job loss or illness. 
• CHFA also funds foreclosure prevention education and counseling programs to assist struggling homeowners. 

Financing for Affordable Multifamily Housing 

• Developers come to CHFA for financing and tax credits as part of the overall funding plan for their developments.  To receive CHFA funding, a portion of the units in the development must be affordable and the project must comply with CHFA's underwriting guidelines and support the State's housing goals.  
• CHFA has several types of financing -- tax exempt bond funding, taxable bond funding, and it's own investment trust account.  This funding is genreall leveraged with tax credit and other private funds. 
   

Federal Low Income Housing Tax Credits 

CHFA is the state's allocating agency for the federal 9% and 4% Low Income Housing Tax Credits (LIHTCs).
These tax credits provide a dollar-for-dollar reduction in federal tax liability for investors and millions of dolloars in equity to developers that can be leveraged with private funds to build affordable housing. Each year there are competitive funding rounds for the 9% LIHTCs; the 4% LIHTCs are non-competitive funding and allocated by CHFA.  Click here for a list of current awards. 

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