You are eligible if you meet the following criteria:

• Your development is a multifamily project with at least 50 units. (Depending on several factors including the availability of program funds, projects of 30-50 units may be considered. In any event, the minimum number of B4CT units will be 10).

• The property is a market rate development not already subject to affordability restrictions. (Some restrictions that are the result of Inclusionary Zoning or 8-30g requirements may be considered.)

• You have secured financing from a Participating Lender. (see questions 4 and 5 for more information)

A detailed unit mix of the property in an Excel table that details the number of units by type (i.e. Studio, 1BR, 2BR etc.), style (i.e. large, small, with den etc.), square footage and current estimated market rents.

No. Build For CT program is a subordinate loan program. To be eligible, a property’s primary lender needs to be an approved lender under the Build for CT program.

Please click on this link for list of approved Participating Lenders.

Yes. Please click on this link for access to the Participating Lender Agreement template and related Schedules 1 & 2.

Yes. Please click on this link for access to sample loan documents.

Yes. CHFA will consider requests to restrict more than 20% of the units on a case-by-case basis.

The interest rate will reflect the amount discount from market rent the restricted units provide. At the preliminary analysis stage, we will utilize the developer’s/owner’s estimate of market rent, compared to the maximum rent levels allowed within the four Area Median Income (AMI) bands (60%, 80%, 100%, 120%) for the municipality in which the development is located. Once a mix of restricted units is identified, CHFA will assess the projected discount from market rents these restrictions will provide and establish the interest rate accordingly.

When the Senior/Primary lender orders their appraisal, CHFA will request that the appraiser provide an early indication of market rent for all unit types and styles. If the appraiser’s estimate of market rents supports CHFA’s preliminary analysis, the proposed level of restrictions and interest will not change. In the event the appraiser’s estimated market rents do not support CHFA’s preliminary analysis, the restrictions and interest rate will be adjusted.

No, the Build For CT loan program does not trigger prevailing wages.

Yes, all units restricted under the Build For CT loan program count toward the municipality’s 10% affordability target for as long as the loan and/or deed restriction are in place and the development is in compliance with its restriction requirements.

Important Note – The restricted units under the Build for CT program do not automatically count toward a municipality’s efforts to qualify for a moratorium under 8-30g. For guidance on this matter, please contact your municipality or refer to the statute.

Yes, with an exception, CHFA will consider developments that have been approved with affordability restrictions that are the result of Inclusionary Zoning or as required under CT General Statute 8-30g.

Maybe. Provided that the restrictions required in your approvals fall between 60% and 120% of AMI and are at least as restrictive as those required by Build for CT, you may receive credit for up to 10% of the total units in the development toward the program’s minimum 20%. You will further be required to provide an equal number of additional Build For CT restricted units.

Example A: 100-unit development is approved subject to 10 units (10%) being restricted affordable to households making 80% or less of the area median income. So long as those restrictions provide for an adequate discount from market rent, CHFA will count those 10 units toward the program minimum and then restrict an additional 10 units (10%) to achieve the program’s minimum 20% requirement. This will result in a total of 20 units being restricted.

Example B: 100-unit development is approved subject to 30 units (30%) being restricted affordable to households making 80% or less of the area median income. So long as those restrictions provide for an adequate discount from market rent, CHFA will count 10 of those restricted units toward the program minimum and then restrict an additional 10 units (10%) to achieve the program’s minimum 20% requirement. This would result in 20 units receiving funding under Build For CT but a total of 40 units restricted at 80%AMI or less.

Please contact Vin Bergin at vincent.bergin@chfa.org to discuss the eligibility of the development for the Build For CT program and what additional information will be required to complete a preliminary analysis.

As determined by CHFA and the Senior/Primary Lender - The loan will be funded at closing or post-closing and will be disbursed either directly to the borrower or to an account in the name of the borrower controlled by the Senior Lender. In the event the funds are controlled by the Senior Lender, release of the funds will be governed by an agreement between the Senior Lender and borrower.

During the construction period of the loan, interest only payments will be due and payable beginning on the 1st day of the month immediately following the initial loan disbursement. Upon conversion to permanent, amortization will commence with principal and interest due on the first of each month during the loan term..