The Department of Housing, (DOH) through Bond Commission allotment, has allocated specific funding to State Sponsored Housing Portfolio (SSHP) developments that (a) need to make physical improvements to the property which directly address priority capital improvement needs, or (b) require funds to perform activities required to apply for redevelopment financing. The Connecticut Housing Finance Authority (CHFA) is working in conjunction with DOH to administer the program funds. Program funding is limited to $500,000 per project.
Program funding may be used to address Priority Needs. A Priority Need is a capital improvement that is urgently needed to protect the health and/or safety of one or more residents as certified by a building design professional or other professional with equivalent expertise. Examples of allowable scopes of work include, but are not limited to, major system upgrades, remediation or abatement of hazardous materials, installation, augmentation or upgrades of mobility and sensory impaired accessibility equipment in units and common areas, renovations directly related to bring vacant off-line units on-line and associated architect/engineering drawings. Allowable hard and soft costs will be at the discretion of CHFA. Developer fees are not allowed. Funds for Priority Needs will be provided as grants.
Program funding may also be used to provide loans for pre-development activities required to prepare a transaction to meet threshold requirements for an application for funding of a redevelopment project. Eligible pre-development costs are expenses that are not administrative and are necessary before the construction stage of a project begins, including without limitation, architectural design up to 100% plans and specifications, feasibility and environmental studies. Loan funds may not be used for repayment of other predevelopment financing. The program does not pay for expenses incurred more than 6 months prior to the application date. Except as otherwise required by DOH, loans will be provided at 0% interest, with repayment due upon the closing of construction financing for the project, or 24 months, whichever occurs first.
Please review the 2025 Priority Needs Guideline for full program information and requirements.
Questions? Contact your CHFA Asset Manager.