A planned $28.75 million, 65-unit affordable housing development in Farmington is up for another $16.68 million in financing through the Connecticut Housing Finance Authority.
The quasi-public state housing agency, in April, already granted low income tax credits expected to yield $14.35 million to the development of 2.9 acres at 80 South Road – near the UConn Medical Center campus – by Sager Development LLC.
Now, Sager is seeking $16.68 million in loans from the CHFA in a request going before the agency’s Mortgage Committee Tuesday. The full CHFA Board of Directors is expected to take up the proposal during a meeting on Thursday.Â
It includes:
- A $10.13 million construction loan, paying interest only during a two-year construction window at rates of up to 5.75%. The loan principal and interest would be due fully after two years.
- A $5.55 million permanent loan, only charging on interest during a two-year construction at rates of up to 6.5%, before amortizing over 35 years.
- A $1 million mortgage loan at rates of up to 1%, with a term of up to 35 years.
Sager’s development will include eight studio apartments, 18 one-bedroom units and 39 two-bedroom units.
Thirteen of these will be set aside for households earning 30% or less of area median income. Another 26 will rent to households at or below 50% of area median income. Eight units will go to renters earning at or below 60 percent AMI. Five units will rent to people earning less than 80% AMI. Thirteen of the units will have no income restrictions.
Fifteen units will provide supportive services for intellectually disabled residents, with rents being subsidized by the state.
Construction is expected to begin this fall and wrap up in a little more than two years.Â
