The Connecticut Housing Finance Authority’s Mortgage Committee unanimously endorsed $36.5 million in loans to affordable housing projects in Newington, West Hartford and New Haven Tuesday.
The full CHFA Board of Directors is scheduled to take up the requests Thursday.
The loan proposals include $3.17 million for the second phase of Massachusetts-based Dakota Partners’ “Cedar Pointe” development of a 7.7-acre former car dealership property at 550 Cedar St. in Newington.
The first phase consists of 72 apartments in three buildings and a one-story clubhouse. With an estimated cost of $14 million, this second phase will include a mix of 36 one- and two-bedrooms apartments, 28 of which will be offered at affordable rates. Construction is anticipated to launch this spring and conclude in summer 2024.
Dakota has applied for a loan of $2.39 million at no more than 7.25% interest yearly over 35 years and a $951,000 loan at no more than 1% interest over 25 years.
On Tuesday, the CHFA subcommittee also endorsed an $11.7 million construction loan and a $2.1 million permanent loan for the first phase of West Hartford Fellowship Housing’s plan to replace 23, 1970-vintage buildings containing 168 units with six buildings containing 300 apartments for the elderly and disabled.
The nonprofit housing provider got its start about 50 years ago, when area churches and synagogues came together around a mission to provide affordable housing. Today, the nonprofit is run by a volunteer board, operating the aging housing complex on a 2.9-acre town-owned site.
West Hartford’s Town Council approved a 99-year extension of the land-lease late last year.
The planned first phase of development, estimated to cost $25.6 million, will see three buildings containing 22 units replaced with two, three-story buildings with elevators serving 65 affordable units restricted to people ages 62 and up or disabled.
The $11.7 million construction loan is proposed at no more than 7.34% interest over 24 months, with the $2.1 million permanent loan at rates of not more than 6.53% over 35 years.
Haynes Construction has been named as the builder for this first phase of construction, which is expected to launch this summer and conclude in winter 2024.
The CHFA Mortgage Committee also endorsed $19.53 million in loans for rehabilitation of 66 apartments and construction of 26 more at the McConaughy Terrace complex in New Haven.
The development at the corner of Genesee St. and Harper Ave. is anticipated to launch this summer and wrap in fall 2024.
Under the subcommittee action Tuesday, a $5.23 million construction loan would be offered to the Glendower Group Inc. at no more than 5.88% interest annually over a two-year repayment term. A permanent loan of up to $14.3 million would come at no more than 6.68% interest over a term of 40 years.
McConaughy Terrace was built in the 1940s.
Glendower plans to convert the complex to a project-based voucher model, with construction over two phases. The anticipated second phase would rehab 130 existing units, 26 of which would be offered to tenants without income restrictions.
The 92 units involved in the first phase will all be offered as affordable housing.
