Heading into negotiations over reducing state spending. Gov. Dannel P. Malloy has announced over $20 million to create six affordable housing developments across the state. The housing grants, which come from the most recent Competitive Housing Assistance for Multifamily Properties (CHAMP) funding round, will assist in creating and rehabilitating 230 affordable units and 52 market-rate units.
In Hartford, the Department of Housing will provide a loan up to $4.2 million and CHFA is expected to provide an approximately $11 million construction loan and approximately $862,000 in 4 percent LIHTC equity to assist in the adaptive re-use of a vacant six-story commercial building at 370 Asylum Street into a mixed-use, mixed-income development.
Several groups have tried to redevelop the property in recent years into mixed income apartments. The property was donated by foundation of Stamford technology entrepreneur Milton B. Hollander and his wife Betty Ruth the Northeast Neighborhood Partners, Inc., a Hartford-based nonprofit development firm.
“We have done more on housing in the past few years than Connecticut has done in decades. Affordable housing creates vibrant communities that attract families, workers, businesses, and private investments. It’s ultimately all about strengthening our economic base,” Malloy said in a statement.
The funding, administered by the state Department of Housing, helps owners and developers of multifamily rental properties to expand or rehabilitate affordable and supportive housing. The CT Housing Finance Authority administers the LIHTC program, which is a federal tax incentive program designed to stimulate private investment in affordable housing. Under the program, developers can obtain equity financing to acquire, rehabilitate, and/or construct new low or moderate-income housing through the allocation of federal tax credits that may be sold to corporations or investor groups.
Since 2011, the state has created 6,958 affordable housing units, there are another 2,517 affordable units under construction, and funding commitments are in place to create another 5,255 affordable units. The state’s investment in providing affordable housing totals almost $1 billion.
