Six housing projects across Connecticut have been approved for $7.1 million in federal 9 percent low-income housing tax credits. The credits are awarded through the Connecticut Housing Finance Authority.
Hartford’s Chester A. Bowles Park redevelopment is the beneficiary of $1.7 million in federal 9 percent low income housing tax credits. The credits will be applied to the first phase of the project that demolish the 1950s-era property and replace it with 62 new affordable rental units.
Other developments in Greater Hartford receiving the tax credits are
- Meriden, 177 State St.: The proposed project received $1.5 million in tax credits. It will have 75 units of mixed-income family housing, with ground-level retail space and a preschool. The property will include eight supportive units and 60 units targeted for households with incomes of 60 percent or less of Area Median Income (AMI). In addition, 26 of the 60 units will be supported by project-based Section 8. The new building will be within walking distance of Meriden`s new transit center.
- West Hartford, 616 New Park: This new construction will include 54 family apartments and some commercial space. It received $1 million in tax credits. The complex will be affordable to those with incomes of 60 percent or less of AMI, including 11 units of supportive housing and 11 units of market-rate housing. The New Park Avenue location provides access to transit and services.
Statewide, these developments will result in 320 affordable rental units and 65 market rate units. The tax credits are projected to generate more than $70 million in private equity for the developments. The development of these properties is expected to generate 527 jobs and $175 million in economic activity.
CHFA administers the LIHTC program, 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.
Due to the limited amount of annual 9 percent tax credits, the application process is considered highly competitive. Nineteen developers applied for funding.
