State poised to borrow tens of millions to incentivize multifamily development

The state Bond Commission is poised to authorize tens of millions in borrowing Friday to help fund multifamily developments throughout the state.

Housing development is a big chunk of the $423.1 million borrowing package going before the bond commission on Friday.

The agenda includes $50 million for the state Department of Housing’s Build for CT program, which helps developers finance affordable and middle-income rental housing projects.

The state Department of Housing is up for another $20 million, which will pass to the Connecticut Housing Finance Authority to fund construction or rehabilitation of 186 housing units.  

Friday’s agenda includes funds to pass through the Capital Region Development Authority as loans to developers. Repayment of those loans will cycle back to the CRDA to fund future projects.

The CRDA is up for $9.5 million, to fund a loan to help Norwalk-based Spinnaker Real Estate Partners build 239 apartments in two buildings wrapping existing buildings on the 3.2-acre property at 55 Elm St.

Spinnaker is converting two former state office buildings on the site into 164 apartments. The state funding will help it finance two new apartment buildings. These projects are part of a broader initiative by the city and CRDA to transform vacant lots and underused buildings around Bushnell Park into a vibrant neighborhood.

The Bond Commission will vote on a proposed $6.5 million for CRDA, which the quasi-public agency would lend to Simon Konover to help the company finance an approximately 150-unit apartment complex in East Hartford. The development would be located on a 35-acre site at 341 East River Drive, near the Connecticut River.

The CRDA is also up for a $4 million grant for upgrades at the Pratt & Whitney Stadium at Renschler Field in East Hartford, including replacement of metal detectors and repairs of the IT network, sound, video and TV production equipment.

The University of Connecticut is poised to receive $33 million in aid for several initiatives, including:

• $10 million for IT equipment;
• $10 million for upgrades to the Gampel Pavilion in Storrs, including replacement of the lower-bowl retractable seating and videoboard system, and upgrades to show lighting;
• $10 million for scientific equipment at the UConn Health Center;
• $3 million for IT infrastructure at the UConn Health Center.