NORWALK, Conn. – This is a press release, presented in a slightly altered format from which it was sent:
GOV. MALLOY ANNOUNCES $31 MILLION TO SUPPORT THE DEVELOPMENT OF AFFORDABLE HOUSING IN CONNECTICUT
Funds Support Development of Affordable Housing in Ellington, Hartford, Manchester, New London, Norwalk, Norwich, Suffield, Trumbull, Wallingford, and Westbrook
(HARTFORD, CT) – Governor Dannel P. Malloy, Department of Housing (DOH) Commissioner Evonne M. Klein, and Connecticut Housing Finance Authority (CHFA) Executive Director Karl Kilduff, today announced that more than $31 million in state funding is being awarded to support the development of affordable housing projects in ten communities across Connecticut.
The funding announcements are part of several initiatives that began under the Malloy administration, including the Competitive Housing Assistance for Multifamily Properties (CHAMP) funding program, the State Sponsored Housing Portfolio (SSHP) funding program, and the Affordable Homeownership funding program. These awards will help to create, rehabilitate, or preserve nearly 600 units of affordable housing for both the rental and homeownership markets. These units are also aiding in the state’s nationally recognized efforts to prevent and end homelessness.
“When we invest in affordable housing, we invest in Connecticut’s future,” Governor Malloy said. “Our affordable housing policies continue to make our state a more attractive place to live, work and raise a family, while providing stability and assistance to our veterans and our most vulnerable residents. With this round of funding, I look forward to continuing the progress we have made in transforming Connecticut into an affordable housing leader.”
The CHAMP program, which is administered by DOH, provides developers and owners of multifamily affordable housing with the necessary gap financing to create or preserve affordable units in multifamily properties. The Affordable Homeownership funding program provides gap funding to help create homeownership opportunities for residents across the state.
“These announcements represent the Malloy administration’s continued commitment to increasing access to affordable housing,” Commissioner Klein said. “We’re creating housing opportunities for all demographics, and by expanding access to both quality rental and homeownership units we’re giving Connecticut individuals and families another opportunity to thrive.”
In 2012, the Governor committed $300 million towards a ten-year plan to revitalize the SSHP program – an initiative focused on rehabilitating Connecticut’s aging public housing stock. The portfolio, administered by CHFA, consists of properties that are operated in part by housing authorities in every region of Connecticut. This portfolio consists of more than 300 properties and it is one of the nation’s largest and oldest state-supported affordable housing portfolios.
“This financing will be used for improvements that will enhance the quality of life for current residents while ensuring the sustainability of these SSHP properties for the future,” Kilduff said. “Financing with private activity tax exempt bonds from CHFA and four percent Low Income Housing Tax Credits are leveraged with the state’s investment and other sources of funding to make these renovations possible.”
Since 2011, the state has created, rehabilitated, or preserved approximately 10,000 affordable housing units. There are nearly 3,300 affordable units under construction, and funding commitments are in place to create approximately 5,200 more affordable units. The state’s investment in affordable housing totals more than $1 billion dollars – a testament to the commitment that the Malloy administration has placed on efforts to both prevent and end homelessness, while ensuring every resident has a place to call home. This investment in the housing industry has spurred another $2.5 billion in direct economic activity across the state.
The recipients for the eleventh round of financing under the CHAMP program include:
- Norwalk: St. Paul’s Flax Hill Cooperative, 86 units ($4,090,000): DOH will provide up to $4,090,000 to the St. Paul’s Flax Hill Cooperative, Inc. to assist in the renovation of an existing 86-unit housing cooperative constructed in 1978. The cooperative was originally financed by HUD and affordability restrictions have recently expired with the full repayment of HUD’s 40-year loan. This property is non-age restricted and mixed income, including very low income, low income, and moderate-income residents. The property comprises one, two, three, and four bedroom units in ten two- and three-story buildings on a 4.35-acre site. The development is located in the heart of South Norwalk within easy walking distance to shopping, recreation, and transportation.
- Suffield: Stony Brook Phase II, 48 units ($6,456,132): DOH will provide a loan for up to $6,456,132 to an affiliate of Dakota Partners, Inc. to assist in the development of the second rental phase in the Stony Brook subdivision off East Street South (Route 159) in Suffield. The 48 units include 12 one-bedroom and 36 two-bedroom apartments, all affordable to households at or below 60 percent of the area median income. Other permanent sources of funds include a loan from Webster Bank for up to $2,925,000 and four percent Low Income Housing Tax Credit equity proceeds of approximately $3,630,000.
The recipients of the Affordable Homeownership funding program include:
- Hartford: Hartford Heritage Homes, 6 units ($656,036): DOH will provide a grant for up to $656,036 to Northside Institutions Neighborhood Alliance, Inc., a nonprofit community development corporation whose mission is the revitalization of Hartford’s Asylum Hill neighborhood. This project includes the rehabilitation of two blighted historic homes on Sigourney Street and the construction of two new townhomes on Hawthorn Street. In total, six units will be created, including three single-family homes and one, three-family home. The historic homes at 115 and 117 Sigourney Street will be restored to their original uses. The two new townhomes on Hawthorn Street have been designed to complement the adjacent Gothic Revival home, which was built by John and Isabella Beecher Hooker in 1855 and was Mark Twain’s original Hartford residence before he built his famous mansion on Farmington Avenue. All of the homeownership units will be affordable to households with incomes up to 120 percent AMI for the first 15 years and will be subject to an owner-occupancy restriction for 20 years. The rental units will be restricted to households with an income at or below 100 percent AMI.
The recipients of the SSHP funding program include:
- Ellington: Snipsic Village I & II, 42 units, Elderly Housing ($2,439,973): DOH will provide up to $2,439,973 in funding to the Housing Authority of the Town of Ellington for asbestos remediation, sidewalk replacement, smoke/carbon dioxide detector replacement, a community room generator, roof and window replacement, solar panels, siding repair, heat pump replacement, and electric panel upgrades. Unit renovations include full bath remodel, new flooring, painting, and interior doors. The owner is leveraging $43,441 in reserves. The energy company is contributing $68,092 in incentive rebates.
- Manchester: Common Thread Cooperative, 16 units, Limited Equity Co-op ($1,314,345): DOH will provide up to $1,314,345 to the co-op to replace windows, the parking lot and sidewalks, the Exterior Insulation Finishing System, new unit cabinetry and appliances, lighting and flooring, smoke detectors, as well as kitchen utility upgrades. The energy company is providing $5,667 in incentives.
- New London: George Washington Carver Housing, 128 units of elderly housing ($4,257,122):DOH will provide up to $4,257,122 to the Housing Authority of the City of New London for the expansion of ten efficiency units, roof and window replacements, heat pumps, hot water heaters, bathroom fixtures, common area lighting, and a new generator. The project will leverage $383,199 in energy incentives.
- Norwich: Eastwood Court, 25 units of elderly housing ($1,822,738): DOH will provide up to $1,822,738 to Norwich Housing Authority for paving and site lighting as well as building renovations including masonry repointing, vinyl siding, exterior doors, building lighting, laundry room renovations, new ductless splits, electrical improvements, and hot water heaters. Unit renovations include flooring, painting, bath fixtures, kitchen cabinets, counters, sinks, and appliances. Three units will become ADA compliant. The property is leveraging $137,500 in owner reserves and $16,597 in energy incentives.
- Trumbull: Stern Village Apartments, 186 units of elderly housing ($5,286,139): DOH will provide up to $5,286,139 to the Housing Authority of the Town of Trumbull for energy efficient upgrades to HVAC systems, window replacements, doors and insulation upgrades, ADA compliance for 20 units, new roofs, walkways, community room kitchen upgrades, improved storm water management, and repairs/improvements to the sewer system. The property is leveraging $505,820 in owner reserves, and $398,687 in energy incentives as well as $800,000 in Community Development Block Grant (CDBG) funding.
- Wallingford: McGuire Court, 50 units of elderly housing ($3,662,127): DOH will provide up to $3,662,127 to the Wallingford Housing Authority to convert six efficiency apartments into one-bedroom ADA compliant units. All units will receive new bathrooms, windows, doors, siding, kitchens, flooring, painting, upgrades to plumbing, electrical and HVAC. The masonry on the exterior will also be repointed. The project is using $36,500 in owner reserves, and $800,000 in CDBG funding to complete renovations.
- Westbrook: Patchogue Place Cooperative, 12 units, Limited Equity Co-op ($1,192,200): DOH will provide up to $1,192,200 to the co-op to finance the repaving of the asphalt surfaces and curbing, replacement of roofing/gutters, siding, windows, exterior doors, and replacement of all boilers and hot water heaters. This project leverages $21,772 in energy incentives and $30,000 in owner reserves.
These announcements are all contingent upon final approval by the State Bond Commission.
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