Gov. Dannel P. Malloy today announced a state investment of more than $16.5 million in five housing developments in Hartford, Waterbury, Vernon, Stonington and Middletown for projects that will help build or renovate approximately 465 residential units, of which at least 390 will be affordable to income-qualifying households.
The funding, through the Competitive Housing Assistance for Multifamily Properties initiative administered by the Connecticut Department of Housing , is a part of the governor’s commitment to bolstering Connecticut’s economy and building stronger communities by expanding affordable housing opportunities.
“Affordable housing is a key ingredient to turning the Connecticut economy around and making sure it continues to grow in the future,” Governor Malloy said. “With more affordable housing options, we can attract talent, grow our economy, strengthen commerce, and create the communities that will be more competitive in today’s business climate.
"When we invest in housing, we invest in people, communities, and our economic future.”
Through CHAMP, owners and developers of affordable multifamily rental developments can apply for loans and grants to expand or rehabilitate housing. Funds awarded under this program may be combined with financial assistance from the Connecticut Housing Finance Authority, including taxable bond financing or tax exempt bond financing with four percent Low-Income Housing Tax Credits.
LIHTCs provide the additional equity developers can leverage to make affordable housing projects possible. CHAMP funding is intended to be gap financing and may not exceed $5 million per development.
The total project development costs are more than $75 million, with $16.5 million coming from the state and $59 million coming from other sources, including developer equity, private financing, and federal funding.
“Over the last two years, Governor Malloy has brought a renewed vigor to the state’s affordable housing policies and backed it up with financial commitments,” Housing Commissioner Evonne Klein said. “The CHAMP initiative is just one of the ways we promote workforce, affordable, supportive, and congregate housing for the state’s young professionals, working families, elderly, and other individuals most in need of support.”
The apartments are receiving $4,561,000 in DOH funding, plus $4.2 million in 4 percent LIHTC equity, plus $2.6 million in tax-exempt bond financing.
- Old Middletown High School Apartments, Middletown — Built in 1894, the Old Middletown High School at 251 Court Street was converted into a 65-unit senior housing development in 1978. State funding will assist in the rehabilitation and guarantee continued affordability for 40 years.
- Rehabilitation will include masonry repair, new windows, energy-efficient boilers, upgraded kitchens and bathrooms, ADA modifications, and improved community space, improvements that will reduce energy use by an estimated 49 percent.
- The apartments, which are just blocks from the center of Wesleyan College’s campus and Middletown’s vibrant Main Street, are affordable for residents with incomes below 60 percent of area median income. There will be no displacement of residents as this will be in-place rehabilitation. The project will leverage nearly $8 million in non-state funds.