Governor Dannel P. Malloy announced today that The Connecticut Housing Finance Authority (CHFA) voted to award $7.49 million in nine percent federal Low Income Housing Tax Credits (LIHTCs) to seven affordable housing developers in Bridgeport, Hartford, New Haven, Simsbury, and Waterbury. The tax credits will provide funding to build or rehabilitate 347 affordable housing units in cities and towns across the state, and will create 1,079 jobs, generate $150.7 million in economic activity, and add $12.1 million in state revenue.
"Over the next 10 years, we are investing $500 million to improve and expand affordable housing in Connecticut--an investment that is critical to bolstering economic growth and ensuring we have the workforce housing we need," said Governor Malloy. "The Low Income Housing Tax Credits are a great support to these efforts and I thank CHFA and our federal partners for their commitment to the state."
CHFA administers the LIHTC program which is a federal tax incentive program designed to stimulate private investment in affordable housing. The limited pool of nine percent tax credits are awarded annually through a competitive application process, which is aligned with state affordable housing goals and requirements.
"These credits help stimulate private investment in affordable housing, and they build good partnerships between private sector and non-profit developers, investors, and supporters of affordable housing," said Eric Chatman, CHFA's President & Executive Director. "In selling the tax credits to investors, developers bring approximately $10 million in net equity for each $1 million in credits to be used toward building a development. This is a strong return on investment, and the projects help improve our housing stock."
There are two types of Low Income Housing Tax Credits, nine percent tax credits and four percent tax credits. The nine percent LIHTCs, announced today, are commonly used for larger projects that involve new construction or significant renovation and rehabilitation. To receive the tax credits, a development must have a minimum percentage of units designated for very low- to low-income residents, and the units must remain affordable for a minimum of 30 years. By federal regulations, 10 percent of these tax credits must go to developments sponsored by non-profit organizations. The four percent tax credits are non-competitive and may be applied for at any time.
2013 Low Income Housing Tax Credit Recipients
St. Paul Commons, Bridgeport -- The development will bring 56 newly constructed units in five buildings located on two vacant lots near St. Paul's Lutheran Church and the Beardsley Zoo. The development will consist of one- to three-bedroom units that will serve low and moderate income families and the elderly. Twelve units will be supportive housing.
Tax Credit Award: $921,310 (LIHTC Equity: $8,199,659) and $2.4 million in Department of Housing capital funds.
Twin Acres, Hartford -- An existing development overlooking Colt Park will be reimagined with 10 newly constructed units. Fourteen existing townhouses will be expanded by adding a bedroom and bathroom. Six handicap units will be created. The new Twin Acres will have 10 market-rate units and 40 for households with incomes ranging from at or below 25 percent up to 60 percent of AMI.
Tax Credit Awarded: $896,166 (LIHTC Equity: $8,423,960) and $3.2 million in Department of Housing capital funds.
Summit Park, Hartford -- A total of 42 units in six historic structures in the Frog Hollow Neighborhood will undergo renovation and exterior repair. Ranging from one- to three-bedrooms, the units will be rented to households with incomes ranging from at or below 25 percent of AMI up to 60 percent of AMI.
Annual Tax Credit Award: $767,553 (LIHTC Equity: $7,138,243).
Fair Haven, New Haven - The Fair Haven development program is a scattered site affordable housing project in the City of New Haven that will result in 63 affordable housing units. The first site, Eastview Terrace Phase 2 will complete the redevelopment of Eastview Terrace, with 25 one- and two-story townhouses. The second site, 197 Chatham Street, involves demolishing an existing, environmentally- challenged commercial building, creating 38 units of new affordable housing, a community space and a small retail component in an existing residential neighborhood.
Tax Credit Award: $1,616,367 (LIHTC Equity: $15,678,760)
Ribicoff Cottages, New Haven (Nine Percent Phase) - At The Ribicoff Cottages development, 100 obsolete public housing units will be demolished and replaced with 100 new mixed-income housing units in two phases. This nine percent phase includes 55 units, 34 units will be replacement housing for existing senior/disabled residents that will include supportive services. The majority of units will be targeted for households earning 60 percent or less of Area Median Income (AMI), with 11 units offering supportive services. Ribicoff Cottages will have 11 units offered at market rate rents.
Tax Credit Awarded: $1,251,609 (LIHTC Equity: $12,265,765)
Simsbury Specialty Housing, Simsbury -- This new construction will consist of 48 units of 100 percent affordable rental housing as part of Dorset Crossing, a master-planned, mixed-use development project. All units will be targeted for people with disabilities, including several units for people transitioning from nursing homes to other settings.
Tax Credit Awarded: $1,036,148 (LIHTC Equity: $9,636,180) and $2.5 million CHFA Taxable Bonds and $1.02 million Department of Housing capital funds
South Main/East Liberty Apartments, Waterbury -- Located in the south end, 33 new affordable units will replace dilapidated buildings on abandoned parcels carrying tax liens. The developer is acquiring the properties from the city and will include seven supportive units for U.S. Military veterans. Units are targeted to households with incomes at or below 25 percent of AMI and 50 percent of AMI.
Tax Credit Awarded: $1,005,631 (LIHTC Equity: $8,849,553)