Governor Dannel P. Malloy, Department of Housing (DOH) Commissioner Evonne M. Klein, and Connecticut Housing Finance Authority (CHFA) President and Executive Director Eric Chatman today announced investments of over $25 million in six affordable housing projects selected under the Competitive Housing Assistance for Multifamily Properties (CHAMP) initiative. The plans will build and rehabilitate over 500 affordable apartments.
"In this year alone, we've made more than $100 million available to help municipalities address one of their most pressing needs -- the lack of affordable housing options in their communities," said Governor Malloy. "We are doing more to support local efforts to create and rehabilitate affordable housing, which will revitalize neighborhoods and strengthen entire communities. And when we do this across the state, we are enhancing the quality of life for all in Connecticut. At the same time, these projects will bring in over $22 million in federal tax credit equity through the 4% Low Income Housing Tax Credit (LIHTC) program administered by CHFA."
The projects announced today competed successfully in the fifth round of the CHAMP initiative. Investments include over $25 million in state capital funding, $22.5 million in federal 4% LIHTC credits and $3.9 million in CHFA tax exempt bond financing. CHAMP is administered by DOH and helps owners and developers of multifamily rental developments to expand or rehabilitate affordable and supportive housing.
"The investments the Governor is announcing today will leverage nearly three times the amount of CHAMP funding. The total development cost of the projects, with the majority coming from private investment, is expected to be over $100 million," said Commissioner Klein, who is also chair of CHFA's Board of Directors. "It is through these creative partnerships and financing structures that we are finding new ways to extend our public assets and increase the impact of our housing programs."
CHFA administers the 4% LIHTC program, which is 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.
"The LIHTC program is a catalyst for affordable housing and an important source of gap funding for developers," said Chatman.