Connecticut has committed to create 1,000 units of supportive housing by 2010 under its Next Step Initiative. Funding for the first 500 units is included in the fiscal year 2006-2007 budget, with $1.8 million for supportive services and $4.2 million in state operating support, according to a report from the Partnership for Strong Communities, based in Hartford, Conn.
The Department of Economic and Community Development is also accepting proposals for the second round of funding under its new Housing Trust Fund for Economic Growth and Opportunity. The Fund will provide $20 million a year for five years to affordable housing projects and programs.
Officials expect to provide $5 million in 2006 to affordable housing projects through Connecticut’s Housing Tax Credit Contribution Program. Applications are due July 1.
In 2005, the Massachusetts Legislature authorized an additional $100 million in bond issuance for the Massachusetts Affordable Housing Trust Fund. This money should keep the fund capitalized at about $20 million per year through fiscal year 2013.
MassHousing and the Department of Housing and Community Development (DHCD) jointly administer the fund to help create or preserve housing affordable to people with incomes up to 110% of the area’s median income.
MassHousing also oversees the $100 million Priority Development Fund, which provides gap financing to projects that reserve at least 20% of their units for residents earning up to 80% of AMI, with a preference for projects that adhere to the state’s smart growth principles.
DHCD will also award $4 million in state housing credits in 2006. And Massachusetts has a state historic restoration tax credit, which is designed to work with affordable housing projects.
Officials expect to award $80 million to housing projects through New Jersey’s two main gap financing programs: the Balanced Housing Program, which is administered by the New Jersey Department of Community Affairs, and New Jersey’s new Special Needs Housing Trust Fund, administered by the New Jersey Housing and Mortgage Finance Agency.
The fund was created in 2005 with $200 million in bonding authority to support the creation of 10,000 units of supportive housing.
In November, officials announced the New York/New York III agreement, a $1 billion pact to finance and develop 9,000 new units of supportive housing in New York City over 10 years. This $1 billion will come from a long list of capital and operating subsidy programs, including low-income housing tax credits and Sec. 8 vouchers. Capital costs will be split evenly by the state and city.
In addition, the Division of Housing and Community Renewal will distribute $2 million in state housing tax credits in 2006. Applications are accepted all year long, though projects applying for federal low-income housing tax credits should apply for state credits at the same time. Investors now pay in the mid-60 cent range for each dollar of state tax credit they buy.
Officials also plan to distribute $29 million though the New York State Low-Income Housing Trust Fund Program and $7 million though the Homes for Working Families Program.
Pennsylvania will provide $18.8 million in soft financing for tax credit deals through its PennHomes program, administered by the Pennsylvania Housing Finance Agency. The application deadlines are the same as for the tax credit program, typically in the fall. Affordable housing developers may receive up to $22,500 per unit in PennHomes financing – although officials favor applications that request less.
The Vermont Housing and Conservation Trust Fund expects to award roughly $10 million to affordable housing projects in 2006. Administered by Vermont’s Housing and Conservation Board, the trust aims to both create new affordable housing and protect Vermont’s agricultural land.
The Vermont Housing Finance Agency will also hand out $150,000 in state housing tax credits.