The Connecticut Housing Finance Authority (CHFA) has approved $10.28 million in federal low-income housing tax credit (LIHTC) awards to help finance seven proposed affordable housing developments. The housing credits are expected to generate more than $100 million in equity from private investors.
The developments will create 439 rental units: 348 designated as affordable and 91 as market rate.
“We all know that more affordable housing is needed in Connecticut. The tax credits awarded today will help to build new housing and renovate existing units to provide safe, sustainable housing for residents,” said Seila Mosquero-Bruno, chairwoman of CHFA’s board of directors and commissioner of the Department of Housing. “Several of the proposed developments are also located near transit, so residents can reduce or eliminate the need for a vehicle. By leveraging these federal dollars with the private-sector investment, we will boost economic growth and development, while making Connecticut a more attractive place for young people to live and work.”
The new construction and/or redevelopment of these properties is projected to generate an estimated 608 jobs, with 161jobs in construction and related fields, $219.5 million in economic activity, and $12.6 million in net state revenue.
CHFA received applications for more than twice the amount of credits available this year, according to Karl Kilduff, CHFA executive director. “It’s good to see that smaller towns, like East Lyme and Griswold, are looking to add affordable housing to their communities.”
“The awards to Washington Village in Norwalk and Westbrook Village in Hartford are part of larger redevelopment plans that include housing. Units that were uninhabitable have been demolished and will be replaced with mixed-income housing to improve quality of life for the residents, and increase the inventory of affordable units,” Kilduff said.
The following developments were awarded 9% LIHTCs:
Washington Village, Phase Three, in Norwalk, $2,182,797 in tax credits: As part of the Norwalk Housing Authority’s Master Redevelopment Plan Project of the Washington Village, 108 rental units will be built to replace 64 units in five buildings. There will be 13 market-rate units and 37 units for households with incomes up to 60% of the area median income (AMI). The complex will include 10 supportive housing units. The city of Norwalk has supported all of the Washington Village phases with approximately $9 million in infrastructure improvements. The developer is Trinity Washington Village Development.
Westbrook Village II in Hartford, $1,259,874 in tax credits: This second phase of the Housing Authority of Hartford’s mixed-use, mixed-income master plan will produce 60 units of housing in six buildings. Of these units, 45 will be for households up to 60% of the AMI and 15 units will be market rate. The development will also include 12 supportive housing units limited to 25% of the AMI for individuals and families that are homeless, chronically homeless, and/or at risk of becoming homeless. The developer is Pennrose.
Farnam Court Phase II in New Haven, $1,557,420 in tax credits: The Housing Authority of the City of New Haven received approval to replace the Farnam Courts public housing and convert them under HUD’s Rental Assistance Demonstration (RAD) program. This phase will involve the demolition of prior units and the new construction of 66 units. Of these units, 52 will meet RAD and LIHTC requirement with restrictions at or below 60% of the AMI and 14 market-rate units. The development also includes 14 supportive housing units and a cooperation agreement with the city of New Haven providing a Payment in Lieu of Taxes agreement for 36 RAD/LIHTC units. The developer is Glendower Group and Gardner Capital Development.
Rocky Neck Village in East Lyme, $1,496,082 in tax credits: This development involves the new construction of 56 three-bedroom family units in close proximity to transportation, recreation, and services. In addition to six market-rate units, 12 units will be made available as supportive housing units for residents identified as homeless. The proposal will also employ income-averaging requirements enabling qualified tax credit units to serve residents ranging from 25% of the AMI to 80% of the AMI. The developer is HF3 Group.
The Elms in West Hartford, $959,207 in tax credits: This development involves the acquisition of a 72-unit, formerly unrestricted property and converting it to a 67-unit fully renovated development. As part of this scope, 15 smaller units are to be converted into 10 larger, two-bedroom units. Of the 53 affordable units, 17 units will have project-based, Housing Choice Voucher units, including 14 supportive housing units. The development is close to the Elmwood CT Fastrak Station and the West Hartford Railway Station on the enhanced Springfield-New Haven railway. The developer is Trout Brook Realty Advisors and NHTE.
Oak Tree Village in Griswold, $1,698,914 in tax credits: This is the initial phase of a townhouse-style development adjacent to Griswold High School and Route 395. Consisting of two, three-story garden style buildings, the development includes 18 one-bedroom units, 54 two-bedroom units, and a clubhouse. With 15 supportive housing units and 15 market-rate units, the remaining units will serve residents from 50% to 80% of the AMI. The developer is OT Development.
River Breeze Commons in Shelton, $1,126,989 in tax credits: Designed as a 68-unit mixed-income residential development targeting individuals and families, this development consists of 23 one-bedroom and 45 two-bedroom units. Seventeen units will be restricted to 25% of the AMI with 14 units designated as supportive housing units. Fourteen units will be market rate, and the remaining units will be affordable to those at 50% and 60% of the AMI. The developer is Mutual Housing Association of South Central Connecticut.