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Funding Initiatives - Affordable Housing Developments

CHFA Mortgages 

Overview

The Connecticut Housing Finance Authority ("CHFA") offers loans to developers and owners of affordable multifamily rental housing in Connecticut at or below market interest rates to help them achieve feasibility for their housing proposals.  CHFA mortgage financing can be combined with other funding mechanisms, like federal Low-Income Housing Tax Credit ("LIHTC") and state Housing Tax Credit Contribution ("HTCC") tax credits, to expand the financing repertoire for the construction or rehabilitation of affordable, high quality apartments throughout the state.  Developers may also combine CHFA funding with private bank financing, private grants or equity as well as public sources as available.

CHFA’s mission is to increase the supply and availability of affordable housing for low and moderate income individuals and families in Connecticut.  CHFA’s multifamily mortgage financing not only invests in the development of affordable housing but in the economies of distressed neighborhoods, by creating jobs and enlarging their local property tax bases.

Follow the links below for more information on CHFA multifamily mortgage financing.        

 

 

Who is eligible to apply for a CHFA Multifamily Mortgage?

For-profit or non-profit developers and owners of housing developments that have established a “qualified development team" may apply for CHFA mortgage financing to assist them in obtaining financial feasibility for their affordable multifamily rental housing development.  

A “qualified development team” consists of licensed professionals and typically includes the owner, developer, development consultant, property manager, general contractor, and architect, among others.


 

What types of Multifamily Mortgages are available?

CHFA offers construction and/or permanent mortgage loans to finance the creation of new or acquisition and rehabilitation of existing affordable apartments.  CHFA’s first mortgage loans often have below-market interest rates with terms up to 40 years. 


 

What types of housing developments are eligible for multifamily financing?

Housing developments eligible for CHFA Multifamily Mortgage financing must meet the following requirements:  

 

Please note that developments financed in part with federal LIHTC tax credits must comply with more rigorous affordability and occupancy standards.


 

What else should developers know about CHFA mortgage financing?   

The following additional considerations apply to CHFA Mortgage Financing.

  • Funding Sources of CHFA Mortgages
    CHFA mortgage loans are financed with proceeds from the sale of tax-exempt, taxable bonds, and/or from non-bond proceeds. 

    • Tax-Exempt Bond (TEB) Proceeds are loaned at an interest rate based on the current market.  Developers may apply year-round for TEBs which are allocated on a first-come, first-served basis until the supply is exhausted.
    • Taxable Bond Proceeds are loaned at market interest rates.  Developers may apply year-round for Taxable Bonds.
    • Non-Bond Proceeds are generally offered at a lower interest rate than TEBs.  CHFA announces the availability of these funds annually when/if it solicits “Preliminary Financing Proposal” applications.


  • Supplementing CHFA Mortgages with Other Financing Sources
    The source of a CHFA mortgage loan affects eligibility requirements and determines which supplemental financing vehicles are available.  Loan applicants are encouraged to seek the advice of a Housing Consultant or other appropriate professional when planning the financing of their development.

    • TEB Proceeds are eligible to be paired with 4% LIHTC tax credits.
    • Taxable Bond Proceeds are not paired with LIHTC tax credits.
    • Non-Bond Proceeds are available and are eligible to be paired with 9% LIHTC tax credits.

 

How do developers apply for a CHFA Multifamily Mortgages?  

Depending on the program, CHFA will announce funding availability and application deadlines through email blasts and announcements posted to the CHFA website.   

Applicants seeking CHFA mortgage financing must follow the steps below:    

  1. An applicant seeking a non-binding letter of financing interest in conjunction with a competitive 9% LIHTC Round must submit a preliminary loan application via the CHFA/DECD Consolidated Application.  
    Applicants must submit the financing “Threshold Items” identified in the Consolidated Application as a preliminary application, along with a non-refundable preliminary application fee.  

    (Please see the fee schedule noted in Appendix 1 of the Consolidated Application.)  

    The preliminary application must be mailed or hand delivered to CHFA; it cannot be submitted online.   After receipt of the application, a team of CHFA staff will conduct a site evaluation to assess the site's appropriateness for the proposed housing and preliminary underwriting to determine financial feasibility.  

  2. An applicant seeking construction and/or permanent financing must complete and submit a full loan application via the CHFA/DECD Consolidated Application.  
    An applicant must submit the financing "Threshold" and “Non-Threshold Items” identified in the Consolidated Application to complete its loan application, along with a non-refundable application fee. (Please see the fee schedule noted in Appendix 1 of the Consolidated Application.)  

    The application must be mailed or hand delivered to CHFA.   Final loan approval is formally granted by CHFA’s Board of Directors. All terms and conditions of the financing are documented in a loan commitment letter.   

 

Questions?  Contact CHFA.

Please direct questions and comments to the Multifamily Underwriting Department.

Phone:     (860) 571-4276
Fax:(860) 571-4371
Email:mfamhsgdev@chfa.org


Mailing Address:
Connecticut Housing Finance Authority
Attn: Multifamily Underwriting
999 West Street
Rocky Hill, Connecticut 06067


 

Additional Information

The following files and documents are related to CHFA Multifamily Mortgages.

Related Documents Found: 13  matches     Displaying: 1 - 13 
FileSizeType
CHFA/DECD Consolidated Application Instructions
Downloading/Unzipping Instructions - These files contain instructions on how to save, unzip, and open the Consolidated Application. Users who are unfamiliar with the concepts of "zipping" and "unzipping" files should read this document pior to downloading the Consolidated Application.
15Kpdf

CHFA-DECD Consolidated Application Version 4.0
Released November 18, 2011. This application is used by Multifamily Rental Housing Developers to apply for funding from CHFA and/or DECD. This version of the application will be required for all applications received after January 1, 2012. Download this file and extract its contents onto your computer. Once extracted, open the "Consolidated Application - Start Here" pdf file. (PLEASE NOTE: This file is stored in "Zip" format. Older versions of Windows may need a separate utility to open/extract zip files. WinZip or IZArc can be downloaded free at http://izarc.org.)
4802Kzip

2010 - Standards of Design and Construction
2010 Standards of Design and Construction
2014Kpdf

2009 - Standards of Design and Construction
This guide sets forth the 2009 requirements of state and local building codes, CHFA standards of design and construction, as well as guidelines of the national and regional green residential rating system for multifamily housing financed through CHFA.
572Kpdf

2012-Standards of Design and Construction and Capital Improvement Guide
The Standards of Design and Construction reflect national and regional residential "Green" rating criteria, augments current applicable Building Code requirements, and sets forth design and construction standards and guidelines for multifamily housing financed in 2012 through CHFA. The Capital Improvement Guide (CIG) augments CHFA Standards of Design and Construction and includes suggested related issues and conditions to be examinjed when planning various capital improvement/replacement/repair projects financed in 2012 through CHFA.
1816Kpdf

CL&P Certified HERS Rater List
This document may be used by development teams seeking Certified HERS Raters.
393Kpdf

CONN-NAHRO 10th Annual Convention and Exhibition - Hiring an Architect
This is a Powerpoint presentation on Hiring an Architect presented by CHFA at the CONN-NAHRO 10th Annual Convention and Exhibition.
117Kpdf

Energy Efficiency Effectiveness Form
This form is for development team use in submitting energy conservation data for financing applications.
23Kxlsx

Insurance Requirements-Updated October 1, 2011
CHFA has updated their Insurance Requirements for CHFA-financed developments. These requirements will be effective with all policies that have a renewal date of January 1, 2012.
73Kpdf

Multifamily Underwriting Standards
This guide outlines the requirements and instructions for filing an application for a CHFA multifamily mortgage loan for a proposed housing development.
158Kpdf

Redlined Draft 2012 CHFA Standards of Design and Construction
The Draft 2012 CHFA Standards of Design and Construction were presented at a Public Forum on Tuesday, November 22, 2011 at CHFA. A Redlined version of the proposed 2012 Standards is now available to view and download through the CHFA website in the Multifamily Rental Housing Developers Document Library. Those interested in providing feedback on the proposed 2012 Standards may forward comments, questions and concerns to Charles Emerson, Architectural Design and Construction Reviewer, via email at charles.emerson@chfa.org by December 15, 2011.
2434Kpdf

State Bond Commission - Multifamily Rental Housing Underwriting Review Guidelines for Mortgage Loans
This document is applicable to all entities seeking an allocation of Private Activity Bonds ("PAB") from the Office of Policy and Management ("OPM"). OPM refers to the Connecticut Housing Finance Authority ("CHFA") for review of development proposals with the below guidelines
165Kpdf

WAIVER OF LIEN
Material or Labor Waiver of Lien
39Kdoc
FileSizeType
Found: 13  matches     Displaying: 1 - 13