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
LIHTC and state
HTCC
tax credits, to expand the financing repertoire for the
construction or rehabilitation of affordable, high quality
rental units 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.
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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
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 rehabilitated affordable
housing units. 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 Bonds (TEB) 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 Bonds 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 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.
- Tax-Exempt Bonds (TEB) are
eligible to be paired with 4% LIHTC tax credits.
- Taxable Bonds 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?
Applicants seeking CHFA mortgage financing must follow
the steps below:
- Complete and submit a preliminary loan application via
the CHFA/DECD Consolidated Application.
Upon the invitation of CHFA, 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.)
Depending on the program, CHFA will announce funding
availability and application deadlines through email
blasts and announcements posted to the CHFA website.
The 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.
- Complete and submit a full loan application
via the CHFA/DECD Consolidated Application.
Following preliminary underwriting, applicants must
submit the financing “Non-Threshold Items” identified in
the Consolidated Application to complete their 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 related to the
LIHTC Program to the Multifamily Underwriting Department.
Mailing Address:
Connecticut Housing Finance Authority
Attn: Multi Family Underwriting
999 West Street
Rocky Hill, Connecticut 06067
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Additional
Information
The following files and documents are related to CHFA
Multifamily Mortgages.
| Related Documents |
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| File | Size | Type | 2010 Standards of Design and Construction
2010 Standards of Design and Construction | 2014K | pdf |
| CHFA – Standards of Design and Construction 2009
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 | 572K | pdf |
| CHFA-DECD Consolidated Application - Downloading/Unzipping Instructions
This 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 prior to downloading the Consolidated Application. | 6K | pdf |
| CHFA-DECD Consolidated Application - Version 2.3
This application is used by Multifamily Rental Housing Developers to apply for funding from CHFA and/or DECD. 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, like WinZip or IZArc. IZArc can be downloaded for free at http://www.izarc.org) | 7199K | zip |
| 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. | 158K | pdf | | File | Size | Type |
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