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.
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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
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:
- 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.
- 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.
Mailing Address:
Connecticut Housing Finance Authority
Attn: Multifamily 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 | 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. | 15K | pdf |
| 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.) | 4802K | zip |
| 2010 - Standards of Design and Construction
2010 Standards of Design and Construction | 2014K | pdf |
| 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. | 572K | pdf |
| 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. | 1816K | pdf |
| CL&P Certified HERS Rater List
This document may be used by development teams seeking Certified HERS Raters. | 393K | pdf |
| 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. | 117K | pdf |
| Energy Efficiency Effectiveness Form
This form is for development team use in submitting energy conservation data for financing applications. | 23K | xlsx |
| 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. | 73K | pdf |
| 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 |
| 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. | 2434K | pdf |
| 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 | 165K | pdf |
| WAIVER OF LIEN
Material or Labor Waiver of Lien | 39K | doc | | File | Size | Type |
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