Tax Credit
Programs
State Housing Tax Credit
Contribution (HTCC) Program
Overview
The Connecticut Housing Finance Authority (CHFA) administers
the state Housing Tax Credit Contribution (HTCC) program to
provide funding for housing programs sponsored by non-profit
developers in Connecticut. The intent of the HTCC Program
is to make funding available for the development of
affordable rental housing that benefits very low, low- and
moderate- income families in Connecticut. The program also
can be used to capitalize a Revolving Loan Fund that lends
money to affordable housing developments or eligible
individuals who are purchasing a home; or a Workforce
Housing Loan Fund that lends money to individuals purchasing
a home in the city or town where they work.
Under the HTCC program, a non-profit corporation can receive
up to $500,000 annually in state tax credits which can then
be sold to state business firms in return for cash
contributions to the non-profit corporation’s housing
program. Each year CHFA allocates up to $10 million in
state HTCC tax credits on a competitive basis to non-profit
corporations.
Follow the links below to learn more about the HTCC program.
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Who can apply for Housing Tax
Credit Contribution program
tax credits?
Under the Housing Tax Credit Contribution program, a
non-profit corporation that develops, manages, or sponsors
affordable housing in Connecticut may apply for up to
$500,000 of tax credits each year. A qualified applicant
must establish his non-profit credentials by submitting to
CHFA an endorsed Certificate of Incorporation certified by
the Secretary of the State, a certification that the
non-profit corporation is in existence from the Secretary of
the State's Office and a copy of the letter from the
Internal Revenue Service determining that the corporation
qualifies as an exempt organization under section
501(c) of
the Internal Revenue Code.
What types of housing programs are eligible to benefit
from Housing Tax Credit Contribution program tax credits?
Generally, the Housing Tax Credit Contribution (HTCC)
program provides capital for the following types of
developments or housing programs:
- Affordable Housing Developments
HTCC allocations can be used to fund the development,
acquisition, and/or improvement of affordable housing
for very low, low, and moderate income families in
Connecticut.
- Affordable Housing Revolving Loan Funds
HTCC allocations can be used to capitalize Revolving
Housing Loan Funds that lend money to affordable housing
developments or eligible low-income individuals
purchasing homes.
- Workforce Housing Loan Funds
HTCC allocations can be used to capitalize Workforce
Loan Funds that lend money to eligible individuals
purchasing a home in the city or town where they work.
What size tax credit is a
non-profit corporation eligible to receive under this
program?
Typically, a non-profit corporation can be awarded up to
$500,000 in any fiscal year in HTCC tax credits which can
then be sold to eligible Connecticut business firms to
obtain cash contributions towards the non-profit
corporation’s housing development or program.
Though a non-profit corporation is subject to a yearly
limit of $500,000 in HTCC tax credits, there is no cap on
the amount of HTCC credits a non-profit corporation can be
awarded for a housing program. The non-profit corporation
may continue to apply for additional credits each year.
What else should
non-profit organizations know about the
HTCC program?
The following additional considerations apply to the HTCC
program.
- The HTCC program requires $3 million in
set-asides.
Of the up to $10 million in state tax credits that CHFA
allocates annually through the HTCC program, $2 million
is set-aside for Supportive Housing and $1 million is
set-aside for workforce housing as defined by CHFA.
- The HTCC program requires compliance
monitoring.
Housing programs that benefit from cash contributions
under the HTCC program are monitored for compliance.
Non-profit sponsors are required to submit quarterly
progress reports to CHFA. Housing programs that fail to
meet their project schedule and completion dates may be required to forfeit
funds contributed by business firms to CHFA and the HTCC
credits will be returned to CHFA. These
reclaimed credits will then be distributed in subsequent
HTCC funding rounds.
What else should contributing business firms know about
the Housing Tax Credit Contribution program?
- Eligible business firms may be able to claim
a charitable deduction for their contribution.
While cash contributions made by eligible business firms
under the HTCC program represent a dollar-for-dollar
credit against their corporate taxes, these firms may
also qualify for federal and state contribution
deductions and can realize significant tax savings.
Is training available for the Housing Tax Credit
Contribution program?
Generally, CHFA offers an Overview session prior to the
funding round each year. The Overview sessions cover
basic information pertaining to the program and information
relative to the application. Announcements for the
Overviews are generally posted under
News and Announcements for
Developers and Sponsors. Developers interested in receiving
email blasts should contact
margaret.swiconek@chfa.org to be added to our email list.
How do non-profit corporations apply for Housing Tax
Credit Contribution program tax credits?
Each year, CHFA holds a funding round during which
non-profit developers, sponsors or managers of qualified
housing programs apply for allocations of HTCC program
tax credits. The tax credits are competitively awarded
based on selection criteria specified within the
HTCC
Procedures (on page 125) and based on the funding gap of the housing
program. The funding gap is determined by the shortfall
that must be funded by the non-profit to achieve
feasibility for the housing program or development.
Non-profits wishing to apply for HTCC program tax credit
allocations should download, review and complete the
Consolidated Application.
Mailing Address:
Connecticut Housing Finance Authority
Attn: Tax Credit Department
999 West Street
Rocky Hill, Connecticut 06067-4005 |
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Applications are processed annually within a funding
round. Beginning in 2012 these applications will be due
May 1, of
each year and are announced on the CHFA News and Information
web page.
Once the applications are received, CHFA reviews and
ranks each one and allocates credits to the non-profit
corporations whose housing developments or programs best
meet the guidelines outlined in the
HTCC Procedures
(on page 125.)
Questions? Contact CHFA.
Please direct questions and comments related to the HTCC
program to CHFA’s Tax Credit Unit.
Additional Information
The following documents are related to the HTCC Program
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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. | 53K | pdf |
| CHFA-DECD Consolidated Application Version 5.1
Released March, 2013, The Connecticut Housing Finance Authority (CHFA) and the Department of Economic and Community Development (DECD) announce the release of the 2013 CHFA-DECD Consolidated Application Version 5.1. 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.) | 10889K | zip |
| CEFIA Webinar February 28, 2013
This is the Flyer for the Webinar on How to Drive Energy Efficiency and Clean, renewable Energy Upgrades using Connecticut's new C-PACE Program. | 129K | pdf |
| HTCC - 2011 Application Overview Presentation
This Microsoft PowerPoint presentation provides an overview of the Housing Tax Credit Contribution Program. | 6681K | ppt |
| HTCC - 2011 Ranking Report
This is the list of approved state Housing Tax Credit Contribution (HTCC) Program applications for 2011 according to rank. | 30K | pdf |
| HTCC – 2012 Ranking Report REVISED 7-30-2012
This is the list of approved state Housing Tax Credit Contribution (HTCC) Program applications for 2012, as revised on 7-30-2012, according to rank. | 475K | pdf |
| HTCC – Certificate of Project Completion
This contract certifies that costs expended in connection with a Housing Tax Credit Contribution (HTCC) project are in accordance with relevant Connecticut law and procedures of the HTCC Program. | 48K | doc |
| HTCC - Compliance Process
This is the compliance process associated with the construction period of a property that has been awarded tax credits under the Housing Tax Credit Contribution program. | 80K | pdf |
| HTCC - General Information
Updated Appendix 3 | 36K | pdf |
| HTCC - Housing Tax Credit Contribution Program FAQ
This FAQ provides a general overview of the Connecticut Housing Tax Credit Contribution program | 78K | pdf |
| HTCC - Quarterly Progress Report
This form is submitted on a quarterly basis to report progress on a Housing Tax Credit Contribution (HTCC) - financed housing development. | 67K | pdf |
| HTCC - Workforce Assisted Housing Tax Credit – Revolving Loan Fund
This contract certifies that itemized costs listed have been expended in accordance with relevant Connecticut law and HTCC program procedures for the Workforce Housing set-aside and revolving loan components of the HTCC program. | 48K | doc |
| HTCC - Workforce Assisted Housing Tax Credit Schedule A
This supplement accompanies the Workforce Housing Tax Credit Program Annual Certificate and includes information on all loans made from the revolving fund. | 45K | pdf |
| VLI - Section 3 Summary Report - Economic Opportunities for Low and Very Low-Income Persons
Submit one (1) copy of this report to the HUD Headquarters Office of Fair Housing and Equal Opportunity, at the same time the performance report is submitted to the program office. The Section 3 report is submitted by January 10. Include only contracts executed during the period specified in item 8. PHA/s/IHAs are to report all contracts/subcontracts. | 158K | rtf |
| VLI - Very Low Income (VLI) Construction Status Report
This form is to be used to report accomplishments regarding employment and other economic opportunities provided to low and very low-income persons and must accompany each monthly request for Construction Advance. | 52K | xls |
| VLI - Very Low Income Construction Employment - Policy Statement
This form is to be used to report accomplishments regarding employment and other economic opportunities provided to low and very low-income persons and must accompany each monthly request for Construction Advance. The information will be used to monitor compliance with the VLI Construction Employment Policy established by Connecticut Housing Finance Authority ("CHFA"). This form applies to projects funded by CHFA multifamily mortgages and/or Low-Income Housing Tax Credits ("LIHTCs") that have $1 million or more in "Hard Construction Cost". For the purposes of this form, VLI means families (including individuals) whose incomes do not exceed 50 percent of the Area Median Income of the location of the development.
| 245K | pdf |
| Waiver of Lien
Replacement of Waiver of Lien form (01/08), into selection of two separate forms, one for General Construction and other for Construction Change Order. | 132K | pdf | | File | Size | Type |
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