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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. 

 

 

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 catherine.bitterman@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 (Section IV - C) 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: Multifamily Underwriting
999 West Street
Rocky Hill, Connecticut 06067

Applications are processed annually within a funding round.

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 (Section IV - C.)


 

Questions? Contact CHFA.

Please direct questions and comments related to the HTCC program to Cyndi Guest


 

Additional Information

The following documents are related to the HTCC Program
Related Documents Found: 10  matches     Displaying: 1 - 10 
FileSizeType
HTCC - 2016 Ranking Report/Awards Round I
This is the list of state Housing Tax Credit Contribution (HTCC) Program applications for 2016, according to rank.
26Kpdf

HTCC - 2016 Ranking Report/Awards Round II
This is the list of state Housing Tax Credit Contribution (HTCC) Program applications for 2016 Round II, according to rank.
48Kpdf

HTCC - 2016 Round - Guidelines
This provides general information and guidance on the application and compliance processes associated with the state Housing Tax Credit Contribution (HTCC) Program.
661Kpdf

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.
85Kpdf

HTCC - Mar 2015 Questions and Answers
This document provides some general questions and answers of the HTCC program.
119Kpdf

HTCC - Overview 2016 Session - PowerPoint
This is an overview of the Housing Tax Credit Contribution (HTCC) Program session held on November 10, 2015.
1108Kpdf

HTCC - Overview for Business Firms
This document provides a general overview of the Connecticut Housing Tax Credit Contribution program.
75Kpdf

HTCC - Quarterly Report Progress
This form is submitted on a quarterly basis to report progress on a Housing Tax Credit Contribution (HTCC) - financed housing development. All HTCC Quarterly Reports must be submitted to the following email address: HTCCQuarterlyReport@chfa.org
95Kdocx

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.
89Kpdf

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.
271Kpdf
FileSizeType
Found: 10  matches     Displaying: 1 - 10