GOV. MALLOY ANNOUNCES $16.5 MILLION INVESTMENT TO BOLSTER HOUSING EFFORTS IN FIVE MUNICIPALITIES

Affordable Housing Initiatives in Hartford, Waterbury, Vernon, Stonington and Middletown

HARTFORD, CT – August 30, 2013 – (RealEstateRama) — Governor Dannel P. Malloy today announced a state investment of more than $16.5 million in five housing developments in Hartford, Waterbury, Vernon, Stonington and Middletown for projects that will help build or renovate approximately 465 residential units, of which at least 390 will be affordable to income-qualifying households.

The funding, through the Competitive Housing Assistance for Multifamily Properties (CHAMP) initiative administered by the Connecticut Department of Housing (DOH), is a part of the Governor’s commitment to bolstering Connecticut’s economy and building stronger communities by expanding affordable housing opportunities.

“Affordable housing is a key ingredient to turning the Connecticut economy around and making sure it continues to grow in the future,” Governor Malloy said. “With more affordable housing options, we can attract talent, grow our economy, strengthen commerce, and create the communities that will be more competitive in today’s business climate. When we invest in housing, we invest in people, communities, and our economic future.”

Through CHAMP, owners and developers of affordable multifamily rental developments can apply for loans and grants to expand or rehabilitate housing. Funds awarded under this program may be combined with financial assistance from the Connecticut Housing Finance Authority (CHFA), including taxable bond financing or tax exempt bond financing with four percent Low-Income Housing Tax Credits (LIHTC). LIHTCs provide the additional equity developers can leverage to make affordable housing projects possible. CHAMP funding is intended to be gap financing and may not exceed $5 million per development.

The total project development costs are more than $75 million, with $16.5 million coming from the state and $59 million coming from other sources, including developer equity, private financing, and federal funding.

“Over the last two years, Governor Malloy has brought a renewed vigor to the state’s affordable housing policies and backed it up with financial commitments,” Housing Commissioner Evonne Klein said. “The CHAMP initiative is just one of the ways we promote workforce, affordable, supportive, and congregate housing for the state’s young professionals, working families, elderly, and other individuals most in need of support.”

The CHAMP investment announcements made today include the following:
• Horace Bushnell Congregate Apartments, Hartford — Funding will allow Horace Bushnell Homes to convert the 60 existing affordable elderly rental units into assisted living units. Horace Bushnell Homes received funding in excess of $2,300,000 under HUD’s competitive Assisted Living Conversion program for this much needed project, which will maintain the permanent affordability of all 60 units. This project, located near the Albany Avenue and Vine Street intersection, ensures this elderly population can access nearby commercial services.

DOH funding: approximately $760,000
• Old Middletown High School Apartments, Middletown — Built in 1894, the Old Middletown High School at 251 Court Street was converted into a 65-unit senior housing development in 1978. State funding will assist in the rehabilitation and guarantee continued affordability for 40 years. Rehabilitation will include masonry repair, new windows, energy-efficient boilers, upgraded kitchens and bathrooms, ADA modifications, and improved community space, improvements that will reduce energy use by an estimated 49 percent. The apartments, which are just blocks from the center of Wesleyan College’s campus and Middletown’s vibrant Main Street, are affordable for residents with incomes below 60 percent of area median income. There will be no displacement of residents as this will be in-place rehabilitation. The project will leverage nearly $8 million in non-state funds.

DOH funding: $4,561,000; CHFA funding: $4.2 million in four percent LIHTC equity, and $2.6 million in tax-exempt bond financing

• Spruce Meadows, Stonington — DOH funding will help in the construction of the new Spruce Meadows mixed income housing development project. Spruce Meadows includes the creation of 32 deed restricted affordable units in the 43-unit development. The development is located on Route 1 in the Pawcatuck section within a mile of shopping and commercial services and served by the Southeastern Area Transit bus system. The affordable units will be preserved for households with incomes ranging from 25 to 100 percent of area median income and five of the affordable units will be dedicated for supportive housing. The project will leverage more than $5.3 million in non-state funding.

DOH funding: approximately $5 million

• Park West Apartments, Vernon — Funds will assist in the rehabilitation of the Park West Apartments, an affordable mixed-income family rental development that has 189 rental units in 13 buildings originally constructed in 1968, and guarantee continued affordability for 40 years. The apartments include 30 market and 159 affordable units for individuals and families with incomes below 60 percent of area median income. Twenty of the affordable units will have supportive services provided. Renovations will include drainage improvements and erosion control on the site, accessibility improvements to the apartments and construction of a new community building. New boilers, additional insulation and other energy-efficiency measures are estimated to reduce energy use by 50 percent. State funding will leverage more than $22 million in other funding.
DOH funding: $2.2 million; CHFA funding: $6.1 million in four percent LIHTC equity, and $15,910,000 in tax-exempt bond financing
• Watertown Crossing, Waterbury — State funds will be used to assist in the purchase and rehabilitation of the existing Watertown Crossing project in the northwest section of the city. Built in 1995, the development has 19 buildings with 108 two, three, and four-bedroom apartments designed for families. The complex needs moderate rehabilitation work, including roof and window replacements, new parking lots, driveways and ramps for handicap units. Interior work includes new flooring, kitchen and bathroom upgrades. New gas furnaces will be installed and 11 units will be renovated for handicap accessibility. The apartments, which are near bus services and Route 8, are affordable for residents with incomes below 60 percent of area median income. State funding guarantees affordability for 40 years and will leverage more than $14 million in non-state funds.

DOH funding: $4 million; CHFA funding: $5.1 million in four percent LIHTC equity and $5.5 million in tax-exempt bond financing

Applications for the next round of CHAMP funding are due on December 16, 2013. Additional information regarding application requirements will be released shortly. The CHFA/DOH application and CHAMP initiative outline are available on the DOH Web site at www.ct.gov/doh and CHFA’s Web site at www.chfa.org. CHAMP funding requires State Bond Commission approval.

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For Immediate Release: August 29, 2013
Contact: David Bednarz

860-524-7315 (office)
860-770-9792 (cell)