GOV. MALLOY ANNOUNCES GRANTS TO SUPPORT AFFORDABLE HOUSING PORTFOLIO IN 11 MUNICIPALITIES ACROSS STATE
(HARTFORD, CT) - Governor Dannel P. Malloy today announced the state has awarded approximately $18,335,000 in grants and loans to help fund thirteen affordable housing developments in the state-sponsored housing portfolio.
"Increasing the availability of affordable housing is a top priority because the benefits extend far beyond the families and communities immediately impacted," said Governor Malloy. "More and more, we understand the economic results - studies show that affordable housing increases spending and employment opportunities, boosts revenue for local governments, and reduces foreclosures and the negative associated costs. Expanded housing options for our workforce also give employers a competitive advantage when trying to attract top talent to their companies."
"The Department of Housing and the Connecticut Housing Financing Authority (CHFA) are combining efforts, when feasible, to pursue a multi-layered approach to help fund housing developments in the State-Sponsored Housing Portfolio," said Evonne Klein, Commissioner of the Department of Housing (DOH). "It's an approach that includes financing from CHFA or private sources, equity investment through tax credit allocations, and gap financing from DOH to address capital needs of developments all across the state."
"We are proud to be part of the team working to strengthen the state's housing portfolio," Eric Chatman, President and Executive Director of CHFA, said. "Each investment in these units has a direct impact on the quality of life for residents, while increasing safety, sustainability and reducing operating costs."
Almost $17 million will be distributed among four projects, as follows:
- The Glen Apartments, owned and managed by the Housing Authority of the City of Danbury, contains 100 apartments for the elderly in 23 buildings, which were constructed in two phases between 1962 and 1964. This major rehabilitation project will include converting heating and cooling systems, upgrading lighting and insulation, installing Call for Aid systems, and installing individual meters for each apartment. The project will also include creating new ADA-compliant apartments, installing an emergency generator, improving the community building to make it fully handicapped accessible and making site improvements to replace impervious surfaces and better manage storm water drainage. The project will be funded with 4% Low-Income Housing Tax Credits (LIHTCs) and Tax-Exempt Bond (TEB) financing from CHFA and $4.3 million in gap funding provided by DOH.
- Historic Townley Street, located in Hartford, is owned by Historic Townley, LP and managed by Vesta Management Corporation. The property was built in 1968 and consists of 28 family units in two three-story buildings. The project will include physical improvements such as new windows and insulation, kitchen and bathroom upgrades and exterior building improvements. DOH will provide $1.9 million for the project.
- Londonberry Gardens in New London is owned and managed by Vesta Corporation. The property consists of 86 moderate rental units in 11 two-story buildings built in 1956. The improvements will include new windows, interior upgrades to kitchens and baths, replacement of existing life safety equipment, exterior building improvements and the conversion of the existing baseboard electric heat system to high efficient central gas boilers. DOH will provide $4.8 million for the project.
- Sasco Creek Apartments, owned by the Westport Housing Authority and managed by Millennium Real Estate Services, is a moderate rental development comprising 33 individual mobile homes built in 1985. The property will be completely redeveloped to include 54 new apartments and new infrastructure. The project will be funded with 4% LIHTCs and TEB financing from CHFA and $5.7 million in gap funding provided by DOH.
Approximately $1.6 million will be awarded in predevelopment grants for costs such as architectural design, environmental studies, and other early-stage development costs. The nine proposed projects are as follows:
- Bristol Housing Authority was awarded approximately $215,000 for Zbikowski Park
- The Enfield Housing Authority was awarded approximately $480,000 for Enfield Manor, Enfield Manor Ext., Woodside Park, Ella Grasso Manor and Windsor Court
- Faith Asset Management, LLC of East Hartford was awarded approximately $70,000 for Cobbs Mill Crossing
- Rose Garden Cooperative, Inc. was awarded approximately $90,000 for Rose Garden Co-op
- The Middlefield Housing Authority was awarded approximately $65,000 for Sugarloaf Terrace
- The Borough of Naugatuck Housing Authority was awarded approximately $250,000 for Oak Terrace
- Faith Asset Management, LLC of East Hartford was awarded approximately $90,000 for Security Manor, Inc.
- The Norwich Housing Authority was awarded approximately $375,000 for Sunset Park
Recognizing the importance of housing as a driver of economic development, Governor Malloy has made a historic investment in the state's affordable housing stock since being elected to office - a commitment of $500 million over 10 years for affordable housing for seniors, young professionals, working families and other residents.
The funding will require State Bond Commission approval, and the tax credit awards remain subject to approval by the CHFA Board of Directors.
For Immediate Release: November 21, 2013
Contact: David Bednarz
Department of Economic and Community Development
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