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10/26/2015

Gov. Malloy Announces Funds to Create New Affordable Housing in Six Towns across Connecticut

(HARTFORD, CT) - Governor Dannel P. Malloy, Connecticut Department of Housing (DOH) Commissioner Evonne M. Klein, and Connecticut Housing Finance Authority (CHFA) Executive Director Karl Kilduff today announced state investments of over $20 million to create six affordable housing developments across the state.  The housing grants, which come from the most recent Competitive Housing Assistance for Multifamily Properties (CHAMP) funding round, will assist in creating and rehabilitating 230 affordable units and 52 market-rate units.

"We have done more on housing in the past few years than Connecticut has done in decades.  Affordable housing creates vibrant communities that attract families, workers, businesses, and private investments.  It's ultimately all about strengthening our economic base," Governor Malloy said.  "The housing initiatives that we're announcing today, leveraged with other recent, unprecedented commitments to create and preserve housing throughout the state, will help these towns and cities create the kinds of communities that will be competitive in today's business climate.  It's another important step forward."

CHAMP, administered by DOH, helps owners and developers of multifamily rental properties to expand or rehabilitate affordable and supportive housing.  CHFA administers the LIHTC program, which is a federal tax incentive program designed to stimulate private investment in affordable housing.  Under the program, developers can obtain equity financing to acquire, rehabilitate, and/or construct new low or moderate-income housing through the allocation of federal tax credits that may be sold to corporations or investor groups.

"Addressing housing affordability is key to attracting and retaining talent in Connecticut," Lt. Governor Nancy Wyman said.  "State government must be a strong partner in efforts to expand housing options - our business climate and our communities depend on it.  I applaud Governor Malloy, Commissioner Klein, and CHFA on these investments in our towns."

"The investments the Governor is announcing today include over $86 million in total development costs, leveraging over four times the amount that the state is contributing," Commissioner Klein said.  "The total development cost of the projects includes private commercial lending, private equity, tax-exempt and taxable bond financing and other sources.  By collaborating with our partners we are finding creative and innovative ways to help communities address one their most pressing needs, and that's the shortage of safe, quality, and affordable housing."

Since 2011, the state has created 6,958 affordable housing units, there are another 2,517 affordable units under construction, and funding commitments are in place to create another 5,255 affordable units.  The state's investment in providing quality and affordable housing totals almost $1 billion dollars - a stark representation as to the high level of commitment being made to prevent and end homelessness and ensuring every resident has a place to call home.

"With the leadership of Governor Malloy and Commissioner Klein, Connecticut is transforming affordable housing in Connecticut.  Each month, the number of affordable units available to Connecticut residents continues to grow, bringing positive changes to peoples' lives," CHFA Executive Director Karl Kilduff said.

The CHAMP recipients announced today are as follows:

• Hartford - Teachers Corner, Hartford: DOH will provide a loan up to $4,199,961 and CHFA is expected to provide an approximately $11 million construction loan and approximately $862,000 in 4 percent LIHTC equity to assist in the adaptive re-use of the vacant  six story commercial building at 370 Asylum Street into a mixed-use, mixed-income development.  The property was donated by the Hollander family with the vision of a community-based residential and commercial development.  The project will create 60 new studio, one and two-bedroom apartments, including 18 affordable units, and ground floor retail space.  Patterned after the Teachers Village Project in downtown Newark, NJ, the apartments will provide an opportunity for residents to live where they work and benefit from a transit oriented location and cultural and entertainment venues.  The site is located within walking distance of multiple downtown transit connections including Union Station and CTfastrak and is across the street from Bushnell Park.  Project financing also includes commitments from the Capital Region Development Authority (CRDA), the City of Hartford, and the Prudential Insurance Company.  The development is considered a key component of the downtown revitalization underway in the City of Hartford.

  • Kent - Stuart Farm Apartments, Phase II: DOH will loan up to $1,552,300 to assist in the development of the Stuart Farm Phase 2 Apartments in Kent.  The project includes the development of 5 new apartments in this high opportunity Litchfield County town.  The development will consist of 3 one-bedroom and 2 two-bedroom apartments and will include a handicap accessible unit as well as 2 units with a preference for low-income veterans.  The project site is located within walking distance of the commercial center of Kent, minimizing travel distances to local employment and providing easy access to local amenities such as banks, restaurants, the town library, shopping, public services, and schools.
  • New Haven - Dwight Cooperative Housing: DOH will loan up to $3,750,000 to complete the renovation of the former Dwight Cooperative on Edgewood Street in New Haven.  The 80-unit cooperative was constructed in the late 1960's and now, with only 27 habitable units due to disrepair and neglect, is a blight in the neighborhood.   Navarino Capital, the current owners of the property, acquired the Dwight Gardens from the City of New Haven in January 2014 and will complete the substantial rehabilitation of all the units. This includes installing energy efficiency improvements, upgrading the site amenities including access/driveways, fencing, plantings, sidewalks, drainage and lighting, and full interior/exterior renovations.  The units will serve a wide range of incomes, assuring a mixed-income sustainable development.
  • New Haven - Farnam Court Phase I:  DOH will provide funding not to exceed $4 million to assist in the redevelopment of Farnam Court in New Haven and CHFA is expected to award 4 percent LIHTCs that will result in approximately $12 million in equity.  Farnam Phase I will consist of the development of 2 five-story structures comprising a mix of one-bedroom, two-bedroom, three-bedroom, and four-bedroom units containing 94 residential units as well as commercial space.  The $4 million in state financing will leverage in excess of $35 million in non-state funding.  The 94 new units will include 84 income-restricted units and 10 market rate units, assuring a sustainable mixed-income development.  This is the first on-site phase of the transformation of the existing Farnam Court housing development.  When completed, the Farnam Court redevelopment will entail the complete demolition and reconstruction of the existing structures, the development of a new park for community residents, and improvements to infrastructure creating pedestrian friendly access to mass transit opportunities, including the New Haven State Street Train Station.
  • Salisbury - Sarum Village II: DOH will loan up to $1,850,000 to assist in the construction of 6 units of affordable family housing in Salisbury.  These units will be constructed on the existing Sarum Village site and will create much needed family units in the state's northwest corner.  The proposed development will serve various incomes ranges and is in close proximity to the Salisbury Main Street business district which offers employment opportunities as well as various amenities such as banking, shopping, town hall, the Scoville Memorial Library, and other services.
  • Tolland - Parker School Elderly Housing: DOH will loan up to $4.6 million to redevelop the vacant former Parker School into 37 units of affordable senior housing.  CHFA is expected to provide $1.3 million in Tax Exempt Bond funding and 4 percent LIHTC equity of $2.6 million.  In undertaking the redevelopment of the former Parker Elementary School in Tolland, The Access Agency, Inc. will complete a gut renovation of the interior while maintaining the post-war historic character of the building's exterior.  Renovations will include complete façade, building envelope, mechanical, plumbing and electrical upgrades.  All of the units will meet or exceed the federal and state accessibility guidelines and 2 units will be set aside for low-income veterans.  These apartments are near the Tolland Green, and while van service will be provided to the elderly residents, the property is only a short walking distance to municipal offices and services including the Tolland senior center and library.

Awards are subject to a fully executed contract agreement.  The CHFA funding sources are pending final approval from the Board of Directors.

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