MARKET OPPORTUNITY

• CHFA’s lending products – Residential mortgages to 1st time

homebuyers– Construction & permanent financing to

affordable multifamily rental– Low-Income Housing Tax Credits

• Identified need– Rental opportunities at community

scale– Technical assistance– Financing options

MARKET OPPORTUNITY

• Over 116,000 units of housing are in structures with 5 – 19 units with or without commercial space

• Existing Buildings– Blighted, underutilized, or vacant– Historic in nature– Privately – owned– Urban, sub-urban and downtown

neighborhoods

5 to 19 Housing Units Per Structureas Percent of Total Housing*

1% to 4%

5% to 9%

10% to 14%

15% to 19%

20% to 24%

*2011 ACS 3-year survey provides estimates for areas with populations of 20,000 or more.

The 116,032 of 5 to 19 units in these areas represent 11% of theirtotal number of housing units.

PERCENT OF HOUSING UNITS WITHIN MUNICIPALITY THAT ARE IN 5 – 19 UNIT STRUCTURES

PARTNERSHIPS:CDFI INVESTMENT

RESULTS•$9 million Invested•$300 Million Leveraged•2,000 Units Financed

• $9 million investment in three CDFIs• Local Initiatives Support Corporation• Connecticut Housing Investment Fund• Greater New Haven Community Loan Fund

• Funds available for• Predevelopment• Bridge financing• Construction – Rental and Ownership

DEPOT CROSSING – BERLIN, CONNECTICUT • Total Dev. Cost - $3.5 million• Mixed-use/Mixed-Income• 16 Rental Units• Transit-Oriented Development• Located on the planned New

Haven-Hartford-Springfield Commuter Rail Service to start in 2016

After

Before

Partnerships:CDFI Small Multifamily Loan Pool

• $5 million Loan Pool• Provides acquisition/construction,

construction, and permanent financing • Properties with 3 – 20 rental housing units • Units must be affordable to 80% AMI or

located in LMI census tract• Properties are blighted and/or vacant• Offered through

– Greater New Haven Community Loan Fund – Hartford Community Loan Fund – Housing Development Fund

RESULTS •Between April – September, about $1.5 million has been drawn •52 rental housing units•Average monthly savings to an owner is $237

• 3 Story brick building• Located in the Fair Haven

neighborhood of New Haven• 3 Large Family Rental Units• Each unit is over 2,100 sq. feet

with 6-bedrooms• Units are fully leased to female

headed households

Needed improvements financed include •New electrical writing & plumbing,•New gas fired furnaces & water heaters•Updated kitchens, & bathrooms•New roof, new windows •Replaced interior doors, and painting throughout

PARTNERSHIPS:SUBURBAN & RURAL COMMUNITIES

• Administered on behalf of CHFA by the Local Initiatives Support Corp. & Connecticut Housing Coalition

• Supports affordable housing development in Connecticut’s Suburban & Rural Communities by Providing– Outreach– Technical assistance

• Organizational Development• Planning & Policy Assistance• Project Technical Assistance

– Education & Training – to support affordable housing development in

Connecticut’s suburban & rural communities

RESULTS•Creation of 261 new affordable units •An additional 502 units in planning or development stages•Directly leveraged over $43 million in total development

PARTNERSHIPS:SUBURBAN & RURAL COMMUNITIES

Stuart Farms 5 units – Kent, CT.

Northfield Firehouse 2 units – Litchfield, CT.

Ferry Crossing 16 units – Old Saybrook, CT.

PARTNERSHIPS:DOWNTOWN NEIGHBORHOODS

• Mixed-Use/Typical Downtown• Vacant or Underutilized buildings• Program provides

– Architectural and design schematics – Proposal for redevelopment costs & sources– Assessment of zoning & regulatory

requirements – Review of downtown management &

walkability• Program has 5 pilot properties• Each building is representative of typical

building found across Connecticut

RESULTS•Municipal reviews of parking & zoning requirements•One property owner looking to sell vacant property to an experienced mixed-use developer•Reviewed interest in mixed-use downtown developments•Creation of CHDT Loan Pool; partner with banks

Sources of FundsEquityState Historic Tax Credits $207,700

Financing (Debt)First Mortgage Loan $400,000Seller Financing $292,500Additional Funds Needed $396,600

Total Sources $1,296,800

Development CostsConstruction Hard Costs $830,900Site Acquisition $325,000Architectural/Engineering $54,000Financing & Interim Costs $29,900Fees & Expenses $57,000

Total Costs $1,296,800

PARTNERSHIPS:DOWNTOWN NEIGHBORHOODS

CHALLENGES AND LESSONS LEARNED

• Municipal– Zoning unit density– Parking requirements

• Financing– No conventional lending products– Lack of market history– Large financial gaps

• Private Owners – Risk averse – Cash flow vs. Asset value

• Affordability Policy

Questions?Contact Information:Diane Smith, Program Development OfficerPhone: 860-571-4369Email: diane.smith@chfa.org