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CHFA urges full funding for Build for CT, Time to Own in governor's FY26-27 bonding plan
Summary
Connecticut Housing Finance Authority told the Finance, Revenue and Bonding subcommittee the governor's proposed $300 million for the Housing Trust Fund and $100 million for the Time to Own program are needed to keep housing production and down-payment assistance moving amid high demand.
Connecticut Housing Finance Authority Chief Executive Officer Nandini Natarajan told the Finance, Revenue and Bonding subcommittee on March 24 that the governor's recommended capital authorizations for the FY26-27 biennium would sustain Connecticut's recent progress on affordable rental production and first-time homebuyer assistance. "With $300,000,000 for the Housing Trust Fund and $400,000,000 for the affordable housing program, FLEX, the governor's biannual budget promises to continue the state's historic investments to address the shortage of affordable housing in Connecticut," Natarajan said.
Why it matters: CHFA administers or partners on multiple programs that plug financing gaps for multifamily rental developments and supply down-payment assistance for buyers. Subcommittee members pressed CHFA for details about current balances and program demand; Natarajan answered with program-by-program totals and said some funds are close to reservation or expenditure.
Key details and CHFA numbers
- Housing Trust Fund (HDF) and FLEX: Natarajan said the two programs have financed multifamily closings that leveraged CHFA financing and tax credits. CHFA reported about $232 million from HDF and FLEX has been put toward multifamily financial closings in the past four years.
- Build for CT: Included in the governor's $300 million HDF request is $130 million for Build for CT, a subordinate loan product that requires market-rate developments to dedicate at least 20% of units to middle-income renters. Since late 2023, Natarajan said the program supported creation of more than 2,250 rental units as of 03/24/2025, with 575 reserved for middle-income households (defined in testimony as 60'–120% of area median income). With $130 million more, CHFA estimated it could support about 1,040 additional middle-income units.
- Time to Own (TTO): The governor's draft budget includes $100 million across the biennium for Time to Own, the forgivable down-payment assistance program CHFA administers for eligible first-time buyers. Natarajan said TTO has reserved about $184 million for 6,250 "time to own" homebuyers as of 03/24/2025; of currently available TTO-related down-payment funds CHFA reported roughly $9.8 million uncommitted and said the program's reservation burn rate is high.
Subcommittee exchanges
Subcommittee members asked for detail on recent bond flows and federal funds. Natarajan said CHFA had received approximately $195 million for Time to Own previously, with about $9.8 million uncommitted. For Build for CT, CHFA has received $150 million, of which about $83 million had been used in transactions and $36'–$40 million was approved and moving toward closings. When Senator Miller questioned how families benefit in occupied, renovated tax-credit properties, Natarajan said tax-credit rents are set annually by HUD and that owners subject to CHFA financing generally must seek CHFA consent before increasing rents.
Demand and program risks
CHFA staff told the subcommittee that TTO reservations vary seasonally and that the current uncommitted balance could be reserved by mid-May without additional bonding. Representative Doucette and others urged prioritizing authorization and timely bond-commission allocations to avoid pauses that could leave homebuyers waiting during closings.
Quotations
"Only with continued financial support from the state will we be able to tackle the housing shortage we're experiencing here in Connecticut," CHFA CEO Nandini Natarajan said in her opening remarks. On program timing, CHFA staff said, "we expect to run out of those funds, reserve by mid May, if not a little bit sooner," referring to the current uncommitted down-payment dollars.
What was not decided
This hearing recorded testimony and questions but no formal votes by the subcommittee. Members and agency staff agreed to follow up in writing on some numerical details CHFA did not have immediately available.
Ending note
CHFA asked the subcommittee for support of the governor's FY26-27 capital requests, and requested timely bond-commission scheduling so programs such as Time to Own do not experience interruptions that could delay closings and affect homebuyers.
