CHFA authorizes $14.6M construction loan for Angela Gardens in Enfield

The Connecticut Housing Finance Authority on May 29 unanimously authorized mortgage financing for Angela Gardens, a planned 45-unit development in Enfield targeted to elderly households.

Pasquale Guliano, Managing Director of Multifamily, summarized the Mortgage Committee's recommendation and the Board moved to adopt the resolution. The Board authorized a construction loan in a principal amount of approximately $14,640,000, secured by a first-priority fee-simple and/or leasehold mortgage lien, with interest on amounts advanced not to exceed 5.92% per annum and a construction term of up to 24 months. The loan converts to an obligation due in full at the end of the construction term unless otherwise repaid under the loan documents.

The resolution conditions the Authority's commitment on the availability of all necessary funding sources, including sufficient allocation of private activity bonds, and on customary closing requirements: final construction costs and plans; an independent appraisal and market acceptance analysis; required governmental approvals and any applicable hazardous-waste testing or remediation; commitments for all sources of funds (including State Bond Commission approval if required); proposed operating income and expenses; required reserve and escrow funding; a tenant relocation plan; and an acceptable property management plan.

The Authority requires affordability restrictions for 50 years under the Internal Revenue Code and CHFA's Qualified Allocation Plan, with all 45 units set aside for elderly households at or below 50% of area median income. The resolution includes a closing deadline of February 27, 2026, which the Chief Executive Officer — Executive Director may extend for good cause and payment of any required extension fees.

Attachment A to the resolution authorizes continuation of CHFA's Housing Mortgage Finance Program through one or more bond sales to fund mortgage financings. The attachment authorizes bond sales in an aggregate amount not to exceed $16,500,000 (2025 Series J) and grants the Chief Executive Officer — Executive Director and the Chief Financial Officer authority to negotiate sale terms, execute official statements, engage underwriters, and, if necessary, negotiate interest-rate swaps in accordance with the Authority's General Bond Resolution.

The motion to adopt the Angela Gardens resolution was made by Gregory Ugalde and seconded by Timothy Hodges; the roll-call vote was unanimous among directors present.