CHFA approves financing package for 64-unit affordable housing at 2980 State Street in Hamden

The Connecticut Housing Finance Authority on June 26 unanimously adopted a resolution authorizing mortgage financing for a 64‑unit development at 2980 State Street in Hamden.

The resolution authorizes a construction loan of approximately $14,242,000 and a construction‑to‑permanent loan of approximately $1,135,000, with aggregate principal not to exceed $15,377,000. Interest on the construction loan is capped at 6% per annum; interest on the construction‑to‑permanent loan is capped at 6.7% per annum. The construction loan is payable monthly in arrears over a term of up to 24 months; the construction‑to‑permanent loan allows up to 24 months interest‑only followed by a 40‑year amortization, with prepayment/refinance provisions described in the resolution.

The resolution also authorizes an additional mortgage loan of up to $1,000,000 that may be secured by a first or second lien, accrue interest not less than 1% per annum, and be repaid interest‑only during construction or via an amortization schedule determined by the Authority. Repayment priorities for the Additional Loan give certain developer and investor obligations priority over Additional Loan repayments as specified in the resolution.

The Authority conditioned its commitment on customary items, including availability of necessary funding sources (including sufficient allocation from the state ceiling for private activity bonds), final construction plans and costs, an independent appraisal and market acceptance analysis, governmental approvals, hazardous waste testing and remediation if required, commitments for all sources of funds, proposed operating income and expenses, subsidies and supportive services commitments, tenant relocation planning, and a property management plan. The resolution imposes affordability restrictions for a 40‑year period, with unit set‑asides as follows: nine units at or below 30% of area median income (AMI); 13 units above 30% and at or below 50% AMI; 37 units at or below 50% AMI; and four units at or below 60% AMI.

The Board authorized financing to be funded, subject to availability, from tax‑exempt bond proceeds or other sources the Authority deems in its best interest, and delegated authority to the Chief Executive Officer – Executive Director to modify or supplement the terms and take actions necessary to effectuate the financing. The resolution states that failure to close on the mortgage financing on or before March 31, 2026 will render the Resolution void unless the Authority grants an extension for good cause and any required fees are paid.

Pasquale Guliano, Managing Director of Multifamily, presented the Mortgage Committee recommendation. The motion to adopt the resolution was made by Gregory Ugalde and seconded by Heidi DeWyngaert; the Board approved it by roll call vote with unanimous support from directors present.