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CHFA approves loans and tax-credit-backed financing for Willow Arms Redevelopment in Simsbury
Summary
The Board authorized up to $1.8 million in permanent mortgage financing and an additional loan up to $1.0 million for the Willow Arms Redevelopment (81 units) in Simsbury, with 50-year affordability restrictions and specified unit set‑asides; the motion passed with one abstention.
The Connecticut Housing Finance Authority on March 27 authorized mortgage financing for the Willow Arms Redevelopment, an existing 81‑unit development in Simsbury, and confirmed the prior reservation of low‑income housing tax credits for the project.
The resolution authorizes a permanent loan with principal not to exceed $1,800,000, to be secured by a first‑priority mortgage lien on the development. The permanent loan’s interest rate cap is cited at 7.65% per annum and repayment is structured on a 40‑year amortization over a 35‑year term, with prepayment conditions described in the adopted text.
The Board also authorized an Additional Loan not to exceed $1,000,000. The Additional Loan is described as accruing interest at a rate not to exceed 1% per annum, interest‑only throughout its term, with repayment provisions beginning in the 25th month and an overall term of up to 42 years. The resolution indicates that the Additional Loan may be repaid from adjusted cash flow subject to priority for certain approved fees and subordinate financing obligations.
The financing is conditioned on standard requirements, including availability of necessary funding sources, independent appraisal and market acceptance analysis, governmental approvals and hazardous‑waste testing if applicable, final construction plans and costs, commitments for all sources of funds, and satisfaction of closing conditions. Affordability restrictions of 50 years are required under the Internal Revenue Code and CHFA’s Qualified Allocation Plan; the resolution specifies unit set‑asides: 25 units at or below 30% of area median income (AMI); 22 units at or below 50% AMI; 17 units above 30% and at or below 50% AMI; and 3 units at or below 80% AMI.
The Mortgage Committee’s recommendation was read by Pasquale Guliano, Managing Director of Multifamily. The Board adopted the Willow Arms financing resolution on a motion by Claudio Gualtieri, seconded by Gregory Ugalde; Catherine MacKinnon was recorded as abstaining.
The resolution states that failure to close the authorized mortgage financing on or before December 31, 2030 will render the resolution void unless extended by the CEO‑Executive Director for good cause and upon payment of any required fees.
