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CHFA approves financing and inducements for multiple Connecticut affordable‑housing projects
Summary
At its March 19 meeting, CHFA approved permanent loans, construction financing, loan modifications and preliminary bond inducements for a range of affordable‑housing developments — including 55 Nye Road in Glastonbury, Avon Village, Oak Park Phase 2, Windsor Locks TOD phases and a preliminary bond inducement covering 13 preservation properties. Several approvals require final funding allocations and closing conditions.
The Connecticut Housing Finance Authority board voted March 19 to approve mortgage financings, loan modifications and preliminary bond inducements to support new construction, preservation and rehabilitation of affordable housing across the state.
Key approvals and conditions
55 Nye Road, Glastonbury: CHFA authorized a permanent loan of up to $6,600,000 and an additional loan of up to $1,000,000 for a proposed 64‑unit development (Hillside Village LLC). The permanent loan carries an interest cap of 7.11% with amortization and term restrictions; the additional loan accrues interest not to exceed 1% and contains repayment provisions tied to adjusted cash flow. The board required affordability restrictions for 50 years with unit set‑asides: 13 units at or below 30% AMI, 29 units at or below 50% AMI, and 13 units at or below 60% AMI. Motion by Gregory Ugalde; second by Sean Williams. Director Timothy Hodges abstained.
Avon Village, Avon: The Authority authorized construction‑to‑permanent financing up to $12,000,000 (with an expected permanent balance of about $8,010,000) for a 76‑unit project developed by Beacon Communities Services LLC. Interest on construction was capped at 6.35%; affordability restrictions run 40 years with specified set‑asides (16 units at or below 50% AMI; 60 units at or below 60% AMI). Motion by Chelsea Ross; second by Gregory Ugalde. Directors Philip DeFronzo and Timothy Hodges abstained.
Hart Street Gardens, New Britain (modified financing): The board approved authority to modify terms of an existing loan, including extending the maturity of the interest‑only portion (up to 30 years), reducing that portion’s rate to as low as 0%, and setting cash‑flow‑based repayment terms. Motion by Gregory Ugalde; second by Sean Williams. Vote unanimous.
Heritage Glen Apartments, Farmington (modified financing): CHFA approved capitalization of accrued interest and an extension of the loan maturity (up to 25 years) with revised amortization for the authority‑held 1994 State loan. Motion by Catherine MacKinnon; second by Matthew Pugliese. Vote unanimous.
Oak Park Phase 2, Stamford: The board authorized a permanent loan up to $6,200,000 plus an additional loan up to $1,000,000 for the 43‑unit Oak Park Phase 2 development. Affordability restrictions were set for 50 years with unit set‑asides at 30%, 50% and 60% AMI levels. Motion by Sean Williams; second by Heidi DeWyngaert. Director Timothy Hodges abstained.
Preliminary bond inducement for 13 preservation properties: The board gave preliminary approval to consider issuance of Housing Mortgage Finance Program bonds to finance acquisition/rehabilitation for 13 preservation projects across the state (Avery Heights, Burritt House, Danbury Tower, Freshwater Pond, Josephine Towers, Plaza on the Green, Poquonnock Village, South Green, Village Court, Wequonnoc Village, Willow Arms, Woodside Village and Woodview Apartments). The resolution lists proposed maximum bond amounts for each property; final bond authorization remains subject to subsequent board action, project closing conditions, and compliance with the Authority’s procedures. Motion by Catherine MacKinnon; second by Gregory Ugalde. Vote unanimous.
Windsor Locks TOD Phase 1A and 1B: The board approved construction and construction‑to‑permanent financing for Windsor Locks TOD Phase 1A (aggregate loans not to exceed $13,550,000) and a separate permanent loan up to $2,100,000 for Phase 1B, which had an allocation of $1,460,215 in 9% low‑income housing tax credits. Both approvals specify affordability set‑asides and are conditioned on availability of funding sources and regulatory approvals. Motions were moved and seconded by board members; votes were unanimous.
Votes and conditions: Most measures passed unanimously; a small number of board members abstained on project‑specific items (noted above). Multiple resolutions include a closing or commitment deadline of December 31, 2026 and condition approvals on availability of state bond allocations, execution of required documentation, environmental and hazardous‑waste testing where applicable, and receipt of necessary governmental approvals.
Why it matters: The approvals advance construction and preservation of hundreds of affordable housing units in Connecticut and commit CHFA resources and bond capacity to projects that include deed‑restricted affordability for multiple decades. Several items are preservation‑oriented, intended to keep existing subsidized housing operational under revised loan terms.
Next steps: Each financing is conditional on final underwriting, funding availability, and required approvals; CHFA staff will complete loan closings, finalize bond series and return for any necessary additional Board action.
