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CHFA board authorizes up to $150 million in housing revenue bonds
Summary
The Connecticut Housing Finance Authority board voted March 19 to authorize issuance of up to $150 million in housing revenue bonds under a general trust indenture, empowering CHFA leadership to negotiate sales, execute official statements and use proceeds for multifamily and homeownership loan programs. The move sets term caps and underwriting disclosure requirements.
The Connecticut Housing Finance Authority board on March 19 adopted a resolution authorizing the issuance of up to $150,000,000 in housing revenue bonds under the Authority’s Housing Revenue Bond General Trust Indenture. The authorization allows CHFA to finance multifamily loans, single‑family loans and mortgage‑backed securities, and to refund outstanding maturities where appropriate. The resolution sets a maximum maturity of 45 years and an interest rate cap of 10% per annum and permits issuance in one or more series as taxable and/or tax‑exempt bonds.
CHFA’s chief financial officer, Hazim Taib, requested the board consider the resolution; the motion to adopt it was made by Jerrold Abrahams and seconded by Gregory Ugalde, and the board voted unanimously in favor. The resolution authorizes the CEO/Executive Director and the CFO to approve and execute Supplemental Trust Indentures, Preliminary Official Statements and underwriting commitments, and to select underwriting firms and purchasers for negotiated sales.
The measure also requires underwriting firms to update statutory affidavits, certifications and disclosures to the Chief Financial Officer before participation in a sale and authorizes CHFA staff to negotiate interest‑rate swap agreements if appropriate. The resolution directs staff to follow applicable Treasury and Internal Revenue Service rules regarding tax‑exempt issuance, and it delegates award and closing authority to the CEO/CFO within the resolution’s terms.
Why it matters: the authorization gives CHFA a financing tool to support multifamily and homeownership lending without relying on the State’s general obligation credit or a State‑supported debt service reserve fund. CHFA documents attached to the resolution say bond proceeds may also be used to reimburse prior expenditures and to refund prepayments when appropriate.
Next steps: CHFA staff will coordinate timing and structure of bond series with the State Treasurer’s Office, obtain required underwriting disclosures, and return to market with negotiated sales and official statements as permitted by the resolution.
