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CHFA authorizes construction and permanent loans for The Elle at North Main in West Hartford
Summary
The board approved a package of construction, construction‑to‑permanent and additional loans (aggregate not to exceed $14.6M) and reserved low‑income housing tax credits for The Elle at North Main; commitments are conditioned on 50‑year affordability set‑asides and required approvals.
The Connecticut Housing Finance Authority on Sept. 26 approved mortgage financing and tax‑credit reservations for The Elle at North Main, a proposed 49‑unit development in West Hartford.
By prior resolution the board had reserved $1,168,000 in low‑income housing tax credits for the project. At the meeting Pasquale Guliano presented the Mortgage Committee’s recommendation to authorize a construction loan of about $7.1 million, a construction‑to‑permanent loan of about $6.5 million and an additional loan up to $1.0 million, with aggregate financing not to exceed $14.6 million. The Construction Loan interest rate was capped at 7.35% and the Construction‑to‑Permanent loan at 6.56%; terms include interest‑only construction periods and long‑term amortization if converted to permanent financing.
Conditions for the CHFA commitment include 50‑year affordability restrictions with unit set‑asides (13 units at ≤30% AMI, 20 units at ≤50% AMI and 6 units at ≤60% AMI), independent appraisal and market acceptance analysis, all required governmental approvals (including hazardous waste testing and removal if applicable), final construction costs and plans, commitments for sources of funds to balance uses and a tenant services plan. The resolution also authorized bond sale mechanics for a Series M bond issuance to support CHFA’s Housing Mortgage Finance Program. The motion to adopt the resolution was made by Lisa Tepper Bates and seconded by Catherine MacKinnon; the board voted unanimously.
