PREPARING FOR 2015-16 FUNDING ROUNDS ED LACHANCE, CT DEPARTMENT OF HOUSING MARCUS SMITH, CT HOUSING FINANCE AUTHORITY PETER HANCE, THE AFFORDABLE HOUSING COLLABORATIVE LLC CONN-NAHRO ANNUAL CONVENTION SEPTEMBER 1, 2015
Who We Are The Department of Housing (DOH) is the State's lead agency for all matters relating to housing. Provides leadership for all aspects of policy and planning relating to the development, redevelopment, preservation, maintenance and improvement of housing serving very low, low, and moderate income individuals and families. Promote affordable housing opportunities, seeks to eliminate homelessness and catalyzes the creation and preservation of quality, affordable housing.
Who We Are The Connecticut Housing Finance Authority (CHFA) is a self-supporting quasi-public housing agency formed in 1969. Statutorily charged with expanding affordable housing opportunities for Connecticut s low- and moderate-income families and individuals. To date, CHFA s combined single- and multifamily housing finance programs exceed $11 billion.
CHFA/DOH LEAN Events
Accomplishments DOH and CHFA oversee 6 8 funding rounds annually 60+ projects per year totaling $1 billion in construction costs Leveraging millions of dollars in debt, subsidy and equity SSHP CHAMP/4%- TEB Special Round 9% LIHTC HTCC CHAMP/4% TEB
DOH / CHFA Financing Schedule Yearly Schedule based on State Budget Listing of All Initiatives and Rounds Available at ct.gov/doh and at chfa.org E-Blasted to both agencies mailing lists
Financing Programs Housing Trust Fund (HTF) Approximately $50M in annual bonding Affordability up to 120% AMI Must be provided through competitive basis Affordable Housing Program (FLEX) Approximately $50-70MM budgeted annually Affordability profiles up to 100% AMI Federal Funds HOME Investment Partnership Community Development Block Grant
Financing Initiatives Competitive Housing Assistance for Multifamily Properties (CHAMP) Initiative Semi-Annual $25MM Rounds Dec./June Affordability profiles range from 25%-120% AMI Prioritize: Low Income Service Areas of Opportunity Readiness to proceed Mixed Income
Financing Initiatives Affordable Housing Program (FLEX) Approximately $50-70MM budgeted annually Affordability profiles range from 25%-100% AMI Used as DOH Gap financing for: 9% LIHTC Round SSHP Rounds Innovations Small Project Round Homeownership Round Pre-Development Loans
Predevelopment Loans Up to $300,000 Consolidated Application used for both SSHP and non-sshp development proposals SSHP funded through FLEX but uses separate source from $30MM
Financing Programs Governor s $300M Initiative State Sponsored Housing Portfolio (SSHP)2010-2014 Pre-development and Capital funding o o o Funded with FLEX funds $89.5M State funds awarded 6,495 Units assisted Annual rental assistance (RAP) allocation approx. $1.5M Energy Conservation Loan Fund
Financing Programs Low-Income Housing Tax Credits 9% - Annual Allocation - $8M - Credits yield 10x their value in equity investment 4% - As of Right combined with Tax-Exempt Bond financing Targets households at or below 60% AMI Housing Tax Credit Contribution Program Annual Allocation - $10M Available to non-profit organizations
Financing Programs Permanent and construction loan Multifamily Second Mortgage Program CHFA Energy Conservation Loan Program Most energy efficient improvements eligible Financing terms based on projected energy savings
Consolidated Application Used for ALL CHFA/DOH funding rounds Single Excel Workbook Macro based workbook allows it to be used for all applications Multiple Attachment Uploads Currently uses State BIZNET as upload/transitioning to Sharepoint
The Process: Key Benchmarks
The Process: Key Benchmarks
The Process: Application Pre-Application Funding Rounds Consolidated Application Timeframe 1-12 mos. prior to deadline 1-2 per quarter ( open round funding available without deadline) Deadlines set generally within 3-4 mos. of funding announcement Activities Meet with owners, and development team Meet with other financing entities Design Rating & Ranking instruments Announce funding Overview sessions Electronic submission and download
The Process: Cooperative Review Policy & Program Financial Underwriting Technical Review Timeframe 2 12 mos. depending on completeness of application at submission Activities State & Federal law and regulation State policies Agency objectives Balanced Sources & Uses Trending analysis Focus on long-term savings to owners and residents Review drawings and specifications Capital Needs Assessments Environmental reports Energy efficiency
The Process: Approval State Bond Commission CHFA Board of Directors Timeframe 3-6 mos. prior to projected closing date Activities Confirm all eligible costs Work with Commissioner's Office and Office of Policy & Management Confirm terms and conditions Prepare recommendations for Board review and consideration Issue Term Sheet
The Process: Closing, Construction & Occupancy Closing Construction Occupancy Timeframe 2-12 mos. After approvals 4-24 mos. Activities Work with counsel Review checklist documents (construction contracts, performance bonds, zoning approvals, etc.) Approve and fund monthly requisitions Provide guidance on construction observation Review leasing processes Program and statutory compliance monitoring 30-40 year mortgages
EDWARD LACHANCE (860) 270-8099 edward.lachance@ct.gov www.ct.gov/doh MARCUS SMITH (860) 571-4314 marcus.smith@chfa.org www.chfa.org