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

• 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.

|Who We Are

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

Special Round

HTCC

CHAMP/4% TEB

9% LIHTC

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

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 Programs

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

|Financing Initiatives

• 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

|Predevelopment Loans

Governor’s $300M Initiative

• State Sponsored Housing Portfolio (SSHP)2010-

2014 Pre-development and Capital funding

o Funded with FLEX funds

o $89.5M State funds awarded

o 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

|Financing Programs

• 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

Consolidated Application

The Process: Key Benchmarks

The Process: Key Benchmarks

Timeframe Activities

Pre-Application 1-12 mos. prior to

deadline

• Meet with owners, and

development team

• Meet with other financing

entities

Funding Rounds

1-2 per quarter

(“open” round

funding available

without deadline)

• Design Rating & Ranking

instruments

• Announce funding

• Overview sessions

Consolidated

Application

Deadlines set

generally within 3-4

mos. of funding

announcement

• Electronic submission and

download

The Process: Application

Timeframe Activities

Policy & Program

2 – 12 mos.

depending on

completeness of

application at

submission

• State & Federal law and

regulation

• State policies

• Agency objectives

Financial

Underwriting

• Balanced Sources & Uses

• Trending analysis

• Focus on long-term

savings to owners and

residents

Technical Review

• Review drawings and

specifications

• Capital Needs Assessments

• Environmental reports

• Energy efficiency

The Process: Cooperative Review

Timeframe Activities

State Bond

Commission

3-6 mos. prior to

projected closing

date

• Confirm all eligible costs

• Work with Commissioner's

Office and Office of Policy

& Management

CHFA Board of

Directors

• Confirm terms and

conditions

• Prepare recommendations

for Board review and

consideration

• Issue Term Sheet

The Process: Approval

Timeframe Activities

Closing 2-12 mos. After

approvals

• Work with counsel

• Review checklist

documents (construction

contracts, performance

bonds, zoning approvals,

etc.)

Construction 4-24 mos.

• Approve and fund monthly

requisitions

• Provide guidance on

construction observation

Occupancy

• Review leasing processes

• Program and statutory

compliance monitoring

• 30-40 year mortgages

The Process: Closing, Construction &

Occupancy

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