m arket o pportunity chfa’s lending products – residential mortgages to 1 st time homebuyers –...
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MARKET OPPORTUNITY
• CHFA’s lending products – Residential mortgages to 1st time
homebuyers– Construction & permanent financing to
affordable multifamily rental– Low-Income Housing Tax Credits
• Identified need– Rental opportunities at community
scale– Technical assistance– Financing options
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MARKET OPPORTUNITY
• Over 116,000 units of housing are in structures with 5 – 19 units with or without commercial space
• Existing Buildings– Blighted, underutilized, or vacant– Historic in nature– Privately – owned– Urban, sub-urban and downtown
neighborhoods
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5 to 19 Housing Units Per Structureas Percent of Total Housing*
1% to 4%
5% to 9%
10% to 14%
15% to 19%
20% to 24%
*2011 ACS 3-year survey provides estimates for areas with populations of 20,000 or more.
The 116,032 of 5 to 19 units in these areas represent 11% of theirtotal number of housing units.
PERCENT OF HOUSING UNITS WITHIN MUNICIPALITY THAT ARE IN 5 – 19 UNIT STRUCTURES
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PARTNERSHIPS:CDFI INVESTMENT
RESULTS•$9 million Invested•$300 Million Leveraged•2,000 Units Financed
• $9 million investment in three CDFIs• Local Initiatives Support Corporation• Connecticut Housing Investment Fund• Greater New Haven Community Loan Fund
• Funds available for• Predevelopment• Bridge financing• Construction – Rental and Ownership
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DEPOT CROSSING – BERLIN, CONNECTICUT • Total Dev. Cost - $3.5 million• Mixed-use/Mixed-Income• 16 Rental Units• Transit-Oriented Development• Located on the planned New
Haven-Hartford-Springfield Commuter Rail Service to start in 2016
After
Before
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Partnerships:CDFI Small Multifamily Loan Pool
• $5 million Loan Pool• Provides acquisition/construction,
construction, and permanent financing • Properties with 3 – 20 rental housing units • Units must be affordable to 80% AMI or
located in LMI census tract• Properties are blighted and/or vacant• Offered through
– Greater New Haven Community Loan Fund – Hartford Community Loan Fund – Housing Development Fund
RESULTS •Between April – September, about $1.5 million has been drawn •52 rental housing units•Average monthly savings to an owner is $237
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• 3 Story brick building• Located in the Fair Haven
neighborhood of New Haven• 3 Large Family Rental Units• Each unit is over 2,100 sq. feet
with 6-bedrooms• Units are fully leased to female
headed households
Needed improvements financed include •New electrical writing & plumbing,•New gas fired furnaces & water heaters•Updated kitchens, & bathrooms•New roof, new windows •Replaced interior doors, and painting throughout
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PARTNERSHIPS:SUBURBAN & RURAL COMMUNITIES
• Administered on behalf of CHFA by the Local Initiatives Support Corp. & Connecticut Housing Coalition
• Supports affordable housing development in Connecticut’s Suburban & Rural Communities by Providing– Outreach– Technical assistance
• Organizational Development• Planning & Policy Assistance• Project Technical Assistance
– Education & Training – to support affordable housing development in
Connecticut’s suburban & rural communities
RESULTS•Creation of 261 new affordable units •An additional 502 units in planning or development stages•Directly leveraged over $43 million in total development
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PARTNERSHIPS:SUBURBAN & RURAL COMMUNITIES
Stuart Farms 5 units – Kent, CT.
Northfield Firehouse 2 units – Litchfield, CT.
Ferry Crossing 16 units – Old Saybrook, CT.
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PARTNERSHIPS:DOWNTOWN NEIGHBORHOODS
• Mixed-Use/Typical Downtown• Vacant or Underutilized buildings• Program provides
– Architectural and design schematics – Proposal for redevelopment costs & sources– Assessment of zoning & regulatory
requirements – Review of downtown management &
walkability• Program has 5 pilot properties• Each building is representative of typical
building found across Connecticut
RESULTS•Municipal reviews of parking & zoning requirements•One property owner looking to sell vacant property to an experienced mixed-use developer•Reviewed interest in mixed-use downtown developments•Creation of CHDT Loan Pool; partner with banks
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Sources of FundsEquityState Historic Tax Credits $207,700
Financing (Debt)First Mortgage Loan $400,000Seller Financing $292,500Additional Funds Needed $396,600
Total Sources $1,296,800
Development CostsConstruction Hard Costs $830,900Site Acquisition $325,000Architectural/Engineering $54,000Financing & Interim Costs $29,900Fees & Expenses $57,000
Total Costs $1,296,800
PARTNERSHIPS:DOWNTOWN NEIGHBORHOODS
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CHALLENGES AND LESSONS LEARNED
• Municipal– Zoning unit density– Parking requirements
• Financing– No conventional lending products– Lack of market history– Large financial gaps
• Private Owners – Risk averse – Cash flow vs. Asset value
• Affordability Policy
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Questions?Contact Information:Diane Smith, Program Development OfficerPhone: 860-571-4369Email: [email protected]