CHFA Awards $10 Million in Federal Low-Income Housing Tax Credits for Affordable Housing Development

Tax credits will generate $92 million in private investment in affordable housing supporting the development of 428 units of family and supportive housing in Cheshire, Farmington, Naugatuck, Simsbury, and West Hartford

(ROCKY HILL, Conn) – April 25, 2024. The Connecticut Housing Finance Authority (CHFA) today announced awards of $10,083,854 in federal 9% Low-Income Housing Tax Credits (LIHTC). The tax credits are estimated to generate more than $92 million in equity from private investors for six proposed affordable multifamily housing developments in Connecticut. “We are proud to recognize the outstanding affordable housing developments receiving LIHTC awards this year,” said Nandini Natarajan, CHFA’s Chief Executive Officer – Executive Director. “The Board’s approval of these awards today signifies our continued commitment to creating and preserving high-quality homes that will make a meaningful difference in the lives of families and individuals across the state.”

The developments receiving tax credit awards today will create or rehabilitate 428 rental units, 352 designated as affordable and 76 as market rate. The six developments include four in the New Construction Classification: Cheshire Highland in Cheshire, 1600 New Britain Avenue in Farmington, Parcel B Phase I in Naugatuck, and The Elle at North Main in West Hartford. An additional two developments fall in the Preservation Classification, which is designed to preserve existing affordable housing stock. They include Willow Arms in Simsbury and West Hartford Fellowship Housing Redevelopment Phase II in West Hartford.

All four awardees in the New Construction Classification will combine apartments catering to low- and moderate-income renters with market-rate units, fostering diverse communities. Additionally, each development has committed to providing supportive housing for clients of the Connecticut Department of Developmental Services (DDS), addressing a critical need in the community. Each development is situated in a municipality with insufficient affordable housing according to the State’s Affordable Housing Appeals List. Their locations are in towns that currently have less than 10% of their housing stock as affordable, ensuring access to resources and opportunities for residents. All four developments prioritize energy conservation and green building design, contributing to environmentally conscious urban development.

In the Preservation Classification, both awardees are ensuring continued service to current residents. Located in municipalities lacking adequate affordable housing and in high opportunity areas, these developments promise to maintain affordability while incorporating sustainable design measures.

In addition to the federal tax credits, the state Department of Housing is committing more than $34.4 million to the 2024 LIHTC award recipients. “We commend the developers and communities who have come together to bring these impactful developments to fruition,” said Seila Mosquera-Bruno, Chairwoman of CHFA’s Board of Directors and Commissioner of the Connecticut Department of Housing (DOH). “The State of Connecticut and 2024 LIHTC Awards Department of Housing are thrilled to support the strengthening of Connecticut’s supply of affordable housing options.”

CHFA administers the LIHTC program, a federal initiative created in 1986 to spur private investment in affordable housing by awarding tax credits to developers. The developers then sell the tax credits to private investors to obtain equity funding for their developments. Developers leverage the tax credits with other private financing and public sources. Federal tax credit allocations are based on population, and CHFA generally receives about $10 million in credits each year. Since 1986, LIHTC investment has resulted in the creation of more than 30,000 units of affordable housing in Connecticut, which has contributed nearly $6 billion in economic activity in the state and has helped support more than 50,000 jobs, according to the Department of Economic and Community Development’s REMI model. This year’s awarded developments are projected to create more than 550 jobs and generate over $8.4 million in state revenue.

“Equitable housing development leads to equitable access to opportunity,” said Natarajan. “By investing in these communities, we aim to create a more inclusive and vibrant future for all.”

LIHTC applications are evaluated based on a number of measures set forth in the State’s Qualified Allocation Plan (QAP), which reflects the State’s housing priorities, including rental affordability, financial efficiency, sustainability, local impact, and opportunity characteristics. The qualifications and experience of the development team are also assessed in the application process.

Due to the limited amount of tax credits that are available each year, the LIHTC awards are a highly competitive source of funding. This year, CHFA received 10 applications requesting a total of more than $15.9 million in credits to develop 667 rental units. For more information about the LIHTC program, click here.

Below are the six 2024 LIHTC Awardees listed by town:

Cheshire, Cheshire Highland, $1,521,097 in tax credits
This new construction development is located in a very high opportunity area of a municipality with less than 10% affordable housing. Fifteen of the 71 units will provide supportive housing for intellectually disabled clients of DDS. Another 15 units will be unrestricted and priced at market rates. Located on Highland Avenue (CT Route 10), nearby amenities include restaurants, professional offices, medical offices, day care centers, and coffee shops all within one mile of the site.

Farmington, 1600 New Britain Avenue, $1,931,757 in tax credits
1600 New Britain Avenue is a new construction development located in a high-opportunity area of Farmington, a municipality with less than 10% affordable housing. Twenty of the 90 units will provide supportive housing for clients of DDS. Twenty-two of the units will be unrestricted and priced at market rates. The development will be located near bus stops, grocery stores, pharmacies, and schools such as Tunxis Community College.

Naugatuck, Parcel B Phase I, $1,440,000 in tax credits
This new construction development is located in a community where less than 10% of its housing stock is affordable. Within walking distance of the Naugatuck train station, this 60-unit development will include 12 units of supportive housing for intellectually disabled clients of DDS. Another 12 units will be unrestricted and priced at market rates. The development will also include public green areas which will be made available to the community.

Simsbury, Willow Arms, $1,920,000 in tax credits
Originally constructed in 1972, Willow Arms is awarded credits in the Preservation Class. The current owner purchased the property in 1997 and preserved the property as affordable in perpetuity. The 81-unit property is located in a high-opportunity area of Simsbury, which has less than 10% affordable housing. As part of the redevelopment of Willow Arms, nine units will be designated as supportive units.

West Hartford, The Elle at North Main, $1,168,000 in tax credits
The Elle at North Main is a 49-unit new construction development in a very high-opportunity area of West Hartford, a town with less than 10% affordable housing. The site is located on a bus line and is within two miles of the Bishops Corner commercial area which includes grocery stores, other retail establishments, restaurants, banks, a library, and post office. Ten units will provide supportive services for clients of DDS.

West Hartford, West Hartford Fellowship Housing Redevelopment Phase II, $2,103,000 in tax credits
The second of a four-phase, 300-unit elderly housing redevelopment, West Hartford Fellowship Housing Redevelopment Phase II is awarded credits in the Preservation Classification. The phase, which will include the rehab of 68 existing units and construction of nine new units, is across the street from a library and senior center, and is in walking distance to a post office, grocery stores, pharmacies, department stores, various medical clinics, and is located on two bus lines.