CHFA Awards $11.5 Million in Federal Tax Credits to Develop 319 Rental Homes

Six developments to receive funding to expand affordable housing options across Connecticut

(Rocky Hill, Connecticut)- May 22, 2026 – The Board of Directors of the Connecticut Housing Finance Authority (CHFA) yesterday approved allocations of federal 9% Low-Income Housing Tax Credits (LIHTCs) to support the development and preservation of affordable housing in communities across Connecticut.

The awards will support six developments located in Cromwell, Farmington, Hartford, Naugatuck, and New Britain, representing a combined total of 319 rental units, including 282 affordable apartments and 37 market-rate apartments. Three developments will also utilize a hybrid 4%/9% LIHTC financing structure, supporting an additional 156 affordable apartments. Altogether, the awards are expected to help create or preserve 475 apartments statewide, including 438 affordable homes.

“The Low-Income Housing Tax Credit program remains one of the most important resources available for financing affordable housing in Connecticut,” said Nandini Natarajan, Chief Executive Officer and Executive Director of CHFA. “Through these allocations, we are helping advance developments that will bring new housing opportunities to communities across the state while leveraging significant private investment alongside public funding.”

The developments recommended for funding will leverage approximately $144.9 million in private LIHTC equity investment alongside approximately $59.6 million in proposed Connecticut Department of Housing funding.

“Expanding Connecticut’s housing supply requires a sustained, statewide commitment and strong collaboration across the public and private sectors,” said Seila Mosquera-Bruno, Commissioner of the Connecticut Department of Housing and Chair of the CHFA Board of Directors. “These developments reflect the State’s broader efforts to support housing choice, strengthen communities, and ensure residents at a range of income levels can find quality housing in Connecticut.”

CHFA received 11 applications requesting more than $20 million in annual 9% tax credits during the 2026 funding round. The applications proposed a total of 640 rental units statewide.

The developments approved for funding include:

New Construction Classification

20 Scott Swamp — Farmington

This development will create 62 apartments, including 49 affordable units and 14 supportive housing units for clients referred through the Connecticut Department of Developmental Services (DDS). Located in a municipality with less than 10% deed-restricted affordable housing, the development will replace a vacant nursing home facility with five new residential buildings.

186 Shunpike — Cromwell

This proposed development will create 60 apartments, including 48 affordable units and supportive housing units serving DDS clients. The development will be within close proximity to many public and private amenities including a park, school, daycare, restaurants, fitness center, primary care, pharmacy and grocery store.

Edge Building 1 — Hartford

The 9% LIHTC-funded phase of this mixed-income development will create 64 apartments, with an additional 61 units to be funded using 4% LIHTCs. The development will include supportive housing units for formerly homeless individuals and families through the CT811 program and will incorporate energy-efficient construction, solar, and broadband access.

Parcel B Phase II — Naugatuck

Parcel B Phase II will create 60 apartments, including 48 affordable units, as part of a broader neighborhood revitalization effort in downtown Naugatuck. The development will include 12 supportive housing units and sustainability-focused design features.

Preservation Classification

Mount Pleasant Redevelopment Phase II-9% — New Britain

This redevelopment effort will demolish and rebuild existing occupied affordable housing, ensuring that current residents will have access to housing following construction. The hybrid 4%/9% financing structure will support a combined 81 affordable apartments, 34 of which will be funded using 9% LIHTCs.

MSP Phase 1B/9% — Hartford

Located in Hartford, this redevelopment will demolish and rebuild existing affordable housing while preserving long-term affordability for residents. This 9% LIHTC-funded phase will create 39 affordable apartments, with an additional 42 units to be funded using 4% LIHTCs.

All six developments will include energy conservation measures, green building design features, solar installations, and high-speed broadband access for residents.

The federal Low-Income Housing Tax Credit program is the nation’s primary tool for financing the development and preservation of affordable rental housing. For more information about the LIHTC program and 2026 awardees, visit www.chfa.org.

About Connecticut Housing Finance Authority
The Connecticut Housing Finance Authority (CHFA) is a self-funded, quasi-public organization dedicated to alleviating housing shortages for low- and moderate-income families and individuals in Connecticut. By providing innovative financing solutions and fostering partnerships, CHFA strengthens communities and promotes economic development throughout the state.