CHFA Expands Small Multifamily CDFI Loan Program
Program Expands with $10 Million in New Funding
(ROCKY HILL, Conn.) — February 27, 2025. The Connecticut Housing Finance Authority (CHFA) is announcing an expansion of its Small Multifamily CDFI Loan Program, which has played a crucial role in revitalizing smaller rental properties across the state. The CHFA Board of Directors has approved an additional $10 million in funding and expanded the program’s scope to include single-family homeownership projects, ensuring that more Connecticut residents have access to safe, stable, and affordable housing.
Since 2014, CHFA and its capital partner, the Office of Policy and Management, have invested more than $19 million through this program, helping to rehabilitate nearly 400 units across 89 properties. By working with Community Development Financial Institutions (CDFIs), the program has supported small-scale developers—more than half of whom are people of color—in addressing the needs of underinvested communities and transforming blighted properties into livable homes. CDFIs are mission-driven lenders that provide financing to underserved communities, increasing access to capital for small-scale developers and housing initiatives.
“Expanding this program allows us to further our commitment to ensuring every Connecticut resident has access to a safe and stable home,” said Nandini Natarajan, CHFA CEO and Executive Director. “By funding the rehabilitation of small multifamily and single-family properties, we are not only preserving existing housing stock but also strengthening neighborhoods and fostering economic stability.”
The Small Multifamily CDFI Loan Program provides flexible, low-cost financing to support the rehabilitation of single-family homes, small multifamily buildings (2-20 units), and mixed-use rental properties, many of which are aging and in need of reinvestment. These buildings are critical to Connecticut’s housing stock, particularly in cities and towns where they serve as an important source of naturally occurring affordable housing. The program’s expansion into homeownership will provide additional opportunities for first-time homebuyers and families seeking to purchase and rehabilitate homes in their communities.
With the newly authorized $10 million, CHFA will continue to partner with CDFIs—including Hartford Community Loan Fund and Capital for Change—to ensure that funding reaches the communities and developers who need it most.
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.
Media Contact:
Name: Marcus Smith
Tel: 860-716-7400
Email: marcus.smith@chfa.org
