Transcript Document

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
MARKET OPPORTUNITY
• Over 116,000 units of housing are in
structures with 5 – 19 units with or
without commercial space
• Existing Buildings
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Blighted, underutilized, or vacant
Historic in nature
Privately – owned
Urban, sub-urban and downtown
neighborhoods
PERCENT OF HOUSING UNITS WITHIN MUNICIPALITY THAT ARE IN 5 – 19 UNIT STRUCTURES
*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 their
total number of housing units.
5 to 19 Housing Units Per Structure
as Percent of Total Housing*
1% to 4%
5% to 9%
10% to 14%
15% to 19%
20% to 24%
PARTNERSHIPS:
CDFI INVESTMENT
• $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
RESULTS
• $9 million Invested
• $300 Million
Leveraged
• 2,000 Units Financed
DEPOT CROSSING – BERLIN, CONNECTICUT
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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
Before
After
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
• 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
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
PARTNERSHIPS:
SUBURBAN & RURAL COMMUNITIES
Northfield Firehouse 2 units – Litchfield, CT.
Stuart Farms 5 units – Kent, CT.
Ferry Crossing 16 units – Old Saybrook, CT.
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 mixeduse developer
• Reviewed interest in
mixed-use
downtown
developments
• Creation of CHDT
Loan Pool; partner
with banks
PARTNERSHIPS:
DOWNTOWN NEIGHBORHOODS
Sources of Funds
Equity
State Historic Tax Credits
$207,700
Financing (Debt)
First Mortgage Loan
Seller Financing
Additional Funds Needed
$400,000
$292,500
$396,600
Total Sources
Development Costs
Construction Hard Costs
Site Acquisition
Architectural/Engineering
Financing & Interim Costs
Fees & Expenses
Total Costs
$1,296,800
$830,900
$325,000
$54,000
$29,900
$57,000
$1,296,800
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
Questions?
Contact Information:
Diane Smith, Program Development Officer
Phone: 860-571-4369
Email: [email protected]