Norwich Development In Line For State Funding: Gov. Malloy

NORWICH, CT — A 25-unit elderly housing complex in Norwich is in line to receive more than $1.8 million in state funding to bolster Connecticut's affordable housing stock, announced Gov. Dannel Malloy, Department of Housing (DOH) Commissioner Evonne Klein, and Connecticut Housing Finance Authority (CHFA) Executive Director Karl Kilduff Friday. The money is part of more than $31 million in state funding being awarded to 10 communities across the state.

“When we invest in affordable housing, we invest in Connecticut’s future,” said Malloy in a statement. “Our affordable housing policies continue to make our state a more attractive place to live, work and raise a family, while providing stability and assistance to our veterans and our most vulnerable residents. With this round of funding, I look forward to continuing the progress we have made in transforming Connecticut into an affordable housing leader.”

The funding announcements are part of several initiatives that began under the Malloy administration, including the Competitive Housing Assistance for Multifamily Properties (CHAMP) funding program, the State Sponsored Housing Portfolio (SSHP) funding program, and the Affordable Homeownership funding program. These awards will help to create, rehabilitate, or preserve nearly 600 units of affordable housing for both the rental and homeownership markets. These units are also aiding in the state’s nationally recognized efforts to prevent and end homelessness.

“These announcements represent the Malloy administration’s continued commitment to increasing access to affordable housing,” added Klein. “We’re creating housing opportunities for all demographics, and by expanding access to both quality rental and homeownership units we’re giving Connecticut individuals and families another opportunity to thrive.”

The CHAMP program, which is administered by DOH, provides developers and owners of multifamily affordable housing with the necessary gap financing to create or preserve affordable units in multifamily properties. The Affordable Homeownership funding program provides gap funding to help create homeownership opportunities for residents across the state.

In 2012, Malloy committed $300 million towards a 10-year plan to revitalize the SSHP program – an initiative focused on rehabilitating Connecticut’s aging public housing stock. The portfolio, administered by CHFA, consists of properties that are operated in part by housing authorities in every region of Connecticut. This portfolio consists of more than 300 properties and it is one of the nation’s largest and oldest state-supported affordable housing portfolios.

“This financing will be used for improvements that will enhance the quality of life for current residents while ensuring the sustainability of these SSHP properties for the future,” said Kilduff. “Financing with private activity tax exempt bonds from CHFA and four percent Low Income Housing Tax Credits are leveraged with the state’s investment and other sources of funding to make these renovations possible.”

Since 2011, the state has created, rehabilitated, or preserved approximately 10,000 affordable housing units. There are nearly 3,300 affordable units under construction, and funding commitments are in place to create approximately 5,200 more affordable units. The state’s investment in affordable housing totals more than $1 billion dollars – a testament to the commitment that the Malloy administration has placed on efforts to both prevent and end homelessness, while ensuring every resident has a place to call home. This investment in the housing industry has spurred another $2.5 billion in direct economic activity across the state.

The Norwich project, and one from New London, fall under the SSHP funding program:

• New London: George Washington Carver Housing, 128 units of elderly housing ($4,257,122): DOH will provide up to $4,257,122 to the Housing Authority of the City of New London for the expansion of ten efficiency units, roof and window replacements, heat pumps, hot water heaters, bathroom fixtures, common area lighting, and a new generator. The project will leverage $383,199 in energy incentives.

• Norwich: Eastwood Court, 25 units of elderly housing ($1,822,738): DOH will provide up to $1,822,738 to Norwich Housing Authority for paving and site lighting as well as building renovations including masonry repointing, vinyl siding, exterior doors, building lighting, laundry room renovations, new ductless splits, electrical improvements, and hot water heaters. Unit renovations include flooring, painting, bath fixtures, kitchen cabinets, counters, sinks, and appliances. Three units will become ADA compliant. The property is leveraging $137,500 in owner reserves and $16,597 in energy incentives.

These announcements are all contingent upon final approval by the State Bond Commission.

Image via Shutterstock