Location:
HOUSING - FINANCE;
Scope:
Connecticut laws/regulations; Background; Program Description;

OLR Research Report


December 20, 2012

 

2012-R-0543

HOUSING TRUST FUND: OVERVIEW AND FUNDING UPDATE

By: Kristin Sullivan, Principal Analyst

You asked for information on the Housing Trust Fund Program and its funding history.

SUMMARY

PA 05-5, June Special Session, established (1) the Housing Trust Fund Program to, among other things, encourage housing development for low- and moderate-income families and (2) the Housing Trust Fund as its funding source (CGS 8-336m et seq.). DECD administers the program and must report on it annually to the governor and legislature. The Housing Trust Fund Program Advisory Committee advises DECD on (1) administering and managing the program; (2) its objectives; and (3) developing regulations, procedures, and rating criteria for it.

The Housing Trust Fund is a nonlapsing fund that the state treasurer holds separate from all other money, funds, and accounts. It consists of (1) proceeds from bonds authorized for the program; (2) all funds received in return for financial assistance awarded through the program; (3) private contributions; and (4) to the extent not otherwise prohibited by state or federal law, certain local, state, or federal funds DECD receives.

DECD may award program funds as loans or grants to nonprofit organizations, public housing authorities, and other eligible applicants. It must make funding available at least semiannually on a competitive basis (i.e., “funding rounds”).

The law allows the State Bond Commission to authorize up to $160 million in bonds over eight years to capitalize the Housing Trust Fund. DECD has awarded $94,917,627 since the program's inception and estimates it will award another $29,186,000 in the next funding round.

PROGRAM OVERVIEW

Goals

By law, the Housing Trust Fund Program must:

1. encourage the creation of housing for homeownership at a cost that makes it affordable for low- and moderate-income people, meaning they pay no more than 30% of their gross household income for it;

2. promote the rehabilitation, preservation, and production of quality, well-designed rental and ownership housing that is affordable for low- and moderate-income people;

3. maximize the leveraging of state and federal funds by encouraging private-sector investment in housing developments receiving public assistance;

4. encourage housing that maximizes residents' housing choices;

5. enhance economic opportunity for low- and moderate-income people and their families;

6. promote (a) efficient land use that utilizes existing infrastructure and (b) open space conservation; and

7. encourage the development of housing that aids in community revitalization.

The program defines “low- and moderate-income families and persons” as people whose income falls within income levels the commissioner sets, except she may establish income levels up to 120% of the area median income (AMI), as determined by the U. S. Department of Housing and Urban Development. (Connecticut law bases affordability on the proportion of income a family spends on housing. A unit is considered affordable if a family earning no more than the town's AMI pays no more than 30% of its income for the housing (CGS 8-39a)).

Eligible Applicants

Housing Trust Fund financial assistance is available to:

1. nonprofit entities;

2. municipalities and municipal developers;

3. housing authorities;

4. the Connecticut Housing Finance Authority;

5. community development financial institutions;

6. businesses that have as one of their purposes the construction, financing, acquisition, rehabilitation, or operation of affordable housing, including (a) corporations incorporated or authorized to do business by law and (b) any partnership, limited partnership, limited liability company, joint venture, sole proprietorship, trust, or association; or

7. any combination of these.

Financial Assistance and Forms of Assistance

Housing Trust Fund Program funding resources (e.g., no- and low-interest loans) must be available, at least semiannually, on a competitive basis. Financial assistance may be in the form of:

1. no-interest and low-interest loans,

2. loan guarantees,

3. revolving loans,

4. grants, or

5. appraisal gap and other similar financing necessary to make rent or home prices affordable.

Any financial assistance must supplement existing loan and tax credit programs available under state and federal law and grants, loans, or financial assistance from any nonprofit or for-profit entity.

Other Requirements

In each fiscal year that the Housing Trust Fund has funds available for distribution, DECD must allocate $300,000 from it for matching grants dedicated to funding purchases of primary residences for people participating in the state's individual development account (IDA) program. (The Connecticut IDA Initiative allows certain low-income people and people with disabilities to open savings accounts and receive matching funds from the Department of Labor as an incentive for saving for specified purposes; withdrawals are limited to certain activities, including a home purchase or a lease deposit on a primary residence.)

BOND AUTHORIZATIONS AND FUNDING HISTORY

The law authorizes up to $160 million in bonds over eight years to capitalize the Housing Trust Fund. Table 1 shows the maximum bond authorization for each year.

Table 1: Housing Trust Fund Bond Authorizations

Fiscal Year

Maximum Bond Authorization

(in millions)

FY 06

$20

FY 07

20

FY 08

20

FY 09

30

FY 10

20

FY 11

No bond authorization

FY 12

25

FY 13

25

TOTAL

$160

According to figures DECD provided, the agency has awarded $94,917,627 to eligible applicants through nine funding rounds and it estimates it will award another $29,186,000 in the next round, bringing the program total to $124,103,627 (see Attachment 1).

KS:ro

Attachment 1: Housing Trust Fund - Use of Funds

Funded Programs - Round 1

 

 

 

 

BC

Allocation

Project

Recipient

Town

BC App.

Date

HTF

Contract

$10,000,000

 

 

 

 

 

 

Grants for Accessibility-Tenant Prog.

CIL

Statewide

12/9/2005

$1,000,000

 

Bristol Residential Rehab Program

City of Bristol

Bristol

12/9/2005

$400,000

 

200 Homes by 2009

Hartford Area HFH

Hartford

12/9/2005

$1,850,000

 

Housing Dev Fund

Housing Dev Fund

Southwest

12/9/2005

$3,000,000

 

A-Gap**

CDFI Alliance

Statewide

12/9/2005

$662,453

 

IDA

NHS of New Haven

NH area

12/9/2005

$300,000

 

Reg. Gap Financing Pool

Greater NH Comm Loan Fund

NH area

12/9/2005

$870,000

 

Gap Financing for Owner Occ ADA

Greater NH Comm Loan Fund

NH area

12/9/2005

$880,000

       

Total RD 1

$8,962,453

Funded Projects - Round 2

 

 

 

 

BC

Allocation

Project

Recipient

Town

BC App.

Date

HTF

Contract

$10,000,000

 

 

 

 

 

 

Department of Labor

 

 

6/9/2006

$300,000

 

Barnum Ave Homes

Bridgeport Neigh Trust

Bridgeport

6/9/2006

$200,000

 

Grafton Beldon Home. Initiative

CIL

Statewide

6/9/2006

$300,000

 

Afford. Hsg. Dev. Project

NHS of New Haven

New Haven

6/9/2006

$600,000

 

Woodhaven Village***

Salem Turnpike Housing Corp.

New Haven

6/9/2006

$774,354

 

Homeownership Phase II

Asylum Hill Homes

Hartford

6/9/2006

$50,000

 

New Britain Artist Housing

Alderhouse

New Britain

6/9/2006

$200,000

 

Amston Village

Nutmeg Housing Corp

Colchester

6/9/2006

$500,000

 

16 Bank St

16 Bank St LLC

Seymour

6/9/2006

$729,822

 

St. Lukes

St. Lukes Senior Housing

New Haven

6/9/2006

$450,000

 

Grandfamilies

CRT

Hartford

6/9/2006

$1,591,018

 

Hartford Cityscape

SINA

Hartford

6/9/2006

$2,608,748

 

6 Hill Houses

RHRI

New Haven

6/9/2006

$321,000

 

Vine/Irving Streets

Christian Act. Council

Hartford

6/9/2006

$340,590

 

Vernon Village Street

Vernon NPHC

Vernon

6/9/2006

$780,000

       

Total Rd 2

$9,745,532

Funded Projects -Round 3

 

 

 

 

BC

Allocation

Project

Recipient

Town

BC App.

Date

HTF

Contract

$10,000,000

 

 

 

 

 

 

East Main Mews

East Main LLC

Bridgeport

6/29/2007

$460,000

 

Low Inc Hsg Loan Program

COMCAP

Bridgeport

6/29/2007

$907,500

 

Pequonnock replacement Phase 1

BNT

Bridgeport

6/29/2007

$1,100,000

 

Hollander Foundation Ctr

Common Ground

Hartford

6/29/2007

$2,000,000

 

Friendship House

MHA of SWC

Stamford

6/29/2007

$2,000,000

 

Fair Haven Homeownership

MHA of SCC

New Haven

6/30/2007

$525,000

 

Whalley Ave. II

Marrekech

New Haven

6/29/2007

$266,445

 

NH Home Repair Program

Empower New Haven

New Haven

6/29/2007

$752,860

 

Indian Field

Women's Institute

New Milford

6/30/2007

$1,100,000

 

South Norwalk Targeted Rehab

Northge Walke Hsg Corp

Norwalk

7/1/2007

$19,889

       

Total Rd 3

$9,131,694

Funded Projects - Round 4

 

 

 

 

BC

Allocation

Project

Recipient

Town

BC App.

Date

HTF

Contract

$10,000,000

 

 

 

 

 

 

Department of Labor

 

 

1/25/2008

$300,000

 

Stamford Metro Apartments

Stamford Metro Green, LLC

Stamford

1/25/2008

$2,000,000

 

16 Bank Street Apartments

16 Bank Street LLC

Seymour

1/25/2008

$313,000

 

360 State Street

Becker + Becker

New Haven

1/25/2008

$2,000,000

 

Orchard Street

Beulah Dev. Corp.

New Haven

1/25/2008

$450,000

 

Affordable Housing Project

NHS of New Haven

New Haven

1/25/2008

$500,000

 

Edgewood Street

CAC

Hartford

1/25/2008

$807,500

 

CIL Money Follows the Person

CIL

Statewide

1/25/2008

$500,000

 

Milbank Supportive

Pathways

Greenwich

1/25/2008

$176,000

 

Summitwoods II

SOC

Norwich

1/25/2008

$2,000,000

 

West Village Apartments

TCB

New Haven

1/25/2008

$1,676,000

 

Middletown North End Redev

Nehemiah Housing Corp

Middletown

1/25/2008

$425,000

       

Total Rd 4

$11,147,500

Funded Projects - Round 5

 

 

 

 

BC

Allocation

Project

Recipient

Town

BC App.

Date

HTF

Contract

$10,000,000

 

 

 

 

 

 

80 Fair Street

New Neighborhoods Inc

Norwalk

10/30/2009

$4,703,089

 

Pequonnock Phase 2

Bridgeport Neighborhood Trust

Bridgeport

10/30/2009

$1,550,000

 

Holly Street Homes

Bridgeport Neighborhood Trust

Hartford

10/30/2009

$310,000

 

Sheldon Terrace

Shel. Ter. Supp. Hsg. Corp

New Haven

10/30/2009

$500,000

 

Earle Street net Zero

SAND

Hartford

10/30/2009

$1,058,167

 

Melrose Park

Norwich HA

Norwich

10/30/2009

$2,000,000

 

Townhomes at Dutch Point

TCB

Hartford

1/25/2008

$766,986

       

Total Rd 5

$10,888,242

Funded Projects - Round 6

 

 

 

 

BC

Allocation

Project 

Recipient 

Town 

BC App.

Date

HTF

Contract

$10,000,000

 

 

 

 

 

 

Arcade Completion Project

Urban Green Equities

Bridgeport

7/13/2010

$3,015,000

 

Briarcliff Apartments

NLHA/Carabetta

New London

7/13/2010

$2,000,000

 

Metro Green 2

Affordable Housing Development Co

Stamford

7/13/2010

$2,541,498

       

Total Rd 6

$7,556,498

Funded Projects - Round 7

 

 

 

 

BC

Allocation

Project

Recipient

Town

BC App.

Date

HTF

Contract

$10,000,000

 

 

 

 

 

 

Berlin Workforce Housing

Metro Realty

Berlin

2/24/2011

$1,869,515

 

New Meadow Elderly

Newington Eld Hsg

Newington

2/24/2011

$1,351,213

 

Ferry Crossing

Women's Institute

Old Saybrook

2/24/2011

$3,056,980

 

Brookside 2

Michaels Development

New Haven

2/24/2011

$2,843,000

 

Bates Briar 2

NLHA/Carabetta

New London

2/24/2011

$2,865,000

 

Money Follows the Person

CIL

Statewide

2/24/2011

$500,000

       

Total Rd 7

$12,485,708

Funded Projects - Round 8 (SHRP)

 

 

 

 

BC

Allocation

Project

Recipient

Town

BC App.

Date

HTF

Contract

$10,000,000

 

 

 

 

 

 

Sunset Ridge/Rockwood Acres

Middletown HA

Middletown

12/16/2011

$3,000,000

 

Village Green

Glastonbury HA

Glastonbury

12/16/2011

$3,000,000

 

Davis Building

Friendship Center

New Britain

12/16/2011

$577,880

 

Highview Terrace

Wethersfield HA

Wethersfield

12/16/2011

$644,341

 

Mark Twain Congregate

Enfield HA

Enfield

12/16/2011

$1,444,115

 

Mount Carmel Elderly

Hamden HA

Hamden

12/16/2011

$1,063,839

 

Mystic River Congregate

Mystic River Homes, Inc.

Groton

12/16/2011

$269,825

       

Total Rd 8

$10,000,000

Funded Projects round 9

       

BC

Allocation

Project

Recipient

Town

BC App.

Date

HTF

Contract

$15,000,000

 

 

 

 

 

 

NHS Newhallville

NHS of New Haven

New Haven

4/27/2012

$2,100,000

 

Elias Howe School Elderly

Primrose Development

Bridgeport

4/27/2012

$2,100,000

 

Beachport Family Housing

Cheshire HA

Cheshire

4/27/2012

$3,350,000

 

Wintergrove Elderly

NWNH

Southington

4/27/2012

$2,000,000

 

Bonney Brook Elderly

Cornwall HA

Cornwall

4/27/2012

$565,000

 

Elmcrest

Liberation Programs

Norwalk

4/27/2012

$1,241,848

 

Horace Bushnell Apartments

Sheldon Oak Central

Hartford

4/27/2012

$3,643,152

       

Total Rd 9

$15,000,000

Funded Projects round 10 (CHAMP)

 

 

 

 

BC

Allocation

Project

Recipient

Town

BC App.

Date

Estimated HTF Contract

 

 

 

 

 

 

 

Mechanics & Farmers Bank Bldg

Forestone Cap.

Bridgeport

tbd

$3,500,000

 

Jayson/Newfield

Urban Green

Bridgeport

tbd

$5,000,000

 

Southend Comm Bldg Init

BNT, Inc

Bridgeport

tbd

$183,000

 

Boston Terrace Net Zero

Guilford HA

Guilford

tbd

$1,894,000

 

777 Main Street

Becker & Becker

Hartford

tbd

$2,700,000

 

MD Fox Manor

MD Fox Assoc.

Hartford

tbd

$3,300,000

 

On the Plaza

5CP LLC

Hartford

tbd

$2,000,000

 

Winchester Lofts

ForestCity

New Haven

tbd

$4,000,000

 

River Commons

Cross River LP

Norwalk

tbd

$3,609,000

 

The Lofts at Ponemah Mills

Ponemah Riverbank LLC

Norwich

tbd

$3,000,000

       

Total Rd 10

$29,186,000