Connecticut Housing Finance Authority recently released Income Averaging Guidelines for applications under consideration or already approved. CHFA will accept proposals for utilizing income averaging in applications that are under consideration, have already been approved or awarded by CHFA’s Board of Directors, or have already initial closed, subject to a list of requirements. Proposals for income averaging will only be contemplated for projects that have not yet executed a form 8609 and proposals may not include an increase in 9% LIHTCs.

The requirements include:

  • An updated market study
  • Approval from CHFA and the syndicator
  • For applications that have CHFA approved financing or already initial closed, the proposal must create additional qualified units and allow for a reduction to state resources (i.s CHFA funding, DOH, or other state agency funding)
  • For projects that have received a 9% LIHTC award, 25% AMI units may be counted at 30% for the purposes of income averaging, but rents will be restricted to 25% for those units