The Connecticut Department of Housing (DOH) plans to make up to $20 million in commitments of its subordinate financing for use in the 2020 nine percent LIHTC funding round administered by the Connecticut Housing Finance Authority (CHFA). Awards will not exceed $4 million per developer or development entity, regardless of the number of applications they submit. Applications must be submitted simultaneously with the nine percent LIHTC application and are due by 4 pm EDT on November 6, 2019.

Parameters of the DOH Subordinate Financing

  • Applicants must meet all Application Criteria identified in the QAP
  • Applicants must meet all threshold criteria required by the CHFA & DOH Consolidated Application
  • Awards will be sized at the minimum amount needed to make a transaction feasible, up to a maximum of $4 million per Developer or Development entity.
  • Applicants will be expected to demonstrate in the application that they have made efforts to:
    • Maximize the amount of debt the development can carry
    • Seek supplemental funding sources
    • Value engineer proposals to minimize costs
  • Applicants will be expected to maximize the amount of deferred developer fee
  • Awards will be sized based on CHFA’s underwriting of the proposal; CHFA underwriting will determine the amount of debt a development can reasonably support
  • Awards may not be made to Developers or Development Entities that have two or more transactions that have received a commitment from DOH but have not closed
  • DOH funding is subject to the availability of funds and Bond Commission authorization

Additional information about the process for obtaining a soft letter of commitment for funding from DOH can be found here.

Please direct questions to Debbie Alter at CHFA (860-571-4234 or deborah.alter@chfa.org).