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October 16, 2019Cart

Business

by Fairfield County Business Journal
by FCBJ

Norwalk, Shelton affordable housing projects receive Fed tax credits

A rendering of River Breeze Commons.

Projects in Norwalk and Shelton are among those sharing a total of $10.28 million in Federal 9% Low Income Housing Tax Credits (LIHTCs) for the development of affordable housing.

According to the Connecticut Housing Finance Authority (CHFA), the tax credits will generate more than $100 million in equity from private investors for seven proposed affordable multifamily housing developments.

The developments will create 439 rental units: 348 designated as affordable and 91 as market rate. The new construction and/or redevelopment of the properties is projected to generate an estimated 608 jobs, with 161 jobs in construction and related fields, $219.5 million in economic activity and $12.6 million in net state revenue.

Within Fairfield County, phase three of Norwalk’s Washington Village – renamed Soundview Landing – will receive $2,182,797 in tax credits. As part of the Norwalk Housing Authority’s Master Redevelopment Plan Project of the property, 108 rental units will be built to replace 64 units in five buildings. There will be 13 market-rate units and 37 units for households with incomes of up to 60% of area median income (AMI).

The complex will include 10 units of supportive housing. The City of Norwalk has supported all of the Washington Village phases with approximately $9 million in infrastructure improvements.

Shelton’s River Breeze Commons will receive $1,126,989 in tax credits. Designed as a 68-unit mixed-income residential development targeting individuals and families, the development consists of 23 one-bedroom and 45 two-bedroom units. Seventeen units will be restricted to 25% of AMI with 14 units designated as supportive housing units. Fourteen units will be market rate and the remaining affordable units will be affordable to those at 50% and 60% of AMI.

Other municipalities receiving tax credits are East Lyme, Griswold, Hartford, New Haven and West Hartford.

“We all know that more affordable housing is needed in Connecticut,” said Seila Mosquera-Bruno, chairwoman of CHFA’s board of directors and commissioner of the Department of Housing. “By leveraging these federal dollars with the private-sector investment, we will boost economic growth and development, while making Connecticut a more attractive place for young people to live and work.”

CHFA administers the LIHTC program, which stimulates private investment in affordable housing by awarding tax credits to developers, who sell their tax credits to investors, to obtain equity financing for their developments. Developers’ applications are reviewed and scored based on the state’s Qualified Allocation Plan, which reflects the state’s housing priorities including rental affordability, financial efficiency and sustainability, local impact, opportunity characteristics and development team qualification and experience.

“The LIHTC application process is highly competitive, as the amount of credits available each year is limited,” CHFA Executive Director Karl Kilduff said. “CHFA received applications for more than twice the amount of credits available this year.”