$16.5 Million to help create more affordable housing: Vernon on the list

Hartford, CT – Senator Tony Guglielmo (R-Stafford) supports Governor Dannel Malloy’s commitment to invest more than $16.5 million in five housing developments around the state including Vernon. The money will help build or renovate approximately 465 residential units, of which at least 390 will be affordable to income-qualifying households.

“Our small cities like Vernon, Rockville have the same need for safe affordable housing as our big cities. The governor gets that. And we certainly appreciate it," said Sen. Guglielmo.

The funding, through the Competitive Housing Assistance for Multifamily Properties (CHAMP) initiative administered by the Connecticut Department of Housing (DOH), is a part of the state’s commitment to bolstering the economy and building stronger communities.

Housing Commissioner Evonne Klein said, “The CHAMP initiative is just one of the ways we promote workforce, affordable, supportive, and congregate housing for the state’s young professionals, working families, elderly, and other individuals most in need of support.”

Through CHAMP, owners and developers of affordable multifamily rental developments can apply for loans and grants to expand or rehabilitate housing. CHAMP funding is intended to be gap financing and may not exceed $5 million per development.

The total project development costs are more than $75 million, with $16.5 million coming from the state and $59 million coming from other sources, including developer equity, private financing and federal funding.

The CHAMP investment announcement includes: Park West Apartments, Vernon — Funds will assist in the rehabilitation of this affordable mixed-income family rental development that has 30 market and 159 affordable units for individuals and families with incomes below 60 percent of area median income. It was originally constructed in 1968, and guaranteed continued affordability for 40 years.  Renovations will include:

• drainage improvements
• erosion control on the site
• accessibility improvements to the apartments
• construction of a new community building
• new boilers
• additional insulation
• other energy-efficiency measures aimed at reducing energy use by 50 percent. 

DOH funding: $2.2 million; CHFA funding: $6.1 million (four percent LIHTC equity); $15,910,000 in tax-exempt bond financing.

Applications for the next round of CHAMP funding are due on December 16, 2013. The CHFA/DOH application and CHAMP initiative outline are available on the DOH Web site at www.ct.gov/doh and CHFA’s Web site at www.chfa.org.  CHAMP funding requires State Bond Commission approval.