GOV. MALLOY RELEASES MAJOR REPORT OUTLINING PLANS TO SUPPORT STATE’S AFFORDABLE HOUSING PORTFOLIO OVER THE NEXT 10 YEARS
Report Provides a Road Map for Allocating $300 Million and Leveraging Private Capital to Create Long-Term Stability
HARTFORD, CT – March 31, 2014 – (RealEstateRama) — Governor Dannel P. Malloy today unveiled a major report outlining his plans to utilize $300 million in funding over the next 10 years to revitalize the more than 340 properties – consisting of more than 13,800 units – that are part of the state’s affordable housing collection known as the State-Sponsored Housing Portfolio (SSHP).
“Housing is a key component of our success to get Connecticut moving again, serving as an economic driver that will build strong neighborhoods, attract businesses, create jobs, and offer residents an attractive place to work and live,” said Governor Malloy. “Unfortunately, Connecticut languished in its affordable housing commitments, and now is the time to revitalize these properties and strengthen our communities. We are making the most significant commitment the state has made to affordable housing in decades.”
The report – titled the “State-Sponsored Housing Portfolio Capital Plan” – will be utilized as a roadmap by the Connecticut Housing Finance Authority (CHFA) and the Connecticut Department of Housing (DOH) in planning and implementing of the revitalization of the SSHP. It is the result of an in-depth review of the physical, financial, and market conditions of these properties that determined their short and long-term needs.
The detailed report recommends and prioritizes the work needed to make the properties sustainable in the long-term. The plan also recommends timelines for capital investments at each property over the 10-year period.
To support the revitalization work, CHFA and DOH have been reviewing proposals for consultants to manage the pre-development phases of construction, staff training, and preparing for the future rounds of funding.
“State-sponsored housing has been neglected for too long. Thanks to Governor Malloy, we now have the funds to make renovations that will improve the quality of life for residents, improve energy efficiency at the properties and make them financially sustainable for the future,” said Evonne Klein, Commissioner of DOH and Chair of CHFA’s Board of Directors. “The Capital Plan will guide CHFA and DOH as they make decisions to get urgently needed work completed in the most efficient, cost-effective way, while ensuring residents’ needs are addressed.”
The report provides strategies for leveraging the Governor’s $300 million commitment with private equity through Federal Low Income Housing Tax Credits and loans.
“Using this approach to more than double the state’s investment creates an opportunity to make the state’s affordable housing a sustainable resource long into the future,” said Eric Chatman, President and Executive Director of CHFA.
The report also includes recommendations for housing authority staff training in project management, technical assistance, compliance with regulatory requirements, and in how to engage residents in the process.
For 2014 and 2015, the report recommends 33 specific properties for revitalization. The type of work to be completed ranges from kitchen and bathroom upgrades, to roof replacement, energy-efficient boilers, windows, doors, lighting, and site improvements. In some cases, more substantial rehabilitation or redevelopment will be undertaken depending on the needs of the property. Owners of each property participated in the site reviews and provided feedback on the recommendations for their properties.
The SSHP is one of only four of its kind in the country, financed in whole or in part with state funds, and serves more than 19,000 individuals and families in towns and cities across the state. The SSHP includes rental housing for families, the elderly, and disabled, and serves some of the lowest-income citizens in the state.
**Download: “State-Sponsored Housing Portfolio Capital Plan”
