April 16, 2014
Governor Dannel P. Malloy recently announced investments of more than $70 million in federal and state funds for 16 affordable housing projects across the state that will transform their communities and build and rehabilitate a total of 694 affordable rental apartments. The funds are expected to generate an additional $116 million in private investments for the projects, bringing the total investments to $186 million in state, federal and private dollars. State Representative Larry B. Butler (D-Waterbury) worked along with the Governor to secure funding for a pair of projects in Waterbury.
“I have worked with Allen Sinclair and the Warner Gardens residents on this redevelopment effort for years and I’m so glad to have helped this funding become a reality. This project will revitalize a large portion of the Long Hill neighborhood. I grew up in the Willow Street area and remember how grand the Carroll building looked 50 years ago. I’m so happy to have supported the application and to also help make the funding a reality for the building and the Willow Street area!” Rep. Butler stated.
Among the projects provided funding are a pair in Waterbury, the Warner Gardens operated by Omni Development Corporation and the Carroll Apartments operated by HF3 Group, LLC.
“The funding will result in approximately $116 million in private investment for Connecticut’s housing stock,” said Governor Malloy. “Leveraged with our recent commitment of about half-a-billion dollars to create and preserve affordable housing in the state, these projects will foster economic growth, revitalize neighborhoods, raise the quality of life for everyone, and provide more affordable homes that are so important in keeping people, young and old, in Connecticut.”
Warner Gardens, Waterbury – Omni Development Corporation
Warner Gardens is the redevelopment of 56 apartments in the Long Hill neighborhood of
Waterbury. The development is currently organized as a co-op and is in poor condition, with 24 apartments not habitable. The existing co-op will be disbanded and the entire development demolished and rebuilt. The new Warner Gardens will include 56 units for households with incomes up to 60% AMI, and there will be 12 supportive units in the complex.
Tax Credit Award: $1.39 million (LIHTC equity: $12.6 million), $5.2 million DOH capital funds,
$700,000 Webster Bank Loan, $294,000 in state Housing Tax Credit Contributions
Carroll Apartments, Waterbury – HF3 Group, LLC
This five-story apartment building, vacant for more than 20 years, will undergo rehabilitation into 35 one- and two-bedroom units. It is one of a series of buildings designed by local man Joseph A. Jackson and is located in a National Historic District. Twenty-eight units will be for households with incomes of up to 60% of AMI. A new elevator and fire suppression system will be installed.
Tax Credit Award: $733,000 (LIHTC equity: $6.4 million), $2.897 million in DOH capital funds,
$412,000 loan Hunt Capital Partners, LLC
Projects selected competed successfully in the federal Nine Percent Low Income Housing Tax Credits (9% LIHTCs) funding round and the fourth round of the state’s Competitive Housing Assistance for Multifamily Properties (CHAMP) initiative. Investments include $7.7 million in federal tax credits under the 9% LIHTCs program and $62.4 in state capital funding.
CHFA administers the 9% LIHTC program, which is a federal tax incentive program designed to stimulate private investment in affordable housing. The credits provide equity for developers to acquire, rehabilitate and/or build low- or moderate income housing through the allocation of federal tax credits that may be sold to corporations or investor groups to raise capital for a project.
The LIHTCs approved by CHFA’s Board of Directors total $7.7 million and will create an estimated 1,319 jobs, generate $186.9 million in economic activity, and $14.4 million in net state revenue.
All financial assistance is subject to satisfaction of customary closing requirements and such other approvals as may be necessary, including, in some cases, approval of the State Bond Commission.
Rep. Butler is in his 4th term serving the 72nd House District in Waterbury.