CHFA/GNHCLF Multifamily Loans Program

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Loan Type:  Acquisition with construction, construction, construction to permanent financing
 
Eligible Borrower:
  • Non-profit or for-profit developer with track record of developing affordable housing for either rental or homeownership.   Developer should have a minimum of 2 years experience and 5 properties developed or under management.  Developer must have a demonstrated record of producing quality renovations and maintaining properties under management (a third party inspection will be conducted).
  • Strong preference for developers based in New Haven or nearby towns, with local property management capacity.  Non-local investors must demonstrate established relationship with local property management firm.
  • Must be clear of unresolved city code violations; if there is a history of code violations, investor must demonstrate timely response in addressing violations. If located in New Haven, investor must be in compliance with city’s rental registration program
  • Must have a demonstrated desire and commitment to engage with the community and respond to community concerns.
  • Priority to developers who incorporate energy-efficient rehab practices.
  • Must show financial capacity (as evidenced by financial statements, credit reports, tax returns, rent rolls, audits, etc.)
 Eligible Properties:
  • Vacant and/or blighted Multi-Family Residential Properties – 3-20 units
  • Properties located in low-moderate income census tracts, with priority to properties in close proximity to investments by Loan Fund, City of New Haven, and other nonprofit partners.
  • Properties located throughout the Greater New Haven community with demonstrated income restrictions and affordability mechanisms.
 Affordability:
  • If housing is in a low-moderate income census tract, then no affordability restrictions
  • If housing is not in a low-moderate income census tract, affordability restrictions may apply at 80% ami
 To determine if a property is located in a Low-Moderate Income (LMI) census tract, use the search tool located here:  http://www.ffiec.gov/Geocode/default.aspx.  Enter the property address, click “search,” and then click “get census demographic.”
 
Loan Amount:  up to $600,000+
Term: up to 24 months during construction/up to 240 months during permanent term
Interest Rate:  4-6% based on size of loan and GNHCLF cost of funds
Amortization:  interest only during construction period; fully amortizing during permanent period
LTV:  Up to lesser of 80% of after improved appraised value or 80% of cost.
Debt Service Coverage:  Minimum 1.2
Loan Repayment:  monthly interest payments during construction; cash flow of property
Collateral:  First lien on financed property; personal and corporate guarantees will be required.
Fee:  2 points  
Contact:  Carla Weil or Anne Conners at 203-789-8690
 
Click here to view the CHFA/GNHCLF Multi Family Loan Product Criteria
Click here to view the loan application