You asked (1) for a list of the Connecticut Housing Finance Authority's (CHFA) housing programs and their current funding balances, (2) if any CHFA funds or programs are discretionary, (3) how much money CHFA's president may release without board approval, and (4) which CHFA programs or funds can be used for emergencies at housing authorities.

CHFA has a variety of housing programs to assist low- and moderate-income people. Table 1 below lists the programs and their projected financing available in the 2006 calendar year (CHFA does not follow the state's fiscal year).

 CHFA funds are earmarked for specific programs and are not in general discretionary (i. e. , CHFA staff develops the budget and the board determines how much money will go to each program). However, CHFA is able to provide a loan of up to $ 5,000 without board approval for specific services (e. g. , mold remediation or for an engineer) - it does not provide grants, according to Peg Fitzgerald, CHFA's Legislative Program Officer.

In an emergency, CHFA can provide bridge financing to a housing authority. CHFA must have board approval, written in a resolution, on the reason for the funding and a reasonable expectation for repayment (i. e. , that the housing authority will have other funding available in the future to cover the loan), Fitzgerald said. If the housing authority cannot meet the reasonable expectation, CHFA refers the authority to the Department of Economic and Community Development (DECD), which may be able to provide grants for certain activities.

Table 1: CHFA 2006 Program Funding

*Ameriquest Settlement Fund

(Source: CHFA)

BACKGROUND ON CHFA

CHFA is a quasi-public agency that exists to alleviate the shortage of housing for low- and moderate-income individuals and families. The governor and legislative leaders appoint its 15-member board of directors who must be experienced in all aspects of housing, including design, development, finance, state and municipal finance, and management. The governor appoints, and both houses confirm, the chairman, who serves a five-year term. It has the power to sell federally tax-exempt bonds, the proceeds of which it uses to provide low interest home mortgages (CGS § 8-241 et seq. ).

CHFA's various homeownership programs provide lower interest rate mortgages and down payment assistance for low- and moderate-income people. CHFA also provides financing for the creation of new or rehabilitated affordable multi-family units by offering developers financing terms that are not generally available in the commercial market, according to its website. It also provides reverse mortgages for eligible elderly individuals.

In addition to these programs, CHFA administers state and federal tax credit programs. Tax credits are a financing tool that allow developers to provide affordable rental housing to people of limited income. To make an affordable housing development fiscally viable, developers who receive tax credits sell them to businesses that benefit from a reduction in tax liability.

In 2003, DECD transferred its housing portfolio to CHFA, and CHFA gave $ 85 million to the state in return. The portfolio consists of 16,390 units. CHFA's State Housing Portfolio Division monitor's the portfolio for compliance with applicable state and federal laws and regulations, including the Fair Housing Act. More information on the portfolio is available at CHFA's State Housing Portfolio website.

More information about all of CHFA's programs is available at CHFA's website, or see the attached copy of CHFA's 2005 annual report (the latest available, although the 2006 information will be available shortly).

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