February 5, 2008	2008-R-0078
CHFA’s funding of multi-family housing developments
By: Julia Thomson-Philbrook, Legislative Analyst

You asked about the implementation of PA 07-234, which requires the Connecticut Housing Finance Authority (CHFA) to set aside private activity bonds funds for multi-family housing.  You also asked for the status of the report that PA 07-234 required CHFA to complete by January 1, 2008. This report has been updated by OLR Report 2009-R-0078.

CHFA has set aside more in private activity bonds than the law requires.  Federal law exempts these bonds from federal taxation when they are issued for specific purposes, including qualified redevelopments bonds and qualified tax-exempt facility bonds (e.g., residential rental projects).  PA 07-234 requires that CHFA set aside 10% of the bonds for multi-family housing in 2008, and 15% in 2009 and annually thereafter.  CHFA estimates that it will receive $180 million in private activity bonds funds in 2008, requiring $18 million set aside for multi-family housing in 2008 and approximately $27 million in 2009.  However, the CHFA board approved $50 million for multi-family developments in 2008, and plans to allocate approximately $30 million annually thereafter. 

The following table is a list of current bond commitments approved by the CHFA board.  Please note that these are subject to change.

Development	Location	Units	Tax-Exempt Bond Amount in ($)
East Farms Village	East Haven	240	14, 700, 000
Friendship House	Stamford	121	11, 000, 000
Hollander Building	Hartford	70	11, 900, 000
Bridgeport Elderly	Bridgeport	85	4, 141, 000
Sycamore Place	Bridgeport	118	8, 295, 000
TOTAL			50, 036, 000

CHFA has completed a draft of the report required by PA 07-234.  It is currently under review by CHFA’s board of directors.  CHFA expects to release the report to the governor and the legislature once the board approves it (expected January 31, 2008). 

JTP:ts