The Connecticut Department of Housing has launched a pilot program that will allocate $3.2 million to a quintet of nonprofit housing agencies to help finance their operational and pre-development expenses.
The nonprofits are The Mutual Housing Association of Greater Hartford Inc., The Mutual Housing Association of Southwestern Connecticut Inc. (which operates as Connecticut Housing Partners), The Mutual Housing Association of South Central Connecticut Inc. (which operates as NeighborWorks New Horizon, Sheldon Oak Central Inc. and Eastern Connecticut Housing Opportunities Inc.
Four of the nonprofits will receive a pre-development loan in the amount of $500,000 to fund eligible costs incurred in connection with certain pre-development activities, including feasibility studies, environmental review, architectural drawings, consolidated applications and other pre-closing steps of the housing development process. Eastern Connecticut Housing Opportunities will receive a $300,000 loan.
Four of the nonprofits will also receive an operating grant in the amount of $200,000 to assist with capacity building and operating expenses, which include administrative costs such as salaries, payroll taxes, and fringe benefits. Eastern Connecticut Housing Opportunities will receive a $100,000 grant.
“Our nonprofit developers are a vital part of the housing ecosystem,” said Housing Commissioner Seila Mosquera-Bruno. “They carry the important task of constructing and preserving our affordable housing stock, and in many instances, they provide property management, maintaining a development for as much as 30 or 40 years.”
