HDF
receives $3 million from Connecticut Housing Trust Fund to
finance affordable housing, enable homeownership
Funding Will Result in 90 to 110 Additional Households
Assisted With Homeownership or Affordable Rental Units in
Southwestern Connecticut
STAMFORD,
Conn., June 21, 2006- The Housing Development Fund, Inc. (HDF),
a nonprofit bank providing funding for affordable housing
and an array of homebuyer assistance programs, has been named
one of seven recipients of the first $10 million to be distributed
from the new Connecticut Housing Trust Fund. HDF received
$3 million – by far the largest single grant –
which it will use to provide down payment assistance to first
time homebuyers and gap financing for affordable multi-family
rentals and supportive housing throughout southwestern Connecticut.
The funds will assist an estimated 90 to 110 households to
become homeowners or rent affordable housing units. The five-year,
$100 million Housing Trust Fund, created by a bi-partisan
effort in the General Assembly to address the critical need
for more affordable housing throughout the state, was signed
into law last year by Governor M. Jodi Rell, who announced
the first group of recipients.
In
her announcement, the Governor predicted that the funds would
make a real difference in the lives of Connecticut workers
and their families.
“These seven recipients, with their proven track records
of excellence in serving their clients and communities, are
an important part of the solution of affordable housing in
Connecticut, and it is our expectation that we will begin
to feel the impact of this $10 million investment in their
programs in the months and years ahead,” said Governor
Rell.
Founded
in 1989, HDF has expanded to serve all of southwestern Connecticut
from its headquarters in Stamford and a Danbury office opened
in 2004. The agency plans to put one-third of the Housing
Trust Fund grant to work providing down payment assistance
to first time homebuyers. HDF estimates that it will add 60
to 70 additional households to the 450 already helped by its
Adopt-A-House first time homebuyer down payment assistance
program. The other two-thirds of the funds will provide gap
financing for 30 to 40 new multi-family rental and supportive
housing units.
The $3 million from the Housing Trust Fund will leverage many
millions more in private sector funding, according to HDF.
The Housing Development Fund, Inc. manages almost $50 million
in affordable housing funding from a pool of 17 banks and
other resources.
“We
are thrilled with the infusion of public sector resources
that are coming at a critical time in meeting the need for
affordable housing,” said HDF Executive Director Joan
Carty. “We have long had investment of significant sums
from the private sector, and now with this real public/private
partnership, we stand to make an even greater impact. HDF
is grateful to the Governor and all the legislators –
particularly our local delegation – who had the will
and the vision to establish the Housing Trust Fund. It’s
a dream come true!”
According
to State Senator Bob Duff, who represents Norwalk and Darien,
the Housing Trust Fund was designed to be flexible in order
to meet a variety of affordable housing needs throughout the
state.
“It’s
exciting to see the Housing Trust Fund legislation put into
practice and used in the way we envisioned,” said Duff.
“It took a huge effort by many legislators and the State
Treasurer Diane Nappier, and it’s good to see it being
implemented by HDF and the other recipients in a really meaningful
way that will help first time buyers and renters in our area.”
HDF,
a HUD-certified lender and counselor, facilitates the development
of affordable housing. In addition to managing public/private
partnerships to lend funds for this purpose, HDF provides
a variety of programs to prepare first time homebuyers for
successful homeownership and supports its clients after the
sale as well. Through its approach that pools risk for lenders,
HDF is a leader in providing first mortgages for the development
of multi-family units. It provides low-interest, flexible
financing and technical assistance to developers and municipalities.
HDF
offers a variety of homebuyer programs including its Adopt-A-House
down payment and closing cost assistance program, its SmartMove
low interest second mortgage program, Homebuyer Education
Classes, Homeownership Counseling offering one-on-one support.
Along with HDF’s requirement that its financing be linked
only to traditional, fixed-rate mortgage products, its programs
have led to unprecedented stability in its portfolio.
The
Housing Development Fund, Inc. has its headquarters at 100
Prospect Street, South Tower Plaza, Suite SP-101, Stamford,
Connecticut 06901. It also maintains an office at 8 West Street,
Suite 202-204, Danbury, Connecticut 06810. For additional
information call Tami Strauss at 203-969-1830 x19 or visit
www.hdf-ct.org.
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