Governor M. Jodi Rell today announced that an additional $10 million to support Connecticut’s new Housing Trust Fund this year is expected to be approved when the State Bond Commission meets on June 9.  
 
“Flexible and affordable housing is a critical issue for Connecticut workers, families, and businesses – and a top priority of my administration,” Governor Rell said.  “Housing development and ownership helps to drive our economy by fostering worker and community stability.  Everyone deserves quality built, safe and secure housing, and that’s exactly what the new Housing Trust Fund was created to do.”

 

Signed into law on July 1, 2005, the Housing Trust Fund for Economic Growth and Opportunity is designed to help create housing for low- and moderate-income working families by providing critical “gap” financing in the form of loans and grants. 

 

The $100 million Housing Trust Fund, administered through the DECD, is funded through state General Obligation bonds, providing a maximum of $20 million per year for five years to create additional housing throughout the state.  This additional authorization of $10 million in bond funding will fulfill the state’s financial commitment to the program for 2006.  The State Bond Commission approved an initial $10 million on December 9, 2005.

 

“The disbursement of this substantial funding over the next five years will go a long way to addressing the issue of housing affordability statewide and will directly benefit Connecticut’s long-term economic success,” said Governor Rell.   

 

Funding awarded by the Housing Trust Fund may be used in a variety of ways, including acquisition, rehabilitation, new construction, down payment assistance, loans and grants.  Eligible recipients include nonprofits and for-profit housing developers, municipalities, local housing authorities, the Connecticut Housing Finance Authority, community development finance institutions, community development corporations and any combination thereof.

 

Funding will be based on priority guidelines established by DECD’s Housing Trust Fund Advisory Committee and may not exceed $75,000 per housing unit or $2,000,000 per project and $3,000,000 per program.