The Connecticut Housing Finance Authority yesterday awarded $10 million in state Housing Tax Credit Contributions (HTCCs) to nonprofit developers of affordable housing and nonprofit housing loan funds. The recipients may then offer the tax credits to business firms in exchange for a cash contribution toward their affordable housing developments or loan funds. Business firms receive a dollar-for-dollar tax credit toward their state of Connecticut taxes.
“The HTCC program is an important public/private partnership. For nonprofits, it provides access to the private funding they need to build more affordable housing. For businesses, it offers opportunities to invest in affordable housing, while at the same time reducing tax liabilities,” Seila-Mosquera-Bruno, chairwoman of CHFA’s board of directors and commissioner of the state’s Department of Housing, said in a statement.
The HTCC program was created by the state legislature as an incentive to create and preserve affordable housing. The program awards $10 million annually with a maximum $500,000 award per nonprofit per year. The HTCC program is administered by CHFA and the credits are awarded on a competitive basis. The program requires a $1 million set-aside for workforce housing, and a $2 million set-aside for supportive housing. A total of 43 applications, requesting $15 million in tax credits were received. The $10 million available was allocated to 24 nonprofit developers and housing loan funds..
“This year’s HTCC recipients reflect the broad spectrum of affordable housing needs in Connecticut,” Diane L. Smith, interim executive director of CHFA, said in a statement. “Habitat for Humanity of Eastern Connecticut in Norwich received tax credits to build six affordable homes that will be purchased by future homeowners, while the Housing Authority for the town of Trumbull will use its credits to finance the renovation of 186 affordable apartments at Stern Village.”
The 2019 HTCCs will support the development of more than 596 new affordable units in 16 communities.
