Governor Dannel P. Malloy yesterday announced the award of $13.8 million in grants to spur community development and create affordable and supportive housing in Connecticut. CSH Connecticut received a $1.3 million grant for its Integrated Supportive Housing Initiative to create the Connecticut Supportive Housing Loan Fund.
CSH was one of eleven grantees and the only program funded that specifically focuses on ending homelessness. Grant money will be used to provide gap financing for projects being developed with mainstream affordable housing resources and will act as an incentive for developers to include permanent supportive housing in their projects.
The majority of supportive housing in Connecticut is developed through structured supportive housing initiatives but CSH has been actively seeking ways to encourage integrated supportive housing development. Creating incentives through the state’s Qualified Allocation Plan(QAP), and encouraging inclusion of supportive housing in all state-assisted affordable housing projects have resulted in the creation of approximately 35-50 additional units of supportive housing per year. This year CSH began an evaluation of supportive housing units created through mainstream affordable housing financing in Connecticut and preliminary findings indicate that additional financial incentives for developers are key to the proliferation of integrated supportive housing units in Connecticut. “This fund will add two important tools for encouraging supportive housing in integrated projects: very flexible gap capital for development and short term rental assistance to stabilize homeless tenants while seeking long term rental subsidies.” said Sarah Gallagher, CSH CT Director. We’re excited by this new partnership with the state and look forward to increasing the number of supportive housing units in Connecticut through the program”.
CSH has partnered with Supportive Housing Works in Bridgeport who will do outreach to developers and assist them in applying for funds. CSH will underwrite projects and move them through an approval process similar to that used for CSH’s $40 million National Loan Fund.
Nick Lundgren, Director of DECD’s Office of Housing and Community Development, “We’re thrilled to have this opportunity to partner with one of the leaders in the effort to end homelessness in Connecticut.”