Source: Recap Real Estate Advisors / #Housing #Finance
BOSTON, MA - Recap Real Estate Advisors announced the completion of a 10-year Capital Plan for the Connecticut State Sponsored Housing Portfolio (SSHP). Recap’s analysis determined that when strategically paired with private debt and equity resources, Connecticut’s proposed $300 million capital and $1.5 million annual rental assistance investment is sufficient to put every SSHP property on a sustainable long term path.
“The Capital Plan will guide CHFA [Connecticut Housing Finance Authority] and DOH [Department of Housing] as they make decisions to get urgently needed work completed in the most efficient, cost-effective way, while ensuring residents’ needs are addressed” said Evonne Klein, Commissioner of DOH and Chair of CHFA’s Board of Directors.
Recap’s SSHP capital planning process included capital needs assessments for 299 properties, market studies for a representative sample of 125 properties, and a questionnaire to elicit owner perspectives and gauge capacity to implement recapitalization transactions. Recap also explored green capital investments and architectural redesign concepts for an illustrative sample of properties. Informed by the study results, Recap developed policy recommendations that, if implemented, will help owners establish a sustainable operating model for each of their properties while continuing to serve extremely low-income households and will allow all of the properties in the portfolio to address their capital needs through relatively straightforward financing structures.
“The State of Connecticut is making an admirable commitment to its affordable housing portfolio and this plan offers the State guidance to maximize the value of this commitment,” said Thomas R. Davis, Senior Vice President of Recap. “We are extremely proud of the work we’ve completed for CHFA. This plan outlines strategies the portfolio’s owners can use to address their capital needs through relatively straightforward financing structures, including low income housing tax credits, new first mortgage financing and recoverable grants. We’ve also outlined ways the State and the owners can implement a sustainable operating model for the portfolio, building replacement reserves to cover future capital needs and preserving the properties to serve Connecticut’s low-income households well into the future.”