Developers Seeking Financing
Types of Loans
CHIF’s Neighborhood Rebuilder Loan Program provides several types of loans to support new construction or rehabilitation of residential units in inner city neighborhoods throughout Connecticut. The types of loans are:
- Construction Loans with or without subsidy
- Predevelopment Loans
- Interim Bridge Loans
- Permanent Loans
Summary of CHIF’s Loan Products rates and terms
Neighborhood Rebuilder Construction Loans
CHIF’s Neighborhood Rebuilder Program offers developers short term construction loans. The rate is 6.5% for 12 months*. For application and additional information, E-Mail: rebuilder@chif.org
In addition CHIF’s Neighborhood Rebuilder Program may provide a source of subsidies for development to pay for the "appraisal gap" that exists between the total development cost and the after-rehabilitated appraised value of the property. After rehabilitating the unit, the new homebuyer obtains a permanent mortgage based on the appraised value of the completed property, and assumes the appraisal gap (the second mortgage) subsidy from the developer. This "silent," or "soft" second mortgage is forgiven after a short term, usually five to ten years.
Neighborhood Rebuilder Construction Loan term sheet
Neighborhood Rebuilder Predevelopment Loans
CHIF provides loans of up to $50,000 to developers to pay for costs associated with the preliminary planning and design of affordable housing. Loans are provided at 1%-3% for 12 months* for new construction and rehabilitation projects. This special revolving loan program is funded with grants from the Melville Charitable Trust and the Connecticut Housing Finance Authority (CHFA). For application and additional information E-Mail: predevelopment@chif.org
Predevelopment Loan term sheet
Neighborhood Rebuilder Interim Bridge Loans
CHIF provides bridge loans to developers for interim financing. Loans are provided at 3% to 6.5% for up to 12months*. For application and additional information, E-Mail bridge@chif.org
Interim Bridge Loan term sheet
Neighborhood Rebuilder Permanent Loans
CHIF sets rates and reviews requests for permanent affordable housing project loans as funds are available. For current rates and a term sheet please contact us via E-mail at rebuilder@chif.org.
* Terms and rates are subject to change
Staff from the City of New Britain discuss the transfer of their portfolio to CHIF for servicing. CHIF services three loan programs for New Britain.
CHIF staff regularly confer with staff from the Connecticut Department of Economic and Community Development in administering the Energy Conservation Loan Program.
CHIF Program Administrators are available to assist applicants with Energy Conservation and Home Improvement Loans.
CHIF offers a variety of loan programs for Connecticut homeowners. CHIF offers programs for first-time homebuyers, as well as programs for existing homeowners to make their homes more energy-efficient.