CHFA outlines financing tools available to Old Lyme for affordable housing

Rob Michalek, director of government relations at the Connecticut Housing Finance Authority, told the Old Lyme Affordable Housing Commission that CHFA is a quasi‑public housing finance agency that issues tax‑exempt bonds to support affordable housing in Connecticut. “We were established in 1969 as the state's housing finance agency,” he said, describing CHFA's two main pillars: homeownership assistance and financing for affordable rental units.

Michalek explained CHFA does not rely on state appropriations and is governed by a board; the agency offers below‑market mortgage loans, down‑payment assistance, and various financing products for developers. He noted program constraints tied to bond and tax credit rules that shape eligibility: for homeownership programs CHFA generally serves first‑time, income‑qualified buyers (up to roughly 120% of area median income), and on the rental side it targets units that serve households in lower AMI bands through capital financing and LIHTC allocations. “We are not a state agency,” Michalek said, emphasizing CHFA’s distinct governance.

Why it matters: CHFA’s financing options and program design directly affect what projects are financially feasible in smaller towns like Old Lyme. Commissioners asked how a town without sewers or public water could make projects viable; CHFA staff recommended partnering with experienced developers or consultants and leveraging state programs and layered financing. The commission agreed to add CHFA as a local resource and to follow up with CHFA staff for developer contacts and next steps.