Connecticut · State Subsidy Center

Connecticut affordable housing finance.

CHFA-CT is Connecticut's state housing finance authority, allocating federal LIHTC, issuing multifamily and single-family bonds, and operating Connecticut's first-mortgage homebuyer products.

State HFA
CHFA · DOH
Connecticut Housing Finance Authority + Department of Housing
Tax credit programs
Federal LIHTC · State HTCC
Federal LIHTC + Housing Tax Credit Contribution program (state, $10M annual)
State housing trust funds
CHAMP · FLEX
CHAMP capital subsidy; FLEX financing for nonprofits
State rental assistance
RAP
Connecticut Rental Assistance Program (state-funded)
2026 PAB cap
~$489M
Per-capita $135 × 3.62M population
FHLB district
FHLB Boston
FHLB of Boston

The Connecticut housing-finance ecosystem

Connecticut's housing pipeline draws on a mix of state agencies, federal pass-through programs, and local frameworks. Programs span the full spectrum: low-income rental, supportive housing for special-needs populations, workforce / missing-middle housing, homelessness prevention, first-time homebuyer assistance, mixed-use redevelopment, and disaster recovery. Below is a directory of every currently-active state-level and major-local program, organized by administering agency.

State Housing Finance Authority

Connecticut Housing Finance Authority (CHFA-CT)

CHFA-CT is Connecticut's state housing finance authority, allocating federal LIHTC, issuing multifamily and single-family bonds, and operating Connecticut's first-mortgage homebuyer products. CHFA opened the 2027-2028 QAP public comment period in spring 2026 with stakeholder input sessions.

Federal 9% LIHTC

Competitive · Rental

CHFA-CT allocates Connecticut's federal 9% LIHTC ceiling — approximately $12.4 million in 2026 following OBBBA's 12% increase. Annual competitive QAP process; 2027-2028 QAP in development.

IRC § 42 · CHFA-CT Deep-dive coming soon

4% LIHTC + Multifamily Bonds

Non-competitive · Bonds

Non-competitive 4% LIHTC paired with CHFA-CT-issued multifamily revenue bonds.

IRC § 42(h)(4) · CHFA-CT Deep-dive coming soon

Housing Tax Credit Contribution (HTCC)

State tax credit · Nonprofit donations

Connecticut's state tax credit for donations to nonprofit housing developers. Approximately $10 million in state credits available annually with maximum $500,000 per applicant. Awarded through CHFA's Consolidated Application process.

C.G.S. § 8-395 · CHFA-CT Deep-dive coming soon

Construction & Permanent Loan Financing

First mortgage · Multifamily

CHFA-CT's direct first-mortgage products financing affordable multifamily rental developments — construction, permanent, and bridge financing.

Supportive Housing Programs

Supportive housing · Capital + operating

CHFA-CT financing for permanent supportive housing combined with operating subsidies from Department of Mental Health and Addiction Services (DMHAS) and Department of Developmental Services (DDS).

CHFA-CT · DMHAS · DDS Deep-dive coming soon

Section 811 Project Rental Assistance

Operating subsidy · Disability

CHFA-CT administers Connecticut's HUD Section 811 PRA allocation for extremely-low-income persons with disabilities.

42 U.S.C. § 8013 · CHFA-CT Deep-dive coming soon

CHFA Time To Own

Homeownership · Below-market mortgage

CHFA-CT's single-family first-mortgage products including Time To Own (for first-time and certain repeat buyers) with below-market rates.

CHFA Down Payment Assistance Program

Homeownership · DPA

CHFA-CT's down-payment assistance program providing forgivable second-mortgage loans combinable with Time To Own first mortgage.

CHFA Mortgage Credit Certificate

Homeownership · Federal tax credit

Federal income-tax credit for eligible first-time buyers equal to a percentage of mortgage interest paid annually.

IRC § 25 · CHFA-CT Deep-dive coming soon
Connecticut Department of Housing

Connecticut Department of Housing (CT DOH)

CT DOH is Connecticut's state housing department, administering federal HOME, NHTF, CDBG, and HOPWA pass-throughs plus state-funded programs including the CHAMP capital subsidy, FLEX financing for nonprofits, and the state Rental Assistance Program.

CHAMP (Competitive Housing Assistance for Multifamily Properties)

State capital subsidy

Connecticut's flagship state-funded gap subsidy for affordable multifamily rental development. Soft second loans pairing with LIHTC and federal HOME funds.

FLEX Funding Program

Capital subsidy · Nonprofits

CT DOH flexible funding for nonprofit affordable housing developers supporting predevelopment, acquisition, rehabilitation, and gap financing needs.

Rental Assistance Program (RAP)

State rental assistance

Connecticut's state-funded tenant-based rental assistance program operating in parallel with federal Section 8. Serves households not adequately served by federal vouchers.

C.G.S. § 8-345 · CT DOH Deep-dive coming soon

HOME Investment Partnerships

Federal pass-through

CT DOH administers Connecticut's HOME allocation for non-participating jurisdictions.

42 U.S.C. § 12701 · CT DOH Deep-dive coming soon

National Housing Trust Fund (NHTF)

Federal pass-through · ELI

CT DOH administers Connecticut's NHTF allocation for housing serving extremely-low-income households.

12 U.S.C. § 4568 · CT DOH Deep-dive coming soon

CDBG (state-administered)

Federal pass-through · Non-entitlement

CT DOH administers federal CDBG for non-entitlement Connecticut communities.

42 U.S.C. § 5306 · CT DOH Deep-dive coming soon

UniteCT Emergency Rental Assistance

Emergency rental assistance

CT DOH-administered state-funded emergency rental assistance program providing tenant-based assistance for households facing housing instability. Successor to pandemic-era programs.

CT DOH Supportive Housing

Supportive housing · Coordinated

CT DOH-coordinated capital and operating funding for permanent supportive housing serving chronically homeless and special-needs populations.

Local Housing & Other Programs

Hartford, New Haven, and Connecticut local programs

Hartford, New Haven, Stamford, and other major Connecticut cities operate substantial local affordable housing programs. Connecticut also operates a state Historic Preservation Tax Credit frequently paired with LIHTC.

Connecticut Historic Rehabilitation Tax Credit

State tax credit · Historic rehab

Connecticut state historic tax credit for rehabilitation of certified historic structures. Pairs with federal HTC and 4% LIHTC for adaptive-reuse housing developments — particularly relevant in Connecticut's older urban centers.

C.G.S. § 10-416 Deep-dive coming soon

City of Hartford Affordable Housing

Local subsidy

Hartford operates affordable housing programs through the Department of Development Services supporting multifamily and homeownership development.

City of Hartford Deep-dive coming soon

New Haven Affordable Housing

Local subsidy

New Haven's affordable housing programs through the Livable City Initiative supporting affordable rental and homeownership development.

City of New Haven Deep-dive coming soon

§8-30g Affordable Housing Land Use Appeals

Inclusionary mandate · Statutory override

Connecticut's state law allowing developers to override local zoning when proposing affordable housing in municipalities with less than 10% affordable housing stock. One of the strongest state inclusionary mandates in the country.

C.G.S. § 8-30g Deep-dive coming soon

How Connecticut programs typically combine

Programs combine differently depending on what you're building. A short reference of representative stacks across the program-type spectrum:

  • Statewide 9% LIHTC: 9% LIHTC + CHAMP + HOME + HTCC (for nonprofit deals).
  • 4% LIHTC + bonds: 4% LIHTC + CHFA-CT bonds + CHAMP.
  • Permanent supportive housing: CHFA-CT supportive housing capital + DMHAS operating subsidy + 9% LIHTC + RAP.
  • Historic adaptive reuse: Federal HTC + CT Historic TC + 4% LIHTC + CHFA-CT bonds.
  • §8-30g override development: Local development + 9% LIHTC + state inclusionary override.
  • First-time homebuyer: CHFA Time To Own + DPA + MCC.

Post-OBBBA implications

  • Permanent 12% LIHTC increase: Connecticut's annual 9% LIHTC ceiling is permanently larger starting 2026.
  • 25% PAB financed-by test: for bonds issued after December 31, 2025, materially expanding the pipeline of 4% LIHTC deals that can be supported per dollar of bond volume cap.
  • Permanent OZ designations: Qualified Opportunity Zone designations gain permanence; Rural OZ provisions may apply in qualifying portions of the state.
  • Section 45L / 179D termination (June 30, 2026): Developers pursuing energy-efficient construction should accelerate placed-in-service dates.

This is educational reference material for affordable-housing practitioners, not legal, tax, financial, or investment advice. State program details, funding levels, and rules change frequently — consult the relevant state agencies and qualified counsel before structuring any transaction. See Disclaimer.