Funds Approved For Norwalk HousingDecember 20, 2019
The State Bond Commission approved funding to benefit the St. Paul’s Flax Hill Cooperative in Norwalk. For over 40 years, St. Paul’s has been a critical part of the South Norwalk neighborhood, providing cooperative housing for a wide range of household incomes.
St. Paul’s is an 86-unit limited equity cooperative constructed in 1976 under the U.S. Department of Housing and Urban Development (HUD) 236 program. The HUD restrictions expired 2 years ago but the members of St. Paul's chose to remain affordable rather than convert their community to market-rate housing. In doing so, the members sought out financial assistance from the Connecticut Department of Housing and, in December 2017, St. Paul’s was awarded $4,090,000 in CHAMP 11 funding. Since that time the members and their development team have completed all the work necessary to begin renovations including the last stages of underwriting at Connecticut Housing Finance Authority (CHFA) for the balance of the funding we require.
The total estimated project cost is $8,982,330 and will be funded through a CHFA loan of $5,350,000 and state funding of $3,034,272. The loan will be provided at a rate of not less than 0% for a term not to exceed 45 years with principal deferred.