CNI Financing Plan
CNI Development - Financing
The proposed development plan is underwritten with a variety of sources. The $30 million HUD CNI grant establishes the foundation for the housing development, the neighborhood improvements and the residential support services. CNI funds have successfully leveraged additional City, State and Federal funds along with critical private investments.
The preliminary Total Development Cost for the residential component is approximately $106 million. This does not include the reconstruction of infrastructure including public streets, sidewalks, lighting and utilities. The construction estimates and projected sources of funds are based on Trinity's current development experience on similar projects in nearby Stamford and New Haven. The preliminary development costs are summarized below.
Preliminary financing assumptions include conventional first mortgage ($14.4 million), DECD CHAMP (State) funds of $5 million, private equity of approximately $29.5 million (assuming only 4% tax credits), and City funds (for public infrastructure). This proforma is based on 4% tax credits/bonds and no allocation of competitive 9% tax credits. However, this leaves a gap of approximately $57 million. Other potential gap sources include Sandy CDBG disaster funds, State Urban Development Action Grant funds, Choice Neighborhoods grant funding, Federal Home Loan Bank AHP funds, project-basing deeply subsidized units, etc. All sources are actively being explored at the local and state level. NHA and the City are currently pursuing State CDBG-DR funds for Phase 1 development of the vacant 13 and 20 Day Street properties.
Preliminary Housing Development Costs
- Components - Demolition (WV site and buildings)
Expected Cost $1,600,000
- Components - Residential Construction
Expected Cost $66,900,000
- Components - Construction Inflation and Contingency
Expected Cost $10,500,000
- Components - Soft Costs (A&E, market study, surveys, etc.)
Expected Cost $13,500,000
- Components - Reserves (Lease-up/Operating/Affordability)
Expected Cost $2,100,000
- Components - Developer Fee, etc.
Expected Cost $11,100,000
- Total Development Cost $105,700,000
The central component of the infrastructure investment involves the elevation of the grade of Day Street and Raymond Street for flood mitigation purposes. The cost has been estimated at approximately $7 million but the project has not yet been formally put out for competitive bid. A commitment of $3 million has been received from the Connecticut Department of Housing through the Community Development Block Grant - Disaster Recovery (CDBG-DR) program which was created by the federal government after Superstorm Sandy. An investment from the Norwalk Capital Budget is expected and additional State funding are being sought.
Seeded with $3.2 million in CNI funds the neighborhood Critical Community Improvement Plan has assembled funding from a variety of sources for a variety of activities,
The activities described below represent over $11 million of improvements in the Choice Neighborhood area. The CNI grant will fund $3.2 million leveraged by $8 million in public and private investment.
- Redevelopment of Ryan Park
Total Budget $1,000,000
CCI Budget $1,000,000
- South Norwalk Community Center
Total Budget $300,000
CCI Budget $100,000
- Complete Streets
Total Budget $6,500,000
CCI Budget $765,000
- Small Multi Family Preservation
Total Budget $2,875,000
CCI Budget $875,000
- Residential Façade Improvement Grants
Total Budget $375,000
CCI Budget $375,000
- Public Safety Initiatives
Total Budget $205,000
CCI Budget $85,000
Total Budget $11,255,000
CCI Budget $3,200,000
- Grant Agreement - Choice Neighborhoods
- Norwalk CDBG-DR Accepted Terms
- Norwalk Implementation 2014 Project Summary
- Redstone Letter of Intent Final.Executed
- Washington Village Phase One Com Letter TD Bank
- Washington Village CHFA Reservation
Connecticut Housing Finance Authority - Public Housing Awards