Commitment to Affordable Housing
In 2010, CommCap engaged an independent consulting firm (AMS Consulting, LLC) to provide CommCap with specific market data:
CommCap’s Affordable Housing Program provides loans to for/non-profit developers, investors and individuals, to build or rehabilitate multi-family or mixed-use properties located in the greater Bridgeport CT area. The units must be affordable and rented to families whose annual income does not exceed 120% of the Area Median Income (AMI) as defined by HUD, or to those with special needs.
The average housing loan is primarily dependent on the cash flow of the property. The term is usually 15-20 years with a 10 % down payment. The maximum amount financed cannot exceed 80% of the post-rehabilitation appraised value of the property. This product is flexible in many of its terms and can be tailored to the borrower’s situation as long as there is sufficient collateral to support the loanThe typical housing borrower is an experienced for/non-profit developer, with a portfolio of six to ten properties. They seek loans to rehabilitate Bridgeport properties with 3 to 20 units that they will rent to families earning less than 80% of AMI.
CommCap assists in the preservation and development of affordable housing by:
- Financing well-maintained and affordable units priced below market to Bridgeport’s moderate income families.,
- Properties must meet CommCap construction, rehabilitation and management requirements and general specifications that reflect CommCap’s commitment to safe and attractive housing
- Keeping a maintenance reserve including taxes, insurance, Water Pollution Control Authority, and 2.5% of gross rental income is built into escrow for maintenance and repairs