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.

 


Housing

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 Expected Cost
Demolition (WV site and buildings) $1,600,000   
Residential Construction $66,900,000   
Construction Inflation and Contingency $10,500,000   
Soft Costs (A&E, market study, surveys, etc.) $13,500,000   
Reserves (Lease-up/Operating/Affordability) $2,100,000   
Developer Fee, etc. $11,100,000   
Total Development Cost $105,700,000   

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Infrastructure

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.

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Neighborhood Improvements

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.

  Total Budget CCI Budget
Redevelopment of Ryan Park $1,000,000 $1,000,000
South Norwalk Community Center $300,000 $100,000
Complete Streets $6,500,000 $765,000
Small Multi Family Preservation $2,875,000 $875,000
Residential Fa├žade Improvement Grants $375,000 $375,000
Public Safety Initiatives $205,000 $85,000
TOTAL $11,255,000 $3,200,000

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Financial Documents

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