HUD Multifamily Loans in Connecticut
Our select transactions include 7 Connecticut financings totaling more than $106 million in Norwalk, New Haven, Bethel and Branford, including a $63.3 million Section 223(f) refinance in Norwalk, the largest transaction on our list. Six are Section 223(f) refinances; the seventh is a Freddie Mac refinance.
Connecticut transactions
| Loan amount | Program | City |
|---|---|---|
| $63,301,300 | 223(f) Refinance | Norwalk |
| $11,014,300 | 223(f) Refinance | Norwalk |
| $10,761,200 | 223(f) Refinance | New Haven |
| $8,893,300 | 223(f) Refinance | Bethel |
| $4,200,000 | 223(f) Refinance | New Haven |
| $4,116,000 | 223(f) Refinance | Branford |
| $3,825,000 | Freddie Mac Refinance | New Haven |
How HUD financing works for Connecticut properties
HUD processes Connecticut multifamily applications through its Northeast Region, based in New York.
- Stabilized properties: Section 223(f). Acquisition or refinance, up to 35 years, fixed rate, non-recourse. Market-rate properties size at a minimum 1.15 debt service coverage ratio and up to 87% loan-to-value (80% with cash out). Properties need at least 5 units, and those with certificates of occupancy 3 or more years old must show stable occupancy of at least 85%.
- New construction and substantial rehabilitation: Section 221(d)(4). One fixed rate through construction and a 40-year term after it, sized at a 1.15 DSCR and up to 87% loan-to-cost for market-rate projects.
- Existing HUD loans: Section 223(a)(7) and 241(a). Refinance an existing HUD-insured mortgage into a lower rate, or add proceeds for improvements with a supplemental loan.
What we see in Connecticut
- Property taxes and revaluations. Connecticut property taxes are among the highest in the country, and municipalities periodically revalue real estate. A revaluation can move a property's tax bill significantly, so it deserves attention early.
- Older buildings. Much of the multifamily stock in New Haven and the older Fairfield County cities predates 1978, which brings HUD's lead-based paint requirements into the process. Plan for the testing and any required work early.
- Fairfield County values. Higher values in markets like Norwalk support large loan amounts; our Norwalk refinance is the largest transaction on our list.
- Long-term fixed-rate debt. Most of our Connecticut work has been 223(f) refinances, which lock in up to 35 years of fixed-rate, non-recourse financing.
Connecticut FAQ
Which HUD office processes Connecticut multifamily loans?
HUD's Northeast Region, based in New York.
Can an older Connecticut apartment building get a HUD 223(f) loan?
Yes, as long as it doesn't need substantial rehabilitation. Buildings built before 1978 must meet HUD's lead-based paint requirements, and critical life-safety repairs are completed before closing.
What does a Connecticut 223(f) refinance require?
At least 5 units, a pattern of stable occupancy of at least 85% for properties 3 or more years old, and a minimum 1.15 DSCR for market-rate properties, with loan-to-value up to 87% (80% with cash out).
Please contact us to discuss a Connecticut property. 347.916.9750 │ info@harpercap.com