HDF Expands in New Haven

May 2, 2008; As originally appeared in the Commercial Record

Stamford-based Housing Development Fund has entered into the New Haven market.

HDF provided New Haven Construction with $2.1 million in financing for 12 units, four of which are slated to be sold as affordable housing. The units each have three bedrooms, one full bathroom and two half-bathrooms, as well as two-car garages.

In addition, HDF has partnered with Neighborhood Housing Services of New Haven to identify and counsel first-time homebuyers for the affordable units, while HDF plans to put together down-payment and closing-cost assistance for the buyers.

“This loan represents HDF’s first in New Haven and we expect many more to follow,” said Kevin Porter, who oversees HDF’s lending programs.

For its multifamily program, HDF has put together a consortium of 16 Connecticut banks that have contributed to a pool of funds totaling $30 million. The program is designed to the loan-spread risk among the banks, so HDF can offer qualified borrowers low interest rates and small down-payments.

“As a developer and renovator of two- to four-unit properties I had only worked with mortgage brokers,” said Alberto Alvarez, owner of New Haven Construction. “HDF took a chance on me when conventional lenders wouldn’t.”