Gap Financing for Transit-oriented or Downtown Development in Connecticut
Subordinate, low-interest loans designed to close financial gaps and bring residential or mixed-use developments to implementation by private or non-profit developers.
Review the application information below before applying.
CMDA Loan Program Overview
The Connecticut Municipal Development Authority (CMDA) provides subordinate financing to incentivize market-rate and mixed-income multifamily housing and infrastructural investments in Connecticut’s downtowns and transit-served communities.
Designed specifically for projects that have secured senior debt and are near shovel-ready, CMDA gap financing provides the critical subordinate capital required to close remaining funding gaps and accelerate construction. CMDA prioritizes developments that advance housing density and transit-oriented development near transit hubs and within downtown cores.
Standard program parameters are provided for guidance; however, CMDA maintains flexibility to adjust terms when a project’s unique circumstances and alignment with its mission warrant additional support.
Key program features are highlighted below:
Financing Structure
No more than 20% of the total capital stack
Interest
From 3-5% fixed for
the loan term
Loan Amount
$50,000 to $100,000
per unit
Terms
10-year loan terms
Eligible Municipalities & Development Districts
All projects must be located within a member municipality’s development district. Please email info@wearecmda.org to determine whether or not your property is located within a development district.
Established Development District
Stage 1 Application Checklist
Review required materials before submitting to ensure a smooth evaluation process.
If you have any questions prior to application submission, please contact: info@wearecmda.org
CMDA evaluates applications through a two-stage pipeline. Stage 1 focuses on project readiness, municipal alignment, and developer track record before moving into full financial underwriting in Stage 2.
To complete your online Stage 1 application, preliminary sources and uses and uses statement showing:
Developer Project Pro Forma
Land or acquisition costs
Construction costs
Soft costs
Financing costs and other fees
Total development cost
Senior debt
Sponsor equity
Grants, tax credits, and other funding
Requested CMDA funding
Any remaining financing gap
AND
Evidence of Municipal Commitments
Term Sheet from Senior Lender
Preliminary Project Plans and Program
Current site plan
Unit or space schedule
Renderings in available
Submit Stage 1 Application
Complete the form below to submit your project for Stage 1 evaluation. A CMDA representative will review your materials and respond regarding next steps.
If you have any questions please contact: info@wearecmda.org