Haystack Woods Development Moves Forward

By Avice Meehan

Sixteen years after the idea first surfaced, the affordable housing development off Old Colony Road is approaching a major milestone: completion of site prep work and road construction. A first coat of asphalt should be laid down before winter if all goes according to plan.

The project has had many twists and turns. As originally envisioned, it would have included 22 houses served by a dirt road. Now, the Foundation for Norfolk Living (FNL) will build 10 houses—with the possibility of some additional construction—clustered around a town road.

“We are planning to start construction in the spring and hope to have houses to sell by the end of the year,” said Kate Briggs Johnson, a local architect who chairs the FNL board.

Johnson hopes that all 10 of the energy self-sufficient, or what she describes as “net zero,” houses will be sold to individuals or families earning 80 percent of the median area income. That would be $64,232 for an individual or $91,760 for a family of four. About 30 percent of Norfolk’s current residents (254 households) have an income at or below that target, according to the town’s draft housing plan for 2022-2027.

The optimistic build schedule comes with numerous caveats, given the complexity of the project and the number of players involved.

“We have been around the block a few times and understand that even with a couple of meetings a week, it can be difficult to maintain an aggressive schedule,” said Johnson.

The Economic Development Commission (EDC) received a brief on the Haystack Woods project at their Oct. 12 meeting. The project’s first phase can be likened to a joint venture between the State of Connecticut, the Town of Norfolk and the foundation. The town applied for and received federal funding through the state’s Department of Housing (DOH) to pay for developing the 39-acre site, which had once served as an informal gravel pit and is located next to the town garage. The foundation is sub-grantee.

The initial grant of nearly $1.98 million was increased to roughly $2.9 million to cover pandemic-related price increases; the additional cost of building a public road, including extra blasting for ledge removal; and utility infrastructure. Out of the total, $2.486 million is allocated to Guerrera Construction, which won the competitive bid for site work. The balance covers site acquisition and administrative costs.

The next phase—fabrication and construction of the 10 houses and carports fitted out with solar panels—will be financed with a construction mortgage of approximately $2.4 million and a state grant of $1.8 million. This mortgage will be paid off through the sale of the houses; the grant funding will be used to fill the gap between actual construction costs and the amount that qualifying families can pay. Additional gap funding may be generated through energy tax credits, fundraising or sale of some homes at market rates.

Johnson notes that final home prices will not be set until later in the process. Ownership will be structured like a condominium, with the foundation retaining ownership of the underlying property. The mix of homes includes four, one-story dwellings with two bedrooms each; three, 1.5-story dwellings with three bedrooms; and three two-story dwellings with three bedrooms. The cost of ownership will be pegged to 30 percent of a qualifying buyer’s income. A family of four with an annual income of $90,00 could afford $27,000 a year for a mortgage, taxes, insurance, utilities and homeowners association fees. Higher interest rates could also potentially lower the sale price.

“This project is hugely beneficial to the town,” said First Selectman Matt Riiska, also a former member of the FNL board. “We desperately need more tax revenue, and we definitely need more affordable housing.”

Riiska noted that Norfolk has recorded the construction of only 11 new homes in the last decade and that some merely replaced homes that had been torn down. Haystack Woods homeowners will pay property taxes, as well as fees for water and sewer services.

Overall criticism of the Haystack Woods development has been muted in comparison to other Litchfield County communities, where opponents have filed lawsuits or otherwise derailed the expansion of affordable housing options. But that doesn’t mean it lacks critics. Tony Thomson, who lives on Route 272 near the intersection with Old Colony Road, is one. Thomson has maintained a lively correspondence with Johnson, the town and the DOH expressing concern over project management and the increased costs. “For me, the project has bad vibes, [is] not really necessary [and is in] the wrong place,” he noted in one letter.

Riiska and Johnson, in responding to Thomson’s concerns, noted that representatives from the town and the foundation meet twice weekly to review project status. One meeting focuses on the design of the homes themselves, and the second focuses on the site development. All invoices go through a multi-stage review before DOH transfers funds to the town and then to the foundation.

“My sense is very positive about the project, despite all sorts of obstacles,” said Libby Borden, co-chair of the EDC. “I am very impressed with how well it is run.”