What Ever Happened to Affordable Housing?

By Leila Javitch

 

Earlier this year, the Foundation for Norfolk Living (FNL) received a grant of three million dollars from the Connecticut Department of Housing to renovate 12 rental units located in five houses near the center of Norfolk. This award was announced on March 30 by Governor Malloy.

Outwardly, it appears that not much has happened since then to move the project forward. However, considerable behind-the-scenes work is being done to bring it to fruition.

Since March, members of the Board of Directors of the Foundation, along with their consultants from the Local Initiative Support Corporation (LISC) and Housing Enterprises, Inc. , have been in negotiations with the state Department of Housing (DOH) to finalize a contract for the revised terms and conditions of the grant funding.

There were two major hurdles involved in the negotiations. First, the original terms and conditions document indicated that the funding from the state was a three million dollar balloon loan. This wording needed to be revised to ensure that the money was being disbursed as a grant, with no strings attached.

The second major hurdle was a difference of opinion on the amount of rent the Foundation would be permitted to charge the occupants, based on percentages of area median income.           

These two issues were resolved, along with several smaller ones, after numerous communications between Foundation director Lou Barbagallo and state officials, and it was finally moved forward with the assistance of State Representative Roberta Willis.

Before the grant money can be released to FNL, the revised terms and conditions document must wind its way through DOH for the Commissioner’s signature. The state Bond Commission also has to authorize the borrowing that will fund the Foundation’s grant. The Bond Commission meets once a month and as of now, the Foundation for Norfolk Living is not yet on the agenda.

The Foundation plans to begin construction and renovation work on the Norfolk properties on April 1, 2016, with the goal of completion set for April 1, 2017. The three houses comprising 29-33 Greenwoods Road East are being donated to the Foundation by the present owner, Ralph Burr. The two properties at 40 and 46 Greenwoods Road West will be purchased using a bridge loan from LISC. Of the twelve rentals units, ten will be classified as affordable rentals. There will be three three-bedroom units, several two-bedroom units, and two one-bedroom units.

Substantial work has already been done with the Norfolk Planning and Zoning Commission to ensure that all of Norfolk’s zoning regulations will be met. A professional management company, now running Meadowbrook successfully, will be in place to oversee the day-today responsibilities of managing the Foundation properties.

Many local donors have stepped forward with funds to cover interim expenses and the affordable housing project in general. A town-wide fundraising effort will be initiated in April, but additional donations are always welcome. These can be sent to the FNL P.O. Box 2 in Norfolk.

 

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