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04/02/2020 12:00 AM

Branford's Parkside Village Developer Denied 2020 Low-Income Housing Tax Credits


The developer for Branford's Parkside Village I has been denied needed federal low-income housing tax credits in the latest round of allocations. Developer Beacon Communities LLC (Boston, MA) applied to receive the funding with the hope of being approved among the March, 2020 allocations distributed by CT Housing Finance Authority (CHFA). Beacon could apply again to receive funding in 2021; but at this point, that action has yet to be determined.Pam Johnson/The Sound

The developer for Branford's Parkside Village I has been denied needed federal low-income housing tax credits in the latest round of allocations. Beacon Communities LLC (Boston, MA) applied to receive the funding with the hope of being approved among the March, 2020 allocations distributed by CT Housing Finance Authority (CHFA). Beacon could apply again to receive funding in 2021; but at this point, that action has yet to be determined.

According to CHFA documents, Beacon had requested $1.8 million in 9 percent low-income housing tax credits for its planned 67-unit Parkside Village I development, including 60 low-income units. The total cost for the CT General Statute Section 8-30g affordable housing project was listed as $27,906,321.

In other news, Beacon also has declined an offer to take over property management of the current Parkside facilities. The affordable housing complexes are currently home to elderly residents and adults with disabilities. The current property management group, Merit Properties, has several months remaining on its contract and will continue to manage the sites, said Branford Housing Authority (BHA) chair Tacie Lowe. BHA is a volunteer commission which oversees Parkside Village I, located at 115 South Montowese St., and Parkside Village II on Block Island Road. Lowe said BHA would put out requests for proposals (RFP) Merit's contract is nearing completion, in order to review additional property management companies.

Zip06/The Sound contacted Lowe on April 2 to learn what was discussed about Beacon, Merit and more during a BHA teleconference meeting on April 1. During that meeting, news of Beacon's failure to receive the 2020 CHFA allocation, and Beacon's decision not to accept the option to manage the properties was shared.

Lowe said BHA will now be assessing the reasons why Beacon's CHFA application was denied and, from there, decided how to best address issues and provide fixes to failing Parkside Village I. Asked if that decision could be to continue on the path with Beacon, Lowe said, "...we're not discounting that, at this point. We want to find out the reason that they were rejected before we make any kind of decision or statement."

Lowe said the next step for BHA will be sit in on a call, within the next 48 hours, with Beacon, CHFA and HUD (U.S. Dept. of Housing and Urban Development) so that BHA can hear, "...directly from the funding sources" why the funds were denied.

"At the present time, we are waiting to get a debrief between Beacon, CHFA and HUD; and discuss why they were not awarded the money," she said. "Until we know that; we're not moving forward with any decision-making."

She also said it is incorrect for anyone to assume that Beacon will no longer pursue its plans to develop Parkside Village I's currently-approved design.

"I think some people think that Beacon is done, and I'm not saying that. We don't know. I think Beacon would like another go at the credits in the fall," she said.

Beacon's design calls for new construction of a single, three story building with 33 one-bedroom units and 34 two-bedroom units. As it stands today, Parkside Village I, built in the early 1970's, has 40 studio units and 10 one-bedroom units spread over three two-story buildings. 

Lowe also said a plan was in place to ensure support for current residents when the new development was built, despite rumors to the contrary.

"We have very structured legal documents with the residents; there was not one resident that was not going to be well-cared for on the new plan," she said.

Zip06/The Sound asked Lowe if BHA would like to continue to pursue the plan to develop Parkside Village I with Beacon Communities, if that is an option.

"I don't know that," she answered. "As chair of the Housing Authority, I felt strongly that the project would really improve the quality of life for the people at Parkside. I think Branford also really could use more affordable housing units.  I was very much in favor of the plan." 

She summarized that, at present, "...we are neither anti-Beacon nor pro-Beacon. We're just trying to gather the information so that we can make a decision that's best for the people of Parkside."

Lowe said the path forward, once determined, will address the needs of Parkside Village and its residents.  She also noted Branford First Selectman Jamie Cosgrove was on the April 1 teleconference call and will be discussing the matter further with BHA next week, once more is known.

Focusing on Current Issues at Parkside Village

Lowe also wanted to stress the BHA's focus will be to continue to work with Merit to address any issues raised by residents, as well as building issues brought to light by the Town Fire Marshal, as well those which may have been caused by some  "malicious" acts, she said.

"Merit [has] been there for a very long time and has a good relationship with many of the residents there," said Lowe. "Merit has recommitted to doing all it can to help Parkside. They have hired a new staff; there was some concern over a former staff member that the residents had. I think Cheryl [Daniw, Merit president] has been very cooperative."

Lowe said what's paramount is the safety and well-being of the residents of Parkside Village, especially with the added concern of COVID-19 over the past two weeks. She said that BHA is working with Merit to help address those issues and more.

"Right now, my main concern is the health and safety of the people at Parkside," said Lowe. "Many of them are in a very vulnerable position. Merit has agreed to step up the disinfecting of the common areas, and we have [set] limits [and] social distancing," Lowe said. "While this was big news about Beacon; the bigger news is that people are vulnerable in that living setting, and that's where my focus has been."