This is a printer-friendly version of an article from Zip06.com.
11/23/2020 11:00 PMThe developer of a unique, 31-unit affordable rental development is asking the Board of Selectmen (BOS) for a tax abatement as a show of support for the project, which will offer housing to a particularly broad swath of low-income people who have historically not been able to afford to live in—or stay in—Madison.
Though the BOS did not approve the specific tax break, which would essentially have the town appraise units based on their adjusted affordable rate rather than a market rate, at its most recent meeting on Nov. 9, First Selectmen Peggy Lyons and other BOS members expressed overall support for the project, which has already been approved by the Planning & Zoning Commission (PZC). The BOS intends to move the application forward to a formal approval.
Sitting at 131 Cottage Road near Cohen’s Bagels on Route 1, the project was originally envisioned as market-rate townhouses for sale, according to Town Planner Dave Anderson. The original developer of that project, Bob Dowler, was unable to get off the ground with that design, and re-imagined it as a more dense series of one- and two-bedroom rental units, which was again approved by the PZC.
Dowler ended up selling the whole development to Essex-based HOPE Partnership, a non-profit developer focused on affordable workforce housing that has overseen the creation of a handful of other projects on the shoreline, and The Caleb Group, another non-profit based in Boston that works more broadly creating affordable units around New England.
Under HOPE, the project received another PZC approval after being tweaked to maximize the number of affordable units, increasing from 3 units to 24, with 20 of those to be set aside for people making 50 percent or less of the area median income (AMI).
Madison’s median household income is about $108,000; monthly housing costs of $1,350 would be considered affordable for a household earning half that income.
This level of affordability is something that has never been available in Madison, according to Liz Torres, an advocate representing the developers, and creates an opportunity to begin addressing the lack of access and create more inclusive housing options for people who cannot afford a single-family mortgage in town.
“This project really does look to help diversify the demographics in the town, and provide affordable housing options for people that currently may work in the town, but simply cannot afford to live in the town,” Torres said.
The state has set a goal for all municipalities in Connecticut to make 10 percent of their housing affordable. Madison, currently at 1.69 percent affordable, sits squarely in the lowest rung of affordability, ranking below very rural areas like New Hartford and Salem, and has actually decreased its number of affordable units over the last decade.
Connecticut is one of the most racially and economically segregated states in the country, with many advocates and experts blaming a lack of diverse and affordable housing options in White suburban areas as contributing to this, which increases inequalities in other areas like education and health care access as well.
HOPE Partnership President Dave Carswell said that “the numbers speak for themselves” as far as Madison’s need for this kind of housing. He said that HOPE likes to refer to their housing as “communities” rather than projects, as this puts more of a focus on the people as well as the long-term commitment the organization has to them.
“Once they’re finished, you’ll have to see them—they’re really going to be very tastefully done,” Carswell said. “We’re bringing quality and value that any community would be proud to have…[and] we’re keeping those families and individuals who couldn’t otherwise live and enjoy living in Madison a place to remain in the community.”
A Unique Opportunity
The cost of the development is likely to reach around $12 million, according to Torres, and HOPE will be seeking various tax credits and special loans to help finance it. For the project to be competitive with other organizations seeking the same funding sources, support from the BOS and the town will “really help” these applications be successful, according to Torres.
“I think at the end of the day, it will be a real gem for Madison, something you’ll be able to look to as an example for the rest of the state,” said Carswell.
Lyons, who said she had toured the site and called the construction “a really wonderful development,” emphasized that Madison needed to work toward meeting state guidelines and that “smaller, focused” units could better fit into Madison’s town character while still accomplishing these goals.
“I think this could be a really nice example of that,” she said.
Anderson said that in his opinion, this project was “a real opportunity” to take “a huge step” toward more affordable housing options in town, increasing the total percentage in Madison by around 0.2 percent. Rental opportunities are also rare in town, according to Anderson, which opens up another avenue of accessibility in Madison.
The project is also unique in that its units are reserved for a significantly lower income level than many other types of affordable projects, including seven set aside for people making 25 percent of the AMI, which is around $20,000 annually, according to documents provided by the town.
Torres said that the developers can request an adjustment of these numbers if for some reason they cannot find tenants at a particular income level. Hope and Caleb will also be responsible for the day-to-day administrative upkeep and management of the properties, according to Anderson, though town employees will continue to monitor the project on more of a long-term basis.
Carswell said that he “didn’t anticipate any trouble at all” filling those lowest-income units, based on current and anticipated economic conditions.
“It’s been our experience in our other communities...the demand is there,” he said.
Torres said that the most recent census data shows that no current Madison resident is making even 80 percent of the AMI, which means the development will potentially allow an entirely new level of access and integration in town.
Carswell told The Source that setting these AMI levels was good both for the Madison community at large, as the apartments will be available to larger diversity of renters, as well as increasing HOPE Partnership’s chances of getting particular funding and tax incentives.
The apartments will also be advertised based partially on legal requirements in local and regional papers, and also through HOPE’s social media and website, Carswell said, which ensures that many people will be exposed to the opportunity. He said that HOPE does like to emphasize “the communities we serve” with their advertising.
Carswell offered strong praise to town leadership for working with him and HOPE, specifically calling Anderson and Lyons as being “terrific” in their support of the development.
The specific tax abatement is drawn from a town ordinance is specifically targeted at encouraging these kinds of developments, according to Anderson, and is only available to non-profit developers using state and federal subsidies. The BOS has the power to extend the abatement up to 20 years, according to the ordinance.
Because the wording of the ordinance is “awkward,” Anderson said that the town’s legal counsel recommended that the possible abatement also get approval by town meeting, and likely the Board of Finance as well.
Exactly how much tax relief would be offered by the abatement was not immediately clear, and Anderson said the town would be depending on the Assessor’s Office to help decide “what makes the most sense,” though he said the overall philosophy of offering it would be for the town to show it supports the development.
“That’s really what we want to do is see that project come to fruition,” Anderson said.
Lyons did not immediately respond to an email from The Source in regard to the abatement.