City Council

~AD HOC REPORT~ Application for Deferral of Tax Assessment Increase - 11 Boughton Street Monday, May 22, 2023 Chairman Knapp called the meeting to order at 7:15 p.m. on Monday, May 22, 2023. Present was Committee Member Mike Henry; and Duane Perkins was Absent. From the City were Bob Yamin, Corporation Counsel; Les Pinter, Deputy Corporation Counsel; Dan Garrick, Finance Director; Sharon Calitro, Director of Planning; Donna Murphy, Tax Assessor; and Roger Palanzo, Mayor’s Office. Ex Officio Members present: Councilmen Ben Chianese, Warren Levy, and John Esposito III. Present from the public were Jim Maloney, Consultant to CIFC (Petitioner); and Katie Curran, CEO of CIFC. Mr. Pinter provided an overview of the application process for a tax assessment deferral. Mr. Knapp commented that the original use of property plans from 2010 included senior housing; the new plan proposes a mixed housing development. Mr. Maloney explained that the State stopped funding senior housing, and now funds low income developments with units for senior housing as a preference. The proposed development project will be 100% low-income. The property is owned by EHB Holding Corp. (501c2); and the tax credits will be allocated to private entities who are funding the development project. Furthermore, the tax assessment deferral is a requirement of the 8-30G low-income housing tax credit. He provided a brief overview of the next phase of the project. The project has five phases and includes 79 housing units and a parking garage. An application will be submitted to apply for low-income housing financing (federal tax credits); 1/3 cost savings (estimated construction cost $30 million). He clarified for Mr. Henry that the units will provide low income/senior housing, not transitional housing. He clarified the State’s multiyear compliance obligation and low-income requirements (30% of an individual’s income). Mr. Knapp and Mr. Chianese requested that language be added to any agreements that stipulate the development will only provide senior housing. Mr. Maloney confirmed the property was purchased from a bank who purchased the property from the City; no tax credits were received at that time. He clarified bedroom ratios and language used in the letter requesting the tax deferral for Ms. Murphy. Ms. Murphy stated the tax assessment will be on the income that the property is producing, and will be assessed on the low market rent (low-income rents) the property is producing. Mr. Maloney explained the generated income revenue is considered 100% of the market value due to the government’s contribution of what is not paid by the renter (30% of renter’s income). Ms. Calitro provided a brief overview of the City requirements for the project. She emphasized that the Federal regulations for senior housing require only 80% of occupants to be 55+. Mr. Chianese noted the Stetson Apartment complex as a comparable project. Mr. Maloney commented that the Stetson complex is classified differently, as supportive housing. Mr. Knapp spoke in support of approving a 7-year tax deferral with a senior housing requirement for all units. A motion made by Chairman Knapp, and seconded by Councilman Henry, to approve the application for the 7-year tax deferral at 11 Boughton Street, with the condition on the commitment of 100% of all of the units consist of senior occupancy, and that they qualify under the 8-30G of the Connecticut General Statutes. The motion carries unanimously. A motion made by Councilman Henry, and seconded by Chairman Knapp, to adjourn. The motion carries unanimously. The meeting adjourned at 8:02 p.m. Respectfully submitted, Jack Knapp, Chair Mike Henry