Letter: A Possible Solution To 8-30g Affordable Housing Issue

Dear neighbors and residents of Fairfield,

Below is testimony I provided to our state legislators last week on a “Zoom” call that allotted each person three minutes to speak. The time limit was preposterous! So I am asking editors to please consider publishing this information so the residents are aware that there actually is a way to amend or fix the Affordable Housing Act known as 8-30g.

March 3, 2022

Dear Chairman Lopes and Williams and esteemed members of the Housing Committee:

My name is Walter Shaw. My wife and I reside at 487 Old Post Road in Fairfield. I serve as a board member and treasurer on the Old Post Road Area Association. I appreciated the opportunity to share testimony on SB 169, which would study the effects of affordable housing policies in Connecticut.

Our neighborhood has been fighting an 8-30g battle for over two years now. It’s been highly publicized as it concerns Fairfield’s Historic District. At the current Masonic Lodge, located at 131 Beach Road, the developer, Glenn Tatangelo, has purchased the land and attempted to receive approval from the Fairfield TP&Z commission to build a five-story, 40-unit complex under the 8-30g statute with 30 percent affordable units.

After many hours of testimony and more than 1,500 Fairfield residents signing a petition in opposition to this development, the TP&Z rendered a decision allowing the building to be developed but with two stipulations:

1. The building could not exceed 40 feet in height (the developer is proposing a building that would approach 70 feet).
2. Parking spaces on Beach Road had to be surrendered by the police commissioner for adequate line of site for oncoming traffic.

The developer filed suit and we continue the fight. Judge Berger heard oral arguments on this development Nov. 30, 2021. We are awaiting his decision as to whether he agrees with the Fairfield TP&Z or agrees to allow the builder to develop as he deems fit.

As I mentioned in my testimony, there are serious traffic issues involved with this proposal. Despite “expert traffic testimony” I can say as a resident who has lived on the Old Post Road for almost 30 years, the problem is extremely serious and no hypothetical traffic study, whether pro or con can avoid the simple fact that adding a 40-unit structure in this small area of town could add up to 80 additional cars.

A highly respected real estate developer who lives in our neighborhood and has built thousands of rental units and high rise condominiums throughout our state and Massachusetts offered to provide financial models of the proposed property. He did OPRAA a huge favor by creating these two models to illustrate critical data concerning the limitations on profit with 30 percent affordable mandated and conceding to a smaller building with 10 percent affordable.

Scenario No. 1 is the financial model if the developer builds the complex as originally planned (40 units with 30 percent affordable). While there are assumptions built into the model, the potential ROI (return on investment) is under 3 percent, and could actually prove a loss to the developer. This model would have 28 market rate units and 12 affordable units.

Scenario No. 2 is a financial model with a similar building but with just 20 units and the compromise of lowering the affordable requirement to 10 percent (two units). This model proves to be highly profitable. Additionally this would address the issue of density and cutting the number of new cars in the neighborhood in half. It appears to be a “win-win” for everyone involved. It would also have a less egregious affect on the Historic District due to its smaller size.

If I can be of any further assistance please do not hesitate to reach out to me.

Respectfully,

Walter Shaw

Fairfield