Tax Breaks For Affordable Housing Providers Approved By West Hartford

WEST HARTFORD, CT — Town officials recently approved two separate tax abatement resolutions for housing projects that are or aim to provide affordable housing in the community.

Both resolutions were resoundingly approved by the West Hartford Town Council late last month, though one had a highly vocal dissenter among council ranks.

Both tax breaks are seen as key to helping affordable housing in town, something West Hartford officials have been seeking for years.

10-50 Starkel Road

The first resolution approved tax breaks for affordable housing at 10-50 Starkel Road.

Currently, the town leases that property to West Hartford Fellowship Housing Inc., which operates a 169-unit affordable rental housing campus for elderly and mobility-impaired individuals on town-owned property.

It's been doing that for more than five decades and is currently operating on a lease which was extended by the council earlier this year.

The initial lease was approved in 1968, with West Hartford extending it by another 99 years at the start of this year.

According to the abatement resolution, property taxes are wholly abated as long as 80 percent of the housing units are "owned, operated or controlled by a corporate entity operating on a nonprofit basis and used solely for low- and moderate-income persons or families."

"I think we've had multiple discussions on this property for the great work it does and I think we should move this forward," said West Hartford Deputy Mayor Liam Sweeney.

"Those units are highly desirable with many people waiting to come in. It's uniquely positioned near food, entertainment and jobs and its a very important resource for so many in our community," added West Hartford Mayor Shari Cantor.

The council vote for this resultion was 8-0 with one abstention, GOP councilor Alberto Cortes who is a board member of West Hartford Fellowship Housing.

900 Farmington Ave.

Meanwhile, the town council has also approved a tax break resolution for 900 Farmington Ave., which is the site of the underutilized West Hartford Inn and a decaying, abandoned restaurant.

This vote came amid some angry dissention from one GOP councilperson.

A developer, WHI Camelot, plans to build 44 units of "mixed-income housing" at the site, with 80 percent of the units being deed-restricted for those with varying incomes.

West Hartford is supporting this development because it will increase affordable housing stocks in town, something highlighted in the town's plan of conservation and development.

In addition to the West Hartford Inn site, the developers would build apartments at the site of an abandoned restaurant nearby, the Los Imperios restaurant.

Housing diversity is seen as key to future economic development.

West Hartford officials have said it could take a couple of years to completely transform the hotel into affordable housing.

According to this resolution, property taxes at this site will be collected via a 10-year assessment cap.

That cap, the resolution states, is for a $1 million assessment in the first year after project completion and the assessment gradually goes up each year, to $1,143,390 in the 10th year.

Currently, according to West Hartford Town Manager Rick Ledwith, the town collects $38,000 a year for the property.

In year one of the tax abatement deal, it would collect about $41,490 and by year 10, the tax revenue would be $53,682 for the site, he said in a presentation to the council.

This tax break resolution was approved 8-1, with Republican Mary Fay the lone dissenter.

"These are complex to develop — a quality, 100 percent affordable development," Cantor said.

"This is something that we as a town should fully embrace," Sweeney said. "What we have here today is a potential development here in the middle of our highest density area surrounded by significant development."

Republican Fay angrily said she had some concerns, saying the town should not limit the tax revenue it could get at the site.

"Before I get called a bunch of names, bigot etc., I am not against affordable housing," Fay said. "I grew up in a town that had lots of it."

"That's not what this is about. For me, its about the financing," Fay said.

She said the developer is already getting enough breaks with other funds from the state and town and a tax abatement should not be necessary. Fay said West Hartford should get more revenue from this development.

"This property, when its developed, is going to be worth close to $30 million," Fay said.

"We're settling for a pittance. We're settling for $38,000 in annual tax revenue when another building could get $1 million. This is unconscionable," Fay said.

"We're not making good decisions," Fay said. "We can't keep giving away taxpayers' money."

"If the developer can't find a way to make a profit, then maybe this isn't the right thing to do on this site," Fay continued.

For the June 27 West Hartford Town Council meeting minutes and the meeting information packet, click on this link.

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