CHFA awards over $3 million in tax credits for two downtown Meriden projects

CHFA awards over $3 million in tax credits for two downtown Meriden projects

Record-Journal


MERIDEN — Meriden Commons II, a 76-unit residential and commercial development on Cedar and State streets, recently received $1.6 million in low-income housing tax credits to help finance the $22 million project.

Pennrose Properties and the Meriden Housing Authority applied for the credits to build affordable and market rate housing on the site near Mills Memorial Apartments, which is scheduled for demolition this fall. The Connecticut Housing Finance Authority recently announced credit awards at Meriden Commons II, and an additional $1.6 million to the Michaels Organization for 81 residential units at 11 Crown St.

The tax credits are sold on the investment market in order to raise money for the project.

Both projects will receive $6 million each from the state Department of Housing to add to an estimated $18.6 million in private equity investment at 11 Crown St. and $16.7 million at Meriden Commons II.

There is no construction timeline yet, said Economic Development Director Juliet Burdelski.

“The tax credit awards for both Meriden Commons II and 11 Crown Street/2 South Colony is the final piece of financing that will allow for the development of 157 new housing units, the relocation of all Mills residents and demolition of the Mills,” Burdelski said. “We commend our private sector developer partners, Pennrose and the Michaels Organization, for putting together strong applications that merited a significant financial commitment by CHFA and the Department of Housing.”

The Meriden Housing Authority recently closed on a land transfer with the city to begin the first phase of Meriden Commons at 177 State St. Meriden Commons Phase I and II will yield more than 150 low, moderate and market rate apartments and first-floor commercial space.

The former Record-Journal building at 11 Crown St. is currently owned by the city. The Michaels Organization will ask the City Council next week for permission to increase the equity by adding more affordable units within the 81-unit project. A reduction to seven market rate apartmentss would generate $2 million in equity.

“They can’t fund the market rate units without it,” Burdelski said.

Philip Wood, a consultant for the Michaels Organization, said an increase in affordable units “allows us to do a few more units and tap into those public funding sources.”

mgodin@record-journal.com
203-317-2255
Twitter: @Cconnbiz


Advertisement

Latest Videos

X