Thomas Breen photo
The Brewery Sq. complex at 19 River St.
The Board of Alders unanimously approved a municipal tax break for two developers planning to renovate a Fair Haven apartment complex and double the number of below-market-rent units there.
The Boston-based developer Beacon Communities and the California-based developer Community Preservation Partners are planning to purchase the apartment complex at 19 River St., dubbed “Brewery Square” after the building’s history housing the Quinnipiac Brewery Company.
Beacon and Community Preservation Partners have formed a legal partnership to purchase the property, and Beacon plans to eventually serve as the property manager.
According to documents submitted to alders, the companies intend to spend about $96,000 per apartment on rehabilitation efforts. There are currently tenants living in the building; a Community Preservation Partners representative previously told alders that those residents will either remain in their own units or occupy vacant units in the building during the renovation process, if all goes according to plan.
Currently, 38 of the 104 apartments in the building are designated as “affordable,” with below-market rate rents. The new developers intend to increase the number of affordable apartments to 84.
The documentation submitted to alders indicates that 38 of the building’s units will be allocated to federal Section 8 Housing Choice Voucher holders, while all 84 affordable units will qualify for the federal Low Income Housing Tax Credit (LIHTC) program.
In total, the apartments will be designated for tenants earning between 30 and 80 percent of the area median income (AMI). (A family of two, for example, would currently fall in that range with a household income between $27,900 and $74,350.)
Per the tax agreement, the developers will pay $1,500 in taxes for every below-market apartment (with a 3 percent annual increase starting in the third year) over the course of 17 years.
Fair Haven Alder Jose Crespo, who chairs the alders’ Tax Abatement Committee, spoke in favor of the agreement at Monday evening’s full Board of Alders meeting.
“This is what we do as a board with affordable housing,” he said.
East Rock Alder Anna Festa voted in support of the agreement as well, but she spoke up during the meeting to question how the numerical particulars were reached.
“I see here it’s $1,500 per unit,” she said, referring to the base payment per apartment. “We had one a couple of months ago that was $1,000 per unit. And in the past, we’ve had some for $450. So I’m just a little confused as to what is the criteria to calculate these rates.”
In recent years, alders have approved several tax agreements with developers that reduce property taxes to around $400 to $450 per affordable apartment, while others have reduced taxes to around $1,000 or $1,500 per affordable apartment.
These agreements have typically funded either new construction or the conversion of an industrial building to housing. The Brewery Square agreement, meanwhile, will cover upgrades to existing apartments.