Norwalk council extends tax-abatement term to secure financing for Meadow Gardens redevelopment

Norwalk Common Council voted unanimously on March 11 to authorize Mayor Harry W. Rilling to enter into a tax-abatement agreement with the Norwalk Housing Authority, Sound Communities Inc. and Meadow Gardens’ owner to support the Meadow Gardens affordable-housing redevelopment.

The change amends the city’s prior abatement so the property can secure construction and permanent financing. City counsel said the mortgage underwriter required the abatement term be extendable for 12 additional years to meet Freddie Mac underwriting requirements; the council approved that extension by voice vote.

The amendment sets the annual abatement payment at 5% of the development’s aggregate rents after excluding rental-subsidy payments and subtracting direct utility and trash costs paid by the developer. City attorney Michael Callahan told the council, “the requirement of Freddie Mac was that the tax payment be extendable for an…