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Commission amends Riverview Park Royal affordable-unit terms after CHFA briefing; original units stay at 40-year restriction
Summary
Shelton commissioners voted 5-0 to amend Riverview Park Royal (Application 20-22) so the original nine affordable units remain at 80% AMI for 40 years while the additional nine units follow the Build for Connecticut (CHFA) program terms (minimum six-year obligation; CHFA underwriting to determine exact affordability and term).
The Planning and Zoning Commission voted 5-0 Wednesday to amend the Riverview Park Royal approval (Application 20-22) after a briefing on the Build for Connecticut program from a CHFA/partner representative.
Under the motion the commission adopted, the nine affordable units that were part of the original approval will remain restricted at 80% of area median income (AMI) for 40 years, reflecting the applicant's prior commitment. The commission also approved an approach for the second group of nine units: those units will be developed under the Build for Connecticut/CHFA program terms (the commission's motion specified 80% AMI in the short term with a minimum affordability requirement of six years and up to CHFA's allowable term, and the applicant will use the CHFA process to determine exact underwriting and program terms for those additional units).
Commissioners and staff noted the practical difference in long-term obligations and funding support offered by CHFA's program. Staff reported that CHFA loans and below-market finance in the Build for Connecticut structure can be assumable by a subsequent owner if the first mortgage holder either is a CHFA participating lender or enters an intercreditor agreement aligned with the program's paperwork.
Why it matters: the change preserves the longer 40-year affordability promise on the originally approved units while enabling the developer to pursue CHFA financing for the additional set-aside units. The commission said the approach balanced the community's interest in long-term affordability against the practical benefits CHFA financing may provide to permit the project to move forward.
Action: motion to amend the approval passed 5-0. The commission recorded the change in the meeting record and asked staff to document the revised commitments in the project files.
