Select Board declines $500,000 CDBG loan for Plainview senior housing after public hearing

Summary

After a public hearing with extensive Q&A on financing, risk and town capacity, the West Swanzey Select Board voted to decline a $500,000 Community Development Block Grant loan that would have supported the 74-unit Plainview Senior Housing project. Residents and officials raised concerns about timing, administrative burden and repayment structure.

At a Jan. 14 public hearing, the West Swanzey Select Board heard more than two hours of testimony on a proposed $500,000 Community Development Block Grant (CDBG) loan for the Plainview Senior Housing development before moving not to accept the grant.

Donna Lane, who identified herself as a CDBG consultant, told the board the Plainview project would create 74 affordable units for residents aged 62 and older and that CDBG rules require projects to primarily benefit low- and moderate-income people. "The Plainview Senior Housing Development will provide 74 units of affordable senior housing for people age 62 and older," Lane said, adding the town’s share of low/moderate-income residents (about 65%) makes many CDBG-eligible uses available to West Swanzey.

The proposal called for the town to be the CDBG recipient and to loan CDBG funds to the project's limited partnership; Lane said that structure typically includes a lien on the site and a long-term repayment…

Select Board declines $500,000 CDBG loan for Plainview senior housing after public hearing

Summary

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