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Bridgeport, Stratford ask legislature to allow repayment of Success Village interest penalties
Summary
Residents and municipal officials urged the Planning & Development Committee to approve HB5500, allowing Bridgeport and Stratford to waive or refund statutory interest penalties tied to Success Village taxes. Testimony described months without heat or hot water and large legacy debts from mismanagement.
Rep. Chaffy convened a public hearing where multiple witnesses pressed the state to ease financial penalties tied to Success Village, a 924-unit cooperative that spans Bridgeport and Stratford.
Court-appointed receiver Barry Not told the committee that when he assumed control on Sept. 24, 2024 "there was approximately $10,000 on deposit in all of the bank accounts for Success Village," despite roughly $550,000 a month of rent and maintenance income. He said municipalities and the state stepped in with loans and emergency measures; a $6 million state loan closed recently to address immediate obligations.
The receiver and municipal leaders described a long history of mismanagement that left residents without heat and hot water for months and forced municipalities to pursue receivership. Thomas Godet, Bridgeport’s chief administrative officer, called the episode “unprecedented” and said both towns have supported the bill so they can waive interest penalties imposed on the co‑op’s past delinquencies.
Residents and local officials described personal hardship: seniors and families paid common charges every month yet faced utility shutoffs and increased assessments after liabilities mounted. Richard Matoss (resident), Kuan and others recounted how hot‑water and heating failures forced residents to rely on relatives or portable heaters while insurance claims and remediation lagged.
Supporters asked the committee to modify the bill so it explicitly permits both municipalities to abate or refund interest that was already paid as well as to waive future penalties, arguing that a refund of roughly $425,000 (as described in testimony) would allow the receiver to pay down outstanding debts and invest in repairs rather than leaving residents to shoulder penalties imposed for conduct they did not cause.
The mayors of Bridgeport and Stratford submitted joint testimony backing HB5500 and said the requested change is narrowly targeted to Success Village and would not cost the state general fund. They argued the relief is needed to stabilize the co‑op, preserve housing for vulnerable households and avoid further displacement.
What’s next: The committee heard extensive personal testimony in favor of passage; sponsors asked for substitute language to ensure municipalities can both abate and refund interest paid after July 1, 2022. The bill remains under committee consideration.
