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Board approves tax‑abatement to preserve 276‑unit Laurel Estates as affordable housing
Summary
The Board approved a tax‑abatement agreement with Laurel Estates Preservation LLC to support purchase and rehabilitation of the 276‑unit Laurel Estates complex at 173 Bucks Hill Road. The buyer plans to invest over $17 million and to impose new 20‑year affordability restrictions consistent with HUD rules.
The Board of Aldermen voted to approve a tax‑abatement agreement to facilitate the purchase and rehabilitation of the 276‑unit Laurel Estates low‑income housing complex at 173 Bucks Hill Road.
According to the presentation by Michael LeBlanc, Director of Finance, Laurel Estates Preservation LLC has proposed to invest in excess of $17 million to rehabilitate the property. Because the property is low‑income housing subject to HUD affordability rules, the agreement ties tax increases to the HUD formula (the parties described a 20‑year affordability restriction that will run with the project). LeBlanc said the abatement is intended to allow the property to remain affordable by limiting tax increases consistent with HUD’s allowable annual adjustments.
Aldermen asked questions about the length of the abatement and timing; the administration said the abatement corresponds to the 20‑year affordability period and that the tax increases would not exceed HUD‑allowed percentage increases tied to project expenses.
The motion passed by voice vote. The agreement is meant to keep rents constrained through the affordability term while allowing the new owner to invest in needed rehabilitation.
