Glastonbury committee weighs longer deed restrictions and converting existing units to meet 10% goal

The Glastonbury Affordable Housing Steering Committee on Wednesday discussed prioritizing rental conversions and extending deed-restriction terms as tools to meet the state's 10% affordable-housing threshold.

Glenn, the presenter for the committee, urged the group to focus on converting existing market-rate or naturally affordable units rather than relying solely on new ownership-restricted units, saying "if we are able to convert the pinks to the rainbow... then we can accomplish also our housing goals." He emphasized that municipal acquisitions through tax sale, foreclosure or eminent domain could create opportunities but warned there likely are not "dozens of units" available and that each acquisition would require capital funding and active management.

The committee discussed the statutory minimum deed-restriction term of 40 years and whether towns should require longer terms or perpetual restrictions. "The statutory minimum is 40 years on a set aside development," Glenn said, adding that some communities adopt longer terms or perpetuity. Members also debated how to handle the "windfall" when affordability restrictions expire: one proposal would give the town a right of first refusal or require the owner to share a portion of appreciation for a local housing trust fund. "If the provision of affordable housing is a public good... why can't that windfall fall to the town?" Glenn asked, sketching options such as a right of first refusal or a 50% capture of the gain.

Richard, speaking for town staff, described three municipal residential acquisitions that the town purchased to protect municipal interests and that were converted or planned to be converted to rental assistance units. He offered a concrete example to illustrate the fiscal math: "It's $2,000 a month rent, $24,000 a year, and there's a $10,000 tax loss. You have $14,000 that you could conceivably put into a fund for that capital maintenance or to further the program." Committee members noted those numbers show acquisitions often require the town to invest money rather than generate revenue.

Members signaled support for moving deed-term and windfall issues into higher-priority work (the agenda's "blue box") if the committee wants a more active exploration. Several members said the committee should change passive language such as "evaluate" to stronger verbs like "investigate" when assigning near-term tasks. The presenter recommended preparing standard documents (a housing affordability plan, model deed restrictions and a fair-housing marketing plan) and compiling an approved list of third-party administrators to ensure consistent program administration.

Why it matters: Converting existing units and tightening deed-restriction terms are two mechanisms the committee identified that could increase Glastonbury's count of deed-restricted affordable units without relying solely on large new developments. The approaches considered would affect municipal budgets, developer incentives and the long-term availability of affordable units.

What happens next: The presenter said staff will incorporate these concepts into the draft plan and produce version 1 quickly so the group can refine windfall and deed-term language in later drafts. The committee aims to have a draft plan by Thanksgiving and move toward broader review in early 2022.