Aldermen approve tax abatements for two affordable housing buildings despite fiscal concerns

The Board of Aldermen on July 13 approved tax‑abatement agreements for two existing low‑income housing properties — Plaza on the Green and Josephine Towers — after a presentation from Sam Schoberg of Related Affordable outlining plans for major renovations and long‑term affordability protections.

Schoberg said Related Affordable acquired the properties in April as part of a multi‑property transaction and plans $21.5 million in renovations (approximately $11 million at one building and $10.5 million at the other). He told the board the projects will keep project‑based rental subsidies in place for 20 years and seek Connecticut Housing Finance Authority financing designed to support a 40‑year deed restriction period that would preserve affordability.

"The current revenues collected by the city from these two properties will remain the same, and they will grow over time," Schoberg said, describing the city's tax‑abatement program formula and the operating cost adjustment factor (OCAP) that increases payments annually.

Aldermen pressed for numbers and fairness. Alderman Grasso asked for a comparison of what the city would collect over 20 years with and without abatements; Schoberg said that level of forecasting depends on reassessments and underwriting assumptions and could not be produced quickly. Several aldermen, including one who described himself as concerned about frequent abatements, asked how repeated 20‑year deferrals affect the city's grand list and future mill rates for other property owners.

Supporters emphasized urgent repair needs. Alderman Feliciano Roman, whose district includes the properties, said the buildings had been long overdue for renovation and residents welcomed the investment. He and other proponents argued preserving and upgrading low‑ and moderate‑income housing stock delivers community benefits that outweigh the deferred tax growth.

Votes: the board approved the Plaza on the Green agreement (roll call: 10 yes, 2 no) and the Josephine Towers agreement (roll call: 10 yes, 2 no). Officials said the deals rely on state programs (tax‑exempt bond financing and low‑income housing tax credits) and that fixed first‑year payments plus an annual OCAP‑based increase are intended to protect municipal revenue while enabling lenders to underwrite the projects.

The developer said much of the renovation cost will be financed through state programs and a tax credit investor; aldermen asked that staff provide clearer analyses of long‑term revenue impacts before similar future requests. The board did not attach additional conditions to the approvals beyond the standard abatement forms.