TOWN OF EAST HARTFORD
740 MAIN STREET
TOWN COUNCIL CHAMBERS
MAY 2, 2013
SPECIAL MEETING – EAST HARTFORD HOUSING AUTHORITY
PRESENT Chair Richard F. Kehoe, Vice Chair William P. Horan, Jr. (arrived 7:35 p.m.), Majority Leader Barbara-Ann Rossi, Minority Leader Eric A. Thompson, Councillors Marc I. Weinberg, Linda A. Russo, Ram Aberasturia, Patricia Harmon and Esther B. Clarke
ALSO Debra Bouchard, Executive Director, East Hartford Housing Authority
PRESENT Kelly McDermott, Senior Manager of Planning/Modernization, East Hartford
Housing Authority
CALL TO ORDER
Chair Kehoe called the meeting to order at 7:13 p.m. He announced the exit locations from the Chamber in accordance with Connecticut
General Statutes §29-381, after which the Council joined him in the pledge of allegiance.
Chair Kehoe summarized the history of the East Hartford Housing Authority (Housing Authority), from its inception to present. He stated that most of the affordable housing units fall under federal guidelines. King Court, however, is a State project – a moderate income property – which then restricts the amount of rent that the Housing Authority can charge.
One of the key components to stabilizing the financial difficulties of the Housing Authority is the disposition of King Court. The process for the disposition of King Court is governed by State law, which requires the approval of the disposition of this property by the State of Connecticut’s Department of Economic and Community Development (DECD). One of the requirements in state law is that the Housing Authority demonstrates to the DECD that the disposition of King Court is in the best interests of the town of East Hartford. The Town Council’s written support of the Housing Authority’s decision to sell King Court will be a key factor in confirming to the DECD that the Housing Authority has the support of East Hartford’s legislative body.
After the bid process and several meetings, the Housing Authority selected the consortium of Goodwin College, JHM Group and Imagineers as the developers of King Court.
At this point the Chair asked for public comment.
Susan Kniep, 50 Olde Roberts Street, (1) questioned whether the process followed for the selection of a developer for King Court was an RFQ or an RFQ process; and (2) asked that the documents stated in a letter dated June 15, 2011 from Ralph Alexander to Robert Keating regarding King Court be released to the public.
Donald Sugalski, 1736 Main Street, inquired on what the competitive bids were for the disposition of King Court.
There being no other citizen comment, the Chair invited the Housing Authority to speak.
Debra Bouchard, Executive Director, East Hartford Housing Authority, thanked the Council for the opportunity to share with the Council the required steps for the process of the selection of a developer for King Court.
Kelly McDermott, Senior Manager for Planning and Modernization, East Hartford Housing Authority, guided the Council through the power point presentation. She stated that the relationship of the King Court Residents’ Association with the Housing Authority has strengthened and grown during this process. To that point, Ms. McDermott asked that members of the King Court Residents’ Association speak to their involvement in the selection of a developer for King Court. Those members were Suzette Wright, 52 King Court, Mary Hill, 53 King Court, and Denise Summers, 63 King Court.
Ms. McDermott methodically went through the state-required process of the disposition of King Court. The selection panel voted to recommend to the East Hartford Housing Authority’s Board of Commissioners the partnership of Goodwin College, JHM Group and Imagineers as the preferred developer of King Court. On April 17, 2013, the Board of Commissioners gave conditional approval to the Housing Authority to go forward with the agreement, pending the Board’s final approval of the actual transfer.
Ms. McDermott reviewed the four points required by Connecticut General Statutes §8-64a that the Housing Authority must demonstrate:
- that the sale/transfer of King Court is in the best interest of the state and the municipality in which the project is located; and
- that an adequate supply of low or moderate income rental housing exists in the municipality; and
- that the housing authority has developed a plan for the sale/transfer of King Court in consultation with the residents of such project and the representatives of the municipality and has made adequate provisions for participation in such plan; and
- that any person who is displaced as a result of the sale/transfer of King Court be relocated to a comparable dwelling unit
Ms. McDermott gave assurances that the bid price – which is kept confidential until the purchase and sale agreement if finalized – will be sufficient to allow the Housing Authority to repay the federal housing accounts the funds that had been transferred to pay for state housing repairs and costs.
At this point, the Council acted on the following resolution for the East Hartford Housing Authority.
MOTION By Barbara Rossi
seconded by Ram Aberasturia
to adopt the following resolution:
WHEREAS, the Town Council of the Town of East Hartford (“Town Council”) and East Hartford Housing Authority (“EHHA”), through a number of joint meetings which began approximately in the 2nd quarter of 2011, have been discussing the financial stability of EHHA, which included, among other issues, the financially troubled King Court, State moderate rental development and its impact on the overall financial performance of the agency and the need to pursue the disposition and redevelopment of that development for the best interests of EHHA and the residents of King Court, as well as the community of East Hartford generally; and
WHEREAS, the Town Council is aware that, through the disposition of King Court, EHHA would be in a position of (1) stabilizing its financial operations, (2) reimbursing its Veterans Terrace Project-based Section 8 Reserves, (3) reimbursing its Housing Choice Voucher Section 8 Reserves; and (4) securing an outside investor that would provide adequate funding to complete a variety of necessary capital improvements at King Court; and,
WHEREAS, the Town Council has been monitoring EHHA's progress in this endeavor from 2011 through the present and has reviewed that progress at periodically scheduled Town Council meetings during which it has requested and reviewed presentations by EHHA on its progress with the disposition and redevelopment of King Court (as well as the overall performance of the agency under its Recovery Agreement with HUD) , and furthermore during meetings the Town Council has also received comments and input from the residents of King Court and from members of the public in general; and
WHEREAS, in August 2012, EHHA presented a viable redevelopment proposal that included the disposition of King Court, to a qualified developer who would then be responsible to redevelop it, as the most feasible course of action to address the financial needs of the agency, the needs of the residents of King Court and physical needs of the property; and,
WHEREAS, following that time EHHA developed a plan of disposition and redevelopment for King Court and engaged the residents of King Court in this process through a comprehensive Resident Participation Plan ("RPP"). The EHHA developed a request for qualifications ("RFQ") in conjunction with representatives of the residents of King Court in order to secure a qualified developer to become the purchaser and redeveloper of King Court; and
WHEREAS, as a term of sale, EHHA will require the selected applicant to agree to maintain all 80 units as affordable to households earning at or below 80% Area Median Income for a period of 40 years, with all existing 80 units being subject to the State Moderate Rental program guidelines, which will preserve the long term affordability of the property for existing and future residents; and
WHEREAS, the EHHA is requiring that the selected applicant accept all existing tenants who are in good standing and require an income tiering structure to accommodate the long-term occupancy of units by existing tenants, thereby minimizing any displacement; and,
WHEREAS, the EHHA Board of Commissioners, after holding a community review meeting on April 2, 2013 and receiving a unanimous recommendation form the selection committee which included King Court residents, selected a preferred applicant at their April 17, 2013 Board meeting, which is the partnership of Goodwin College, JHM Group, LLC and Imagineers, with whom EHHA with input from the residents of King Court, will commence negotiations for a purchase and sale contract for King Court; and
WHEREAS, as part of the Connecticut Department of Economic and Community Development (DECD) public hearing, EHHA must present evidence documenting the position of the Town of East Harford with respect to the intended disposition and redevelopment of King Court as well as the process therefore.
Now therefore, the Town Council hereby resolves that:
1. The Town Council, having regularly met with the EHHA on the disposition of King Court and having provided direction to the EHHA regarding such disposition, supports the selection of the partnership of Goodwin College, JHM Group, LLC and Imagineers, as the preferred applicant with whom the EHHA will negotiate the terms of a purchase and sale agreement because this partnership brings the combination of a demonstrated commitment to the community and recognized experience in the affordable housing operation and redevelopment process; and
2. The Town Council hereby further finds that the disposition of King Court as referenced above is in the best interest of the municipality and urges the approval by DECD of the disposition plan for King Court as developed by EHHA and the residents of King Court under the provisions of the Connecticut General Statutes §8-64a.
On call of the vote, motion carried 9/0.
The Town Council expressed their appreciation to both the King Court Residents Association and the Housing Authority’s willingness to work together to bring this issue to a satisfactory conclusion.
ADJOURNMENT
MOTION By Eric Thompson
seconded by Bill Horan
to adjourn (8:45 p.m.)
Motion carried 9/0.
Attest____________________________
Angela M. Attenello
Town Council Clerk
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