Stonington EDC to focus on promoting new affordable housing

Aug. 24--STONINGTON -- The town's very active Economic Development Commission is expected to make the creation of new multifamily and affordable housing a priority over the next year.

Chairman Dave Hammond made the comment at Wednesday's Board of Selectmen meeting after it was revealed that new multifamily housing projects over the past decade are now producing $370,000 a year in tax revenue for the town.

And several more are being built, approved or planned.

When the EDC meets next month, Hammond said he is going to recommend to members that such housing become a focal point.

He and Director of Planning Jason Vincent pointed out that construction is underway on the 43-unit Spruce Ridge housing project on Route 1 in Pawcatuck which will have some units designated as affordable while the Planning and Zoning Commission recently approved 171 apartments on the Perkins Farm in Mystic, where townhouse condominiums are planned for Phase II. None of those units is designated as affordable, however.

There are discussions about rehabilitating the southern portion of the Thread Mill on River Road in Pawcatuck, where the northern section of the mill has been converted into 58 apartments, 12 of which are designated as affordable.

The recently completed Spruce Meadows project, located adjacent to Spruce Ridge, also has 43 units, some of which are designated as affordable.

The town, which was the only municipality in the state to see population growth of more than 1 percent in 2015-16, expects a need for more affordable multifamily housing in coming years, especially with increased hiring at Electric Boat, retirees looking to downsize and a stock of single-family homes that are among the priciest in the region.

Vincent told selectmen that while there is opposition to affordable multifamily housing, the town would look to locate such housing in village areas where there is already development and existing buildings and properties that could be rehabilitated. As an example, he said, the vacant northern section of the Thread Mill on River Road was "functionally obsolete" before it was turned into 58 apartments.

"We're promoting affordable housing in village areas where development already exists, not in green areas of town," he said.

Affordable housing is defined as the cost of a unit that would not exceed 30 percent of the monthly net household income for families that earn below 80 percent of the area median income. It is estimated that a household needs to earn almost $21 an hour to afford a typical two-bedroom apartment in town.

Because the town has less than 10 percent of its housing stock dedicated as affordable -- it is 6 percent -- it is subject to a state law that requires it to prove a proposed affordable housing plan would impact the town's health and safety in order to reject the application. Simply not being in compliance with zoning regulations is not enough to reject such a plan.

First Selectman Rob Simmons said that with the exception of the occasional phone call he receives, residents here have been supportive of the new projects. There was no opposition to including affordable units in Spruce Ridge, Spruce Meadow and the Thread Mill, he said. However, when it initially was suggested that the former Mystic Armory site be used for affordable housing, there was immediate neighborhood opposition. The armory building is now being reused for light industry.

Over the past few decades, affordable housing has been clustered in one area of Pawcatuck along Route 1.

"Although this pattern has not resulted from the Town's design, a challenge going forward is to offer additional opportunities in other parts of the community," Vincent wrote in a new report that looks at how successful the recommendations in the town's 2008 Housing Affordability report have been.

The 2008 report cost the town $5,000 but Vincent said its recommendations have resulted in $370,000 in annual tax revenue for the town, with more on the horizon. While the report was never made part of the town's Plan of Conservation and Development, he said it has served as a guide to town officials and developers. State law now requires towns to develop affordable housing plans and Vincent said beginning with an analysis of the 2008 report makes sense.

The town's 2015 update to the Plan of Conservation and Development spells out policies and tasks that promote housing diversification and inclusion of affordable housing. Over the past five years or so, the town also has taken various steps to amend its zoning regulations to promote redevelopment of underused properties such as mills. Those changes also have made it easier to develop affordable and multifamily housing.

Vincent also wrote in his report that housing is now recognized as a key economic driver for the town, valued at more than $2 billion, which equates to 73 percent of the grand list. Rental housing also has become a $30 million annual industry in town.

j.wojtas@theday.com

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