Selectmen Back HUD Grant Application for Allen O’Neill

After an occasionally tense discussion, the Board of Selectmen unanimously approved a resolution at its Dec. 13 meeting that would allow the Darien Housing Authority to apply for a Department of Housing and Urban Development grant.

The town had been previously awarded the $250,000 federal grant, but it has to formally apply for the funds in order to access them. Town officials said the money will help fund the future redevelopment of the 10-plus acre site of Allen-O'Neill Homes.

Jenny Schwartz, chairman of the Darien Housing Authority, told the board that the housing authority has a Dec. 31 deadline to submit the application.

Selectman Callie Sullivan, a Democrat, told the board she wasn't clear on why there was a lapse of time in applying for the funds if they had already been earmarked.

"I am excited we are taking back some of our tax dollars," Sullivan said. But she added that she was "a little confused," inquiring about the timing of the application and why it took so long for the town to apply for the HUD funds.

First Selectman Dave Campbell replied, "We're talking about it now," and explained that the funds were already earmarked and that the application formalizes the process.

Administrative Officer Karl Kilduff said the housing authority still has enough time to make the Dec. 31 deadline. The town got the official go-ahead to apply for the funds in November and "[Kilduff] has been working on it ever since," Campbell said.

Funds were set aside by Rep. Jim Himes (D-4) with the thought that the grant would aid the development of 35 Leroy for affordable housing, Kilduff explained.

"In that event, federal funds would be used in concert with potential state grant and other private funding," Kilduff wrote in a Nov. 9 memo to Campbell. "Since that project has since ended, the funds are in pursuit of a project."

Under the terms of the grant, the town must have an executed grant agreement in place with HUD no later than Sept. 30, 2012.

In related news, the board also took action on a tax abatement agreement for the Allen O'Neill project, which will have to be ratified by the Representative Town Meeting before it will take effect.

Under the agreement, 100 percent of real estate taxes will be abated for the 106 units of housing during the first five years of construction. After that, the project would begin to pay a portion of the taxes according to the following schedule:

• Year six: 10 percent
• Year seven: 25 percent
• Year eight: 40 percent
• Year nine: 55 percent
• Year 10: 70 percent
• Year 11: 85 percent
• Year 12 and beyond: 100 percent

The tax abatement schedule is based on the assumption that there will be 43 existing residents at the project.