Canaan Parish Under Construction!
We are happy to announce that the financing to re-build Canaan Parish closed on August 27, 2020!
Canaan Parish is a groundbreaking, complex and change-making affordable housing development in New Canaan, CT. A local non-profit, New Canaan Neighborhoods, Inc., developed the 5.5 acre site in 1978-1979 for 60 units of Section 8 housing. 40 years later, the apartments were showing their age and large areas of the site in expensive New Canaan, CT were undeveloped.
The owner decided to partner with the Housing Authority of the Town of New Canaan and their partnership, Canaan Parish Redevelopment Limited Partnership, hired Heritage Housing, Inc. to provide development management services. Since March, 2018, Heritage Housing, Inc. procured the development team, developed a site plan, secured local approvals, secured a $45 million financing package, and oversaw the financial and legal closing. Heritage Housing, Inc. is now overseeing the $35 million construction.
Redevelopment Site Plan
Upon completion in August, 2022, Canaan Parish will consist of 100 units of affordable housing in two buildings with a one-acre landscaped courtyard separating them. The existing Section 8 assistance will be preserved for 60 units and the remaining 40 units will be made affordable to households earning below 80% of the State Median Income in Connecticut (about 50% of the Area Median Income). The new apartments will be modern, spacious and include amenities such as dishwashers, laundry hook-ups, and ADA accessibility missing from the current apartments.
Construction of Building 1
We are making great progress with the construction of Building 1 and are on track to deliver the first building in the Summer, 2021. Heritage Housing, Inc. worked with the development team to prepare a complex phasing plan to minimize off-site relocation during construction. A total of six tenants moved to the Housing Authority’s neighboring apartment complex in a master-lease and Section 8 assistance was maintained through a pass-through lease approval. The remaining 48 tenants are living on site while Building 1 is under construction. This has required close communication between the development team and the residents and resulted in tight quarters.
Construction of a temporary driveway to maintain parking access during construction, after relocation of an electrical transformer. Rebar for the new foundations can be seen on the right.
The $45 million construction financing consists of a $34.3 million construction to permanent loan made by Rockport Mortgage and insured under the FHA 221(d)4 program; an $11.6 million investment by People’s United Bank for 4% Low-Income Housing Tax Credits; and a short-term $25 million tax-exempt bond issued by the Housing Authority. HUD’s Boston office approved a complex series of requests, including a mark up to market of the Section 8 contract, an assignment of the HAP contract to the new owner, the off-site relocation of several tenants with pass-through Section 8 assistance, and the demolition and reconstruction of the project.
We look forward to completing Canaan Parish in the Summer, 2022.