March 27, 2019
Deal Watch Today

Webster stakes $16.7M for Meriden housing

Rendering | Contributed
Rendering | Contributed
A rendering of the 81-unit, mixed-income development in Meriden at 11 Crown St. set to break ground this spring.

Webster Bank is pledging $16.7 million in loans, subsidies and tax credits to fund a proposed $31.5 million, 81-unit Meriden mixed-income housing redevelopment on the site of a former newspaper building.

Robin Gallagher, senior vice president for commercial real estate for the Waterbury super-regional lender, said Wednesday Webster leads a financing package for New Jersey-based Michaels Organization's Meriden Housing Development Project at 11 Crown St.

The Connecticut Department of Housing and the Connecticut Housing Finance Authority are among the project's financial backers.

According to Webster officials, its financing includes a $10.7 million investment in low-income housing tax credits with the National Equity Fund, and a $750,000 direct subsidy.

The balance of the Crown Street project's financing package includes: $6.4 million of federal low-interest housing tax credits; a $6 million loan from the housing department; $750,000 from the Federal Home Loan Bank Board: and $500,000 in state low-income housing tax credits.

The project has been designated a "transit-oriented development'' due to its eventual proximity to Meriden's train-bus station.

Groundbreaking for the 64 apartments tagged "affordable,'' with some set aside for households transitioning from homelessness, plus 17 market-rate units, is set for this spring on the grounds of the former Record-Journal building, officials said.

Construction and lease-up will take another 24 months.

The development project, Webster said, is part of Meriden's five-year plan to relocate former residents of the Mills housing projects, which were demolished in 2018. Other projects include 24 Colony Street and Meriden Commons I & II.

Webster said its involvement includes a $10.7 million investment in low-income housing tax credits with the National Equity Fund, and a $750,000 direct subsidy.

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