State Sending Financial Assistance to Roosevelt, Talcott Mill Projects

Two major projects to convert historic mill properties into mostly housing complexes received a major financial boost from the state on Monday.

In a midday news release, Gov. Dannel P. Malloy announced "a state investment" of more than $29 million in for nine housing developments in Brookfield, Canaan, Hartford, New Haven, Vernon and West Hartford.

The Vernon properties are the old Roosevelt Mills building in Rockville and the old Talcott Mill complex in the Talcottville Historic District are to receive more than $9 million.

The funding, through the Competitive Housing Assistance for Multifamily Properties initiative at the state Department of Economic and Community Development, is "a part of the Governor’s commitment to strengthening Connecticut’s economy by expanding housing opportunities that will attract and retain a talented workforce," according to the news release.

“To be competitive, Connecticut must attract and retain talented workers,” Malloy said. “Affordable housing for the state’s young professionals and working families, and congregate housing for the elderly and those who need support is critical to creating livable communities and a thriving economy. Over 10 years we will make a $500 million investment in neighborhoods across Connecticut - investments that will rehabilitate long-neglected state units and provide new options for young families. ”

Through CHAMP, owners and developers of affordable single and multifamily rental developments can apply for loans and grants to expand or rehabilitate housing, according to the news release. Funds awarded under the program banner may be combined with financial assistance from the Connecticut Housing Finance Authority, including 4 percent low-income housing tax credits and taxable or tax-exempt bond financing, according to the news release.

The funding is intended to be gap financing and may not exceed $5 million per development, according to the news release.

Here are the descriptions of the financing:

The old Talcott Mill

"DECD’s assistance will help convert the Old Talcott Brothers’ Mill into a mixed-use building with residential apartments and commercial space. The residential space will have 83 units — nine studios, 56 one-bedroom units and 18 two-bedroom units. Additional funding for the project will include a private bank loan, State Historic Tax Credit proceeds, and a private Talcott Family investment. The project is transit-oriented and conveniently located near Interstate 84 and within a quarter-mile of bus transportation. This renovation will preserve and repurpose a historically important mill for 21st century housing while maintaining the historic character of the 19th Century Talcott Mill Village."

DECD funding: Up to $4.4 million.

The town has also approved a tax abatement for the project.

Roosevelt Mills

"The Loom City Lofts project is a sustainable rehabilitation and conversion of the former 5-story Roosevelt Mill in the Rockville section of Vernon. The residential units will include nine studios, 51 one-bedrooms and eight two-bedrooms as well as 7,000 square feet of first-floor commercial space. The development will preserve this historically important mill while creating a vibrant mixed-income development that is walkable to Rockville center. About 60 of the 68 units will be available to households at or below 60 percent of area median income."

DECD funding: Up to $5 million.

Project officials have been waiting for word on state financing.

Vernon Economic Development Coordinator Shaun Gately said he spoke with principals for both projects on Monday and said plans were being forged to move the developments forward as much as the state money will allow.

He called the financing "critical" to both projects. Each has site plan aproval, he said.