At its monthly board meeting on Tuesday, the Housing Authority of New Haven (HANH) reaffirmed its commitment to the Union Square project – a 2,490‑unit mixed‑income, mixed‑use development slated to become the new “gateway” to the city across from Union Station. Although the authority’s application for a $26 million Choice Neighborhoods Implementation Grant from the U.S. Department of Housing and Urban Development was not selected this round, officials said the setback will not halt progress.
Grant denial and next steps
HANH President Shenae Draughn explained that the competitive grant, part of a $75 million federal allocation, awarded only three to five recipients nationwide, went to other communities, including Fayetteville, North Carolina. “We asked HUD for a debrief on our application, and we will definitely go back in the next round,” Draughn told the Independent. She added that even if the grant had been awarded, additional funding would still be required to complete the $1.5 billion project.
Financing the first phase
The authority is moving forward with a robust financing plan. In January, HANH will submit a competitive 9 percent Low‑Income Housing Tax Credit (LIHTC) application, supplemented by a less‑competitive 4 percent LIHTC deal. These credits are designed to lower construction costs for affordable units.
Board commissioners also voted unanimously to increase a pre‑development loan to the Glendower Group – HANH’s nonprofit development arm – from $1.5 million to $5.5 million. The additional funds will cover architectural and engineering services provided by Newman Architects and Fuss & O’Neill, ensuring the design remains feasible and financially sound before full construction financing is secured.
Phase 1 details
Phase 1 will deliver 541 apartments across three buildings, retail and commercial space, and 182 parking spots. Two of the buildings will be constructed first, allowing current residents of the 93‑unit Robert T. Wolfe apartment building to relocate to new units before the existing structure is demolished. The third building, with 196 units, will follow.
Both former residents of the demolished Church Street South complex – a government‑rent‑subsidized development razed in 2018 after severe maintenance issues – and current Wolfe tenants will have the right to return to Union Square, preserving community continuity.
Community engagement and future outlook
Since receiving a $500,000 Choice Neighborhoods planning grant in fall 2023, HANH has held more than 50 community meetings, conducted feasibility studies, and developed a comprehensive architectural plan. Draughn emphasized that the authority remains “ahead of” parallel state‑funded transit‑oriented development projects near Union Station, coordinating design efforts to ensure compatibility.
Glendower Group Vice President of Development Ed LaChance noted that the staged contract approach – funding design and engineering before committing the full amount – safeguards the project’s financial viability. “We wanted to make sure the design was feasible, the engineering was feasible, and everything would financially work out,” LaChance said.
Looking ahead
If the LIHTC application succeeds, HANH expects to reach financial closing for Phase 1 by late 2027 or early 2028, at which point construction can begin in earnest. Board Chair William Kilpatrick, former head of the New Haven Parking Authority, expressed optimism, noting his long‑standing involvement with transit‑oriented development and the strategic importance of the Union Square gateway.
The Union Square development promises to revitalize the area surrounding Union Station, offering new housing options for families, seniors, and individuals of all income levels while stimulating local commerce and reinforcing New Haven’s commitment to mixed‑income, community‑focused growth.
Original reporting: New Haven Independent — read the source article.
