A developer in New Haven is seeking to transfer a tax break to a new owner as part of a property sale, prompting a debate about whether the city should get something in return. The City Plan Commission recently discussed the proposal, which involves the transfer of a tax assessment deferral agreement for the Archive apartment complex on Chapel Street.

Background

The Archive complex, which consists of 166 market-rate apartments, was built by CA Ventures and completed in 2024. The company is now seeking to sell the property and transfer the tax break to the new owner. However, the city’s tax assessment deferral agreement prohibits the transfer of such benefits to new owners.

The agreement, which was signed in 2023, provides the property owner with a phased-in tax assessment over the course of five years. The current owner is benefiting from a roughly 70 percent break on the property’s tax assessment, resulting in a significantly reduced tax bill.

City Response

The City Plan Commission voted to recommend that the Board of Alders explore the feasibility of introducing an affordability commitment for the new ownership as a condition for the transfer of the tax deal. The commission’s decision was made after hearing arguments from both the developer and city officials.

City economic development staffer Clay Williams spoke out against amending the agreement, citing the city’s goal of promoting affordable housing. He warned that removing the no-transfer provision could lead to other developers seeking similar treatment, potentially resulting in increased rents and decreased affordability.

Next Steps

The proposal will be heard by the Board of Alders Tax Abatement Committee on July 28, followed by a review and potential final vote by the full Board of Alders.

Original reporting: New Haven Independent — read the source article.