Mixed Development

Mixed privately-owned and housing authority-owned condominium development is an emerging replacement strategy currently in the planning stages in Bridgeport.  Under this model, 10 to 15 attached units will be developed, of which 30% or 3 to 5 units are rental public housing owned by the housing authority and the remainder are private ownership condominium units subsidized to satisfy moderate income requirements.  In the Bridgeport model, the units will be two and three bedrooms and all, regardless of whether they will be privately or publicly owned, will be constructed to the same standards, resulting in a seamless profile to the neighborhood.  All units will be part of a condominium association and as such the exterior maintenance and repairs will be the responsibility of the association.  This should ensure a high level of unit maintenance and instill confidence in the community that the units will be an asset to the neighborhood.

The advantages of this model are:

1. The land requirement is limited to just one-half to three-quarters of an acre per development, increasing the likelihood that sites can be found and acquired. Small infill parcels are generally in greater supply than the parcels required for larger scale replacement of public housing, which can require four to five acres or more.
    
2. The seamless blending of public and private condominium units creates neighborhood stability and acceptance, additionally supported long term by an association maintenance and repairs program. This will counteract the public perception that public units won’t be maintained to the same standards as private ownership housing.
    
3. The land requirement is more feasible at one-half to three-quarters of an acre, yet the development of 10 to 15 units still permits the economies of scale necessary for internal maintenance and repairs associated with larger public housing complexes.
    
4. Some public housing tenants may eventually become owners in the new developments as moderate ownership units turn over. This will not only strengthen families but also provide rental openings for other public housing families.

The disadvantages of the mixed approach are:

1. With only 30% public housing units per development, the yield will be limited to 3 to 5 units in any project of 10 to 15 total condominiums. Consequently, the time frame and effort required to develop the needed public housing replacement units will be significantly increased. The time frame for relocated families and likelihood of intervening temporary relocation are also concerns.
    
2. The privately owned units will of course be subject to market demand. The public units cannot be built without a fairly high level of confidence that the private units will sell. Therefore there is market risk to consider as execution of this type of strategy moves forward. The condominium market has been extremely active and dynamic statewide for the past few years, including Meriden more recently. However, rising interest rates, even moderate-income CHFA rates, may start to curtail the ability of households to buy units in this type of program.