Select Board declines $500,000 CDBG loan for Plainview senior housing after public hearing

At a Jan. 14 public hearing, the West Swanzey Select Board heard more than two hours of testimony on a proposed $500,000 Community Development Block Grant (CDBG) loan for the Plainview Senior Housing development before moving not to accept the grant.

Donna Lane, who identified herself as a CDBG consultant, told the board the Plainview project would create 74 affordable units for residents aged 62 and older and that CDBG rules require projects to primarily benefit low- and moderate-income people. "The Plainview Senior Housing Development will provide 74 units of affordable senior housing for people age 62 and older," Lane said, adding the town’s share of low/moderate-income residents (about 65%) makes many CDBG-eligible uses available to West Swanzey.

The proposal called for the town to be the CDBG recipient and to loan CDBG funds to the project's limited partnership; Lane said that structure typically includes a lien on the site and a long-term repayment expectation. She described the project’s illustrative rents as roughly $1,102 for a one-bedroom and $1,318 for a two-bedroom, and gave sample income-eligibility figures (about $46,440 for a single-person household; about $53,040 for a two-person household), noting those numbers adjust annually and are set by the relevant housing authorities.

Supporters and the developer’s representative described the CDBG money as an integral component of a larger financing stack that includes tax-credit equity and other sources. "At this time, CDBG is part of that funding stack, and it's gonna be very difficult to build the project without the additional $500,000 in a grant," the developer representative stated during the hearing.

Opponents and several residents questioned the timing of the application, the accuracy of market-study claims (some attendees disputed the presentation's cited vacancy-rate data), and whether town staff have the capacity to administer a federal subrecipient agreement. Residents also pressed what would happen in worst-case scenarios such as developer default or bankruptcy; consultants and developers said projects are bonded, that CDBG would be secured by a lien on the property, and that New Hampshire Housing Finance Authority oversight is typical.

Board members repeatedly raised administrative and fiscal-capacity concerns. The board also heard that the proposed project would increase annual property tax revenue on the parcel from about $5,000 today to an estimated $100,000 after construction, but speakers clarified tax credit financing and rent-based tax assessments mean the town does not receive a direct federal payment; instead, tenant rent savings and lower mortgage burdens are core program benefits.

After public comment and deliberation, a Select Board member moved "to not accept the grant," another seconded, and the board recorded a voice affirmative response. The meeting then recessed briefly and resumed to hear additional public business.

The board’s action means West Swanzey will not proceed with the CDBG subrecipient agreement for the Plainview project at this time. The town also discussed options for future CDBG opportunities and noted that, if the town chooses, it can apply in a later funding round for other eligible projects.

The Select Board did not publish a roll-call tally during the meeting; the record shows a motion to decline that was seconded and affirmed by voice vote. The board left open procedural follow-ups, including whether to request additional documentation from the developer or to revisit the application in a later funding cycle.

Next steps: the Select Board may ask staff to compile the technical materials presented (market studies, financing stack and proposed lien language) and return them for further deliberation or a future vote. The meeting minutes will record the board’s formal motion and any follow-up assignments.