Habitat for Humanity project in Old Lyme moves toward closing; town appoints steering committee

The Old Lyme Affordable Housing Commission on June 3 moved to advance conveyance of the McCulla lots to Habitat for Humanity and appointed a town steering committee to monitor ARPA-funded predevelopment and invoice approvals. Town counsel and Habitat representatives said attorneys will coordinate a closing once subdivision approvals are recorded and technical questions are resolved.

Town attorney Michael Kerry said the town can complete the conveyance ‘‘once the subdivision approval has been perfected in the sense that the plan has been finalized…so they can be recorded,’’ and that transactional counsel (likely Rich Cody or Eric Callahan) will handle the closing. Kerry said deed language and restrictions to preserve long-term affordability will be recorded in the land records and ‘‘will run with the land’’ for the term discussed by the commission.

Habitat for Humanity Eastern Connecticut executive director Sarah Luckler told the panel the party’s immediate priorities are engineering and soils work, well drilling and septic design, and finalizing house plans that will be submitted for administrative review and permits. Luckler said the architect’s quote will be modestly lower after Habitat removes tasks it handles internally and that the group hopes to complete zoning/site approvals by early September to keep construction on schedule.

Commissioners and Habitat also discussed money and delivery. The commission’s prior agreement with the town earmarks $150,000 in ARPA funds to offset predevelopment costs; the group agreed town counsel and the finance director must confirm whether the town will reimburse Habitat or pay invoices directly to ensure federal ARPA obligation/disbursement rules are met. Commission members said Anita, the town’s finance director, will vet invoices for compliance once Habitat submits bills.

Cost estimates shared at the meeting put typical site work at roughly $50,000–$60,000 per house (including foundation work), average well costs around $9,000 and modern septic systems near $20,000. Luckler said a reasonable planning figure for construction is about $350,000 per house and roughly $700,000 for the two-house project before subsidies; volunteers and donated materials will reduce net costs. Luckler described Habitat mortgages as zero down and zero interest and said sales will be targeted to households at or below 80% of area median income under county AMI rules.

To manage ARPA disbursements and maintain a town point of contact, the commission created a steering committee drawn from the Affordable Housing Commission. The commission appointed Ross, Kent and Anthony (last names not recorded on the transcript) as the steering committee; members said the committee’s duties will include receiving invoices, checking for completeness, and approving payments in coordination with the finance director. The commission emphasized the committee’s role is administrative—helping move funds to construction and supporting outreach—rather than creating new legal obligations for the town.

The commission set near-term next steps: town and Habitat attorneys will schedule a closing; Habitat may proceed with additional soils testing and engineering work while counsel finalizes documentation; and the commission will convene a special meeting on June 17 to follow up on outstanding items and website/communications updates.

The commission approved motions to move the project update to the top of the agenda and to add the steering-committee item (6B) to tonight’s business. No formal vote tallies were recorded in the meeting transcript.