Proposal would lift age restriction on Ledyard development

March 21, 2012 12:00 am • Last Updated: March 22, 2012 12:22 am

By By JULIANNE HANCKEL Day Staff Writer

Ledyard - The Zoning Commission will hold a public hearing Thursday on a proposal to convert Stonegate Village to an affordable housing development and eliminate the existing 55-plus age restriction.

Principal owners of Stonegate Village, located on Flintlock Road, hope the commission eventually will vote to remove the age restriction and thereby broaden the market by appealing to those under 55 who are first-time buyers, Mark Branse, attorney representing Third Garden Park LP, said on Monday.

In a letter to the Zoning Commission, Branse said the "housing market experienced catastrophic changes in the economic upheaval of 2008, and particularly with regard to age-restricted communities."

If the Zoning Commission approves the affordable housing designation, Third Garden Park could sell or lease up to 30 percent of its homes as affordable housing. Under the plan, 30 percent - 24 of the 80 units - would be designated as affordable housing for 40 years.

"Affordable housing" is a specific term applying to homes that are sold or rented to a buyer whose income is less than or equal to 60 percent of the local or statewide median income, whichever is less. Median income is determined by standards set by the U.S. Department of Housing and Urban Development.

According to HUD, in New London County, a family would have to earn $40,560 or less to qualify to purchase a two-person home, or $45,600 or less to qualify for a three-person home.

If Stonegate homes are designated as affordable housing, potential buyers would be able to apply for grants and loans for affordable housing purchases. Home purchases would not be subsidized.

In a letter to the Zoning Commission, Branse said that the "housing market experienced catastrophic changes in the economic upheaval of 2008, and particularly with regard to age-restricted communities." As a result, he wrote, home sale prices in Stonegate have dropped by 25 percent to 30 percent.

He wrote that despite Garden Park's many attempts to entice buyers - including keeping four to six model homes in inventory at all times, spending $60,000 on marketing, showing homes to 700 people, receiving 6,000 visitors at the sales website and having a sales representative available at all times - the homes are not selling.

Only 10 have sold since 2009 and no sales are pending, according to Stonegate Village principal owner Richard Freedman.

Stonegate resident Larry Helfrich, who is opposed to the changes, said the plan is raising the blood pressure of the community's 56 residents and causing them to lose sleep.

"People here are up in arms, all of us. We're very much alarmed about this," he said. "It's a very quiet community and it was not designed for children of any age, because the lots are extremely small. It's affecting every one of us."

"We could have bought a house and moved into any other development, but the primary reason we bought here was because we liked the 55-plus. We wanted peace and quiet, and we bought into 55-plus for that reason."

Helfrich said he is not against affordable housing, he just doesn't want it in his neighborhood.

"I've worked my way up. I've lived through the Depression. I know what it's like to be poor," he said. "The houses here are affordable anyway, and there's a difference between affordable housing and houses that are affordable. These are houses that are affordable."

Stonegate Village homes start at $119,000 according to the company's website, and the community is advertised as easy living and low maintenance. The website lists model home prices from $99,900 to $157,300.

The 18.1-acre site was approved by the Zoning Commission in 2002 for 80 units with a 55-and-over age restriction. There are currently 28 occupied units, 26 of them owned and two rented. If the plan is approved, the remaining 52 would be manufactured off site and brought in, Branse said.

On Monday, Branse said homes in age-restricted communities aren't selling anywhere in the country, but there is a "tremendous demand" for entry-level housing.

He said he expects the changes will draw young buyers, but not necessarily buyers with a family or children old enough to be playing outside.

"Young people and young couples are coming in and saying they want a unit and we're saying we can't sell you one," Branse said. "We've found there aren't that many kids in these types of affordable housing developments. People with kids want a yard, a swingset or a basketball hoop. You can't fence in your yard (in Stonegate) and it's not a private yard."

j.hanckel@theday.com