Groton — The Town Council will send a letter to the Connecticut Housing Finance Authority supporting a developer's request for tax credit financing to purchase and upgrade Branford Manor, a 441-unit affordable housing development in the city of Groton.

The Town Council voted after executive session on Wednesday to send the letter supporting the request of Related Affordable, a subsidiary of Related Companies in New York City. The company is requesting low-income housing tax credit financing from the Connecticut Housing Finance Authority, according to an Oct. 27 letter from the agency.

"They've made a commitment not to price anybody out" so current residents of Branford Manor could continue to live there, Town Mayor Bruce Flax said.  "It would make for better living for the people," he said of the upgrades.

Renovations would cost about $42,000 per unit, and include new kitchens, bathrooms, lighting, windows and energy-efficient appliances. The company would also repair asphalt, install new siding and upgrade exterior lighting and security systems.

Related Affordable is working with the Groton Housing Authority to create a for-profit, limited partnership to invest $18.5 million in the housing complex.

The company plans to build a resident services building to house after-school programs and activities for children, a fitness center and a new management office.

In May, the company asked Groton Town for a 30-year tax incentive to improve the property. The Town Council has not yet voted on that request.

Under the company's proposal, taxes would be fixed at their current rates for the next 10 years, then rise at a rate of 3 percent in each of the following 20 years. The company would pay a total of about $2.45 million in taxes to Groton City and about $8.67 million in taxes to Groton Town over the next 30 years.

Branford Manor on Shennecossett Road was built in the early 1970s. It includes 47 townhouse buildings spread over 37 acres, which have only had minor repairs. The property's Section 8 status expires at the end of this year, so Related Affordable would apply to the U.S. Department of Housing and Urban Development for renewal for the next 20 years.

d.straszheim@theday.com