Groton ― The town and city will consider holding the owner of Branford Manor in default of a tax incentive agreement, in an effort to motivate the owner to quickly address health and maintenance issues for residents of the 441-unit subsidized housing development.

Residents have complained about mold, along with other issues, at Branford Manor, which is located on Mather Avenue in the city.

City of Groton Mayor Keith Hedrick, Groton Town Manager John Burt, and Town Mayor Juan Melendez, Jr. jointly issued a news release Thursday evening announcing that they intend to consider, through their respective councils on Tuesday, placing Branford Manor Preservation, L.P., a subsidiary of Related, and the owner of the development, in default of the tax incentive agreement signed in 2017. They are making the recommendation which the councils would then have to to vote to approve.

The agreement provides an annual tax abatement of about $500,000 to the company, which, in turn, is required to maintain 100% Section 8 housing, and 100% income-limited rental housing and also invest “$18.5 million to construct a new 3,000 square feet resident services building; and maintain exterior and interior repairs, upgrades, renovations and replacements to the property including buildings and personal property,” according to the release.

After residents complained this past spring about health, maintenance, and communication problems, the officials said in Thursday’s release that the city and Ledge Light Health District are continuing to work with tenants and management to address the problems Town of Groton officials have met with the involved parties to understand the issues and “improve the health and safety of those living in Branford Manor.”

Melendez, Burt and Hedrick said in the release that Related has not used “adequate resources to address these violations.”

“The Town and City remain committed to ensuring that Related complies with the terms of the Agreement and provides Branford Manor with clean, safe housing,” they said in the release. “To that end, and for the purpose of prompting Related to engage in the work that needs to be done in a manner consistent with the agreement,” the city and town intend to consider the default.

Branford Manor Apartments issued a statement Thursday evening in response.

“The health and safety of residents continues to be our top priority as we diligently work under the plan developed in partnership with The Town and The City of Groton to rectify any concerns raised at Branford Manor. We are currently undertaking that comprehensive strategy to bring every resource necessary and are working in good faith with elected leaders and residents to ensure it is done as quickly and professionally as possible. While we aggressively remediate the issues, we will continue to support affected residents with alternative options including hotel rooms and on-site accommodations. We are responding to any issue raised by local agencies and residents as soon as they arise and continue to report on progress,” it said.

Burt said by email that any action to hold the company in default taken by the Council on Tuesday would specify a time frame for Related to come back into compliance. If the company fails to meet the deadline, the Council could choose to terminate the agreement.

Burt said the tax abatement is approximately $450,000 per year for the Town, and he believes about $60,000 for the city.

Hedrick said by phone that he hopes Related will put additional resources into resolving the problems because it has taken too long for the company to take the initial actions to ensure mothers and children are safe.

The town and city sent the company a joint letter outlining expectations, following a Town Council Committee of the Whole meeting in June in which Related representatives apologized and said they had a plan to address the issues.

“Hopefully, this will provide motivation for them to put additional resources into quickly remediating the property,” Hedrick said.

“I don’t believe Related should benefit from a tax abatement with the conditions the residents of Branford are living under,” Melendez said in a statement. “My goal is to have every effected Branford resident back in their homes, safe and happy, as fast as possible. Hopefully this decision will speed up the process.”

k.drelich@theday.com