Eno Farms: Residents Express Concerns at Town Meeting

The newly-formed Eno Farms Subcommittee held a special town meeting with residents on Tuesday to hear their concerns about the proposed amendments to the ground lease which was rejected by voters last month.

The Eno Farms development is currently owned by CHFA Small Properties. CHFA took ownership following a foreclosure against former owner Corporation for Independent Living approximately two years ago.

Simsbury town officials hope to amend the existing ground lease for the town-owned property before a new buyer is found.

Approximately two dozen residents and town officials spent over two hours discussing the lengthy and complicated history of the Eno Farms development and residents' desires for the future of the development. The subcommittee, which consists of Selectmen Lisa Heavner and Sean Askham, organized the meeting to listen to resident concerns.

On May 14, Simsbury residents voted against the town's proposed amendments to the ground lease which governs the use of the land that was gifted to the town by Amos Eno in 1882.

For more background on the Eno Farms affordable housing situation, visit Part I and Part II of this series.

"This is one of the most important issues the town has before it," Simsbury resident Joan Coe said. "Eno Farms affordable housing at this point is not for the low-income residents."

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Tom Delehanty, a resident of Eno Farms, said he and his wife have lived in Simsbury for 40 years but because of changes in their financial situation have since moved to the development.

"I couldn't afford to stay in this town if I weren't there," Delehanty said.

Former Attorney Huguet Pameijer has followed the issues at Eno Farms from the beginning and maintains that the town must proceed cautiously and make sure that the intent of the Eno deed is followed.

"I'm urging you to go through the attorney general's office because this is a charitable property," Pameijer said.

Town Attorney Robert DeCrescenzo said the town did seek approval from the attorney general's office when developing the ground lease. However, both Pameijer and Coe referenced a 1997 letter from former Assistant Attorney General Janet Spaulding-Ruddell that details questionable management practices and broad interpretations of the Eno deed.

Pameijer also urged the subcommittee to amend the lease to relieve the burdens placed on tenants with remnants of the failed attempt to establish a cooperative structure. Tenants were expected to invest "sweat equity" into their units and attend monthly meetings of the cooperative.

Many of the original residents of Eno Farms have since moved on, but current residents are uneasy with the proposed changes to the ground lease for varying reasons.

Eno Farms consists of 50 rental units, 22 of which are reserved for low-income residents. The subsidized units are reserved for individuals and families who earn 80 percent of the Area Median Income for the Hartford region. The current median income is $87,700, according to the Connecticut Department of Housing and Urban Development.

Some of the low-income units are reserved for Section 8 tenants which are subsidized by federal funds and the others are subsidized by moderate income tenants. Section 8 tenants pay 30 percent of their income and the federal government pays the remainder.

Rental rates, which do not include utilities, for the low-income units are as follows:

• 2 Bedroom unit- $1,185
• 3 Bedroom unit- $1,368
• 4 Bedroom unit- $1,527

DeCrescenzo said the only way the development can maintain these prices is by allowing for moderate-income earners to rent the remaining units at market level prices.

"Those who voted against the amendments voted against their own interests," DeCrescenzo said.

The goal of the proposed ammendments was to verify income of the residents on an annual basis, to verify that the new owner is following the rent limits set by HUD, and to verify that the new owner maintains the proper funding to maintain the development.

DeCrescenzo said the board of selectmen could decide to do nothing to amend the existing ground lease but such a decision would allow for the new owner to operate without any oversight by the town.

"It's the board of selectmen's job to put into place mechanisms, tools, administrative procedures, or whatever,  that allows the board of selectmen or the town acting through the board of selectmen to make sure that the new buyer is in compliance with the ground lease," DeCrescenzo said.

DeCrescenzo said the town didn't have to worry about this oversight previously because the requirements were included in a Declaration and Agreement of Restrictive Covenants that was agreed to in the initial purchase of the property by CIL and CHFA as the lender.

The town hopes to have an amended ground lease in place before a new owner is found and, ideally, before the end of the 15-year tax credit for the development is over in August 2012.

Residents were not allowed to ask questions during the special meeting due to the existing rules for such meetings.The Eno Farms subcomittee agreed to schedule a special workshop in the next two weeks to allow for residents to ask questions and further discuss the next steps for the ground lease. The date for the workshop has not been scheduled.