NORWICH – More than 10 years after the project began, the Norwich Housing Authority is hoping to see the construction of the first unit of the Brown Avenue housing project this spring.
In 1999, the Norwich Housing Authority acquired the property where the Brown Ave. Bowling Alley and a bakery formerly sat and began to discuss options for its future use. The original plans called for the construction of six energy-efficient duplex structures for senior citizens.
On Tuesday night, Norwich Housing Authority Executive Director Judy Wingate-Wade attended the City Finance / Personnel Committee meeting to ask for a bridge loan to help move the project forward.
Wingate-Wade explained the housing authority has already received construction loan financing and has a contractor in place to begin the project; however, to get the project started, the housing authority needs a bridge loan for $90,000.
“We did secure a construction loan – that took longer than we thought – but it does not cover 100 percent of the project. We had a gap in funding that we had to provide,” Wingate-Wade explained in a telephone interview following the meeting.
A bridge loan is traditionally a short-term loan. Finance Director William Roberts explained the loan would be paid back over a one-year period at an interest rate of 2.4375 percent.
Wingate-Wade said she expects construction to begin around April 1, weather permitting. It will take three to four months to complete construction. Only one duplex unit will be built, but she said the sale of the first home will be used to finance the construction of the next.
Last March, the housing authority accepted bids for the construction of the first unit. Richard Wakeman, a Sidney based contractor, was awarded the bid. At the time, the estimated cost of construction was approximately $283,300, or $141,650 per unit. “We expect things may be up a little, because of the length of time that’s passed,” Wingate-Wade explained. Up to $50,000 of the price will be subsidized by a grant given to the Norwich Housing Authority by the New York State Housing Trust Fund Corporation.
The final price of the homes is estimated to be between $90,000 and $95,000. The homes are intended to be marketed toward senior citizens with an annual income of $29,500 for a single person, or $33,700 for couples. Wingate-Wade is hoping to receive additional subsidies to bring the cost of the units down. She said by the end of January, she should know whether or not the authority will receive another subsidy from the Federal Home Loan Bank of New York. “We’re hoping to keep the price down as much as possible,” Wingate-Wade said.
Last spring, Wingate-Wade said she re-canvassed her list of individuals interested in the senior housing units. A total of 18 individuals or couples said they were still interested.
The Finance Committee passed a motion that the bridge loan be recommended for approval by the Common Council. “The Norwich Housing Authority appreciates the continued support of the Common Council,” Wingate-Wade said. Although the project has taken much longer than expected, she assured that it is going to happen. “We’re not going to give up,” she said.