Image courtesy of The Architectural Team

Boston-based national affordable housing developer WinnCompanies announced it recently bought Hartford’s Bedford Gardens apartment complex and plans an $18.7 million rehab funded by state loans and subsidies, plus historic and low-income housing tax credits.

The Bedford Gardens buildings, on Bedford Street in the city’s Clay Arsenal neighborhood, were built in the 1920s and have long offered unsubsidized, below-market rents, WinnCompanies said in its announcement. The rehab will result in long-term, deed-restricted affordability for renters making 60 percent or less of area median income.

The rehab work will involve upgrading brick exteriors; installing new roofs, windows, HVAC systems and kitchens; security features; on-site laundry facilities and a property management office; and creating nine fully handicap-accessible units in the 84-unit complex, WinnCompanies said.

“We are excited for the opportunity to preserve the affordability of this landmark, property for decades to come, and to make long-term capital upgrades that will improve the quality of life for current and future residents,” WinnDevelopment Executive Vice President Adam Stein said in a statement. “We are grateful for the City, the various state agencies and dedicated private partners who worked together to protect and strengthen this important affordable housing resource.”

The capital stack is built around construction and permanent financing from a tax-exempt bond from the Connecticut Housing Finance Authority, which is also providing a soft loan from its Opportunity Fund program. The Connecticut Department of Housing is providing a soft subsidy from the department’s Flex program and the Capital Region Development Authority is providing a soft loan.

WNC & Assoc. is providing equity as the low-income housing tax credit and federal historic tax credit syndicator, with the historic tax credits coming from the National Park Service and Connecticut State Historic Preservation Office after Winn, city officials  and the Public Archaeology Laboratory, a Rhode Island-based historic consultant, teamed up to create a historic district for the area and secure its placement on the National Register of Historic Places, making the historic tax credits possible.

Eversource is purchasing the State HTC with BlueHub Capital serviing as its financing partner. The Connecticut Natural Gas Corporation is providing energy incentive funding in its capacity as administrator of the Connecticut Energy Efficiency Fund.

“We are thrilled to welcome WinnCompanies’ investment into Clay Arsenal, one of Hartford’s historic neighborhoods,” Hartford Mayor Arunan Arulampalam said in a statement provided by Winn. “This acquisition of 84 units across 10 residential buildings will provide not only a significant boost to our local housing stock, but also builds on our commitment to revitalizing every corner of our city. We look forward to seeing the positive changes that this development will bring to the neighborhood and are excited about a future made possible by partnerships like these.”

When the phased work is completed, which is expected in June 2025, the multifamily complex will be renamed Claystone Commons.

Keith Construction of Canton, Massachusetts, will be the general contractor, with The Architectural Team of Chelsea, Massachusetts, serving as architect. Petersen Engineering of Portsmouth, New Hampshire, is providing engineering services. WinnResidential, the property management arm of WinnCompanies, will run day-to-day operations at the property.