Inflation, interest rate hikes delay $50M Hartford housing complex redevelopment

A redevelopment of the Martin Luther King apartments in Hartford’s Sheldon Charter Oak neighborhood has been stymied after organizers learned inflation and higher interest rates have increased the project’s costs by about $8 million. Freimuth said CRDA has not yet settled on the size of the loan it will grant the project. The quasi-public agency is one of several funding sources for the effort to transform a worn collection of 64 affordable apartments into a modern development of 155 units – 40% of which will be market rate. Community development agency Sheldon Oak Central owns the complex on Van Block Avenue. Emily Wolfe, the organization’s executive director, said maintenance and repair costs have reached a point where it makes more sense to rebuild than rehab the property. Sheldon Oak Central partnered with Simsbury-based affordable housing developer Vesta Corp. on the project. Vesta could fund the pre-development and design costs, Wolfe said.

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