The court-appointed receiver managing the troubled finances of the 924-unit Success Village Apartments has asked a Connecticut judge to approve a $6 million state loan, a financial lifeline aimed at clearing years of unpaid taxes, utility arrears and mounting liens that have weighed down the sprawling housing complex.
Low-Interest Loan to Clear Liens
Stratford attorney Barry Knott of Knott Knott & Dunn told the Bridgeport Superior Court on Friday that the Connecticut Department of Housing has already approved the loan through its Housing Receivership Revolving Fund. The financing carries a modest 0.5% interest rate, with the first payment not due until the 13th month after the transaction closes.
Knott assumed control of the apartment cooperative in September 2024 after extensive litigation and criminal allegations engulfed its board leadership.
A 20-Year Financial Commitment
In court filings, Knott said the scale of the financial distress requires extraordinary measures. The receiver is seeking authority to pledge the cooperative’s full faith and credit for up to 20 years in order to secure and repay the state funds.
“Due to the extraordinary nature of the financial circumstances faced by the receiver in this matter,” the motion states, such a long-term obligation is necessary to stabilize the property and meet repayment obligations to the state.
