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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.

Years of Violations and Mounting Debt

Bridgeport and Stratford jointly requested the receiver’s appointment in August 2024, citing persistent health and safety failures at Success Village, including chronic shortages of heat and hot water. The conditions, officials said, exposed residents to repeated health and fire code violations.

At the same time, five board members were charged at the state level with 60 counts each of violating a health director’s order and municipal ordinances. The complex also owed more than $2.3 million in unpaid property taxes. As of Monday, the outcome of those criminal cases could not be immediately confirmed.

Utilities, Taxes and Aging Infrastructure

Separate filings by Southern Connecticut Gas Co. and United Illuminating Co. show Success Village is in default on more than $1.33 million for gas and electric service.

In a September 2025 report, Knott told the court the immediate crisis had shifted from emergency services to long-term solvency. While heat and hot water have largely been restored, aging pipes continue to cause sporadic disruptions until repairs can be completed incrementally.