SWANZEY, N.H. (MyKeeneNow) – The Town of Swanzey Selectboard has denied a Community Development Block Grant (CDBG) for Avanru Development’s 74-unit senior housing project.

Avanru Founder and CEO Jack Franks says he’s been working on his senior housing project with the town for seven years, meeting several obstacles on the way, including resistance from a group of residents and town officials.

“I’m willing to step up to the plate and take the big swing and take on towns and municipalities that act erroneously and egregiously,” Franks said Saturday morning on WKBK’s What’s Happening program. “Many times, based on zoning and planning boards and, even recently, Board of Selectmen’s emotions and the fact that they can be swayed by a specific group of people, a very small minority, that’s very vocal.”

Franks refers to that group of people as “The Wilson Pond Gang” as the development is slated to be built on Route 32 near the airport and Wilson Pond and says they have opposed the project on several occasions and have spoken regularly with town officials.

At their meeting on Jan. 14, Selectboard Chair Bill Hutwelker recused himself and Selectmen Jimmy Tempesta chaired a public hearing regarding a $500,000 CDBG grant for the project. The hearing included several public comments against the project. Tempesta cited concerns for Swanzey taxpayers and said it would be too much for Town Hall to take on right now.

“I need to protect the Town of Swanzey, and one of the things that’s bothering me is that, to take something on right now with our town, we are so backed up that any extra work right now in our town hall is going to put a big demand on us, and I’m not sure what this is going to take,” Tempesta said.

Selectmen Mark Labelle agreed, and said he felt like the process was rushed.

“It seems like we were rushed through everything, like ‘okay here it is, here’s a hearing’, like Jimmy brought up earlier, we didn’t even have an opportunity to discuss this before all of a sudden, we’re having a public hearing,” Labelle said. “I agree that our town finances were pushed … but my concern is what’s going to suffer within the rest of the town.”

In an email to MyKeeneNow, Franks explained how the funding works, and said the reasons for the Selectboards denial were “absurd”

“This was a “grant” to the town of $500k from the Federal CDBG process that are made available all over NH and the country in general.  It is then “loaned” to the developer of an affordable housing development to benefit those seniors or others who are in need of housing,” he said. “At the construction loan closing for the development, there is a lien placed on the building for the duration of the loan for the $470k that is loaned that is paid back on or before the 30-year maturity date, secured by real collateral.  There was no out of pocket cost or time to the town.”

He noted that the $30,000 is used for administrative costs to close the loan and is paid to a consultant to do so.

Franks said that despite the denial of the grant the project is still moving forward, with work expected to begin in April.

Following the denial of the grant the Selectboard meeting grew heated as Franks addressed the crowd, telling them they should “be ashamed of themselves” for railing against the project, and reiterated his criticism on the air.

“Anyone that opposes senior housing for any reason whatsoever should have their head examined,” Franks said. “One of the most vulnerable classes of people we have in our society, yet we’re seven years into this development process because of a very small group of people.”

Franks said he is suing the town for alleged discriminatory acts, claiming that town boards blocked and delayed approvals in ways Franks alleges were improper. In a federal lawsuit, Avanru claims the Swanzey Zoning Board of Adjustment and Planning Board relied on public opposition and subjective opinions rather than zoning criteria when denying or complicating approvals. Franks points to a superior court ruling that previously found the town lacked evidence to deny a special exception for the senior housing project, as well as additional permitting reversals and design requirements on another project. The lawsuit alleges the town violated Avanru’s constitutional rights to due process and equal protection by subjecting its projects to inconsistent and atypical scrutiny compared to other developments.