Pending Litigation Stalls Sale of Eno Farms Development

The pending sale of Simsbury's affordable housing complex, already complicated by a failed attempt to amend the ground lease, hit another road block recently when a group of the development's residents reignited a legal battle to pursue their claim to ownership in the property.

In June, the town announced that Avon-based Equity Management Corporation president Jonathan Rutenberg was interested in purchasing the development. In lieu of the amended ground lease, which was rejected by Simsbury residents in May, the town began negotiating with Rutenberg's attorney to make adjustments to the income-based requirements and provide new protections for the tenants.

Town officials hoped to complete negotiations and move forward with the sale of the property this month, but a new effort by a small group of residents to pursue a claim to ownership of their individual units has put the sale on hold once again.

"A number of the current tenants are involved with litigation with CHFA," Director of Administrative Services Tom Cooke said. "They're trying to assert an ongoing interest in the property there."

The residents' claim to ownership stems from the development's original owner, Corporation for Independent Living, who attempted to establish a cooperative ownership model to attract initial residents to the community. That model proved to be unsuccessful and when the property was foreclosed several years ago the cooperative ownership idea was abandoned.

"Five of the residents are attempting to raise the issue again," Rutenberg's attorney Peter Alter said.

Rutenberg is not involved in the litigation, but Alter said his client cannot move forward with the purchase until CHFA can offer a clear title to the property.

Cooke said the town continues to negotiate the sale of the property in hopes that the lawsuit will be resolved soon.

"We'd like to be in a position to move forward once this is cleared up," Cooke said.

CHFA's attorney, Joshua Hawks-Lad has not responded to inquiries about the lawsuit.