An affordable housing nonprofit with long-standing ties to Connecticut Department of Housing Commissioner Seila Mosquera-Bruno is facing four separate court actions brought by the City of New Haven for failure to pay over $71,000 in property taxes for four of its properties, some of which were supported by public funds.
The Mutual Housing Association of South Central Connecticut, which does business as NeighborWorks New Horizons, is facing foreclosure proceedings by the City of New Haven for its properties at 145 Gilbert Avenue and 80 Derby Avenue where MHASCC owes $17,517 and $10,864, respectively; and for properties owned by MHASCC’s subsidiary Hill-MHA, LLC at 206 Davenport Avenue and 518 Howard Avenue, which owe $19,269 and $23,443 respectively.
The court actions were all filed over the last five month of 2026, with the city alleging the long-time housing nonprofit state partner did not pay property taxes in July 2024 and January 2025. The listed properties are home to seventy-nine units, although the Hill Apartments occupy several different addresses and it is unclear if they are all affected by the tax liens.
MHASCC has yet to respond to the court complaints, but the lingering tax liens on its properties and legal action could affect the nonprofit’s pending application before the Connecticut Housing Finance Authority (CHFA) for highly competitive 9 percent Low Income Housing Tax Credit award for a $40 million rehab of its George Street property. Outstanding debts or legal action has forced some affordable housing developers off projects in the past.
MHASCC is the former employer of DOH Commissioner Seila Mosquera Bruno who was executive director of the nonprofit for years before being appointed commissioner by Gov. Ned Lamont in 2019. Since that time, MHASCC has received multiple contract amendments from DOH, awarding more funding to some of their projects, even while facing legal action over an outstanding debt. The nonprofit also saw some of its projects get fully funded with tens of millions in federal American Rescue Plan dollars through DOH.
The DOH is also named in two of the lawsuits that involve Hill-MHA because the department had supplied funding for the properties. Hill-MHA received a $2.7 million grant and $700,000 loan from DOH in 2013, with then MHASCC Executive Director Mosquera-Bruno signing the agreement.
The MHASCC’s latest 990 IRS filing shows a massive loss tied to bad debt. In their 2024 filing – the most recent available – the organization, which typically sees revenue ranging from $5 to a peak of $11 million in 2022, posted a loss of $15 million. Of the more than $20 million in expenses, which the document notes was tied to development of multiple properties in the New Haven region, the IRS filing shows the majority of those expenses were tied to $13.3 million in “bad debt.”
However, according to MHASCC’s latest audit filed with the Office of Policy and Management (OPM), the $13 million in bad debt listed under NeighborWorks New Horizon’s operations is listed as an elimination meaning that it was a debt between MHASCC and one of the organization’s subsidiaries.
According to the tax form, MHASCC receives 86 percent of its revenue through public support. The most recent award to MHASCC from DOH came in December 2024, when DOH awarded $3.9 million to rehab the organization’s Richard Street property, and over $20 million for their Jack’s Farm property – a project that had been rejected by the CHFA for tax credits. Mosquera-Bruno also serves as chairman of the CHFA board.
However, DOH’s funding awards, particularly to organizations with connections to the commissioner, are also the subject of a lawsuit. Affordable housing developer Harold Foley, head of the Atlanta-based HF3 Partners, alleges in court documents that DOH has unfairly awarded preferred developers additional funding and funding over a “cap” that was outlined by the CHFA for years.
DOH has previously stated that the purported caps were target investments and that the department can award funding to meet Connecticut’s housing needs as it sees fit.
The City of New Haven is seeking to foreclose on the liens, take possession of the properties, and have a receiver appointed to collect rent from the tenants. A search of New Haven property tax records shows liens on two other MHASCC properties totaling $5,705.
Was this article helpful?
Republish our articles for free, online or in print, under a Creative Commons license.
