New London — Tenants of a troubled high-rise apartment complex off Crystal Avenue next week are expected to get their first glimpse of conceptual plans of what may someday be their new homes.

In what came as a surprise move to some, the Massachusetts-based nonprofit Affordable Housing and Service Collaborative Inc. purchased the former Edgerton School property on Monday.

The nonprofit has announced its intention of building an estimated $40 million development to house all of the more than 300 tenants of the Thames River Apartments.

Rehabilitation or demolition of the 50-year-old apartment complex, located in the shadow of the Gold Star Memorial Bridge, became inevitable when a class-action lawsuit led to a 2014 settlement between tenants and the New London Housing Authority, which manages the 124-unit low-income apartment complex.

New London attorney Robert Reardon, who led the decade-long legal battle to address the unsafe and unsanitary conditions secured a stipulated agreement with the New London Housing Authority’s board of directors and U.S. Department of Housing and Urban Development.

The agreement called for a three-year timeline leading to the rehabilitation or relocation of the complex.

Affordable Housing and Services Collaborative was enlisted by the housing authority to find a suitable site for new construction.

The agency had uncovered few options until it looked as though the city’s plans to purchase the former Edgerton School for development of a community center might fall through.

The council, which initially approved the purchase of the property for $350,000, later delayed the deal while a petition drive further cast doubt on the sale.

In an agreement with the city, property owner Peter Levine had set an April 7 deadline for the sale.

Meanwhile, the New London Housing Authority board of commissioners held a special meeting on April 1 and, following an executive session discussion, voted to allow Affordable Housing to move forward with the purchase, Commission Chairwoman Tambria Moore said.

Affordable Housing and Services Collaborative President and Executive Director Michael Mattos said things moved quickly after that.

“We certainly heard there were other offers. We knew about the looming April 7 deadline and approached Mr. Levine and told him we were interested,” Mattos said. “On the 7th is when we really knew the opportunity would be viable. We closed as quickly as possible to avoid it being tied up in other hands.”

Not only did Levine have other offers, but Mattos said they feared a looming bank foreclosure would further delay the purchase attempt.

“We had a window of opportunity and did not want to deal with an auction or bank,” Mattos said. “The options were limited at that point and this was by far the best site. With so many positives, it made sense to get site control so we could proceed with a plan.”

Affordable Housing, doing business as FW Edgerton LLC, closed on the property on April 10. The purchase price was $600,000.

Levine, in a phone interview last week, said part of his agreement with Affordable Housing was that he would deliver a property free of any liens.

City records show that he has since cleared up the lien on the mortgage and paid more than $50,000 in back taxes.

Mattos and New London Housing Authority Director Sue Shontell both said they are excited about a site that is close to a recreational field and local schools, where there are better opportunities for employment and it is overall less isolated.

Mattos said the plans being developed for the site will be “complementary with the neighborhood.”

“It’s not going to look out of place. It’s going to fit with the surroundings. We want to be respectful of the community and the neighborhood. I think people are going to be pleasantly surprised,” Mattos said.

Shontell said the plan could include flats topped by townhouse-style apartments at the perimeter of the property with a three- or four-story complex to the center of the 3.3-acre property — enough to fit 124 units.

The only other viable sites at the time of the purchase was the same Crystal Avenue land where the high rises now stand and a plot of land in the vicinity of the Connecticut College Arboretum.

Mattos acknowledged there are still some obstacles.

The deed to the former Edgerton School property contains restrictions, laying out a list of what can be located at the site and requiring City Council approval for anything not on the list.

Residential developments are not on that list of approved uses.

Mattos said City Council approval is one of the many steps in what will be a long but very public process.

Even before it goes to the City Council, Mattos said he plans a meeting with not only tenants of the apartment complex but residents in the vicinity of the 120 Cedar Grove Ave. property.

“We want to make sure we’re not too far out and doing this in the correct order. We’ll talk to residents, neighbors, the community and engage with public officials who will ultimately vote on this,” Mattos said.

Levine said he was pleased with the outcome of the sale and wishes the new owners luck with their plans.

He admitted that while his agreement with the city met his requirements at the time, the offers that started to come in later, in part due to publicity around the proposed community center, had him second guessing.

“I made a commitment to sell it to the city,” he said. “I was trying to find a buyer for a while. Many people had talked about things but when it came time, it didn’t work out. As things unfolded, I wish I had waited longer (before signing a contract with the city). If I knew there would be other bids, I may not have signed that contract.”

The next step for Affordable Housing is an application for federal funding through the state Connecticut Housing Finance Authority, which allocates funding to developers for affordable rental housing. The deadline for submission is November, Mattos said.

Affordable Housing, which holds an ownership interest in more than a dozen affordable housing developments, plans to partner with the private management company Peabody Properties for management of the units.

The two companies, Mattos said, have partnered on several projects and manages more than 10,000 units. It will be Affordable Housing and Peabody Properties first foray in Connecticut.

Several tenants at Thames River Apartments, who spoke on the condition of anonymity because they did not want to publicly criticize the New London Housing authority, said a move out of the high rises would be a welcomed change.

g.smith@theday.com

Affordable Housing and Services Collaborative will conduct a forum with tenants of Thames River Apartments at 3:30 p.m. Wednesday, weather permitting, in the courtyard of the complex.