A dispute between the local housing authority and a developer is again threatening the fate of an unusual state plan to build waterfront public housing in Annapolis.

A&R; Development Corp. of Baltimore has threatened to stop work on the $8.4 million new Bloomsbury Square project along College Creek, accusing the Annapolis Housing Authority and its board chairwoman of intentionally delaying approval of a final contract.

"It almost appears that the process is deliberately being delayed for surreptitious reasons," wrote development manager Anthony Rogers in a Nov. 18 letter to the state Department of General Services that was obtained by The Sun.

The developer began construction on the 51-unit project this summer, working without a contract and fronting $3.2 million without reimbursement, according to the letter. A&R;, which temporarily halted work Monday, said it would "formally terminate the construction" Dec. 1 if a contract is not finalized.

Housing Authority representatives say negotiations are continuing and they hope to resolve the conflict soon and finalize a contract for the project.