2016-03-21-CEC-ATM-rpt - Laserfiche WebLink

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CAPITAL EXPENDITURES COMMITTEE REPORT TO 2016 ATM The Community Preservation Act (CPA) provides that 10% of each year's revenue under the Act (i.e., the designated tax surcharge revenue, plus what is now partially matching State contribution, and interest earned on the Community Preservation Fund (CPF)) be allocated for community (affordable) housing. Since Lexington's adoption of the Act in 2006, the Town has relied primarily on the CPF to create and support community housing. Funds allocated to LexHAB have been the primary means of adding affordable units to Lexington's inventory. In keeping with its original practice of acquiring scattered units throughout the Town, LexHAB has requested CPA allocations to purchase and rehabilitate individual attached and detached homes, which are then deed - restricted and rented to eligible households. The CPC has established guidelines with regard to housing purchases with CPA funds, and in 2012, capped the amount available for any one purchase and rehabilitation project at $525,000. For FY2012 and again for FY2013, LexHAB requested CPA allocations of $450,000 in order to have funds on hand to purchase properties when they became available and not lose a chance because of the annual Town Meeting appropriation cycle. However, as housing prices in Lexington have continued to rise, there are few, if any, opportunities to purchase and rehabilitate properties within the guidelines. For FY2014, LexHAB sought another annual allocation of $450,000 for the creation of new affordable units on Town -owned land already designated for affordable housing, rather than for the purchase of an additional existing home. Town Meeting rejected LexHAB's application because it considered that the number and style of units had not yet been determined with sufficient specificity. LexHAB is currently in the construction phase of a four -unit project on Fairview Avenue, which has been financed entirely through LexHAB's existing reserve and did not require Town Meeting approval for funding. There are two parcels of land purchased by the Town in 2009 with CPA funds that include portions specifically designated for affordable housing: the Busa Farm property on Lowell Street and the Leary property on Vine Street. While the greater part of the Busa property was designated open space for a community farm, approximately one half acre along Lowell Street was designated for affordable housing. LexHAB's FY2015 application for $750,000 in CPA funds was approved by Town Meeting to be added to funds on hand for the creation of six housing units in two buildings on the Busa land. The project is being developed as a Local Initiative Program (LIP) which will require an application for approval by the Lexington Board of Appeals. In February, 2016, the Town deeded the designated parcel to LexHAB as the first step in this process, and the LIP application is expected to be completed in the next few months. The Town has designated 13.5 acres of the Leary property (once a dairy farm) for open space and 0.7 acres abutting Vine Street for affordable housing. A committee appointed by the Board of Selectmen investigated the potential of the parcel and recommended that six attached units in two buildings be built on the housing portion. In 2011, Town Meeting rejected a LexHAB application for design funds for this project, and no further action is pending while LexHAB addresses its current projects at Fairview Avenue and Lowell Street. Housing units administered by the LHA are subsidized by the Commonwealth of Massachusetts (Greeley Village and Vinebrook Village) or the Federal government (Countryside Village). However, in recent years State and Federal contributions toward maintenance and improvement of these housing units has been inadequate, despite the LHA's annual application for grants. The Town may use CPA funds for the creation and "support" of housing, defined as capital improvements. CPA funds allocated to the LHA to date have been for capital projects to keep existing units functional and in compliance with legal standards. Appropriation of FY2013 CPA funds, along with a grant from the State's Department of Housing and Community Development, allowed for the construction of four handicapped accessible units at Greeley Village that will bring it into compliance with statutory accessibility requirements, as well as adding to Lexington's SHI. These units are expected to be ready for occupancy by this May. The Lexington Planning Department and the LHP assisted the Metropolitan Area Planning Council (MAPC) in preparing a draft Housing Production Plan for Lexington, which was accepted by the Board of Selectmen in March, 2014. The Board has not determined which portions of the Plan to implement, and this Committee has not vetted its contents. While allocations for affordable housing have been made each 31