2024-05-13 SB Packet - Released - Laserfiche WebLink

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Affordable Housing Trust Program Buy-downs for more Housing Affordability Adopted by vote of the Lexington Affordable Housing Trust September 28, 2023 The Lexington Affordable Housing Trust partners with developers to achieve more affordability in their projects when either affordable units, or a payment in-lieu of units, are required,such as in the new MBTA Multi-family developments and Special Residential Developments (SRD). With funds from the Lexington Affordable Housing Trust, interested builders can construct additional deed-restricted units in Lexington, or turn one of their required affordable units into a home available to a very low or extremely low income renter. The Housing Trust funds can be used to 1) subsidize one or more additional Subsidized Housing units,or 2) to buy-down the subsidy of a required Subsidized Housing Unit in order for it to be affordable to a tenant or buyer earning 50%("very low income")or 60%of area median income. The Housing Trust begins by negotiating an agreement with an interested developer who seeks to use the MBTA Multi-family zoning, before the developer's Planning Board Site Plan Review hearing. For projects of 8 or more units, Lexington's MBTA Multi-family zoning requires affordable units at 80% of Area Median Income (AMI). With funding from this program,the developer could create an affordable housing unit rather than simply make a payment to meet this requirement.The program could also make an affordable unit in a larger MBTA Multi-family development affordable to renters earning less than 80%AMI—the upper limit for inclusion on the SHI. For SRD developments, in addition to deepening the subsidy for lower-income residents,this program could create a unit in SRDs of 6 or fewer units,which are otherwise allowed to make a payment in lieu of creating units. Process:The Affordable Housing Trust is notified by Town staff when a developer is preparing to apply, or has applied for Site Plan Review with Planning Board.The Housing Trust Chair and/or a Trust member designee, staff, and the RHSO (and Town Counsel as needed)seeks a meeting with the developer to discuss the possibility of using this program,and informing the developer of the requirement of a permanent deed restriction on the unit. Once discussions reach an agreement in principle,Town Counsel drafts the agreements and the Town and the developer determine the timing and necessary terms for the conveyance of the funds and executing and recording the deed restriction. 1