2013-03-18 BOS Packet - Released

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ARTICLE 8 (m) Project: LexHAB Set-Aside Funds for Development of Community Housing CPA Category: Community Housing Amount Requested: $450,000 Amount Recommended: $450,000 CPC Vote: (9-0) Project Description: LexHAB seeks $450,000 in Set-Aside funds in FY14 for the development of community housing in Lexington. In years past, Set-Aside funds have been used for the acquisition of affordable housing, but in FY14, the CPC stipulated that LexHAB’s grant of CPA funds must be used for creation of housing at either the Leary or Busa sites. The units which LexHAB builds will be subject to specific standards (listed on the following page) set in place by the CPC and agreed upon by LexHAB and the Board of Selectmen. All units created (and acquired) with CPA funds will receive affordable housing deed restrictions, and will become part of the Town’s Subsidized Housing Inventory (SHI). This is the third year that LexHAB has requested Set-Aside funds for affordable housing acquisition/creation. CPA funding approved for FY12 was used to purchase a home at 1 Wilson Road, which is now rented. Approximately $85,000 of that FY12 appropriation remains unspent, as well as the entire FY13 appropriation of $450,000. In light of this, the CPC imposed the conditions described above for the use of FY14 funding. Project Goals and Objectives: The goal of this project is to develop community housing at either the Leary or Busa sites. Project Benefit: Established by a vote of Town Meeting in 1983, LexHAB was the first local municipal organization in Massachusetts to provide rental units to low- and moderate- income individuals and families. A volunteer seven-member board appointed by the Selectmen, LexHAB continues to pursue the goal of increasing affordable housing in Lexington. CPA funding enables LexHAB to create and acquire affordable units in compliance with Guidelines set forth by the CPC. LexHAB units range from 4-bedroom scattered site homes to one-bedroom condominiums. Housing is provided to persons making up to 60% of the median income for the Boston area as set by the federal government. LexHAB rents are no more than 30% of the family income as verified by the previous year’s income tax returns. Housing that is provided through CPA funding allows families who would otherwise not be able to live in Lexington the opportunity to take advantage of the benefits available to residents. FY14 funding will enable LexHAB to increase the stock of community housing by dedicating funds to either the Busa or Leary housing initiatives. Funding Request: The FY14 funding request to Town Meeting for the creation of community housing is $450,000. Funds which are not expended in FY14 may be carried over and used for affordable housing creation the following year, subject to the same restrictions.