2010-04-05-ATM-CPC-rpt - Laserfiche WebLink

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ARTICLE (f) Project: LexHAB Purchase of Two Properties CPA Category: Community Housing Amount Requested: $695,000 Amount Recommended: $6951000 CPC Vote: Project Description: LexHAB is requesting$695,000 to support LexHAB with its acquisition of two units for which the Town will receive affordable housing deed restrictions. The affordable housing restrictions are real property interests which the Town would be acquiring in consideration for its appropriation of the CPA funds, and are an express requirement of section 12(a) of the CPA statute. 142 Emerson Gardens -a two-bedroom, one-bath 830 square foot unit on two floors with access within the unit, a finished room in the basement, %z bath, laundry and storage and built in 1965. The unit is within walking distance of an MBTA bus stop and was purchased for$295,000. • 454 Marrett Road—a three-bedroom, one-bath 1,186 square foot two-floor single family home on a .56 acre lot, on the MBIA bus route.The home was built in 1930 and has a full attic and basement. The floors are hardwood but need refinishing. The kitchen and basement are antiquated and require work for safety reasons. The original 60-amp wiring has never been updated and must be brought up to code.The house was purchased for$400,000. The Selectmen and LexHAB have redesigned the method of advertising and selecting renters for CPA- funded properties in compliance with current state requirements.This will enable the Town to pursue having the two units count toward the 10% low and moderate-income housing,the so-called 40B requirement, and to be included on the State's Subsidized Housing Inventory. Project Goals and Objectives: As of October 2009,LexHAB owned 61 housing units and was providing housing for 150 persons. Approximately 84% of these households (50 of the 56 LexHAB occupied units)had a previous Lexington connection when they moved into LexHAB housing. LexHAB-owned housing units range from 4-bedroom scattered site homes to one-bedroom condominiums. To date,LexHAB has been supported through its rents,Town linkage funds, and CPA funding. In addition to the costs of building and maintaining housing units and condo fees, LexHAB pays all its own office rent,legal fees, and salary for a part time office manager. LexHAB traditionally provides housing to persons making up to 80% of the Boston Area Median Income as set by the federal government which is $66,150 for a 4-person family. It is anticipated that the housing units for which funding is being sought for FY 2011 will be rented to applicants making no more than 60%of the Boston Area Median Income which is $54,120 for a 4 person family,thus enabling families with lower incomes to find housing in Town. Project Benefit: To support LexHAB with its acquisition of two units, for which the Town will receive affordable housing deed restrictions.These two units increase the Town's abihty to meet the housing needs of families with lower incomes and is an objective noted in the Town's Comprehensive Plan. Funding Request: The funding request for this project is $695,000. This request includes $295,000 for142 Emerson Gardens and$400,000 for 454 Marrett Road. LexHAB has covered interest, closing and rehabilitation costs for both units which amounts to approximately$87,615. 11