2018 11-29-CPC-min - Laserfiche WebLink

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The CPC voted in a straw poll to support the project (9-0). 3) LexHAB: Preservation, Rehabilitation & Restoration of Affordable Housing- Mr. Phelan requested $99,700 in CPA funds for the preservation, rehabilitation, and restoration of 12 affordable housing units, many of which were acquired with CPA funds. Mr. Phelan went through all 12 units detailing the work that needs to be done. The work includes large projects such as kitchen and bath renovations, as well as small projects such as front and rear door replacement. Mr. Phelan explained that the figures provided on the summary list are rounded up estimates by LexHAB construction experts. LexHAB anticipates a start date of August 2019 and a completion date some time in 2020. The CPC questioned the priorities of LexHAB since they have appeared before the committee for numerous years. Mr. Phelan explained that it is the position of LexHAB to come before the Committee with allowable projects as much as possible.The supplemental CPA funds allows LexHAB to maintain lower rents and continue affordability for their tenants. Mr. Hornig inquired if there are any other known acquisitions in the future. Mr. Phelan responded that LexHAB is always interested in acquiring properties and that homeowners who sell to LexHAB receive a tax benefit. An example of a recent purchase is 22 Hamblen Street where the homeowner approached LexHAB. Lester Savage, a local realtor and LexHAB board member actively looks for properties for LexHAB to acquire. Ms. Fenollosa asked if LexHAB would rather use CPA funds to purchase properties or to maintain properties. Mr. Phelan stated that LexHAB would like to use CPA funds for both acquiring and maintaining properties. He also noted that the economy is strong and that the employment rate is at an all-time low. LexHAB's position is to have a strong cash position so that they can be prepared for future hardships, such as, a tenant's loss of employment or lowered income. Mr. Phelan gave a general update regarding Farmview (Lowell Street). He stated that they have gone out to bid two times and will go for a third because both bids came in higher than expected. One reason for the high bids is the prevailing wage requirement which is typically 30% higher according to Mr. Phelan. Mr. Horton asked if the work for the project that is before the Committee needs to go out to bid. Mr. Phelan responded that it does need to go out to bid and students from Minuteman Vocational Technical School District (Minuteman) will be utilized as much as possible. The CPC voted in a straw poll to support the project (9-0). 4) Debt Service- Ms. Kosnoff distributed two excel spreadsheets to the Committee detailing CPA funds, projected revenues, and expenditures (CPA-Funds Projected 3