2008 CPC Rpt - Laserfiche WebLink

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Project: Parker Manor Condo Purchases CPA Category: Affordable Housing Amount Requested: $652,800 Amount Recommended: $652,800 CPC Vote: Approval (8 -0 -1) Project Description: LexHAB is requesting $652,800 of CPA funds to complete the funding of the purchase of three 2- bedroom condominiums in the Parker School Condominiums for rental to low and moderate income individuals and families. LexHAB has provided the down payment of $163,200 and will cover the mortgage until Community Preservation Funds are made available to complete the purchase. The amount requested is the principal balance of the mortgage, which is 80% of the purchase price of $816,000 for the three units. LexHAB has also spent $13,155 in closing costs and $2,905 in inspection costs. As of July 2008, LexHAB will have spent $51,060 in monthly payments and will have spent /contributed a total of $230,320 toward the purchase of these units. In addition, LexHAB pays the monthly condo fees for the units, which is slightly more than $600 monthly. LexHAB has applied for reimbursement of $59,150 from the HOME program. The decision whether these units will qualify for Lexington Subsidized Housing Inventory, which counts towards the Town's Chapter 40B 10% affordable housing requirement, is pending with the Department of Housing and Community Development (DHCD). Project Goals and Objectives: • Increase the Town's affordable rental inventory; • Allow LexHAB to replenish reserve funds for the future purchase of 26 low and moderate subsidized units at Katandin Woods for which the Town has the right of first refusal within a short period of their becoming available; • Reduce rental rates as much as possible to keep units affordable. Project Benefit: LexHAB, the first local municipal organization in Massachusetts to provide rental units to low and moderate - income individuals /families, was established by a vote of Town Meeting in 1983 as a supplement to the Lexington Housing Authority. By Town Meeting requirement, LexHAB, a volunteer seven - member board appointed by the Board of Selectmen, must take into consideration whether a prospective tenant has a Lexington connection, if all other considerations are equal. As of October 2007, LexHAB provided housing for 137 persons in its 53 housing units. More than 65% of LexHAB's households had a previous Lexington connection when they moved into LexHAB housing. Funding Request: The purpose of this request is to increase the number of affordable rental units and increase the number of qualifying Chapter 40B units within Town, both now and as a part of an overall plan for future acquisition, including units at Katandin Woods. 13