2006-12-13-CPC-min - Laserfiche WebLink

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Lexington Community Preservation Committee Minutes Dec. 13, 2006 The meeting was called to order by Betsey Weiss at 5:005pm. Also present were Joel Adler, Norm Cohen, Marilyn Fenollosa, Leo McSweeney, Richard Pagett, Sandy Shaw,Wendy Manz, and Dick Wolk. Charles Lamb, representing the Capital Expenditures Committee was present. 1. Bob Bicknell, Jeri Foutter, and Judi Barrett appeared to present the application of the Lexington Housing Partnership for $200,000. This request is for funds to support a Prototype Project to find and test out the factors necessary for an extended program to work in Lexington, which would then be the subject of future requests for CPA funds if the Prototype Project is successful. It would include CPA funding to purchase an affordable deed restriction. Bob said that the Lexington Housing Partnership, through the Housing Foundation, has funded a study which is underway, under the direction of consultant, Judi Barrett, to define program parameters to use Deed Restrictions to preserve the future affordability of existing smaller homes in Lexington. This program would provide ownership opportunities for First Time Homebuyers – including town employees and employees of local businesses. It will encourage diversity as envisioned by our Comprehensive Plan. It would also help minimize future teardowns. 2. Bob then asked for questions. In response to Wendy Manz’s question, Bob said that $7,300 is for a study has already begun, which the Housing Partnership is paying for, out of Housing Foundation funds. The CPC request is for $200,000 which would be for a $ 100,000-$170,000 “buy down” deed restriction and then $30,000 to run the lottery (which is a few thousand dollars) and for a contingency fund for capital repairs such as if a roof is needed or heating system needs to be replaced for the house to minimize the expenses for the new owner. Such a contingency fund would be retained with the property to cover any future transition costs associated with ownership change. Bob then passed out a chart that showed how sales prices are calculated with respect to household median family income. Bob said that in 2006, $81,400 is the Household Median Family Income (HMFI) for a family of 4 and housing including mortgage costs should not be more than 30% of the qualifying income. Therefore for a 3 bedroom house that could be acquired for $350,000 to $400,000, and considering mortgage, taxes, and insurance, etc., would equate to a permitted sales price of $231,172 for a family qualifying at 80%to 100% of Household Median Family Income. The buy down amount would be the difference between the acquisition price of the property and the permitted sales price. 3. Richard Pagett asked if there are lists of people who are qualified? Bob said that would be done as part of the Prototype Project. Initially the work to conduct the