2007-11-12-CPC-min - Laserfiche WebLink

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Community Preservation Committee November 12, 2007 Attending: Joel Adler, Norm Cohen, Marilyn Fenollosa, Leo McSweeney, Wendy Manz, Richard Pagett, Sandy Shaw, Betsey Weiss, Dick Wolk Also attending: Bob Bicknell, Tom Harden, Chris Kluchman (Lexington Housing Partnership) The meeting was called to order at 4:00 p.m. 1. Review Affordable Housing projects: a. Lexington Homebuyer Assistance Program Ms. Kluchman introduced the project by describing the basic elements of the program. The program entails making deferred loans at low or zero interest rates to qualified buyers to enable them to buy homes in Lexington. The loans would be required to be repaid in full upon sale by the owner. The programs provided by the Mass. Housing Partnership, such as the Soft Second loan program, still do not generate sufficient funds to buy a house in Lexington. The total purchase price of the homes would be capped at $500,000, and would only be available to first-time homebuyers or employees of the Town of Lexington. The homes would be required to be owner-occupied, and would have to meet all the requirements of the state’s Soft Second program. The LHP would try to identify a single lender to manage the Soft Second loans, and buyers would be required to be prequalified. The requested CPA funds would also be used for startup costs, issuing the RFP for a consultant, legal assistance, etc. Ms. Kluchman gave as an example the following: Area Median Income for family of four in Middlesex County: $82,000 Affordable amount of down payment on house: $ 15,000 Traditional mortgage: $284.000 Soft Second Loan: $ 33,000 CPA loan: $100,000 Available to purchase house: $431,000 She noted that there are 6-8 similar programs in other communities, many of them funded by CPA. Some of the issues raised by the CPC: - What are the criteria for picking applicants? (the criteria would be developed by the consultant. A lottery might be appropriate)