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HomeMy WebLinkAbout2022-01-26-AHTSC-min IREC i ' °i 2022 24 Z: pir The Affordable Housing Trust Study Committee (ad hoc) .roN CLERK Meeting Minutes of January 26, 2022 LE X I N G'I'0 N MA Affordable Housing Trust Study Committee members present for the public meeting: Betsey Weiss, Gretchen Reisig, Jeri Foutter, Kathryn Roy, Linda Prosnitz, Carol Marine, Tara Mizrahi. Lexington Staff present for the public meeting: Carol Kowalski, Assistant Town Manager for Development, Kiruthika Ramakrishnan, Administrative Assistant. Non-voting liaison of the Select Board: Mark Sandeen Ms. Roy conducted a roll call to ensure that all the members of the Affordable Housing Trust Study Committee(ad hoc) and members of staff present could hear and be heard. Ms. Roy chaired the meeting and called the meeting to order at 4:16 pm The meeting was broadcast live on LexMedia and recorded for future on-demand viewing. Committee members Tara Mizrahi and Betsey Weiss: LexHAB and the Housing Partnership Board Ms. Mizrahi gave a brief introduction about LexHAB and its operations. Ms. Mizrahi explained the two main reasons behind LexHAB's interest in creating a Housing Trust. LexHAB has two main ways of increasing the number of affordable housing units in Lexington, one being that of developing their own project every few years using CPA funding. And the other initiative is to buy naturally lower level homes and make them into affordable housing. LexHAB is interested in creating the Trust mainly because it will facilitate them to act quickly and easily on achieving their goals instead of waiting for the Town Meetings and to co-ordinate with CPA for funding. Ms. Roy wondered about the other places where the CPA money could be sent to for housing. Ms. Weiss said Metro West is another option. Ms. Kowalski said that the trust could be used to create subsidiaries to build affordable units, and it may be managed by LexHAB. Ms. Mizrahi envisions LexHAB turning into an HDC, which will allow them to build more affordable units for the same amount of money. Ms. Weiss explained that the Housing Partnership Board wrote a letter to the Select Board in support of the Affordable Housing Trust and the Housing Development Corporation. Other communities Housing Trusts: Arlington example Ms. Roy shared a copy of the census and demographics of Lexington and nearby towns. Ms. Mizrahi said that inputs can be got from the Town Counsel with regards to challenges in forming and operating a trust. Ms. Weiss said that Arlington had been to Town Meetings and so it is best to identify the challenges faced by them during the process and figure out how to address them. Ms. Prosnitz, said it is also a good idea to find out what Arlington's goals were, with regards to a Housing Trust, and also their method of operation, to learn lessons from them. Ms. Marine said that based on the Lexington Next plan, it is vital to see where the community is in terms of needs and goals, because she feels they are connected to the activities the trust will need to focus on. It was decided by the committee to watch the presentation by Pamela Hallett, the Executive Director of Housing Corporation of Arlington, to get more insights about the formation and the operations of a housing trust. Timeline, milestones - Consider Committee member work focus areas Ms. Roy shared a timeline and milestones for the committee and asked for inputs from the other members of the committee. Ms. Roy pointed the June 30, 2022 deadline to draft the bylaw and went over the timeline in detail. Ms. Roy's plan was to review materials and research on the trusts created by neighboring towns; followed by interviewing external partners and meet with Town Counsel and the director of Regional Housing Services Office. Upon setting up the criteria for the committee and assigning the roles and responsibilities of the members, Ms. Roy then planned to draft the vision statement and meet with other agencies that play a key role in Lexington's affordable housing. Regional Housing Services Office, Liz Rust Ms. Rust, introduced herself as the director of Regional Housing Services office and has been closely associated with affordable housing in Lexington and has also worked with other communities in administering and setting up trust for affordable housing. Ms. Mizrahi asked Ms. Rust to explain the differences between CDC and the housing development organizations. Ms. Rust explained how Concord Housing Development Corporation works and said that they do not own or manage rental properties. They are more transaction oriented or project oriented. Ms. Rust said that the funding source comes with a constraint on which income group and households it can serve and often eighty percent of AMI is the standard, which is the generally accepted standard for subsidized housing. And they have also done more moderate income units, between 80 and 120 percent, which was done to bring higher proceeds for the project. Ms. Marine asked about the size of the properties in the projects that they had developed. Ms. Rust said one project was five acres, a twelve unit development. They are currently working on a project of seven acres in partnership with open space agencies, which after development will add conservation restriction on the rest of the property. They have bought condos about to lose their affordability restrictions and reinstated them. Ms. Mizrahi asked Ms. Rust about similar obstacles she had faced from different communities in the past. Ms. Rust said that as far as Lexington was concerned, the need for affordable housing was already well defined; the areas to work on going forward would be defining what the powers of the trust would be, what the relationship of the trust would be with regards to the Select Board, and the membership of the trust. Ms. Rust said that the areas that that would need further discussions would be about control and with the CPA/CPC and the finance committee. Ms. Roy asked Ms. Rust for guidance relating to the powers of the committee, and Ms. Rust said that all the powers are to be taken and modified if needed or additional clarifying powers may be added. Ms. Rust informed the committee that West Newbury is forming their trust and asked the committee members to review the slides they have shared on their website, to get more details about the various provisions related to affordable housing. Ms. Rust said the main focus should be on the goals and points of control of the trust and the membership of the trust. Ms. Rust suggested the committee give more thought on how the housing partnerships fits into our plans. Ms. Foutter said that usually the Housing Trusts will be more operational compared to the Housing Partnership and qualified Community Development Corporations (CDCs) are able to utilize the Department of Housing and Community Development (DHCD) Community Investment Tax Credit (CITC) program. Ms. Rust proposed that the committee to come up with the goals of the committee and the projects they envision and based on that, Ms. Rust will be able to guide and provide resources. Ms. Weiss said one of her main priorities would be to preserve the smaller homes from being bought by developers and resulting in large developments, and bring more affordable units in the process. Ms. Prosnitz said her focus would be on finding the sources of finance and based on that arrive at goals for the committee. Ms. Kowalski said she can get details about potential sources of funding and ideas of possible activities for the committee. Ms. Roy wanted to know the range of CPA funds that are available for affordable housing. Mr. Sandeen said that a few years back it was seventeen percent whereas this year it is forty five percent and it changes every year. Ms. Rust added that ten percent of the funds has to be used for housing and ask the CPC if there are any housing reserves. Ms. Marine suggested that there were grants available with MBTA guidelines. Comments, questions on material received Mr. Sandeen shared a pie diagram showing the allocation of funds from the CPA and explained the percentage which was allocated to community housing. Mr. Sandeen then shared a screen showing the amount of funds made available to affordable housing starting from 2008. Ms. Marine asked about when the funds will be available and how it will be allocated. Mr. Sandeen said that the CPC makes those decisions and it will be ratified by the select Board and Town Meeting and added that the biggest allocation this year was towards affordable housing and it came to around five and a half million dollars for Vine Street. PERCENTAGES APPROPRIATED TO DATE ----------- �N�jijrff rrrrlJUl111JIiiIDJ111�D�lIIIl1J0111I111�i ;a L w,&; "n"',.,m.r,r kll w`,„r, fg pru W/n-„+fi r rri„4fA"t 1.,i.s „ STATE MATCHES TO DATE IFiscalY 20,0�8 100. E 210,019 09.40 $1,9127,708 2010 36,17 ,060,3190 2011 28,22' 8'5 ,729 2012 27.02 0050 ' 2013 27.791 $ 929, 07 2014 54.09, $1,9132,347 2015 32.50 $1,230,11+ 2010 3010 $1,229,774 2017 21,301 $8917,243 2010' 17.80 '80,00i5 2010 10.00 $922,200 202'O 2 . 01 $1,219,9150 2021 20. '0 $1,040,005 TOTAL '$20,234,704 Ms. Kowalski said that some towns adopted a short-term rental tax, because short term rentals play a huge role on the number of affordable housing available; and so many communities designate the short-term rental tax to go towards affordable housing. Ms. Kowalski added that if Town of Lexington were to start short term rental tax, it would be potentially available for affordable housing. Mr. Sandeen said that another potential source of funds would be based on the two warrant articles passed by the Town Meeting; one on residential housing and one on commercial properties, subject to approval by the legislature and the Select Board. Ms. Rust mentioned Concord is adding a transfer fee, properties over$500k would pay a percentage when they sell into the AHT— Nantucket, Somerville and 2 others are doing something similar. Massachusetts General came out in support of this. Ms. Kowalski mentioned the Housing Stabilization Fund and Brookhaven's contribution to the fund as payment in lieu of inclusionary units after Brookhaven's expansion. Brookhaven committed $2M, payable over several years. Mr. Sandeen asked Ms. Kowalski to share the status of ARPA funding to the committee. Ms. Kowalski said that the Select Board designated twenty thousand dollars of APRA funds for supporting the efforts of this committee, which will be used towards Objective B, in forming the Housing Development Corporation and has put a scope of work based on the Town Manager's request. Ms. Marine wanted to know who has control over the funds in the Housing Stabilization fund, that came as payment in lieu from Brookhaven, regarding where it can be put to use and how it will be authorized. Ms. Kowalski said Town Meeting has to vote to move money out of that with the recommendation of the Select Board. Ms. Mizrahi's suggested the committee start with the questions listed in Chapter 3 of the guide book, as leading questions, was accepted by the committee. Adjourn Ms. Roy moved that The Affordable Housing Trust Study Committee adjourn the meeting held on January 26,2022. Meeting adjourned at 5:33 pm.