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HomeMy WebLinkAbout2022-02-09-AHTSC-min RECEIVED 2022 22 uNfiar, &58 a n 11'0WIR C:1.ERK The Affordable Housing Trust Study Committee (ad hoc) LEXI G'rON NA Meeting Minutes of February 9, 2022 Affordable Housing Trust Study Committee members present for the public meeting: Kathryn Roy, Chair; Betsey Weiss, Gretchen Reisig, Jeri Foutter, 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 Other Attendees: Mina S. Makarious,Town Counsel. 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 4:19 pm. The meeting was recorded by LexMedia for future on-demand viewing. 1. Approval of The Affordable Housing Trust Study Committee Minutes of 01/21/2022 The Affordable Housing Trust Study committee reviewed the draft minutes of meeting held on 01/21/2022. Ms. Mizrahi moved that the Affordable Housing Trust Study Committee vote to approve the minutes of meeting held on 01/21/2022,as presented. Ms. Reisig seconded the motion.The Affordable Housing Trust Study Committee voted in favor of the motion 7-0-0(Roll Call VOTE, MOTION PASSED UNANIMOUSLY) 2. Mina S. Makarious, Town Counsel, will address the Trusts he assisted in forming for client towns Mr. Makarious shared his experience in helping Winchester and Concord with the formation of Affordable Housing Trusts. Mr. Makarious said that with the trust in Winchester, the main focus was to consolidate the housing efforts of all participants, by establishing the trust. It was also to act quickly on properties and in developing the lands; this model also had a lot of flexibility with the process outside of the Municipality and Town Meeting process. Concord, on the other hand, is very similar to Lexington and has a corporation called CHDC, which is very similar to LexHAB, with one difference being that it is not an entity of the town. The main purpose of forming the trust in Concord, was to streamline the municipal funding related to affordable housing and to consolidate it, but with no intention of acquisition or development of housing. Ms. Roy wanted to know about the source of funds and Mr. Makarious explained that it was a combination of a few funds—SB Housing fund, Stabilization fund, mitigation payments from developments, proceeds from sale of properties, and appropriations from Town Meetings. Concord has mitigation payments and CPA—so in the future it will get CPA funds. Winchester doesn't have CPA. Ms. Mizrahi had a question regarding the relationship between The Concord Trust and The Concord CPC. Mr. Makarious said it is anticipated that, with the way it has been set up, the Trust will in the future be a grant recipient for CPA funds. Ms. Kowalski informed about the recent changes in Affordable Housing Trust statute made by the State Legislature to specifically be consistent with the expectation that communities with CPA, would be using CPA funds for Affordable Housing Trusts. Mr. Makarious further clarified that the statute has a list of categories where money can be spent and it is project based and explained the restrictions when it comes to line item transfers to other municipal entities or housing trusts like RHSO. Ms. Weiss wanted to know if CPA funds have to be kept in a separate fund in the Trust due to restrictions. Ms. Kowalski explained saying that any funding source may have different requirements; fiduciary managements have to be precise and meticulous when it comes to adherence and reporting requirements. Ms. Roy wanted to know about the goals of the Trusts that were formed in Concord and Winchester. In Winchester, the goal was to acquire property and develop it or sell it; they need to get to 40B level. In Concord, the initial goal was the same as Winchester but they have a lot more of existing affordable housing; both have the main purpose to act expeditiously. Ms. Prosnitz said Cambridge provides 80% of CPA funding to the AHT. Ms. Marine asked Mr. Makarious whether any of the Trusts in these towns, anticipate other sources of steady funding, in addition to CPA funds. Mr. Makarious said other than a constant supply of mitigation funds from construction projects, there are not any continuous source of funds. Ms. Roy wanted to know typically who will be on the trust committee. Mr. Makarious said appointees of the Town Manager and Select Board will be the trustees of the housing trusts. Ms. Roy shared her screen showing the comparison of the sources of funds for the trust and the housing development corporations and wanted clarity on what was displayed. Mr. Makarious added that there are no limitations for the amount of funds that can be received by towns, trusts, foundations. Ms. Marine wanted clarification as to which entity would be able to provide funding for rental assistance and other assistance related to housing, since trusts will not be able to do so. Mr. Makarious said that CHDC has done so in the past; the towns also offered housing assistance through RHSO. Ms. Prosnitz had a question regarding reluctance on the part of City of Cambridge to use the funds from the city towards rental assistance and wanted to know if CPA funds fall into that restriction. Mr. Makarious said that CPA is very supportive of community housing and stresses on proper use of funds. Ms. Marine wanted to know more about the affordability parameters for the funds. Mr. Makarious said that in all cases the parameters have to be followed. d that it is important to keep in mind that the restrictions attached to the funds, when they were granted, cannot be relaxed at any point. 3. Tara Mizrahi / LexHAB Overview Ms. Mizrahi gave a brief overview of LexHAB. Ms. Mizrahi explained that LexHAB is affiliated with the town and currently owns 74 units and they are all rented out. LexHAB acquires properties through donation, purchases, development, and the types of structures range from single family to multi-family housing, condos, all of them are at below eighty percent AMI. Ms. Mizrahi said all the units have their own internal operating subsidy. Ms. Roy shared a screen showing the AMI calculation at a 100, 80, 50 and, 30%for a better understanding. Ms. Mizrahi said that the MetroWest CDC has been helping LexHAB with the affirmative fair housing marketing tenant selection plan, which has to be approved by the state. 4. What type of investment would Lexington be making? (Single family, multi- family, large apartments; rentals / for purchase?) Ms. Roy shared a screen of the sources of fund available and said that she wanted more details of funds that would be available. Ms. Kowalski offered to produce a draft revenue sheet showing all the sources of funds available and also the projections. Ms. Mizrahi wanted to know how much funds CPC will have access to annually. Based on Mr. Sandeen's slides from the previous meeting, Ms. Roy said that of the total 8 million that CPC received, 2 million was for LexHAB Vine Street. Ms. Mizrahi said 6 units (10 bedrooms) were proposed in Vine street and each one cost between 800 to 900 thousand dollars. Ms. Mizrahi said that with conversion of LexHAB to a nonprofit organization, the cost of construction can be significantly brought down by not paying the prevailing wages and by not paying the Municipal Procurement Law fees. Ms. Kowalski said based on what type and size of housing is needed, a plan should be set for investment. Adjourn Ms. Reisig moved that The Affordable Housing Trust Study Committee adjourn the meeting held on February 9, 2022. Ms. Mizrahi seconded the motion. Meeting adjourned at 5:51 pm.