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HomeMy WebLinkAbout2022-04-13-AHTSC-min RECEIVED 2022 05 May, 1131 aiiiy"i TOWN CLERK LEXINGTON MA The Affordable Housing Trust Study Committee (ad hoc) Meeting Minutes of April 13, 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: Caitlin Madden Metro West Collaborative Development, Bob Burbidge LexHAB, Sarah Morrison LexHAB, Elizabeth Rust RHSO, Bob Pressman. 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 4:10 pm. The meeting was recorded by LexMedia for future on-demand viewing. 1. Address by Guest Speaker Caitlin Madden Ms. Marine introduced Caitlin Madden. Ms. Madden said that Metro West Collaborative Development (Metro West) is an advocate for Affordable Housing and a big focus of their work is, partnering with municipalities to help them meet their affordable housing goals. Lexington is within the area that they serve. Ms. Madden said her background is in real estate development and she shared examples of a couple of current projects. Ms. Madden explained how affordable housing starts with zoning, either inclusionary zoning (special permit) or 40B. Ms. Madden said often they do 4013s in partnership with municipalities. Sometimes towns have municipal land and/or properties that are underutilized or vacant. The towns and cities will go through a formal request for proposals process to invite developers to put forth proposals for housing development. Another way is through non-profit developers, whose mission is to provide affordable housing opportunities. Ms. Madden then explained in detail how non-profit affordable housing process works. Ms. Madden said it often starts with an idea, which could be from a local resident, local landlord, a planning department staff, or a select Board member. It is followed by a feasibility study to determine if there is a permitting path, enough money, and political will. 1 The next stage is site control, followed by design, permitting and financing, moving on to construction and lease-up. Ms. Madden shared details about the types of partners Metro West works with, namely property owners, neighbors, community stakeholders, municipal leaders, local and state funders. Ms. Malden said that one of the key things is to navigate between the complex local and state funding environment and putting together all the pieces that make the projects possible. Ms. Madden said that they also work with private lenders to access private funding for their permanent loans and also to solicit tax credit equity for their tax credit projects. Ms. Madden said they also work with general contractors and a team of professionals including engineers and consultants. And since Metro West is a long-term steward of community assets, they also have a good relationship with both their residential and commercial tenants. Ms. Malden shared the details of the number of units, the total development cost of each unit and the types of funding received, for a few completed projects. Ms. Malden said all the projects that she shared were rental projects and a 100% restricted affordable housing. Ms. Madden shared the recipe for the secret sauce for the projects as having a strong Affordable Housing Trust, and a consensus on goals (who and how to help). Ms. Madden said it is always helpful to have a planning grant; outside technical support makes it real for everyone and helps bring people together for any specific project.Town contributions can be in many forms including money to fund the development, reduced permitting fees and contribution of land. Ms. Madden said the other key factors are, sense of partnership between the staff and other stakeholders and, political leadership. Ms. Mizrahi asked Ms. Madden for ways to overcome the challenges Lexington could face of not having a zoning by-right for multi-family housing and also the total development cost being very high. Ms. Madden said that one of the biggest challenge municipalities face especially with town owned properties is 30B wage requirements. Having a non-profit developer participate in the process, can help reduce costs by avoiding some of those requirements. Also, with the tax credit project funding, the appropriate number is 35 —40 units minimum. For non-tax credit projects, relying heavily on local funds and some out of round funding sources available through the state, and looking into other sources of funding is important. Ms. Marine asked Ms. Madden about the feasibility of assembling two or more scattered sites in the development process. Ms. Madden said there are some efficiencies with proceeding with a scattered site proposal to get a higher unit count, but it is also challenging from a permitting and administration angle and also construction point of view to mobilize stuff across different sites. Ms. Madden also said construction costs are very high right now. 2 Ms. Roy wanted to know what would make it compelling for Ms. Madden to be involved in a project with Lexington. Ms. Madden said that if the ingredients of the secret sauce are present, it would be a dream project for Metro West; and added that in the past, a town owned property, with assistance and guidance from the town, always makes the process smooth. Ms. Madden offered to share contacts and details to guide. Mr. Sandeen wanted to know the typical size of the units that were completed. Ms. Madden said that since they typically use funding from DHCD, they follow the minimum guidelines set by DHCD, which is 600 sq ft for one-bedroom units and 800-850 sq ft for two- bedroom units and 1000 sq ft for three-bedroom units, but it is also based on a lot of other factors. 2. Approval of Minutes of Meeting held on 03.23.2022 The Affordable Housing Trust Study Committee reviewed the draft minutes of meeting held on 03.23.2022. Ms.Weiss moved that the committee approve the minutes of meeting held on 03.23.2022,as presented. Ms. Marine seconded the motion.The Affordable Housing Trust Study Committee voted in favor of the motion 4-0-1(Roll Call: Ms.Weiss-yes; Ms. Marine-yes; Ms. Foutter-yes; Ms. Roy-yes; Ms. Mizrahi-abstained) MOTION PASSED. 3. Committee powers and trustees, continued Ms. Mizrahi wanted to know the committee's thoughts on the public listening sessions and meeting with other groups and how it will weigh in on the actions of the committee. Ms. Kowalski said that the committee has come a long way and based on the work done by the committee so far, she felt that the committee can start sketching out a declaration of trust and start the campaign. Ms. Mizrahi gave a few possibilities that could follow. Discussion ensued. Ms. Weiss said that there is an Affordable Housing Stabilization Fund, and suggested that the committee should find out the amount of funds that are in there. Ms. Kowalski shared a revenue sheet that listed the funds available. Ms. Rust echoed Ms. Mizrahi's thoughts about the two important factors of the trust, one being money and the other being powers. Ms. Rust also said that being able to hold real estate, and being the town's trusted entity to execute the necessary actions towards raising affordable units, is critical. Ms. Marine echoed Ms. Reisig's thoughts and stressed the need to look at a long-term perspective and to have a clear idea of the roles and responsibilities of the different housing players in Lexington. Ms. Mizrahi wanted the committee's general opinion in drafting the powers as to which ones have to be addressed to the select Board and which ones to the Town Meeting. Ms. Reisig agreed with Ms. Mizrahi. Ms. Rust said that Town Meeting is involved only when there are big projects or when CPA funds have to be used, but the Select Board's decision has to be weighed in to make sure it is acceptable to the residents. Ms. Rust also suggested that the committee keep all the state powers mainly to make grants, to hire professionals and to buy or sell real estate. Ms. Roy wanted to know the powers that the Select Board will have. Ms. Rust said that the involvement of the Select Board engenders public support. Ms. Weiss said that Town Meeting will want the Select Board's involvement/input on the important decisions. Ms. Kowalski said that with the help of Town Counsel 3 and Ms. Rust, a Declaration of Trust can be drafted and then get the recommendations of the Trust to complete the document. Ms. Mizrahi wanted to add the concept of the Trust of not having a majority vote when the Trust is purchasing or selling properties and also the ability of the Trust to loan money. Ms. Reisig also wanted to add that if the Trust were to borrow money, it has to be approved by the Select Board. Discussion ensued. The committee discussed how frequently the different affordable housing entities would meet.The committee agreed that meeting twice a year would be ideal. The committee also discussed the membership of the trust. Adjourn Ms. Mizrahi moved that The Affordable Housing Trust Study Committee adjourn the meeting held on April 13, 2022. 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. Meeting adjourned at 5:42 pm. 4