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HomeMy WebLinkAbout2022-06-07-AHTSC-minJoint Meeting Capital Expenditures Committee, Community Preservation Committee and The Affordable Housing Trust Study Committee (ad hoc) June 7, 2022 A remote participation Joint meeting of the Capital Expenditures Committee, Community Preservation Committee and The Affordable Housing Trust Study Committee was called to order at 8:00 am, on Tuesday, June 7, 2022 via Zoom remote meeting services. Present at the meeting: Capital Expenditure Committee: Charles Lamb, Chair; Rodney Cole, Michael Boudett, Sandy Beebe, Franklin Smith, David Kanter. Community Preservation Committee: Jeanne Krieger, Joseph Pato, Lisa Rhodes, Melinda Walker, Robert Pressman, Marilyn Fenollosa, David Horton, Kevin Beutell, Bob Creech. The Affordable Housing Trust Study Committee: Kathryn Roy, Chair; Gretchen Reisig, Jerri Foutter, Carol Marine, Tara Mizrahi, Betsey Weiss, Linda Prosnitz. Also present: Glenn Parker, Chair of the Appropriations Committee, Carol Kowalski, Assistant Town Manager for Development; Carolyn Kosnoff, Assistant Town Manager for Finance; Liz Rust, Director, Regional Housing Services Office, Kiruthika Ramakrishnan, Administrative Assistant. ITEMS FOR INDIVIDUAL CONSIDERATION 1. Presentation by members of the Affordable Housing Trust Study Committee (AHTSC) of the AHTSC’s findings so far in response to its Mission/Charge, and discussion with the Capital Expenditures Committee (CEC) and Community Preservation Committee (CPC) The purpose of the joint meeting was to hear a presentation about the findings of the Affordable Housing Trust Study Committee’s findings so far, in response to its Mission/ Charge, to the CEC and CPC. Ms. Roy shared the PowerPoint presentation which highlighted the need for an Affordable Housing Trust in Lexington and included a list of Municipalities with Affordable Housing Trusts. The presentation explained the activities that an Affordable Housing Trust can engage in; the Powers of the Affordable Housing Trust and its funding sources. The proposed Lexington Affordable Housing Funding chart was displayed and Ms. Roy elaborated about the role of the significant entities in creating affordable housing. Ms. Roy explained the progress that can be made in conjunction with CPC and reviewed the checks and balances. The proposed expertise and experience of the trustees was discussed. Ms. Roy went over the steps and timeline for creating an Affordable Housing Trust and explained it with a flow chart. Ms. Beebe (CEC) wanted to get a better understanding on how the CEC approval would help the AHT to achieve their goals. Ms. Mizrahi explained the ways in which the Trust could borrow funds. Ms. Kowalski explained that the AHT would be an entity of the Town and not a separate body. Ms. Kowalski said that the AHT will develop an action plan designed to help address the housing shortage in Lexington. Mr. Cole said that it will be useful to have an estimate of the money involved and wanted to know how it worked for other communities, particularly Arlington, since they were successful. Ms. Roy said that Arlington added an AHT this past year after many years of successful HDC and that the proposal in Lexington would be to come up with an amount to be funded similar to purchasing a lot for multi family housing. Ms. Roy added that April’s data showed that it would be around 1.5M in Lexington and additionally funds would be needed for the housing plan and RFPs. Mr. Boudett wanted to know why there was no AHT in Lexington in the past. Ms. Roy said that, in the past, LexHAB has been addressing the needs of Affordable Housing in Lexington. But with the recent changes in legislature, it has become very challenging. Mr. Kanter wanted further explanation on the Proposed Lexington Affordable Housing Map and wanted quantification on the Community Preservation Unbudgeted Reserve Funds. He also wanted more clarity on the two charges of the Affordable Housing Trust Study Committee. Ms. Roy clarified that not all of the CPA Unbudgeted reserve fund is for housing and the AHT would not be asking for a substantive portion of the Unbudgeted Reserve. She reassured the committee that everything the CPC allocates to the Trust would be under the CPA committee’s review. She noted that the AHT could react dynamically to the opportunity. Mr. Boudett wanted to know if AHT would be subject to the prevailing wage law. Ms. Roy said it would be and hence they would appropriate funds to an independent developer who would not be. Mr. Parker said he is very interested in the debt question and wanted to know if the Trust was not allowed to borrow money, would it slow the Trust down? Ms. Roy said that Debt is an exception and the AHT could acquire property and then do an RFP. Ms. Fenollosa stated that on the debt, CPC cannot fund pre-existing obligations, though CPC could fund mortgage debt that had been taken out. Ms. Fenollosa stated that in her experience, Town Meeting favors funding specific projects rather than appropriating money for non-specified projects and just giving money for undetermined projects. Ms. Walker stated that Trust is a financial organization and is not subject to prevailing wages for any CPC funds it is granted. Ms. Walker said that it should not be assumed that trust would fund an entire project. Ms. Walker added that multi- unit housing is the way to solve the Boston area crisis. Mr. Pressman wanted to know if the Affordable Housing Trust Study Committee would put aside the HDC part of the committee’s charter. Ms. Mizrahi said that it is not set aside. Mr. Pressman added that he is aware of only one existing piece of town land and that in other communities there is more land. He said that the money that is being paid by developers today to buy and demolish land should also be considered. Mr. Pressman said that Lexington faces unique challenges and a mechanism has to be developed for the Select Board to act quickly before losing opportunities to developers. The members of both the committees were generally favorable to the idea of establishing an AHT, but needed more details and information about the operations and funding of the AHT. Ms. Roy added that if the Trust were expected to only receive project-specific funds, Lexington would lose because of what developers are paying. Mr. Horton asked for examples from other towns on what problems they have encountered with their Affordable Housing Trusts. Ms. Roy responded that, for example, Milton’s Trust had decided not to act as a developer, after having done a development project. Mr. Creech asked that the presentation show what Lexington’s Trust could do despite high land cost. Ms. Roy asked for a straw poll. Mr. Kanter stated his concern regarding objective B of the Committee’s charge, regarding a Housing Development Corporation. Ms. Beebe was generally favorable, and interested in more information on borrowing and funding. Mr. Lamb was generally favorable, as was Mr. Smith, Mr. Cole, Mr. Boudett. Mr. Beutell was favorable, as was Mr. Creech, who noted that a Trust would make Lexington competitive [with developers]. Mr. Horton was generally favorable and interested in more details on how the CPC relates to the whole process. Ms. Krieger and Ms. Rhodes concurred with Mr. Horton. Mr. Pato favors pre-funding, and not just project-specific funding of the Trust. Mr. Pressman expressed full support for forming a Trust with the maximum authority and without [extra] oversight. Ms. Walker stated she was definitely in favor of a Trust and reminded the committee members that Belmont’s Trust acted to hire emergency rental assistance, and that there is a lot a Trust can do, beside acquire property. She agreed with Mr. Pato, supporting non-project specific funding for a Trust. Ms. Fenollosa stated general support for forming a Trust, with the provision that the details needed to be fleshed out. She expressed concern that the CPC members have a fiduciary duty as members of the CPC committee and are responsible for insuring that the funds under their care are used correctly. ADJOURN The meeting was adjourned at 9.10 am.