HomeMy WebLinkAbout2023-06-08-AHTBT-min Affordable Housing Trust
Meeting Minutes of June 8, 2023 10:30 am
Hybrid meeting on Zoom and attended in-person in the Parker room, Town
Office Building
Affordable Housing Trust Board Members present for the Public Meeting: Elaine Tung, Chair;
Mark Sandeen, Linda Prosnitz,Tiffany Payne, William Erickson
Lexington Staff present for the Public Meeting: Carol Kowalski, Assistant Town Manager for
Development; Ragi Ramachandran, Administrative Assistant; Carolyn Kosnoff, Assistant Town
Manager for Finance
Other attendees: Elizabeth Rust, RHSO; Kathryn Roy, Bob Pressman
Ms. Tung conducted a roll call to ensure all the members of the AHT Board and members of
staff present could hear and be heard.
Ms. Tung chaired the hybrid meeting and called the meeting to order at 10:35 am.
The meeting was recorded by LexMedia for future on-demand viewing.
1. Financial Report
Ms. Kosnoff provided the financial update. She shared that the Trust was established officially
at the 2022 Fall special Town Meeting. At the 2023 March Town Meeting, funds were
appropriated into the Trust. They are CPA funding of$1.51M and the Brookhaven payments for
$439,402.27 amounting to a total of about $2M. The CPA money is expected revenue and not
available until July 1". The Brookhaven payments are existing funds available for the Trust. Ms.
Kosnoff shared that the ongoing funding sources for the Trust will be from the Brookhaven
annual mitigation payments, Community Impact Fees from short-term rentals and from the
Community Preservation Act. The Trust is also eligible for additional sources of revenue from
grants, departmental fees, mitigation payments, etc. She briefly mentioned the Linkage fees
that are under the legislature's consideration.
Ms. Tung requested information on where the funds are held. Ms. Kosnoff explained that the
Town's pooled cash and the Affordable Housing Stabilization funds are in the Massachusetts
Municipal Depository Trust (MMDT). The MMDT is earning over 5% interest presently. A
dedicated bank account will be opened for the Trust also. She advised that the Trust retain the
funds in the MMDT because MMDT's portfolio allows for easy access to the money. If the Trust
Page 1 of 4
grows toa higher balance of$20M - $30M, they could consider moving the funds to other
investment sources for a higher yield but not @tthe moment.
Ms. Kosnoff agreed to provide o quarterly financial update to the Trust. If there is a
disbursement inthe interim orifthere isa grant revenue, the Finance department will provide
the report sooner with the updated balance. |
Ms. Rust inquired about the process to redirect the resale fees of property, to the Trust. Ms.
Kosnoff explained that it needs a Town Meeting vote. Until that time, such fees will gotothe
Town's General ledger fund.
Mr. Sandcenshared that the Select Board has asked the Trust tOtake 3position onthe
potential for additional source of revenue that might come from Transfer fees or Linkage fees.
He agreed to share more information with the Trustees. He requested that this topic be y
included J5@future agenda item. |
2. Approval ofMay 25meeting minutes
The AHT Board reviewed the draft minutes of the meeting held on 5/25/23. Ms. Tung and Ms. �
PrQsnitzahored their edits tothe meeting minutes; there were four edits. Ms. Prosnitz moved /
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to approve the meeting minutes of 5/25/23 as amended. Mr. Sandeen seconded. The Trustees �
voted in favor of the motion 5-0-0 (Roll call: Erickson —yes, Prosnitz—yes, Tung—yes, Payne—
yes, Sandeen—Ves). Motion passed.
3. Community One Stop for Growth Grant Application �
/
Ms. Kowalski stated that she has submitted the grant application for a detailed housing needs
assessment that will beconducted bythe RH6O. The application was acknowledged and she �
anticipates adecision onthe Grant will bemade 6«the Fall of2OJ]. She explained the
difference between a Housing Production Plan (HPP) and the Housing needs assessment, noting
that the latter must have specific annual net new unit production goals for state certification.
Ms. Rust further clarified that the Housing needs assessment is anevaluation ofhousing need
based Onthe current data and the HPP lists the goals and objectives which are not part o[the
needs assessment. Ms. Rust informed that the housing needs assessment isnot 3public
engagement process and itwould take 4-bmonths tVconduct the assessment, |
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Mr. Pressman presumed that the grant was to study potential sites for housing in Lexington and
asked for clarification if that is not the case. Ms. Tung explained that @ Housing feasibility study
isbeing conducted inthree other locations and this grant didn't intend toconduct @ study for
housing sites based ondeliberations eithe last meeting. |
4^ Update on emergent opportunities
Ms. Kowalski updated that she and M5. Pn)snib are working OD drafting the criteria for how to
respond ifsomeone approaches the Trust with afunding request, They are considering the
terms and conditions for lending and financing, criteria for developers who want tDwork with
Page of
deeper subsidies, and are reviewing long term affordability options. Ms. Prosnitz informed that
their work is in regards to funding the creation, rehab or preservation of a property and not
related to a rental assistance program. Ms. Kowalski proposed to share a draft by the end of the
month.
Ms. Payne asked for advice on how she should respond as a Trustee if a developer approaches
with a proposal, to present to the Board. Mr. Sandeen and Ms. Tung clarified that any such
items should be brought to the attention of the Chair and the matter should be discussed in an
open meeting. Ms. Kowalski explained that the applicant will be presented with a checklist of
items they need to present to the Trust, for example, how close they are to getting the site
control, any known environmental issues, developer's proforma, their revenue sources, their
proposed mix of affordable and market rate units. This information would enable the Trust to
decide the next steps.
5. Draft Goals, Objectives and Strategies
Ms. Tung stated that she would like to summarize the Values in this meeting. The Strategies will
be discussed in a future meeting. Ms. Tung shared the document with the Values identified by
the Trustees in past meetings. Ms. Tung summarized the Values and requested the Trustees'
feedback on the Values statement. The Trustees weighed in on developing generational equity,
the affordable housing related programs offered by the State, retaining the affordability of a
unit upon resale, maintenance and preservation of an affordable unit, impact of having and not
having a perpetual restriction. They contemplated having programs assisting first time home
buyers, rentals versus affordable ownerships, and enabling more affordable home ownerships
in Town. The Trustees felt it important to include in the Values the creation of family size units
and leveraging funds from other sources.
Ms. Payne felt they should get feedback from other towns on how they handled affordable
ownerships and building intergenerational equity.
Ms. Roy shared that we should go outside the Lexington community to advance affordable
housing. Mr. Sandeen concurred with Ms. Roy's advice and felt there is value in engaging
beyond the housing stakeholders and that they should reach out to cultural organizations,
interfaith communities, real-estate professionals, and affordable housing professionals. Mr.
Sandeen felt there should be a broader scope to bring people in to the town.
Ms. Kowalski agreed to receive individual feedback from the Trustees on the Values statement.
She would then consolidate the feedback and present it to the Trust.
6. Three-month Action Plan
Ms. Tung stated that due to lack of time, the three-month action plan will be discussed at the
next meeting.
Page 3 of 4
7. New Business
Mr. SandeBnstated that the Select Board has approved $625,OOOnfARPAfunds toLexH/\Bto
fund a particular property. Ms. Kowalski asked if there was discussion on what the /\RPA
conditions are for deed restrictions, Mr. Sandeen responded that it was not discussed. Mr.
Pressman asked ifthe house will beplaced Onthe SH| orifLexHABwill hold the house along
with the other units not onthe SHL Mr. Sandeenanswered that itwas not discussed in the
Select Board meeting. Ms. Kowalski volunteered to gather more information nnthis matter and
share it with the Trust.
Upcoming meetings
The Trustees decided tDhave their next meeting onJune 2I1t aLlO:15am.
8. Adjourn
Mr. Sandeen made a motion to adjourn the meeting of June 8, 2023. Ms. Prosnitz seconded,
and the Board voted in favor of the motion. The meeting was adjourned at 12:12 p.m.
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List mfdocuments reviewed �
1. Affordable Housing Trust funding
2. MMDTCash Portfolio Overview
3. What |sthe Mk4DTCash Portfolio �
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4. AHTVa|ues
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Page 4 of 4
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AFFORDABLE HOUSING TRUST FUNDING (6/8/2023)
2O23Annual Town Meeting:
ARTICLE 1q:APPROPRIATE THE FY2824COMMUNITY PRESERVATION COMMITTEE OPERATING !
BUDGET AND CPA PROJECTS .
n)That$1,500,000 be appropriated for Affordable Housing Trust Funding,and to meet this
appropriation$1,500,000 be appropriated from the Community Housing Reserve of the Community
Preservation Fund;
ARTICLE 19:ESTABLISH, DISSOLVE AND APPROPRIATE TOAND FROM SPECIFIED STABILIZATION FUNDS Y
f)That$439,402.27 be appropriated from the Affordable Housing Capital Stabilization Fund to the
Lexington Affordable Housing Trust fund; and
Q)Tha� inaccord�ncewithp�.G.L. �hapter4O, Gection5Bpara�r�phfoor, thattheded|catinnof
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payments from Symmes Ufeoare, Inc. d/b/a Brookhaven at Lexington directly into the Affordable �
Housing Capital Stabilization Fund, as approved under Article 19 of the 2020 Annual Town Meeting, be |
terminated asofJune ]0, 2023
--' -- -- - ' — |
3O%3Annual Town Meeting Votes: ! |
Article 1O-CPA $1,500000.80 |
� $439,402.27
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_Total Available_AHFunds _ ~_ |
Ongoing Funding Sources:
^
0 Brookhaven annual mitigation payments—currently$122K/veorescalating 3%/«earto$17UK
ending|nFY2O34/approx. $2K8total)
* Community |mpactFeaxhnmshort-termrenta|s—apprux. $5K-$1OK/vear; 396 |oco| optiontax
onall short-term rentals(Airbnb; VR8O; m\c]
* [ommunhyPnsservahonAct—CmmmunityHousing Rererve—epprox.$8OOK/vear(may decline
depending on state matching revenue); additional Unreserved CPA funds may be allocated |
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*Additional revenue may beavailable from grants, donations,departmental fees, mitigation
payments,etc.
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Portfolio Overview as of 3/31/23
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In the first quarter of the year, the Federal Reserve Chair Jerome Powell warned investors that, "we see
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in the financial markets,especially in the second half price stability.
of March.Contributing to this uncertainty was the
The swift downfall of Silicon Valle
Failure of a regional U.S.batik. y Bank(SVB)took
place in early March. It became clear that it,as well
In mid-January on Capitol Hill,,political infighting as two other small U.S.banks that foundered in that
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time for negotiation.But the reduced issuance of reveal a cautious Fed. But instead, it raised rates
Treasury securities stemming from the situation again by a quarter point indicating the contained
exacerbated the existing supply/demand strain nature of the bank defaults while confirming the
on the front end of the Treasury yield curve.The fight against inflation was not finished,
dispute complicated I"ecl messaging at its first Federal
At the end of the first uarter,yields on 1. 3. 6•
Open Market Committee(POMC)meeting of the q t Y' t
1' year.After four consecutive 75 basis-point hikes, and 12-month U.S.Treasuries were 4.58%,4.76%,
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this time announcing a quarter-point hike.Futures rates(BSBY)were 4.93%, 4.08%,5.23%incl 5.27%,
trading suggested the markets took this as a sign the respectively; the 1,,3•,6-and 12-month London
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Although the Cash Portfolio seeks to preserve the value of your investment at$1.00 perunil,it is possible to lose money by rr yGv
investing in the Portfolio. The Portfolio's yield will vary from day to day based on changes in interest rates and market changes.
The securities in which the Portfolio invests will be rated in one of the two highest short-term rating categories by one or mora
Nationally Recognized Statistical Rating Organization or deemed by the Adviser to be of comparable quality to securities!raving i
such ratings.Credit ratings do not provide assurance against default or other loss of money.
For more complete information,visit wwwanymmdt,com. You should consider the investment's objectives,risks,charges
and expenses carefully before you Invest,Information about these and other important subjects is in the investment
Circular,which you should read carefully before Investing,
Mai lingAcid resss\l41D1'Participant Servtr•a • 1'.C1 Box 219712 r kansasC%,-y,MO 641219712 Ma ag"I :d,.,r.K. Federated
Boston Office Loc*Bou UOp”"�trcc I'o"ncr 125 High` ret 2k 1:1(m11ostovi,MA 02110 Se�..c,1 t— p e _�
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GENERAL FUNDS I TRUST FUNDS I STABILIZATION BUNDS
An intestment in the Ctuh Portfolio is not a depasft of a frank and is neither insured nor guarartteed by the C:ornrnonuealth of hfas achusetts or the U.S.government,the Federal
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to lase rnorey^by infesting in(he Portfolio.The Portfolb's yield Acill vary front day to day based on chary„4es in interest rates aru{marker changes.
MallinAddress:MMD'l Partici rant Suvices P.O7 lis 21x)712 - Kansas City,\10 64121.9712 Mana cut and �
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