HomeMy WebLinkAbout2023-10-23-AHTBT-min
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Affordable Housing Trust
Meeting Minutes of October 23, 2023 11:30 am
Virtual meeting on Zoom
Affordable Housing Trust Board Members present: Elaine Tung, Chair; Mark Sandeen, William
Erickson, Tiffany Payne, Linda Prosnitz
Staff present: Ragi Ramachandran, Administrative Assistant
Other attendees: Elizabeth Rust, RHSO; Sarah Morrison, LexHAB Director; Lester Savage,
LexHAB Vice-Chair
Ms. Tung chaired the zoom meeting and called the meeting to order at 11:43 am.
1. Executive session to discuss a potential real estate acquisition
Upon motion duly made and seconded it was voted 5-0 by roll call unanimously to go into
Executive session to consider the purchase, exchange, lease or value of real property at 497
Massachusetts Avenue. Further, the Affordable Housing Trust Chair declared that an open
meeting may have a detrimental effect on the negotiating position of the Town.
The Affordable Housing Trust will not reconvene an open session at the conclusion of the
Executive session.
497 Massachusetts Avenue
Ms. Morrison updated the members on the possible purchase of 497 Massachusetts Avenue in
Lexington. The offers are due at 2pm on Oct 23. LexHAB requested up to $700,000 from the
Trust for the purchase of the property at 497 Massachusetts Avenue. The two-family building is
situated in a convenient location with respect to its accessibility to services and transportation.
It has one unit on top of the other, the units are well cared for, there are two bedrooms in each
unit, and four parking spaces.
LexHAB is planning to make an offer for $950,000 for the purchase. LexHAB has $400,000 of
CPC funds and is looking for the balance of up to $700,000 from the Trust. LexHAB is prepared
to make any necessary immediate repairs required. LexHAB will work with MassSave to
upgrade the energy efficiency of the property. The purchase will add two units of affordable
housing to the Subsidized Housing Inventory following the LIP application process. There is a
tenant in one of the units. The tenant will be given 30 – 60day notice to move out, and to find
suitable housing.
The Trust discussed the process of the regulatory agreement and the affordability restriction
that restricts the property in perpetuity. The EOHLC, LexHAB and Town will all be parties to the
restriction, and it is a standard LIP regulatory agreement. LexHAB will go through the LIP LAU
application process after purchasing the unit. LexHAB shared the anticipated closing time is
approximately end of November – early December.
The Trust reviewed and discussed LexHAB’s request in detail. The Trust felt the property is well
protected from a tear down, the price is attractive, and the property has great potential in the
long term. Funding for such a property purchase aligns with the purpose the Trust was set up
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for. The Trust emphasized the need to protect the tenant from losing their house, to allow
them sufficient time to find another housing.
Ms. Tung requested a motion that the Affordable Housing Trust approve granting funds to
LexHAB in an amount not to exceed $700,000 for the purchase of 497 Massachusetts Avenue
in Lexington, subject to a mutually agreeable grant agreement compliant with the Trust
guidelines, to be executed prior to the commitment of any funds. Mr. Sandeen moved. Ms.
Prosnitz seconded. The Trustees voted in favor of the motion 5-0-0, by a roll call vote
(Erickson – yes, Tung – yes, Payne – yes, Sandeen – yes, Prosnitz – yes). Motion passed.
2. Adjourn
The executive session and open meeting session of the Affordable Housing Trust concluded.
The meeting adjourned at 12:58 pm by a roll call vote (Prosnitz – yes, Sandeen – yes, Tung –
yes).
List of documents reviewed:
1. 497 Mass Ave- Listing sheet
2. 497 Mass Ave- floorplan, plot plan and lead form
3. LexHAB response to request criteria for 497 Mass Ave–AHT funds
4. CPC Presentation – anticipated funding requests to AHT