HomeMy WebLinkAbout1984-04-25-LEXHAB-min.pdf LEXH�
Minutes ofthe Meetin9 of April 25, 1984
Present Jean Gaudet, Linda Conrad, Bill Kennedy, Don Wilson, Bea Phear
RECEIVED
Guest. Julian Bussgang SELECTMEN
1/R 27 ig84
Report to Town Meeting
Bea distributed a draft report for Town Meeting Several minor changes were made
and it was accepted as amended (Copy enclosed)
.Financing
Jean reported that she had talked with Dave Eagle who had talked with a number of
banks There is some possibility that if the Salem Five Cent Saving Bank can
understand what LexHAB is, they might be interested It was decided to draft
a one page summary public relations sheet to be used to explain LexHAB to banks
Bea was asked to prepare a first draft (enclosed) Linda suggested also giving
banks the Selectmen's criteria and charge and a copy of the Act
Don talked with the Depositors Trust, and it is their policy that someone signs
personally on any realestate trust transaction He feels this is going to continue
to be a major hurdle
Paul Marshall had offered to talk to another local bank, and Bill Hays will speak
with one in Boston
Julian Bussgang offered the suggestion that LexHAB call for a special Town Meeting
within the current Town Meeting for the purpose of asking the Town to issue a bond
that could then be serviced through rent payments He felt it wrong for a municipality
to borrow at conventional rates for a public purpose. He didn't know how much it
would cost on the tax rate to guarantee the bond. It would be tax free to the bond
holder/investor and mean lower financing rates for LexHAB It waS pointed out
that the legislation expressly forbid LexHAB to pledge town money, but he thought if
Town Meeting wanted to give LexHAB this money, it would not be against the legislation
It was thought it would cost approximately $40,000 in legal and other expenses to
put the bond issue together Julian thought it possibly could be tacked on to the
bonding of the golf course purchase, if that passes Town Meeting.
The Committee thought its best option for financing would be from the Potter Pond
settlement. There are negotiations for this going on now, and we should know in
a few weeks A possible $700,000 from Potter Pond would allow a lower rent structure
as in the Parker School, and would be cleaner administratively, without the negative
image of high legal fees involved in bonding Also it was thought that bonding
defies the spirit of the Act, circumventing the legislature.
Jean thought it important to be prepared with wording for an amendment for Town
Meeting to turn the Potter Pond money over to LexHAB She will talk with Margery
Batting about possible timing and wording of an amendment.
Insurance
Jean talked with Otis Brown informally He will draw up a rough package of insurance
costs and will include rental insurance against delinquent tenants
Guidelines for Waivers
Jean presented guidelines to the Selectmen on April 23 These were slightly
modified from those passed by LexHAB, from suggestions from Dave Rogers There was
only one question to clarify what was meant by # 3 on alternate sites The
Selecmen approved the guidelines as presented. (distributed at meeting)
Certification
LexHAB will receive names from the developer for certification. The next seven
must still be in the lower income group, although they will pay construction prices
Bea was asked to contact Kirk Noyes to clarify the timeframe for these seven.
Kirk is delaying reprinting his promotional material with the new price list until
he has the language of the signed agreement He is willing to use which ever
Affidavit language LexHAB prefers Affidavit format will be discussed at the next
LexHAB meeting
Selection of Units
Bea distributed the new price list, with the units already sold crossed off The
14 day clock has not yet started, as "beginning of construction" is defined as issuance
of a building permit or conveyance by the Town, and neither of these has happened
It was decided to select ten units, with the hope that the Potter Pond money will
be available Each committee member will make a list of
one three-bedroom unit
three two bedroom units
six one bedroom units
The lists will be discussed at the next meeting
Energy Option
Kirk needs a decision on energy options with the decision on unit selection. He does
not yet need to know about kitchen or bath options Bill Kennedy will look at
the plans and talk to energy advisors about the wisdom of the options He feels that
over the years it would probably be a good idea to get the option. Jean is concerned
that heating will be very expensive, as they are not going to replace the windows
Next Meetings
Tuesday, MAY1 8 00 pm, room G-15 Affidavit format, unit selection
Tuesday, MAY 22 8 00 pm, room 201
Committee members asked to be telephoned to be reminded of meetings (except Conrad)
Respectfully Submitted,
Beatrice Phear
Human Services Coordinator