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HomeMy WebLinkAbout2024-11-14-CPC-min1 Minutes of the Community Preservation Committee Thursday, November 14, 2024 Remote Zoom Meeting Meeting ID: 832 9314 8448 4:00 PM Committee Members Present: Marilyn Fenollosa (Chair); Jeanne Krieger (Co-Vice Chair), Kathryn Roy (Co-Vice Chair), Kevin Beuttell, Christian Boutwell, Robert Creech, Robert Pressman, Mark Sandeen, Melinda Walker. Administrative Assistant: Thomas Case Other Attendees: Melissa Battite, Director of Recreation and Community Programs (arrived at 5:28 PM); Sandhya Beebee, Liaison, Capital Expenditures Committee; Bob Burbidge, Chair, LexHAB; Nanette Byrnes, Housing Partnership Board (arrived at 4:05 PM); Caileen Foley, Executive Director, Lexington Housing Authority; Margaret Heitz, Housing Partnership Board (HPB); David Kanter, Clerk, Capital Expenditures Committee (arrived at 4:43 PM); Carol Kowalski, Assistant Town Manager for Development (arrived at 4:06 PM); Paul Linton, HPB (arrived at 4:03 PM); Wendy Manz, Chair, HPB; Sarah Morrison, Executive Director, LexHAB; Elaine Tung, Chair, Affordable Housing Trust; Betsy Weiss, Vice-Chair, HPB; Ms. Fenollosa called the meeting to order at 4:02 PM. Community Housing Discussion – Lexington Housing Authority- Ms. Foley updated the Committee on the latest projects and plans for the Lexington Housing Authority (LHA). The LHA did not request CPA funds for FY26, but has made progress on and has finalized a number of capital projects at Vynebrooke Village, Greeley Village, and other LHA properties. Looking forward, the LHA is planning for a public housing repositioning effort, increasing LHA’s access to Section-8 vouchers and other funding opportunities and increasing their responsibility for capital needs. The effort would also allow LHA more flexibility to modify LHA properties to create more affordable housing units. Ms. Foley conveyed that she expects the LHA to request CPA funds in future fiscal years for pre-development funding. The Committee discussed the LHA’s status and initiatives. Ms. Foley explained the LHA’s staffing, housing portfolio, and their ability to expand operations and inventory. Ms. Foley also expanded on the LHA’s repositioning efforts. These efforts would help to cut down on unnecessary costs, increase section-8 subsidy income, and is expected to begin following a scheduled transfer date of February 1, 2025. After that date, the LHA would begin a pre- development phase, likely followed by housing construction. Ms. Walker outlined public housing both at the federal level and the state level, and highlighted the LHA’s role in managing these programs and properties in Lexington. 2 Mr. Boutwell asked if there should be clearer guidelines on when LHA should apply to the CPC or the AHT. Ms. Foley noted that the LHA is limited in what is can ask for funding because no LHA properties were created or acquired with CPA funds. Ms. Foley added that she prefers the LHA to be able to access both CPA and AHT funding. Community Housing Discussion – LexHAB – Ms. Morrison updated the Committee on the latest projects and plans for the Lexington Housing Assistance Board (LexHAB), including the status on their transition to an independent non-profit following the state’s approval of LexHAB’s separation from the Town. LexHAB is evaluating their potential role with regards to the MBTA zoning requirements, has made progress in their decarbonization efforts and plans to continue to expand these green initiatives, are continuing to plan for development at Vine Street and is exploring redevelopment options of current single-family properties, and they continue to seek opportunities to expand their affordable housing portfolio via below-market acquisitions. The Committee discussed LexHAB’s status and initiatives. Ms. Foley noted that the LHA and LexHAB are not currently in competition over housing acquisition and Ms. Morrison added that the two organizations would work together should that situation arise. Ms. Morrison explained that new tenants must meet the minimum and maximum income requirements and then pay 33% of their income towards rent. The Committee discussed with Ms. Morrison the RFP process, scope, and cost of a development at Vine Street. Mr. Pressman noted LexHAB’s eligibility for rental subsidy funds per the CPA definition of community housing support. Mr. Burbidge left the meeting at 5:13 PM. Community Housing Discussion and FY26 CPA Funding Request – Affordable Housing Trust – Ms. Tung updated the Committee on the Affordable Housing Trust (AHT), the state of affordable housing in Lexington and Massachusetts, and presented the AHT funding request for FY26. Ms. Tung highlighted the impacts of the state’s housing shortage, the need for creating more affordable housing units to address the shortage, the impact of energy costs on low income households, the cost burdens on renters and owners in Lexington, actions the Town can take to address the housing shortage, and current and future projects the AHT has identified for potential future funding needs (see the AHT’s FY26 CPA Application Presentation for more information). The AHT requested $3 million in CPA funding so that the Trust can respond in real-time to affordable housing development, acquisition, and preservation requests in the Town of Lexington. The Committee discussed the AHT’s request and current initiatives. Regarding housing buydowns, Ms. Tung explained that the AHT received preliminary quotes from two developers, but that more accurate unit costs are expected in the spring. Ms. Tung explained the process 3 and characteristics of a unit buydown, and noted the affordable housing restriction placed on buydown properties. Mr. Creech expressed his concern to all housing stakeholders about their financial ability to respond to increased costs of property maintenance as their housing unit inventory increases. Mr. Creech also expressed his dismay of the project scope for the development at the corner of Meriam St and Edgewood Rd. Specifically, the only affordable unit in this project was negotiated by RHSO to be a 3200-sf dwelling – twice the size of 2 good size homes. This was to the developer’s advantage in that it minimized the number of kitchens, bathrooms and work required for partitions in the historic home. So, of course, the developer agreed to this. Mr. Boutwell expressed his concern for AHT projects and funds being approved and expended outside of Town Meeting and noted that some projects can be more anticipated than others. Ms. Tung shared that one of the reasons that AHT was formed was to respond to housing needs and requests as they arise. Ms. Fenollosa expressed concern for the amount of funding requested by the AHT for FY26 and subsequent fiscal years. Ms. Fenollosa noted that the total FY26 request for funding is more than the CPC has for appropriations. Ms. Tung noted that AHT’s projects are based on past needs and future plans within Lexington and that housing costs overall are expensive. Ms. Fenollosa expressed concern over the fact that the CPA is the only major source of funding for the AHT due to the CPC’s responsibility to the other CPA categories and encouraged the AHT to pursue and support efforts to expand funding sources for the Trust. Mr. Creech presented a draft funding plan for the CPC that features partially funding the AHT, LexHAB, and Center Playground requests at 50%, 75%, and 50% respectively. Mr. Creech highlighted the potential need to partially fund various projects based on the CPC’s projected revenues and fund balances. Ms. Tung shared that the AHT has been advised to maintain a reserve fund balance of around $1 million. Mr. Pressman suggested a funding proposal which postpones the Center Playground project, split funding the remaining Recreation projects with the General Fund, and fully funding the eligible portions of the Community Housing projects. Ms. Kowalski and Ms. Tung left the meeting at 5:32 PM. Ms. Weiss shared her insights as a member of the Affordable Housing Trust Study Committee and shared that the benefit of the AHT is that it allows Lexington the flexibility to fund affordable housing projects outside the Town’s budget schedule. Ms. Weiss shared the Housing Partnership Board’s role in bringing the CPA to Lexington. Ms. Weiss then read a statement advocating for the CPC to fund of all FY26 Community Housing requests. Ms. Weiss shared that the Town’s appropriations for CPA projects since the CPA was adopted in Lexington, include $41 million for Historic Resources, $20 million for Open Space, $25.6 million for Recreation, and 4 $14 million for Community Housing. Ms. Manz expressed her support for the AHT and urged the CPC to prioritize the AHT and Community Housing in their FY26 appropriations. Mr. Sandeen commented that AHT funds are monitored by Town staff and expenditures over a certain limit are reviewed by the Select Board. Mr. Sandeen also shared a number of ongoing initiatives, supported by Lexington, to increase funding sources for municipal housing trusts. The Committee decided to postpone taking a straw vote on the AHT’s request. FY26 CPA Funding Request – LexHAB Affordable Housing Support, Restoration, Preservation, and Decarbonization – Ms. Morrison requested $494,140 for Affordable Housing support, restoration, preservation, and decarbonization. The CPA request includes $221,000 for preservation, rehabilitation, and restoration, $63,000 for decarbonization, $139,140 for community housing support, and a 25% contingency reserve of $71,000 (see LexHAB’s FY26 CPA Application Presentation for more information). Ms. Beebee left the meeting at 5:54 PM. The Committee discussed LexHAB’s request. Ms. Morrison shared that LexHAB residents receive a $300 per month utilities stipend from LexHAB, the amount of which is set by the state, and LexHAB pays the utilities for units with solar. Mr. Creech expressed concern for LexHAB’s financial sustainability. Mr. Pressman suggested that LexHAB request non-CPA money from the AHT to pay for LexHAB’s rehabilitation projects at non-CPA funded properties. Mr. Pressman expressed concern that LexHAB’s contingency reserves were too high. Ms. Morrison shared that LexHAB is working on increasing its income sources as it transitions to a non-profit. Mr. Boutwell left the meeting at 6:07 PM The Committee decided to postpone taking a straw vote on LexHAB’s request. Minutes – The Committee agreed to postpone approving the minutes from the 11-7-2024 meeting. Ms. Battite, Ms. Byrnes, Ms. Foley, and Mr. Linton left the meeting at 6:24 PM. Committee Business- The Committee discussed the schedule for the 2024 Needs Assessment Report (NAR) and subsequent public hearing. Ms. Fenollosa requested that members responsible for sections of the NAR submit their section drafts to Mr. Case to be compiled and posted by November 26. 5 After a motion duly made and seconded, the Committee voted by a roll call vote (8-0) to adjourn at 6:28 PM. The following documents were used at the meeting: 1) FY26 CPA Funding Application - AHT Pre-Funding 2) AHT’s FY26 CPA Application Presentation 3) FY26 CPC Funding Proposal – 11/14/24 (Creech) 4) Betsey Weiss Statement of Support for Community Housing 5) FY26 CPA Funding Application – LexHAB Affordable Housing Support, Restoration, Preservation, and Decarbonization 6) LexHAB’s FY26 CPA Application Presentation 7) Draft Meeting Minutes – 11-7-24 8) Draft Meeting Minutes – 11-7-24 - Revised Respectfully submitted, Thomas Case Administrative Assistant Community Preservation Committee APPROVED: 11/21/24