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Home My WebLink About2025-05-29 SB Packet - ReleasedSELECT BOARD MEETING Thursday, May 29, 2025 Conducted by Remote Participation* 9:00 AM AGENDA ITEMS FOR INDIVIDUAL CONSIDERATION 1.Discuss a Letter of Support for Inclusion in the HousingWorks Infrastructure Program Application Regarding Several Affordable Housing Units at 3, 4, 5 Militia Drive ADJOURN 1.Anticipated Adjournment 9:30am Meeting Packet: https://lexington.novusagenda.com/agendapublic/ *Members of the public can attend the meeting from their computer or tablet by clicking on the following link at the time of the meeting: https://lexingtonma.zoom.us/j/82013535294?pwd=mGvKYC9PHOT8ByUHHa0a18jNRhRXpf.1 iPhone one-tap: +13017158592,,82013535294#,,,,*848540# Phone +1 646 876 9923 Meeting ID: 820 1353 5294 Passcode: 848540 An Act Relative to Extending Certain State of Emergency Accommodations: https://www.mass.gov/the-open-meeting-law The next regularly scheduled meeting of the Select Board will be held on Monday, June 9, 2025 at 6:30pm via hybrid participation. Hearing Assistance Devices Available on Request All agenda time and the order of items are approximate and subject to change. AGENDA ITEM SUMMARY LEXINGTON SELECT BOARD MEETING AGENDA ITEM TITLE: Discuss a Letter of Support for Inclusion in the HousingWorks Infrastructure Program Application Regarding Several Affordable Housing Units at 3, 4, 5 Militia Drive PRESENTER: Elaine Tung, Affordable Housing Trust Chair ITEM NUMBER: I.1 SUMMARY: The Affordable Housing Trust (AHT) respectfully requests approval of a letter of support from the Select Board for the Town’s submission of a grant application to the State’s HousingWorks Infrastructure Program (HWIP). Attached is a draft letter. The HousingWorks Infrastructure Program (HWIP) aims to support efforts to increase housing production in the Commonwealth. Grant funds may be used for a variety of activities related to infrastructure projects associated with housing development. The AHT is partnering with 3-5 Militia Redevelopment MM LLC, the developer of 3, 4, 5 Militia Drive (the “Developer”) who is supportive of the AHT’s goals, to submit the grant application. The grant application deadline is June 4, 2025 but the Town would like to submit the application (including all attachments) no later than midday on May 30, 2025. While the grant application does not require support letters other than from the Developer, the AHT feels that a support letter from the Select Board will demonstrate the Town’s commitment to the creation of additional affordable housing and deeper affordability and will enhance the grant application. Housing Work Infrastructure Program Website SUGGESTED MOTION: Move to (approve) letter of support from the Select Board for inclusion with the Town’s grant application to the State’s HousingWorks Infrastructure Program (HWIP). FOLLOW-UP: Affordable Housing Trust DATE AND APPROXIMATE TIME ON AGENDA: 5/29/2025 ATTACHMENTS: Description Type AHT memo to Select Board Cover Memo Draft letter of Support Backup Material 1 M E M O R A N D U M To: Select Board From: Elaine Tung, Chair Affordable Housing Trust Date: May 23, 2025 RE: HousingWorks Infrastructure Program Grant The Affordable Housing Trust (AHT) is requesting a letter of support from the Select Board in connection with the Town’s submission of a grant application to the State’s HousingWorks Infrastructure Program (HWIP). The Commonwealth’s HousingWorks Infrastructure Program was first announced in June 2023 as part of the Healey-Driscoll administration’s 5 year capital plan. This $97M/year HousingWorks program aims to encourage the production of 200 to 300 units of affordable housing each year. In addition, the spending program includes $90 million annually for housing acquisition, development and rehabilitation. Historically, past awards have ranged from approximately $1M to $5M. FY26 grants are expected to be awarded in the fall of 2025, and funded projects must be completed by June 30, 2029. Projects that have secured funding from other government and/or private sources will be more competitive. While a cash match is not required, a match may factor into EOHLC’s applicant selection process. Projects that include at least a 10% local cash match will receive bonus points in application review. To be considered, any match funds must contribute to the direct costs of the infrastructure work. Eligible activities include but are not limited to design, construction, repair, and other improvements to infrastructure to advance projects that support housing development, preservation, or rehabilitation, and leverage or rehabilitate transit-oriented housing, such as: a) Sewer lines, septic systems, and other sanitary waste disposal systems, water lines, wells and water treatment systems; b) Utility extensions; c) Streets, roads, curb cuts, and other transit improvements such as, crosswalks, traffic calming measures, pedestrian and bicycle ways; and d) Other related horizontal infrastructure work adjacent to planned or imminent housing improvements. Applicants that are MBTA communities that are determined to be compliant are eligible for this grant program. Eligible applicants are listed as municipalities and related municipal entities (Public Housing Authority, Redevelopment Authority, and Water/Sewer or Service District). An HWIP application for a project that the AHT would manage/execute would technically need to be submitted by the Town as the lead applicant. Town Staff and the Town Manager have been consulted and they support the grant application. The AHT has had encouraging discussions with the State on how to access funding and create additional affordable units and/or buydown deeper affordability in MBTA multi-family developments (please see attached 5/5/25 email from McKenzie Bell, Senior Community Grants Coordinator, EOHLC.) The Town of 2 Lexington, on behalf of the AHT, would apply for horizontal infrastructure costs for one identified MBTA multi-family development. If the grant is awarded to the Town of Lexington, the funds would be made available to the developer as a reimbursement in exchange for additional affordable units and/or deeper affordability in perpetuity. The AHT is partnering with 3-5 Militia Redevelopment MM LLC, the developer of 3, 4, 5 Militia Drive (the “Developer”) who is supportive of the AHT’s goals, to submit the grant application. The AHT is currently in discussions with the Developer about pricing for the unit bedroom count, unit area median income percentage (AMI), and deeper income affordability for inclusionary units. The actual number of additional affordable units and/or units with deeper affordability will be determined prior to the submission of the Local Initiative Program (LIP) which occurs before the building permit application (anticipated October 2025.) For purposes of the grant application, the stated anticipated outcome is as follows: “Approximately 44% of Lexington renters are cost burdened or severely cost burdened. In addition, Lexington currently has the highest median gross rent of any municipality in the Commonwealth. Funding this infrastructure project will directly leverage and accelerate, through a formal agreement between the Developer and the Town, the buydown of market rate units to much needed additional affordable units as well as deepen affordability of units located in this housing development. The Town of Lexington is conditioning reimbursement of the Developer’s infrastructure costs in exchange for the Developer increasing the number of affordable units and/or deepening affordability in the development. The Lexington Affordable Housing Trust is also making a local contribution of ***% for this Project which will further leverage local funds. The Town anticipates that an additional ****units in the development will be designated by the developer as affordable and/or have deeper affordability in perpetuity and will be included in Lexington’s Subsidized Housing Inventory.” We are still waiting for the final construction estimates from the Developer. However, based upon discussions with the Developer, we expect the application request to be somewhere in the range of $1.3M-$1.6M. The Select Board should be aware that a portion of the application request will be for the reworking of Militia Drive in order to create parking for the commercial establishments located at 3, 4, 5 Militia Drive. The Militia Drive redesign will be subject to Select Board approval. If the Select Board decides after consideration to not approve the redesign, then any funds granted for the Militia Drive work will be returned to the State. The grant application deadline is June 4, 2025 but the Town would like to submit the application (including all attachments) no later than midday on May 30, 2025. While the grant application does not require support letters other than from the Developer, the AHT feels that a support letter from the Select Board will demonstrate the Town’s commitment to the creation of additional affordable housing and deeper affordability and will enhance the grant application. As with all grant applications, the grant may not be awarded or it may not be awarded in full, but this should not negatively affect the future viability of the 3, 4, 5 Militia Drive development. This is an exceptional opportunity for the Town to highly leverage AHT funds to create additional affordable units and/or deepen affordability in the to be built units Thank you for your consideration. ***To be determined prior to grant application submission ****Range of number of units to be determined prior to grant application submission 3 ATTACHMENT Bell, McKenzie (EOHLC) Wed, Apr 30, 5:07 PM to Elaine Tung Hello Elaine, Thanks again for your time this afternoon. I’m writing to follow up on our discussion about a few questions/points related to the HousingWorks Infrastructure Program (HWIP) and MBTA Communities Catalyst Fund (Catalyst Fund). Neither grant program explicitly requires proof/evidence that a housing development would not be built without the grant/infrastructure project. However, proposed infrastructure projects that can demonstrate how an infrastructure project will directly support or leverage a housing development to move forward—including if assisting with infrastructure costs will help increase the number of total units, increase the number of affordable units, and/or deepen affordability—are likely to be more competitive. The application questions around anticipated outcomes, housing impacts table, and/or leveraged private development details are typically the sections where applicants show what the infrastructure project may achieve (beyond the discrete scope of infrastructure work). Additionally, HWIP now can fund infrastructure work on public and/or private land. This was a change we advocated for to allow for greater flexibility to assist with infrastructure needs for housing development. Even if a proposed infrastructure project occurs entirely on private land, who is considered an eligible applicant for the grant does not change—municipalities (or municipal entities) would serve as the lead applicant entity, be with whom we contract after making an award, and would receive reimbursement of grant funds to then pay the contractor/developer for eligible work/activities. We typically do not get involved with the procurement, negotiations, contract/agreement between municipal grantees and the contractor/developer, and defer to municipal grantees about what requirements, conditions, etc. they impose as part of that contract/agreement. Let me know what questions I can answer or details I can provide, and again I appreciate you thoughtfully considering how these grant programs can help move great housing projects forward. Best, McKenzie McKenzie Bell (she/her) Senior Community Grants Coordinator Executive Office of Housing and Livable Communities (HLC) Livable Communities Division Community Assistance Unit (CAU) 100 Cambridge Street, Suite 300, Boston, MA 02114 Town of Lexington, Massachusetts SELECT BOARD OFFICE DOUGLAS M. LUCENTE, CHAIR JOSEPH N. PATO JILL I. HAI MARK D. SANDEEN TEL: (781) 698-4580 VINEETA A. KUMAR FAX: (781) 863-9468 1625 MASSACHUSETTS AVENUE · LEXINGTON, MASSACHUSETTS 02420 e-mail selectboard@lexingtonma.gov May 29, 2025 Edward Augustus, Housing Secretary Executive Office of Housing and Livable Communities Commonwealth of Massachusetts 100 Cambridge Street, Suite 300 Boston, Massachusetts 02110 Dear Secretary Augustus: The Lexington Select Board respectfully requests that the State give serious consideration to the Town of Lexington’s FY 2026 One Stop Application for a HousingWorks Infrastructure Program grant. Lexington has made a substantial investment in addressing the State’s housing crisis by encouraging and exceeding the requirements for multi-family development under the MBTA Communities Act. Lexington was also the first in the Commonwealth to comply with the MBTA Communities Act. While the Town’s multi-family developments will create much needed housing, Lexington also has a significant unmet need for affordable housing. One of the Select Board’s highest priority goals is enhancing community vibrancy by increasing diversity of housing stock in size, accessibility, and price including the availability of affordable housing. Creating affordable housing is also consistent with LexingtonNext, Lexington’s 2022 Comprehensive Plan to provide a range of housing options and to remove barriers to living in Lexington and advance Lexington’s goals of diversity, equity and inclusion. The development at 3, 4, 5 Militia Drive, Lexington, identified in the grant application, is in an excellent location within .5 miles of public transportation and the Town Center. Walkable neighborhoods including the ability to walk from resident homes to shopping, eating and retail options is also a priority identified in Lexington’s Comprehensive Plan. If the State approves the award of the HousingWorks Infrastructure Program grant to Lexington, Lexington will gain, in exchange for reimbursing the developer for its infrastructure costs, additional affordable units and/or deepening the income level affordability of the units. This will advance Lexington’s goals in addressing the critical need for affordable housing in our community. Thank you for your consideration. Sincerely, Lexington Select Board DOUGLAS M. LUCENTE, CHAIR JILL I. HAI JOSEPH N. PATO MARK D. SANDEEN VINEETA A. KUMAR