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HomeMy WebLinkAbout2025-03-10-AHTBT-min-exe.pdf Page 1 of 2 Affordable Housing Trust Meeting Minutes of March 10, 2025 10:00 am, Executive Session Hybrid meeting on Zoom and attended in-person in the Parker Room, Town Office Building Affordable Housing Trust Board Members present: Elaine Tung, Chair; William Erickson, Mark Sandeen, Linda Prosnitz, Tiffany Payne Staff present: Carol Kowalski, Assistant Town Manager for Development Other Attendees: Sarah Morrison, LexHAB Executive Director; Lester Savage, LexHAB Ms. Prosnitz chaired the hybrid meeting and called the open meeting of Affordable Housing Trust to order at 10:17 am. Executive Session Ms. Prosnitz moved to go into Executive session under Exemption 6 to consider the purchase of real property. The Affordable Housing Trust Vice-Chair stated that, in her opinion, an open session would have a detrimental effect on the negotiating position of the Affordable Housing Trust. Mr. Erickson seconded. The Trustees voted in favor of the motion 5-0-0, by a roll call vote (Erickson – yes, Payne – yes, Sandeen – yes, Tung – yes, Prosnitz – yes). Ms. Prosnitz stated that the Trust will reconvene in the regular session after the Executive session. The Trustees exited the regular session at 10:22 am. Sarah Morrison and Lester Savage represented LexHAB, and presented the proposal to purchase the property at 26 Douglas Road Lexington. LexHAB requested funding assistance in the amount of $1,100,100 from Affordable Housing Trust for the purchase. Ms. Morrison and Mr. Savage went over the details. The property was off of Lowell Street, currently a 3-bedroom home proposed for conversion to a multifamily structure of one 3- bedroom and one 1-bedroom ADU unit. The purchase price was $1,100,000. LexHAB would contribute $325,000 towards renovations. The property currently used gas heat and the goal was to transition to electric heat pumps via Mass Save programs. There were no major exterior changes, and driveway was wide enough. For physical condition of the property, it had vinyl siding, updated windows, and two full bathrooms in good condition. The basement had natural light, supporting legal living space. LexHAB mentioned that its unique layout was suitable for aging demographics (1- bedroom), and families (3-bedroom). They mentioned that 1-bedroom units were in high demand even with MBTA Communities zoning changes and this neighborhood was outside direct MBTA zoning influence. The closing date was proposed for May 15, 2025. Mr. Sandeen asked whether the total square footage calculation (1,315 sq. ft.) included both upper and lower levels. Ms. Tung requested updated real estate projections, and updated financial pro-forma without appliances included. Page 2 of 2 The Trustees asked whether rents could be set to 50%-60% AMI and lower. LexHAB clarified that there was limited ability to subsidize without external State funding. The current rent targets were likely at 80% AMI. To a question if the rent could be set to 30% AMI, LexHAB responded that the opportunity was rare to offer housing below 30% AMI without substantial risks. The group compared this proposal to Vine Street project and Lowell Street affordable housing development to consider the use of Trust funding to enable a greater number of affordable homes. They resolved that Vine Street project would be slower (up to 2 years before RFP completion) while Lowell Street opportunity was immediately available. Vine Street involved larger scale, different funding, and policy complications. 26 Douglas Road property provided a quicker opportunity to house low income tenants sooner. LexHAB agreed to provide an updated pro-forma and tax analysis. They agreed to continue discussions with the Trust on fund allocation priorities, to explore advocacy strategies to deepen affordability and flexible subsidy options. The Trustees felt that the purchase of 26 Douglas Road property aligned with the Trust’s housing goals. There were concerns raised by Trustees whether the amount of $1,100,000 aligned with the Trust’s budgeted priorities. The Trustees considered proposing lower AMI target for this property. Adjourn Upon a motion duly made and seconded, by roll call, the Affordable Housing Trust voted 5 -0 to adjourn the Executive session and reconvene in regular session at 11:56am.