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HomeMy WebLinkAbout2025-03-25-AHTBT-min-exe.pdf Page 1 of 2 Affordable Housing Trust Meeting Minutes of March 25, 2025 2:00 pm, Executive Session Hybrid meeting on Zoom and attended in-person in the Select Board Meeting 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; Liz Rust, RHSO Director; Kiruthika Ramakrishnan, Office Manager Other Attendees: LexHAB Board Members – Sarah Morrison, Executive Director; Lester Savage, Robert Burbidge, Russ Tanner Ms. Tung chaired the hybrid meeting and called the open meeting of Affordable Housing Trust to order at 2:01 pm. Executive Session Ms. Tung moved to go into Executive session under Exemption 6 to consider the purchase of real property. The Affordable Housing Trust Chair stated that, in her opinion, an open session would have a detrimental effect on the negotiating position of the Affordable Housing Trust. Ms. Tung stated that the Trust will reconvene in an open session after the Executive session. Mr. Erickson seconded. The Trustees voted in favor of the motion 5-0-0, by a roll call vote (Erickson – yes, Payne – yes, Prosnitz – yes, Sandeen – yes, Tung – yes). The Trustees exited the open session at 2:04 pm. The Trustees and LexHAB members discussed the purchase of property at 26 Douglas Road Lexington. They discussed the income requirements and tenant selection process for LexHAB's affordable housing units. To a question from Mr. Erickson on the income limit, Ms. Morrison clarified that 80% AMI is the maximum income limit for the property, and tenants were selected through a lottery system. LexHAB charged 30-33% of a tenant's income as rent, with established minimum rents and incomes to ensure sustainability. The group discussed the possibility of lowering the maximum AMI to 60% for this property, and the potential financial impact on LexHAB. The group reviewed the financial aspects of acquiring 26 Douglas Road, and its impact on future projects. The Trust considered how to balance the property acquisition with other potential projects, such as Vine Street, given limited funds. The Trustees emphasized the strategic value of this property, as it can be converted into two units with an ADU, aligning with their goal of maximizing affordable housing units per dollar spent. The Trustees felt adding ADUs to existing properties was a cost-effective way to increase the Town’s affordable housing stock. The Trustees welcomed the idea of getting more people in at lower cost faster. Page 2 of 2 Ms. Tung asked if it is possible to impose a 60% AMI limit for tenants on this property. LexHAB responded that they would like to keep the limit at 80% AMI, and that it will be a minimum of nine months before the property is occupied due to the formal processes involved. The group discussed the status and occupancy of prior LexHAB property purchases of 50 Valleyfield Street and 497 Massachusetts Avenue. The Trustees reviewed LexHAB’s funding request in detail. They debated the Trust’s fiduciary responsibility, and the appropriate level of public subsidy for affordable housing projects. They expressed concerns about the high cost per unit, for this purchase. Mr. Sandeen and Ms. Prosnitz stated that they were uncomfortable with the high cost, and questioned the efficiency of spending so much of Trust funds on few units. The Trustees acknowledged LexHAB’s shift towards building ADU’s as a positive development. They discussed the prospect of Vine Street project. The Trustees recognized the lack of immediate alternatives for creating affordable housing. They compared this funding request to other potential projects in pipeline, such as Militia Drive, and felt the acquisition of 26 Douglas Road was reasonable. They acknowledged the opportunity to quickly create affordable units, with this purchase. After detailed discussion, the Trust agreed to support the grant, with the conditions that LexHAB adds an accessory dwelling unit (ADU), and restricts the income levels to 60% AMI instead of 80%. Ms. Tung moved that the Affordable Housing Trust agree to a grant to LexHAB in the amount of $1,100,000 for the purchase of 26 Douglas Road Lexington, conditional to the fact that they are adding on an ADU, and that the income levels of the units would be restricted to 60% AMI. Ms. Prosnitz seconded. The Trustees voted in favor of the motion 5-0-0, by a roll call vote (Erickson – yes, Payne – yes, Prosnitz – yes, Sandeen – yes, Tung – yes). Adjourn Mr. Sandeen moved for the Affordable Housing Trust to exit the Executive session and reconvene in open session. Mr. Erickson seconded. The Trustees voted in favor of the motion 5-0-0, by roll call vote (Payne – yes, Erickson – yes, Prosnitz – yes, Sandeen – yes, Tung – yes) The Affordable Housing Trust Executive session ended at 3:25 pm.