HomeMy WebLinkAbout2007-11-12-CPC-min
Community Preservation Committee
November 12, 2007
Attending: Joel Adler, Norm Cohen, Marilyn Fenollosa, Leo McSweeney, Wendy Manz,
Richard Pagett, Sandy Shaw, Betsey Weiss, Dick Wolk
Also attending: Bob Bicknell, Tom Harden, Chris Kluchman (Lexington Housing Partnership)
The meeting was called to order at 4:00 p.m.
1. Review Affordable Housing projects:
a. Lexington Homebuyer Assistance Program
Ms. Kluchman introduced the project by describing the basic elements of the program.
The program entails making deferred loans at low or zero interest rates to qualified buyers to
enable them to buy homes in Lexington. The loans would be required to be repaid in full upon
sale by the owner. The programs provided by the Mass. Housing Partnership, such as the Soft
Second loan program, still do not generate sufficient funds to buy a house in Lexington. The
total purchase price of the homes would be capped at $500,000, and would only be available to
first-time homebuyers or employees of the Town of Lexington. The homes would be required to
be owner-occupied, and would have to meet all the requirements of the state’s Soft Second
program. The LHP would try to identify a single lender to manage the Soft Second loans, and
buyers would be required to be prequalified. The requested CPA funds would also be used for
startup costs, issuing the RFP for a consultant, legal assistance, etc.
Ms. Kluchman gave as an example the following:
Area Median Income for family of four in Middlesex County: $82,000
Affordable amount of down payment on house: $ 15,000
Traditional mortgage: $284.000
Soft Second Loan: $ 33,000
CPA loan: $100,000
Available to purchase house: $431,000
She noted that there are 6-8 similar programs in other communities, many of them funded by
CPA.
Some of the issues raised by the CPC:
- What are the criteria for picking applicants? (the criteria would be developed by the
consultant. A lottery might be appropriate)
- Should the town get a share of the appreciation in value of the house on resale?
(perhaps--consider the loan more like an investment by the town)
- Are there banks already willing to be in the program? (yes, they have been consulting
with local banks in conceptual terms)
- Would we get more benefit from using CPA funds for multifamily developments?
(because this is a homebuyers program, not a rental program, it would create greater
economic diversity, and the $150,000/unit is not a significant amount)
- How would the administrative person work? Could it be a town employee? (yes, they
would likely work with the Planning Department)
- Attachment B to the application assumes the program will continue for a long time, with
substantial contributions from CPA. What if CPC doesn’t fund the program in future
years? What if the CPA program in Lexington is cancelled? (need to project less
favorable scenarios)
- Are there other grant sources for this type of program? (no)
- Do the units purchased qualify for the 40B inventory? (no, because the loans are
available to individuals at 100% of the AME, and 40B only allows housing for those at
80% of the AME. But since the program would involve the purchase of existing
homes, it wouldn’t adversely affect the town’s 40B inventory)
b. Lexington Site Analysis Project
Mr. Bicknell introduced this project. In 2001 a study was prepared identifying all of the
properties in town that could be used for affordable housing. The Housing Partnership would
like to update and expand this report to identify all properties in town, with descriptions,
appropriateness for housing (e.g. are there wetlands), tax status, and GIS mapping. This would
enable the town to bid on the properties as they became available. However, the information
would have to be kept somewhat confidential, as the report could also become a valuable
resource for developers. Apparently Bedford funds a program like this and keeps the
information in a private housing foundation.
There was discussion about how this project would complement/overlap the GIS
programs already underway in the town, including those in the Planning Department and the
Conservation Commission, and it was suggested that the CPC have someone come in to explain
the various initiatives to the committee.
2. Next Meetings
Betsey reminded everyone that on Wednesday, November 14, we will meet at 8:30 at the Old
Res to view the proposed dam rebuilding project. We will also meet that afternoon at 4:00 on
the Hancock-Clarke House and Town Offices ADA ramp projects.
3. Adjournment
The meeting was adjourned at 5:40 p.m.
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