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HomeMy Public PortalAboutCommunity Preservation Committee -- 2019-09-09 Minutes H 2198 Main Street ACCEPTED ; 9/ 11 / 19 Brewster, Massachusetts 02631 - 1898 Z%Fa PoflP;oo „��`� ( 508 ) 896 - 3701 VOTE ; 3 - 0 ASO FAX FAX ( 508 ) 896 - 8089 COMMUNITY PRESERVATION COMMITTEE -Housing Sub - Committee Held a Regular Meeting on Monday, September 9, 2019 at 5 ; 00 p .m . at The Brewster Town Office Building, 2198 Main Street, Brewster, MA MEETING MINUTES FOR September 9, 2019 Present : Chair Faythe Ellis , Paul Ruchinskas , Ralph Marotti , and Diane Pansire Absent : Barbara Burgo Also Present : Donna Kalinicic,Assistant Town Administrator Jill Scalise , Housing Coordinator Chair Faythe Ellis called the meeting to order at 5 ; 06 pm . Recording or Taping Notification : "As t^equired by the Open Meeting Lm� tine are informing you that the Town will be videotaping and/or audio taping this public meeting. In addition, if anyone else intends to either video or audio tape this meeting they are required to inform the chair, " We request that all cell phones be turned off or to vibrate. 1 . Discussion and possible vote on recommendation to the CPC of the funding request, conditions and liaison of the Brewster Affordable Housing Trust ' s application for $ 500 , 000 funding for preservation of Subsidized Housing Inventory ( SHI) : Acquisition & Rehabilitation of Homes on the Town ' s SHI . Jill Scalise, Housing Coordinator explained that the goal of project is to identify SHI homes that are noncompliant or at risk of being lost as part of the Town ' s affordable housing stock. The trust is proposing to use funds to rehab and purchase the units ensuring that they remain on the SHI . The Town and Housing Trust have identified two homes that are uninhabited and deteriorating. Town Housing staff has been working on saving these two homes . The Trust is requesting $ 500 , 000 to have funds available to rehabilitate, and if needed, to purchase these units with goal of returning units to live able and mortgageable condition so that they can be resold to affordable home buyers . New deed riders would survive foreclosure and ensure that the homes should be sold to buyers at/below 80% of area median income . The application specifically highlights two properties . The first is 212 Yankee Drive which is an immediate crisis situation . The application contains details of the property condition. The second property is not detailed for confidentiality reasons and because the Town is not on the deed and therefore does not have legal standing . We are relying on DHCD to be the entity moving first on this home . Both homes have old deed riders that base resale price on a percentage of fair market value , which is not necessarily affordable . The riders also require that an affordable buyer be found within 90 — 120 days before the deed restriction is lost . New deed riders have a requirement that the 1 Community Preservation Committee - Housing Minutes , September 9, 2019 home remains affordable, whether or not a qualified buyer has been found. 23 homes on our SHI have these old deed restrictions that do not survive foreclosure, and have the shorter window. Ralph asked for clarification of the deed rider restrictions . Jill explained that each of the old riders were different . But their resale prices generally are tied to fair market value versus area median income, the standard used in the new universal rider. Plus , if a qualified buyer cannot be found, the property can be sold to a non-certified buyer. The challenge is that when a crisis emerges with one of these older deeds ( I 990 ' s era) , we risk losing the homes from our SHI . Diane asked whether there is a way to incentivize people to maintain their property . Ms . Scalise explained that the deed rider requires that the home be maintained in condition minus normal wear and tear. For example, if a roof needed repair, the seller would responsible for fixing that or there would be a reduction in price . For example, one of the homes in the application was severely damaged when a pipe burst. According to DHCD , the price of the home will be reduced by the amount of work that needs to be done . In this case, the person who owns the home has no funds to do the work. The trust has the ability to put funds out, then we will recoup them. The vast majority of money would be recouped with the hope that the Trust could reuse the money in the future on other properties . One challenge in general is that affordable homes in nice neighborhoods with the old deed rider resale formula are priced too high for low/moderate income buyers . In combination with the affordable resale window, it creates a situation where the home can be lost from the town ' s SHI because no affordable buyer can be found. Ms . Kalinick explained that the town now has dossiers on every SHI home which is extremely helpful in monitoring properties at risk of falling off the inventory. Both of the homes in the application are currently vacant which is unfortunate given the huge need for housing. One of the purposes of the trust is to react quickly if the funds are available to do so . Which is why for resales, the trust would like to retain the proceeds for the same purposes . Ideally in the case of the Yankee Drive house, the Trust is looking for funds to rehab and not purchase it. The Trust believes that the DHCD will help with money either way . Different situations and financing scenarios are complicated. Engaged parties are the Trust, Town Counsel, DHCD , town officials and the homeowners . If the town acquires the home and sells it at $278 ,000 it is likely to need approximately $ 60K to keep it affordable . One benefit would be that new universal deed rider restrictions would mean that the home would be far less likely to fall off the SHI . Faythe noted that her approach to the application was to view the primary purpose as creating a fund to preserve homes on the Town ' s SHI and so that the Housing Trust be able to act quickly as necessary. The two homes listed are examples of how complicated these scenarios can become and to demonstrate why a nimble response was needed . Rehab quotes for Yankee Drive have been requested and KP Law is reviewing and advising regard the procurement process . For the Belmont Park property, DHCD has been involved for two years and it is a very sensitive transaction. The applicant proposes to amend the Project Address on the application to Town of Brewster/Yankee Drive & Belmont Park. 1. Motion to recommend approval to CPC for a total of $502 ,500 as follows : $500,000 for the Brewster Housing Trust to preserve current homes on the Subsidized Housing Inventory, with $ 175 ,000 from Community Housing Fund and $325 ,000 from the Fund Balance 2 Community Preservation Committee- Housing Minutes : September 9, 2019 Reserved for CPA (30 % Fund) . In addition , we recommend setting aside $2 ,500 from the Community Housing Fund to cover CPC legal costs related to this grant. Moved by Ralph Marotti , Second by Diane Pansire Approved 4-0-0 2. Motion that the proceeds from the sale of any homes acquired/rehabilitated with this grant will be retained by the Trust and used for the preservation , acquisition and rehabilitation of SHI homes or any eligible CPA community_housing activity. Moved by Ralph Marotti , Second by Paul Ruchinskas Approved 4-0- 0 3. Motion that disbursement of the funds should be as follows : $300,000 on execution of grant agreement between the Town/CPC and the Housing Trust. Remainder to be disbursed based on sufficient documentation (e . g. signed Purchase and Sale Agreement, Rehab contract, etc .) provided to liaison as to needs for funds . Funds must be used by June 30 , 2022 . Diane Pansire as Liaison Moved by Paul Ruchinskas, Second by Diane Pansire Approved 4- 0-0 2 . Items the Chair could not reasonably anticipate . None . MOTIONto adjourn at 6 : 10 PM. MOVED by Diane Pansire. Seconded by Ralph Marotti, VOTE : 4 - 0 -0 Respectfully submitted by, Faythe Ellis Chair 3 Community Preservation Committee - Housing Minutes : September 9 , 2019