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HomeMy Public PortalAboutAff Hsg Trust 2019-03-06 Affordable Housing Trust Fund Board March 6, 2019 ORLEANS TOWN CLERK. ORLEANS AFFORDABLE HOUSING TRUST FUND BOARD 12 MARCH 6, 2019 '19 APR 4 7:1OPii Approved April 3, 2019 A meeting of the Affordable Housing Trust Fund Board was held on March 6, 2019 in the Skaket Meeting Room of the Orleans Town Hall. Present were Chair Alan McClennen, members Alexis Mathison, Henry Brehm, Ward Ghory, Duane Landreth, and Matthew Cole, Affordable Housing Committee Chair Katie Wibby, and Community Development Director George Meservey. Greg DeLory was absent. All documents discussed at this meeting are filed with the permanent records of the Affordable Housing Trust Fund Board. Mr. McClennen called the meeting to order at 4:00 p.m. Continue discussion of the possible purchase of Unit 105, 18 West Road,an affordable unit under Chapter 40B, in order to maintain it as an affordable unit in the Town of Orleans Subsidized Housing Inventory. Mr. Meservey updated the Board on the extended timeframe for the unit to be marketed as affordable, and noted increased interest from the real estate community as a result of the increase in the broker's fee. He suggested that the Board consider paying the condo fees for the unit. The Board briefly discussed the income and asset requirements set by the Housing Assistance Corporation (HAC) for potential buyers. Continue discussion of the possible purchase of property at 261 Tonset Road Mr. Meservey described the site and existing building for the Board, and suggested that upgrading the property for public housing purposes would require extensive renovations and probably trigger code requirements. Mr. Cole agreed and remarked that its current use as a rental dwelling serves the portion of the community which the Board wishes to support. In response to a question from Mr. Ghory, Mr. Meservey noted that demolition of the building would have to be approved by the Historical Commission. Ms. Mathison reiterated the need to preserve the housing of current residents and Mr. Cole suggested the Trust Fund provide subsidies for this purpose. The Board discussed zoning and public health regulations with respect to Chapter 40B and the challenges of preserving a historic building for housing purposes. Joint Meeting with the Affordable Housing Committee The Affordable Housing Committee joined the meeting. Present were Chair Katie Wibby, members Gilbert Merritt, Fran McClennen,Tom Johnson and Nancy Renn, and Board of Selectmen Liasion Mefford Runyon. Ms. Wibby called the meeting of the Affordable Housing Committee to order at 4:30 p.m. 1 Affordable Housing Trust Fund Board March 6, 2019 a. Recent Town housing projects Mr. Meservey provided background information on four Town projects. Several legal and economic challenges were encountered during the development of the John P. Hinckley Affordable Housing project, consisting of four ownership units. The project was eventually completed by Housing Assistance Corporation (HAC). A single rental unit in the building owned by the Homeless Prevention Council on Old Tote Road was created using mostly Community Preservation funds. Code issues resulting from the mixed-use building had to be resolved. Community Preservation funds allowed for the purchase of property by Habitat for Humanity on Bevan Way, which developed six ownership units within the relatively short period of two years. Chapter 40B was utilized to obtain dimensional waivers. The Cape Cod Village project will create sixteen bedrooms for adults with autism, with considerable support from the Town. The location, behind the Mid Cape Home Center, provides a good combination of privacy and community connection for the residents. In total,the Town created twenty-six affordable housing units in the last ten years with limited resources. b. Housing Needs (based on 2017 Community Housing Study) Mr. Meservey referred to the summary on page 75 of the Town of Orleans Community Housing Study, which identifies families, seniors and one-person households as the groups to be served. He suggested that the Town should focus entirely on creating rental units in order to meet the goal of 85% rental development for all new units, as those involving ownership are easier for the market to finance and develop. The greatest need is for one-and two-bedroom units. Three or more bedrooms are more cost-effective for ownership units. The study proposes a goal of 100 affordable units within a decade, which may be possible due to changes in the Town's zoning and infrastructure. c. Housing Ideas and properties investigated. Mr. Meservey distributed a spreadsheet of properties under consideration by the Affordable Housing Committee. The Board and Committee members discussed the Olde Tavern Motel property in downtown Orleans, which could be purchased by the Trust and held until the sewer system was completed. Ms. Wibby noted that the availability of Trust funds made it possible for the Committee to plan affordable housing activities more deliberately. 2 Affordable Housing Trust Fund Board March 6, 2019 Board and Committee members agreed that pursuing rental property, as indicated by the study, was a priority. Ms. McClennen pointed out that management of scattered rental units was not cost-effective and that the Town should look at larger projects. Ms. Wibby suggested that the Town could facilitate the development of these projects by acquiring properties and then requesting proposals from third parties,which would be responsible for financing, constructing and managing the projects to the Town's specifications. Mr. Meservey updated the Board on the Cape Cod Five Operations Center property. The pre-feasibility study found that it was suitable for renovation to residential use. The architectural firm of Brown Lindquist Fenuccio& Raber has been contracted to do a feasibility study within ninety days,showing several different scenarios,and the bank has agreed not to market the property during that time. Board and Committee members discussed the need to acquire property to hold when it becomes available, balanced against the need to fund projects which provide housing within a relatively short time. Mr. McClennen noted that Orleans has adopted zoning which supports increased density for housing tied to the downtown sewer system, and Ms. Wibby observed that the Town is close to meeting the Chapter 40B goal of ten percent of all housing being affordable under the law. The members also discussed further partnering with Habitat for Humanity for single- family lots, and Mr. Meservey suggested an undeveloped property at 16 Old Timer's Lane as an appropriate purchase. Mr. Cole and Ms. Mathison recommended that the Town encourage affordable rental units in existing residential properties, and the Board and Committee members discussed how that might be accomplished. Mr. Johnson suggested that a price ceiling should be established. Ms. McClennen said that they were talking about a three-pronged approach: first, larger properties to provide group rental units; second, vacant lots to purchase and pass on to Habitat for Humanity; and third, houses for sale for which the Town could encourage third-party purchase and management as rental units. Mr. McClennen noted that the Trust could move quickly once a property was referred by the Committee. Mr. Runyon suggested that a sensitive early-warning system be developed to identify properties in financial distress and the Board and Committee members briefly discussed how to implement this. Mr. McClennen and Mr. Runyon left to attend another meeting. The Board and Committee members discussed financial opportunities available to the Trust, and Mr.Johnson offered to discuss borrowing options with local bankers. They also discussed issues relating to specific properties on the list, including environmental concerns, funding priorities, and how to proceed with further research. They also discussed the cost of an affordable rental unit, both under state regulations and outside of them. 3 Affordable Housing Trust Fund Board March 6, 2019 Mr. Ghory noted that adopting priorities and strategies based on the study would help to provide a framework for evaluating properties, and Mr. Brehm suggested outreach efforts similar to those of conservation trusts. Mr. Merritt and Ms. Mathison stressed the importance of a having a completed project to encourage public support. Mr. Meservey agreed to walk through the property at 16 Old Timer's Lane. He also offered to research financially distressed properties, compile a list of seasonal properties under $500,000 in assessed value, and communicate with property owners and local housing organizations to see how they could assist with some of the ideas brought forth in the meeting. d. Coordination of activities Acting Chair Landreth suggested that the Board and Committee members discuss their respective roles at their next joint meeting. The members decided to schedule another joint meeting for the first Wednesday in April at 4:30. The Affordable Housing Committee will be meeting in mid-March. Mr. Landreth asked for a Trust Fund Board vote. On a motion by Mr. Cole seconded by Mr. Ghory,the Affordable Housing Trust Fund Board voted to meet the first Wednesday in April at 4:30 p.m. The vote was 6-0-0. Ms. Mathison left the meeting. Items for future agendas The April 3 meeting will include a discussion of the respective roles and communications. On a motion by Ms. McClennen seconded by Mr. Johnson, the Affordable Housing Committee voted to adjourn at 6:15 p.m. The vote was 5-0-0. Adjourn On a motion by Mr. Ghory seconded by Mr. Cole, the Affordable Housing Trust Fund Board voted to adjourn at 6:15 p.m. The vote was 5-0-0. Respectfully submitted, Myra Suchenicz 4