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HomeMy Public PortalAboutAff Hsg Trust Fnd 2019-08-07 Affordable Housing Trust Fund Board August 7, 2019 7y`p ` ORLEANS AFFORDABLE HOUSING TRUST FUND BOARD AUGUST 7, 2019 iR'LE4Ic TOWN CI`PK Approved Sept. 4, 2019 A meeting of the Affordable Housing Trust Fund Board was held on August 7, 2019 in the Nauset Meeting Room of the Orleans Town Hall. Present were Trust Board members Duane Landreth, Alan McClennen, Matthew Cole, Alexis Mathison, Henry Brehm, Ward Ghory, Greg DeLory, Mefford Runyon, and Community Development Director George Meservey. All documents discussed at this meeting are filed with the permanent records of the Affordable Housing Trust Fund Board. Board Reorganization Mr. Landreth called the meeting to order at 4:00 p.m. and opened the election of Board officers. On a motion by Mr. Runyon seconded by Mr. Brehm, the Board voted to elect Alan McClennen as Chair. The vote was 7-0-1, with Mr. McClennen abstaining. On a motion by Mr. DeLory seconded by Mr. Cole, the Board voted to elect Duane Landreth as Vice-Chair. The vote was 7-0-1, with Mr. Landreth abstaining. On a motion by Mr. Landreth seconded by Ms. Mathison, the Board voted to elect Matthew Cole as Clerk. The vote was 7-0-1, with Mr. Cole abstaining. Public Comment There was no public comment Minutes to be approved July 10, 2019 On a motion by Mr. Landreth seconded by Mr. McClennen,the Affordable Housing Trust Fund Board voted to approve the minutes of July 10, 2019. The vote was 8-0-0. July 24, 2019 Mr. Ghory asked that the word "non-confirming" be corrected to non-conforming." On a motion by Mr. Landreth seconded by Mr. Runyon, the Affordable Housing Trust Fund Board voted to approve the minutes of July 24, 2019 as amended. The vote was 8- 0-0. Vote to pay$2,570.27 HECH program delivery fee for 10 Opa's Way Mr. McClennen noted that this amount represents an 18% program delivery fee that was inadvertently left off the invoice approved for payment at the previous meeting. 1 Affordable Housing Trust Fund Board August 7, 2019 On a motion by Mr. Cole seconded by Mr. Runyon, the Affordable Housing Trust Fund Board voted to authorize payment of the additional $2,570.27 to HECH. The vote was 8- 0-0. In response to a question from Mr. Runyon, Mr. McClennen confirmed that Select Board approval of Board expenditures was not required for professional services. Vote to pay$428.75 for Town Counsel services in June Mr. McClennen noted that the bill was primarily for review of the Habitat project. On a motion by Mr. Cole seconded by Mr. Runyon, the Affordable Housing Trust Fund Board voted to authorize payment of$428.75 for Town Counsel services. The vote was 8-0-0. • Vote to proceed with line of credit and forward to the Board of Selectmen for approval Mr. McClennen provided Board copies of the term sheet from the Cooperative Bank of Cape Cod, which provides a $2.5 million commercial line of credit. It may be subject to Select Board approval, which is tentatively scheduled for the August 28 meeting. Mr. McClennen summarized the document provided by the bank. The Board discussed the terms of the line of credit; including bank fees and required collateral. Mr. Cole recommended that the reference to MGL Ch. 406 be struck. Mr. McClennen stated that he would provide additional information to the Board by their August 21 meeting. On a motion by Mr. Landreth seconded by Mr. Runyon, the Affordable Housing Trust Fund Board voted to proceed with the line of credit proposal. The vote was 8-0-0. Discuss purchasing Unit 15 at 24 Old Colony Way for affordable housing Mr. Landreth recused himself from the discussion. Mr. McClennen reported that banks contacted had no problem with financing this type of purchase. He summarized the project as discussed on July 10 and stated that the current tenants had now vacated the unit. He proposed that the Trust buy the property for. $235,000, perform minor updates, and then purchase the unit with the intent of selling it as affordable housing, with Housing Assistance Corporation (HAC) acting as resale agent and manager, for an estimated cost between $150,000 and $190,000. In response to a question from Mr. Ghory, Mr. Meservey noted that in this case HAC would also be responsible for assessing the unit, overseeing its rehabilitation, recording the deed restriction and doing the affirmative marketing. The Board discussed how to achieve sustained affordability of the unit, including additional subsidies. Ms. Mathison indicated that the proposed monthly payments of $1,380 per month shut out young professionals. Ms. McClennen of the Affordable Housing Committee noted that the Town's efforts had to address a wide range of urgent housing 2 Affordable Housing Trust Fund Board August 7, 2019 needs. Mr. McClennen said that consideration of income eligibility was required but that the Trust subsidy could be adjusted to reflect the goals of the Board. Mr. Runyon suggested that the Board calculate the paydown and Mr. Brehm emphasized the need for a strategy. Mr. Meservey noted the potential assistance from the Community Development Partnership and Katie Wibby of the Affordable Housing Committee told the Board that they have had discussions with the Orleans Housing Authority. On a motion by Mr. Brehm seconded by Mr. Runyon,the Affordable Housing Trust Fund Board voted to proceed to purchase Unit 15 at 24 Old Colony Way as a test, and to determine how to ensure its affordability later. The vote was 5-2-0, with Ms. Mathison and Mr. Cole opposed. Mr. Landreth returned to the meeting and suggested that speakers could be heard better if they used the microphone at the podium. Report from and discussion with Affordable Housing Committee about Aug. 6 meeting Ms. Wibby reported that the Committee has begun to research housing costs and are in the process of developing an education plan. They also plan to draft a Town Meeting article to petition the state with regard to raising the percentage of area median income for local affordable housing eligibility. The Board discussed the legislative process and the public response. Mr. McClennen stated that a report from the Affordable Housing Committee would be an agenda item for Trust Board meetings going forward, if the two were not meeting jointly. He also reported the Cape Abilities board had voted to sign the agreement to allow the Trust to proceed with its due diligence for the property at 107 Main Street. Mr. Meservey reported that he had met with Laura Shufelt of Mass. Housing Partnership at the property and she has begun the study. The next Trust Board meeting will be on August 21, followed by a meeting with the Board of Selectmen on August 28. Adjourn On a motion by Mr. Runyon seconded by Mr. DeLory,the Affordable Housing Trust Fund Board voted to adjourn at 5:11 p.m. The vote was 8-0-0. Respectfully submitted, Myra Suchenicz • 3