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HomeMy Public PortalAbout2020-12-22 Munger Change - Section 8 HousingWatertown Town Council Administration Building, 149 Main Street Watertown, MA 02472, (617) 972-6470 Committee on State, Federal, and Regional Government Minutes of Tuesday, December 22, 2020 at 6:30 p.m. Conducted via Remote Opportunities, see details on posted Agenda Present: Councillors Angeline Kounelis, chair; Anthony Palomba, vice chair; Lisa Feltner, secretary. Also present: Larry Field, DCDP Senior Planner; Michael Lara, Executive Director, and W. Emily Horgan, Leased Housing Manager, Watertown Housing Authority; Patty Richardson, Elderly Service Manager at 100 Warren Street; Margaret D. Moran, consultant on intergovernmental contract with Cambridge Housing Authority; Tenant resident James Mello; Town Councillors Caroline Bays, and Anthony Donato. AGENDA: Discuss repositioning some federal public housing units at the E. Joyce Munger Housing to Section 8 vouchers. Chair Kounelis convened the virtual meeting at 6:38 p.m. and read aloud the supporting letter from the Watertown Housing Partnership. Michael Lara spoke about Section 18 Program and its subsection, which benefits very small housing authorities of fifty (50) or fewer units and for which Watertown qualifies. The federal government/Dept. of Housing and Urban Development (HUD) doesn't want to own affordable housing properties, given very limited capital financing, so they are funding Section 8. Additionally, Section 8 is being funded at the fair market rate, and the payment standard in Watertown is extremely competitive; there is no debt on the land at 100 Warren St. and the building is in excellent condition since the 2007/08 renovations. This conversion strategy will provide funds for capital improvements, such as a much -needed second elevator, and it will provide over $2000 per unit per month vs. $400 per for federally subsidized units (45 one -bedrooms and 5 two -bedrooms). As noted in previous correspondence (attached), the main purpose as to why the Watertown Housing Authority (WHA) should convert 50 federal public housing units into Section 8 project -based vouchers is: In order to achieve WHA's ongoing mission of providing safe, affordable housing to our most vulnerable populations, we must seek additional revenue streams and funding sources. This conversion at 100 Warren Street will increase revenue to WHA without harm to existing or future residents; the change for current residents is merely paperwork. There will be a new program center, so staff will be added to manage this along with a full-time social services worker. The Watertown Housing Partnership also endorses the WHA proposal, which was developed over the past two years. Tonight's meeting is part of this long process, which includes consultations with the residents with at least four board meetings, environmental review, and preparation of the ownership structure, since laws and regulations prevent WHA from just converting what you own and handing it over to yourself. The proposal includes forming a non-profit, which will be controlled by the WHA and thus control the Munger building over the long term, per the leasing agreement between the new non-profit and WHA. Mr. Lara expressed that public input, and engagement with, and approval by, the Town Council are the right thing to do but are also required by HUD, and their field office has been working very closely with WHA for about a year, and they are in full support of this approach. Lara explained that this conversion will also ensure that 50 quality units will have enough operating and capital funds to ensure their affordability long term. Over time, it will also provide additional funding streams to enable more units to be built on site and/or elsewhere, and give flexibility to take advantage of other potential construction opportunities, such as on Nichols Avenue or vacant land. WHA is preparing plans to present to the Community Preservation Committee in hopes of partnering with Watertown CPA funds and/or the state to fund future projects. The Boston HUD office thinks this program is a great fit for Watertown. WHA will continue working over the next few months to finish the supplemental documentation in conjunction with Cambridge for the Section 18 application; Lara expressed that the Cambridge Housing Authority has been unbelievably helpful. There will be a 30 -day public comment review period, probably at the end of February through late March, on the draft application. There are essentially two applications; one goes to HUD, and one goes to Washington D.C. to approve the vouchers. -1- Mr. Lara confirmed that WHA doesn't receive actual Town money; they receive assistance, for example, on dumpsters, and sand for snow removal, as well as Police and Fire support, but not funds. He encourages folks to contact local legislators to advocate for more affordable housing, but also please call WHA for assistance. It is typical to wait 11 years before getting in to Section 8 housing. Watertown has 240 family units right now, but we're seeing people waiting 9 to 10 years for Emergency Housing! We saw 285 family applicants in 2019, grow to 1,866 for Emergency priority. For non -emergency family applications, 2019 saw 2,784, and this year there were 11,213. Even our elderly resident requests have skyrocketed; there were 41 emergencies last year, and 351 this year. Elderly non -emergency applications reached 104, with 2,049 this year. The numbers shot up due to a new centralized list service but the need is real, and we don't even have a good sense for how long the waitlist truly is. Margaret Moran shared that her collaboration with Lara over the last few years has confirmed that Watertown has a great team in place, with some good thoughtfulness, and caliber is high in the team. She thinks Cambridge is hitting 96% of their portfolio to Section 8, and it has given them more funds, as well as flexibility in what they are able to offer in enhanced services. 7:25 p.m. Motion by Palomba to recommend the Town Council submit a letter of support for the WHA plan to convert 50 public housing units at the E. Joyce Munger Building, 100 Warren Street to Section 8 program, as outlined; seconded by Feltner; Approved 3-0. 7:26 p.m. Motion to Adjourn by Palomba, seconded by Feltner, Approved 3-0. Respectfully submitted, Lisa Feltner Attached: Documents received from Town Manager Driscoll, November 5, 2020. -2- Michael J. Driscoll Town Manager TOWN OF WATERTOWN Office of the Town Manager Administration Building 149 Main Street Watertown, MA 02472 Phone: 617-972-6465 www.watertown-ma.gov townmgr@watertown-ina.gov To: Honorable Town Council From: Michael J. Driscoll, Town Manager Date: November 5, 2020 RE: Section 18: Repositioning E. Joyce Munger Building Federal Public Housing Units Attached please find email correspondence from Michael Lara, Executive Director, Watertown Housing Authority regarding the Housing Authority's plan to convert fifty (50) federal public housing units to 50 Section 8 vouchers. Additionally, please find correspondence from the Watertown Housing Partnership endorsing the Housing Authority's proposal. I will bring this up under Communications from the Town Manager at the November 10, 2020 Town Council Meeting and respectfully request the matter be referred to Committee for policy consideration and guidance by the Honorable Town Council. cc: Watertown Housing Authority Board of Commissioners Michael Lara, Executive Director, Watertown Housing Authority Watertown Housing Partnership Department Heads Community Development & Planning Mark R. Reich, Esquire, KP Law Driscoll, Michael From: Magoon, Steven Sent: Tuesday, November 03, 2020 12:23 PM To: Sideris, Mark; Driscoll, Michael Cc: Field, Larry; Michael Lara; Fred Reynolds Subject: FW: Letter to Council President/Federal repositioning Attachments: Watertown MA Section 18 Fact Sheet.pdf; WHA Repositioning Brochure.pdf Mr. President, as you are aware, the Watertown Housing Authority has proposed a change some of their public housing units to section 8 project based vouchers. The email below and attached correspondence on this matter explain what Mr. Lara would like to be placed on a Town Council agenda for discussion. Thanks From: Michael Lara [mailto:MLara@watertownha.org] Sent: Monday, November 02, 2020 9:37 AM To: Magoon, Steven <smagoon@watertown-ma.gov>; Sideris, Mark <msideris@watertown-ma.gov> Cc: Driscoll, Michael <mdriscoll@watertown-ma.gov>; Fred Reynolds <reynoldsfred95@gmail.com>; Field, Larry <Ifield @watertown-ma.gov> Subject: RE: Letter to Council President/Federal repositioning Morning everyone, Thank you for sending this Mr. Magoon. On behalf of the WHA Board of Commissioners, it is with great enthusiasm that WHA plans to convert 50 federal public housing units to 50 sec. 8 vouchers. This change in funding streams will ensure that the federal portion of the Munger building will be properly funded for many more decades. I've attached two summaries that we are distributing to residents. Looking forward to discussing this matter further with the Town. Best, Michael Lara Executive Director 0: (617) 923-3950 F: (617) 923-2466 www.watertownha.org RRa erto Housing Authl From: Magoon, Steven <smagoon@watertown-ma.gov> Sent: Friday, October 30, 2020 2:19 PM To: Sideris, Mark <msideris@watertown-ma.gov> Cc: Driscoll, Michael <mdriscoll@watertown-ma.gov>; Fred Reynolds <revnoldsfred95@gmail.com>; Field, Larry <Ifield@watertown-ma.gov>; Michael Lara <MLara@watertownha.org> Subject: FW: Letter to Council President/Federal repositioning Mr. President, I wanted to provide you with this letter of recommendation from The Watertown Housing Partnership in support of a change at the Housing Authority, linked below. Michael Lara will be in contact with you to discuss further how best to proceed. Thanks 1 Section 18: Repositioning E. Joyce Munger Building Federal Public Housing Units Watertown Housing Authority plans to convert 50 Federal Public Housing Units into 50 Section 8 Vouchers through the HUD Section 18 Program of the Federal Housing Act of 1937 (42 U.S.C. § 1437p). This section authorizes a PHA to convert and dispose of public housing after local and resident consultation, and with HUD approval. After the conversion, Watertown Housing Authority will retain control of the property to ensure all the units in the building remain affordable. The criteria to reposition federal public housing under HUD Section 18's "50 and Under" program requires that: • The PHA certifies it has determined the disposition to be appropriate for reasons that are in the best interests of the residents and the PHA, consistent with the goals of the PHA and the PHA Plan and are otherwise consistent with the 1937 Act (24 CFR 970.17(c)). o Specifically, that the PHA owns and operates 50 or fewer public housing units under its ACC and has determined that it is in the best interests of the residents and PHA to close out its federal public housing program in accordance with HUD requirements. Why should WHA convert 50 Federal Public Housing Units into 50 Project Based Voucher Units? • To achieve WHA's ongoing mission of providing safe, affordable housing to our most vulnerable populations, we must seek additional revenue streams and funding sources. The conversion of 50 Federal Public Housing Units to Section 8 Project -Based Vouchers at 100 Warren Street will increase revenue to WHA. Below is a cost comparison of the affordable housing models: • The current HUD subsidy and resident rent for all 50 federally subsidized units @ 100 Warren Street under the public housing model: • $841 / per unit per month • Current FY2020 Sec. 8 Payment Standards at Watertown Housing Authority: • 1BR: $2,090.00 / per unit per month • 2BR: $2,542.00 / per unit per month Will the current residents be negatively affected by repositioning? No, they will not be negatively impacted by the conversion. In general, nothing will change for the residents except that the WHA will get added funding to operate and maintain the building and further its mission. • Resident rents will be still be calculated the same way with residents paying 30% of their monthly adjusted income for rent. • WHA will continue to manage and maintain the building. What are the long-term implications of repositioning? • New development and construction of new affordable housing units in conjunction with other funding sources. • New capital improvement projects including a second elevator in the building. • Proper funding to address our current lack of resident services, including supportive services for these 50 units of public housing. How has WHA prepared for this major project? • WHA has signed an Intergovernmental Contract with Cambridge Housing Authority who has converted more than 2130 units of its federal public units to Section 8 Project -Based Voucher units including over 1,000 units through the Section 18 program. These conversions have allowed CHA to significantly modernize its housing. • WHA has contracted with the legal firm Klein Hornig LLP to assist with non-profit entity creation and to ensure the process is done in a manner which protects the affordability of these units for the long-term. • WHA is in regular communication with the Boston HUD Field Office. The Boston HUD Field Office fully supports WHA's pending application for the Section 18 program. Other Key Points: • WHA has no debt owed on the land at 100 Warren St.'s federal public housing property. • The building itself is in pristine condition, and earlier in 2020 WHA scored 98 / 100 on its HUD REAC inspection score o A Passing Score of HUD REAC is 60. Inspections are conducted on a risk - adjusted (3-2-1) basis. Under this policy, inspections occur annually, unless the most recent score was 80 (out of 100) or higher. Properties receiving a score of 80 — 89 are inspected every two years; properties receiving a score of 90 or more are inspected every three years • WHA currently plans on spending over $500,000 in capital improvements on these 50 units of public housing within the next 12 months as we prepare to close out the public housing program. Why should WHA convert 50 Federal Public Housing Units into 50 Project Based Voucher Units? To a chieve WHA's ongoi ng mission of providing safe, affo rdable housing to our most v ulnerable popula tions, we must seek additional revenue strea ms and funding sources. The conv ersion of 50 Section 9 Federal Public Hou sin g U nits at 100 Warren Street will in crease rev enu e throu gh Section 8 Vouchers. Below is a cost comparison of the affordable hou sing models. WHA FY2020 Sec. 8 Pa ymen t Stan dards 1 Bedroom $2,090/Month 2 Bedroom $2,542/Month The current per unit cost for all 50 federally subsidized units @ 100 Warren Street under the public housing model: 5400/ Month rip Watertow n Housing Authority plans to convert 50 Federal P ublic Ho using U nits i nto 50 Section 8 Vouchers through the HUD Section 18 Program of the Federal Ho usi ng Act of 1937 (42 U.S.C . § 1437p). This section authorizes a PHA to convert and dispose of p ublic housing, with local, reside nt, and HUD approv al. The criteria to reposition federal public housi ng under Section 18's 50 and under progr am requires that: The PHA certifies has determined the disposition to be appropriate for rea sons that are in the best i nterests of the residents and the PHA, consistent with the goals of the PHA a nd the PHA Plan and are otherwise co nsiste nt with the 1937 A ct (24 CFR 970.17(c)). The PHA owns and operates 50 or fewer public housing units under its A CC and has determined that it is in the best in terests of the residents and PHA to clo se out its Section 9 pu blic hou sin g program in a ccordance with N otice PIH 2016-23 Watertown Housing A uthority Section 18: Repositioning, E. Joyce Munger Building Federal Public Housing Units Will the c urrent residents be negatively affected by rep ositi oning? No, they will not be negati vely impacted by the conversion. They will have the optio n to accept the project -based voucher and maintain their residency or they can select a mobile voucher as part withi n WHA's Section 8 program. Whichever option the resident chooses, their access to safe, a ffordable housing will stay the same . In both the mobile and project -based Section 8 pro grams, the residents pay 30% of their monthly adjusted in come. Curren tly, under the federal public hou sing model, the resident pays 30% of their gross income toward rent. No thing would change for the resident ex cept that the facility will be properly funded. What are the lo ng-term implicatio ns of repositioni ng? New development a nd co nstruction of new affordable housi ng u nits in conj unction with other fu ndi ng sources. New capit al impro vement projects incl uding a second elevator in the building. Proper funding to address our current lack of resident services, i ncl uding s upportive ser vices for these 50 units of public housing. How has WHA prep ared for this major project? W HA has signed an Intergovernmental C ontract with Cambridge Housing A uthority who has converted more tha n 2130 units through HUD sections and is currently converting 302 units through Section 18. WHA has contracted with Klein Hornig LLP to assist with non-profit entity creation and to ensure the process is done in a ma nner which protects the affordability of these units for the long- term . WHA is in regul ar communicatio n with the Boston HUD Field Office . The Boston HUD Field Office fully supp orts WH A's pe ndi ng application for the Section 18 program. TOWN OF WATERTOWN HOUSING PARTNERSHIP Administration Building 149 Main Street Watertown, MA 02472 Phone: 617 972 6417 Fax: 617 972 6484 www.watertown-ma.gov October 27, 2020 Mark Sideris Town Council President Town of Watertown 149 Main Street Watertown MA 02472 Re: "Repositioning" of Federal Public Housing Units Dear Mr. President: On behalf of the Watertown Housing Partnership, I am writing you about a proposal by the Watertown Housing Authority to "reposition" the Authority's fifty (50) federal public housing units. At its October 20, 2020 meeting, the Partnership was briefed on this proposal by Michael Lara, the Authority's executive director. Under the U.S. Department of Housing and Urban Development's Section 18 program, local housing authorities with 50 or fewer federal public housing units can reposition those units into the Section 8 voucher program. Such a conversion allows the building owner to significantly increase the federal money supporting the units. The Partnership voted on October 20 to endorse the Authority's proposal. We believe that repositioning the 50 units will benefit the tenants and the Town by providing more resources to meet the long-term operating and capital needs of these units, while there does not appear to be any down side to the repositioning. Sincerel red Reynol Chair, Water •wn Housing Partnership cc: Michael Lara, Watertown Housing Authority Michael Driscoll, Town Manager Steven Magoon, Assistant Town Manager and Director, Department of Community Development and Planning