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HomeMy Public PortalAboutAffordable Housing Trust -- 2022-08-04 MinutesBrewster Housing Trust August 4, 2022, 5:OOpm Virtual Meeting Housing Trust Members Present: Donna Kalinick, Tim Hackert. Maggie Spade -Aguilar, Madalyn Hillis -Dineen, Vanessa Greene, Paul Ruchinskas, Ned Chatelain Others Present: Jill Scalise, Housing Coordinator Absent: 1. Call to Order: Chair Hackert called the meeting to order at 5:01pm, read the required notice for virtual meetings, and declared a quorum. 2. Citizen's Forum: Glenn Casey submitted an email to the Trust that was not in the packet. Chair Hackert said we would comment on that during the Millstone Community Housing Agenda update item. Ms. Scalise read the email because it was not in the packet: "Good Morning Jill, Again, I am not sure if I will be able to get on zoom because of my internet, I have a few questions I would like to raise during the citizens comments below. In addition, I noticed the last packet from 7-7-2022 meeting in the archive is not the revised one that had the Projected Time Line for Key Milestone Table. Maybe it could be swapped out for the record. 1. The Housing Production Plan received the "Certified Approval" good until May 15th, 2023 based on the SHI (Subsidized Housing Inventory) meeting the 24 unit requirement via the Serenity Project. Is there currently any inventory projected to become available in 2023 to extend the certification? 2. The 40 B Application for The Millstone Affordable Housing Project was submitted in July 2022 and met the projected timeline submittal date outlined in the Major Milestone Table. I would assume this is still on tract for potential approval on October 1, 2022? 3. Would it be possible for the Housing Coordinator to update the Projected Timeline for Key Milestone Table provided by the POAH & HAC Proposal/Award (included in last months 7-7-2022 BAHT Packet) on a monthly basis? This would be helpful for citizen awareness and transparency. I would only be looking for an indication of what has been "completed" at this point and not any revision to actual Projected Timeline dates for Key Milestones. Unless I am mistaken, I believe only 3 of the 38 Key Milestones have been completed and the Table projected 13 Key Milestones should have been completed by 84-2022. 3. FY22 Trust Finance Report -Ms. Kalinick said in the packet, there was a spreadsheet included of the history and year to date expenses and revenues of the Trust, broken down between CPC and non -CPC funds, including fiscal 22. For CPC funding, we currently have $518,805.99. Those funds include, $300,000 for preservation of homes on our SHI, $150,000 for rental assistance and an original allocation of $100,000 from November 2018 Town meeting to be used for any CPC purpose; most has been used for Millstone housing. In terms of non -CPC funds, we have $1,202,072.54. That money is made up of an original allocation of $100,000 to assist the Trust with non -CPC eligible items and the rest came from short term rental revenues; though some of that money 11 came from stabilization due to putting aside money during the pandemic, then transferring it out. Together, we have a total of $1,720,878.53. Also, in the updated packet is the submission to the CPC of the annual trust expenses. The Trust is required to report to the CPC so they can file their CP3 report to the State. Ms. Kalinick went through the CPC expenses of $4,877.00 that were divided between creation of affordable housing, Millstone Community Housing, and preservation of SHI homes. Ms. Kalinick noted that we are in a good position right now but she believes that we will have much larger expenses in coming year with federal and state rental assistance programs ending, the rehabilitation expenses of 212 Yankee Drive and local funding that will go into the Millstone Housing initiative. Ms. Kalinick explained that the $150,000 transfer shown in the start of FY23 is just a technical accounting transfer as the rental assistance award from CPC was never officially transferred. She will be going to the CPC next week to request the official transfer and present the CP3. The expenses that were non -CPC were $7,163.92 and was to insure 212 Yankee Drive because that was not CPC eligible. Mr. Ruchinskas thanked Ms. Kalinick for the report. He had an edit to the letter to the CPC; it said FY21, not FY22. Mr. Ruchinskas noted that the majority of the CPC funds on hand are committed, and we really had about $60,000 available to spend and of the 1.2 million of non -CPC, about $500,000 of that is committed. 4. POAH &HAC proposal for Millstone Community Housing update- Ms. Kalinick reported that the Select Board on August 8, 2022 will have an executive session to discuss the LDA and Lease with Preservation of Affordable Housing and Housing Assistance Corp. Assuming they have a successful discussion in executive session, they will vote to sign the LDA and form of lease in open session. Ms. Scalise referred Trust members to the letter in the packet from DHCD. It states that POAH and HAC have applied for a project eligibility letter which is a step towards applying for a comprehensive permit. On the Select Board agenda on August 8th is a letter of support for this application that the Board will vote on. Ms. Scalise clarified that this is not a comprehensive permit or 40B application at this point as referred to in Mr. Casey's email. A comprehensive permit would go directly to the ZBA. Ms. Scalise noted that on the timeline submitted with the POAH and HAC proposal, the town would not necessarily know where they are in the process, for example for design. We have tried to update the Trust and will continue to monthly and will try to refer to the timeline as requested by Mr. Casey. Ms. Kalinick noted that the full application for project eligibility is on the website on the housing page, under Millstone Housing, and will also be in the Select Board packet on August 8th Ms. Spade -Aguilar asked when we would have a determination from DHCD as the comment period is through August 13th. Ms. Scalise said we do not have a specific date but it would be after the end of the 30 day comment period which ends on August 13tH 5. 2022 Housing Production Plan Update and 2017 HPP Certification -Jill Scalise said she would start with the 2017 HPP. Due to the addition of the 27 Serenity units to our SHI, our Housing Production Plan has been certified through May 2023 which means that we are in Safe Harbor, The HPP update has been approved by the Select Board and Planning Board on July 11,h and has been submitted to DHCD for approval. Ms. Scalise answered Mr. Casey's last question about whether there were any other projects that were in the pipeline to extend the certification. Ms. Scalise said that the Millstone Community Housing if it received its' comprehensive permit would be submitted to DHCD for approval and certification of the HPP for one year. There are no other projects on the horizon that would earn further certification. Ms. Kalinick noted that this is the second time in 5 years that we have received certification and we should be proud of that work. Even though we all agree that there is more work that needs to be done beyond reaching the 10%, it is good to make progress. Ms. Scalise said we are now at 6.2% on our SHL Financial 6. Housing Trust Goals and Priorities Update - Financial Plan Update: Ms. Kalinick said that her primary goal since the last meeting was to get the end of the year finance report done for the Trust. Now that it is done, she will work with the Finance Director to produce the spreadsheet for the five-year financial plan which will be reviewed by Mr. Lombardi, Ms. Bernardo, Mr. Chatelain and her prior to coming to the Trust in either September or October. Trust Guidelines Update: Ms. Scalise said there are two copies of the proposed guidelines in the packet, one with ared-lined draft that she will share on her screen. There are a few housekeeping items then starting on page 5, then we get into eligible activities where the purchase of a home in certain circumstances was added. Ms. Scalise thanked everyone for their comments on the draft guidelines. The first question point is around the Brewster Emergency Assistance Fund, whether it should be kept or the wording should be changed to a broader scope, like what Chatham has. Chair Hackert asked if we have the right to do that. Ms. Scalise said it would take a vote of the Trust. Mr. Ruchinskas said it feels like we are trying to create an assistance fund that is similar to other assistance funds like the Needy Fund and are we duplicating efforts and creating a larger workload. Mr. Ruchinskas is not in favor of keeping this option or expanding it. Chair Hackert agrees. Ms. Kalinick said she is in favor of keeping this and giving us the ability to handle something that comes up. She suggested that we reach out to Chatham and find out under what circumstances it has been used but she is also fine if the majority of other members are not in favor as that is the process. Chair Hackert said we can follow up with Chatham and talk about this again next month. Ned Chatelain said that he is okay with leaving this in, knowing that it may not be a primary activity but may backfill programs that are ending on the state level. Chair Hackert said we do also have the ability to revisit the regulations in the future. Ms. Scalise noted that this is currently for SHI residents only. She will talk to Chatham and report back. Under CDBG, the program for home rehabilitation is now up to $50K from $40K so that change was made. It was made clear that under support programs, it is loans and grants for individuals versus under development. The questions come up under funding guidance, making it clear that all units must be deed restricted. Clarification was made under the amount of award: $100,000 per unit with a maximum amount of total award for a project to be determined by the Trust; tax credit rental units are limited to $50,000 per unit. Ms. Scalise noted that there were no comments from Trust members on the length of loans section following; 10 to 15 years for $20,000 and 30 years for anything over $50,000. Ms. Kalinick questioned the word "limited" in the award per unit when we go on to say the Trust can award a total award and asked Mr. Ruchinskas to weigh in. Mr. Ruchinskas said later in the document, we added in language that allows the Trust to waive or change a guideline with a unanimous vote of the Trust. Ms. Kalinick thought we discussed in the last meeting whether this was a loan. Mr. Ruchinskas said they are typically loans but function as a forgivable grant, but it is a loan, recorded as a mortgage. Ms. Spade -Aguilar said she was uncertain in drafting the language of loan versus grant and if it is over $50K, it has to go to the Select Board. Chair Hackert said it is a grant but it is loan that is forgivable over a number of year. Ms. Kalinick said we will have to include language about Select Board approval for grants/loans over $50,000 because that is how the current Trust bylaw is crafted. We will have to have further discussion about whether to amend the bylaw at a future town meeting to remove that provision. Mr. Ruchinskas said he thinks the terms of the loans are appropriate based on the awards and if it a tax credit project, the loans are likely to be longer than 30 years anyway. The language was changed to $50,000 or more. In the next section, the following was added: a Land Development agreement is required, Select Board approval for transactions over $50,000 and making it clear what low and moderate income is and that the Trust cannot fund projects that are solely over 100% of the area media income. Ms. Kalinick asked that the sentence about Select Board approval be flip flopped so it is clear that in addition to Housing Trust approval, Select Board approval is required. Under updating of the guidelines, it was made clear the guidelines will be updated based on fiscal year priorities. Under Selection Criteria, there were suggestions to use some of the Chatham language and not to prioritize them but just list them. Ms. Scalise read the whole text of bullet one. Mr. Ruchinskas asked if we should change the language to make it clear that all the projects don't have to have a range of incomes. Ms. Spade -Aguilar said she left in there that even if all the units don't meet the eligibility to go on the SHI, we could still fund them. Eastham had that language. Mr. Ruchinskas said he thinks the mission of the Trust is to support a variety of incomes but each individual proposal may not meet that so it is just to clarify the language that they do not have to have a range but we would fund a range. Ms. Spade -Aguilar said she thinks it is the word range that has to be fleshed out of what we mean by range. Ms. Kalinick said this is the criteria and if this is what will be used to judge proposals, we need to be clear. She thinks the intent of the language is correct. We want to support a range of housing, incomes, I and we all agree that we would support housing that is not eligible for the SHI. Ms. Scalise said she thinks if we change the word from shall to may, that should cover it. The Trust agreed. On the next bullet, which is advance the creation of year-round affordable rental housing, Ms. Scalise noted that there is a question about local preference and funding projects outside Brewster. Mr. Ruchinskas said this was his comment and he thinks we should be clear as to whether we will fund anything outside of Brewster. Mr. Chatelain asked if we can statutorily fund projects outside of Brewster? Ms. Kalinick said she does not know the answer and will have to look into it. Ms. Kalinick said she will find out and in the inter!m, Trust members should think about how they feel about this issue. Ms. Kalinick said the CPC does fund outside of Brewster and if you look at Pennrose, it is a mile from the Brewster line and there will be Brewster residents who live there. Chair Hackert said we will take this up at thC next meeting. Ms. Scalise said there are just a few more bullets to go through. Identify and take advantage of existing structures and/or properties that have discounted or nominal acquisition costs, such as town owned or tax foreclosure properties, to make the development of affordable housing more financially feasible. Minimize impacts on the built environment such as accessory apartments, small infill developments in existing neighborhoods, or buy -down initiatives that convert existing housing into affordable units. Develop a range of projects to serve a range of housing needs including housing for families, seniors, and special needs populations; this one gets at the range discussion that the Trust just had. Encourage mixed -income development to promote diversity and inclusion. There was a change in this criteria to include energy efficiency; Projects provide additional public benefits such as open space, environmental/conservation, energy efficiency, historic preservation, public safety, economic development, etc. Mr. Ruchinskas asked about the use of the word attainable and asked that attainable be deleted- it should just say affordable. There were two changes in the application- to add a section about providing information about the development team and whether we should include all the glossary terms or just link them. It was decided to link them. Ms. Spade -Aguilar asked about the statutory reference in page 4, establishment of the trust; she through it should just be chapter 44 with no B. Ms. Scalise will check but she thought she took the language from the town meeting article. Ms. Scalise said the entire document will be sent to legal to review. Housing Forum Update: Ms. Hillis -Dineen said they met with Jill and decided that given the time constraints, they decided to do a smaller forum this fall and then a larger forum and fair in the spring. Possible dates are October 27th or October 18th or November 3rd. Ms. Spade -Aguilar said this forum would mainly be an update on Trust activities, explanation and assistance with applications and an update on the Housing Production Plan. Ms. Kalinick asked if the Housing Partnership would be involved. Ms. Spade -Aguilar said they would. Ms. Kalinick was concerned about Halloween activities and the 27th. Ms. Hillis -Dineen said she thinks most events would be Friday or Saturday and Thursday seemed to work the last time. Ms. Scalise said these dates were open on the Library schedule and they were going to talk to the Housing Partnership too. As. Scalise also said that the Vision Plan is due to be adopted in the fall so that would be a component of the bigger fair and forum in the spring. Ms. Scalise said she would bring the dates to the Housing Partnership for input. 5 7. 212 Yankee Drive update, discussion and possible vote -Ms. Scalise and Ms. Kalinick did asite visit with Building Commissioner, Davis Walter. He made a series of recommendations about what work needs to be done. This list would be used to create a scope of services for an invitation to bid. In the packet, the list is highlighted for items that are CPC eligible, which items would have to paid for by the Trust and items that we are unsure about. Ms. Scalise looked into the sales price of the home, using DHCD's price calculator at 70% of the AMI and it was between $200,000 to $225,000 which would be a mortgage payment of about $1,500 monthly. There are also outstanding taxes of about $16,000. It is expected that there would be about 100 to 125K that would be recouped on the re -sale of the property. Chair Hackert asked if there was a priority of who gets paid back first between the CPC and the Trust. Mr. Ruchinskas said the terms of the CPC award is that if there are funds that are recouped, they would remain with the Trust for any affordable housing purpose. Ms. Kalinick said she and Jill spoke with legal counsel about this and the Trust would retain the funds but the portion that was CPC would still have the CPC restrictions. Mr. Chatelain said he would support doing the items on the list that would get the home back into live-in condition as quickly as possible. Chair Hackert asked what the motion should be. Ms. Kalinick said we are discussing the items that the Trust would fund and the gutting is one that is in question and could be expensive. There is a question around the upgrades around energy efficiency. Are we willing to put all the items on the list whether they are CPC or eligible or not. Ms. Spade -Aguilar asked if there is any estimate on costs, especially for the gutting. Ms. Scalise said the original estimate was about $100,000 but did not include gutting. Ms. Spade -Aguilar wondered why it was not CPC eligible. Ms. Kalinick said we will talk to legal counsel about that and the original estimate did not include energy upgrades. Ms. Kalinick said this will not be a lump sum bid because we have to know the line item costs so we could bid some of the optional items as add alternates. She and Jill will also reach out to Cape Light Compact to see if there are any programs that could assist with the energy upgrades. Mr. Chatelain said he supports this approach but would only be supportive of funding items 2, 31 5 through 12. He thinks the other items could be done by Mass Save at little cost to the homeowner. He is supportive of returning the property to its original condition but is apprehensive about adding new items on. Chair Hackert asked if we need to wait to find out which items will be CPC versus the trust. Ms. Kalinick said we do not need to know that until it is time to sign a contract so we have a little time. Chair Hackert asked if the vote is to proceed to with the invitation to bid, with upgrades listed as alternates and a line item bid. Ms. Kalinick said that she would just make it clear that there are some items that the Trust is wiling to pay for and some that we would discuss after the bids are open. Mr. Chatelain moved that we put this out to bid for a line item bid with the expectation that the Trust would pick up the non -CPC eligible items that are necessary to return the home to live in condition and the add alternate items to be discussed at a later date, Madalyn Hillis -Dineen second. A roll call vote was taken. Mr. Ruchinskas wanted to make sure the add alternate items would be discussed again at a future meeting before the vote. They will. Donna Kalinick-Yes, Maggie Spade -Aguilar -Yes, Vanessa Greene -Yes, Madalyn Hillis -Dineen -Yes, Paul Ruchinskas-Yes, Ned Chatelain-Yes, Chair Hackert-Yes. 8. Housing Coordinator Update including Serenity at Brewster and Brewster Woods -Ms. Scalise mentioned two items -Serenity had their grand opening this morning. The lottery was held for the 27 affordable units last Tuesday. Serenity is now going through the process of leasing both the affordable and market units. Ms. Scalise noted that Rieko ith Hyashi from DHCD who we are worked wfor years came for the ribbon cutting then Ms. Scalise took her around to Brewster Woods and Millstone. Brewster Woods had their lottery as well. There were 241 applications, 125 were qualified for the lottery with 38 Brewster residents. Brewster Woods is delayed with supply chain issues and will likely be opening in October or November. For Serenity, there were 72 applications for 27 units, 53 were qualified and 14 were Brewster residents as we had 50% local preference in the Serenity lottery and there were exactly 50% applicants. Ms. Scalise said there was also a buy down for an existing SHI home this morning as well. Ms. Kalinick noted that Ms. Scalise delivered a check for the closing, went to the Serenity ribbon cutting, made a short video, took Rieko around Brewster then came back here to get ready for the Trust meeting. 9. Cape Cod Sea Camps updates- Ms. Kalinick said the two committees continue to meet. The Town is interviewing Reed Hilderbrand next week as a potential consultant to assist with the comprehensive planning and community outreach. Ms. Kalinick said the Pond Parcel Committee is working on a short video to familiarize the public with the pond parcel. The beach at the bay parcel is going well and there are several community events happening this summer- movie nights, Brewster band and touch a truck. Mr. Ruchinskas said because access to the parcel is challenging, the video would familiarize the public with the parcel. Ms. Spade -Aguilar said the Bay parcel is focused on short term uses, the pool for next summer and potential housing for lifeguards. Ms. Scalise will be going to the next Bay Parcel meeting to talk about housing. Chair Hackert said the National Seashore has experience with housing lifeguards. Ms. Spade -Aguilar said that Orleans does the same. 10. For Your Information: Chair Hackert said for September we will talk about the Rental Assistance program and election of officers. Ms. Kalinick wanted to remind everyone that the public comment period is open for the draft LCP goals. She thinks it is important for residents and Trust members to provide comment on the goals, the vision statement and if the plan goals are working together cohesively and providing for the future. 11. Any other business not anticipated: None 12. Approval of Minutes from July 7, 2022: Paul Ruchinskas moved to approve the minutes of July 7,2022. Ned Chatelain second. A roll call vote was taken. Donna 7 Kalinick-Yes, Maggie Spade -Aguilar -Yes, Vanessa Greene -Yes, Madalyn Hillis -Dineen -Yes, Paul Ruchinskas-Yes, Ned Chatelain-Yes, Chair Hackert-Yes. 13. Next Meeting: September 1, 2022 virtual 14. Adjournment: Madalyn Hillis -Dineen moved adjournment at 6:39pm, Vanessa Greene second. A roll call vote was taken. Donna Kalinick-Yes, Maggie Spade -Aguilar - Yes, Vanessa Greene - Yes, Madalyn Hillis -Dineen -Yes, Paul Ruchinskas-Yes, Ned Chatelain- Yes, Chair Hackert-Yes. Respectfully Submitted, Donna J. Kalinick Assistant Town Administrator Meeting Packet: https;//portal.laserfiche.com/Portal/DocView.aspx?id=173833&repo=r- 153f9d98