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HomeMy Public PortalAboutCPC Packet 011123 Jt w BAHTTown of Brewster Community Preservation Committee 2198 Main St., Brewster, MA 02631 cpcmeeting@brewster-ma.gov (508) 896-3701 JOINT MEETING AGENDA COMMUNITY PRESERVATION COMMITTEE & AFFORDABLE HOUSING TRUST Brewster Town Hall 2198 Main Street January 11, 2023 at 4:00 PM Pursuant to Chapter 107 of the Acts of 2022, this meeting will be conducted in person and via remote means, in accordance with applicable law. This means that members of the public body may access this meeting in person, or via virtual means. In person attendance will be at the meeting location listed above, and it is possible that any or all members of the public body may attend remotely. No in-person attendance of members of the public will be permitted, and public participation in any public hearing conducted during this meeting shall be by remote means only. The meeting may be viewed by: Live broadcast (Brewster Government TV Channel 18), Livestream (livestream.brewster-ma.gov), or Video recording (tv.brewster-ma.gov). Members of the public who wish to access the meeting may do so in the following manner: 1.Phone: Call (929) 436-2866 or (301) 715-8592.Webinar ID: 837 7728 4808 Passcode: 326439 To request to speak: Press *9 and wait to be recognized. 2.Zoom Webinar: https://us02web.zoom.us/j/83777284808?pwd=NjB3WldRTGRxb0l0WXhIS1J0Y1NOQT09 Passcode: 326439 To request to speak: Tap Zoom “Raise Hand” button or type “Chat” comment with your name and address, then wait to be Community Preservation Committee Faythe Ellis Chair Sarah Robinson Vice Chair Sharon Marotti Treasurer Elizabeth Taylor Clerk Roland Bassett Jr. Christine Boucher Bruce Evans Peggy Jablonski Paul Ruchinskas CPC Assistant Beth Devine 1.Call to order 2.Meeting participation statement 3.Declaration of a quorum 4.Public Announcements and Comment – Members of the public can address the Community Preservation Committee on matters not on the meeting’s agenda for a maximum of 3-5 minutes at the Chair’s discretion. Under the Open Meeting Law, the CPC is unable to reply, but may add items presented to a future agenda. 5.Discussion of Brewster Affordable Housing Trust (BAHT) Guidelines 6.Discussion of proposed Housing Trust Financial Plan 7.Discussion of projected BAHT funding requests to the CPC 8.Consideration of annual funding for BAHT from CPC 9.Potential funding and administration of the affordable home buy-down program 10.Motion to adjourn Date Posted: Date Revised: 1/9/23 Town of Brewster Affordable Housing Trust Fund Program Guidelines & Application Brewster Affordable Housing Trust Fund Ned Chatelain Tim Hackert Madalyn Hillis-Dineen Vanessa Greene Donna Kalinick Paul Ruchinskas Maggie Spade-Aguilar Staff contact: Jill Scalise, Housing Coordinator Approved by the Brewster Affordable Housing Trust September 1, 2022 2 Brewster Affordable Housing Trust Program Guidelines and Application 2 Program Guidelines & Application Table of Contents Housing Guidelines Page # I. Brewster Affordable Housing Trust Mission Statement & Goals 3 II. Roles and Responsibilities of the Housing Trust 4 III. Priorities of the Housing Trust 5 IV. Eligible Activities 6 V. Funding Guidance 8 VI. Project Monitoring 9 VII. Reporting 10 VIII. Periodic Updating of the Guidelines 10 IX. Application Process 10 X. Selection Criteria 11 XI. Application Form/ Attachment List 12 Glossary of Housing Terms will be available on the new Town of Brewster website. 3 Brewster Affordable Housing Trust Program Guidelines and Application 3 Town of Brewster Affordable Housing Trust Fund Program Guidelines and Application I. Brewster Affordable Housing Trust Mission Statement and Goals Housing Trust Mission Statement: The Brewster Affordable Housing Trust (“BAHT”) seeks to expand and preserve year-round rental and ownership homes that are affordable to moderate, low, and very low income households. Our efforts will foster a welcoming environment for demographically and socio- economically diverse populations. The BAHT is committed to education, collaboration, and community engagement. - Accepted April 4, 2019 Brewster Affordable Housing Trust (BAHT) Goals The Trust has identified the following goals to use as guiding principles to implement Trust Mission Statement: 1. Develop and Preserve Affordable Housing: The BAHT will develop and preserve affordable housing and support the work of others seeking to do the same. Our work will serve very low-, low-, and moderate-income individuals and families, which means households with up to 100% Area Median Income (AMI). 2. Educate: The BAHT will work to educate individuals and organizations about Brewster’s community housing and why affordable housing is important to the town, its residents and visitors. Coordinating with the Brewster Housing Partnership (BHP), we will partner with other housing organizations from within and outside Brewster to provide educational opportunities to our citizens. 3. Advocate and collaborate: The BAHT will advocate for development proposals, projects, local bylaws, state and federal laws, and other programs that advance our mission to create and preserve affordable housing. We will collaborate with local, state, and federal officials as well as public, non-profit and for-profit entities to achieve our goals. 4. Engage and Communicate: The BAHT will engage and communicate with town residents, and listen to, and learn from, their ideas, so that our work reflects a broad consensus. Originally approved by the Brewster Affordable Housing Trust August 15, 2019 4 Brewster Affordable Housing Trust Program Guidelines and Application 4 II. Roles and Responsibilities of the Brewster Affordable Housing Trust Purpose of the Trust: The purpose of the Trust is to provide for the preservation and creation of affordable housing in the Town of Brewster for the benefit of low and moderate income households and for the funding of community housing as defined in and in accordance with the provisions of Massachusetts General Laws, Chapter 44, Section 55C. The Trust can use property, both real and personal, and expend funds as the Board of Trustees deems most appropriate to carry out such purpose consistent with the policies adopted from time to time by the Select Board regarding affordable housing. Management of the Trust: The Trust is governed by a Board of Trustees consisting of seven Trustees who are appointed by the Select Board for a term of two years. The Board is comprised of one member of the Select Board, Housing Partnership, Community Preservation Committee, and Planning Board; two residents at large; and the Town Administrator or his designee. The Powers of the Trustees: As stated in the Declaration of Trust, the Trustees may undertake any activity that would create and preserve affordable housing for the benefit of low and moderate income households. Their powers include, but are not limited to, the right to receive, purchase and convey real or personal property; to sell, lease, exchange or transfer property; to execute deeds, contracts, and grant agreements; to employ and compensate advisors and agents; to borrow money; to manage or improve real property and to abandon property which the Board determines not to be worth retaining; to issue policy goals and statements to serve as guidelines for the Trust and to provide funds for the benefit of low and moderate income households to assist in the acquisition, creation, preservation, rehabilitation and support of housing affordable for such families. Any expenditure of funds in an amount over $50,000, and any sale, lease, exchange, transfer of conveyance of property having a value in excess of $50,000, requires the approval of the Select Board. Funding of the Trust: The Brewster Affordable Housing Trust Fund (the “Trust Fund”) was initially funded by the dissolution of the Affordable Housing Fund and the transfer of the funds to the Trust Fund. Community Preservation Act (“CPA”) funds, in accordance Section 5 of the CPA, may be allocated to the Trust Fund. CPA funds appropriated into the Trust Fund may be used only for CPA approved activities, such as the acquisition, creation, preservation, and support of community housing, and for the rehabilitation of community housing acquired or created using CPA Funds. Additionally, the Trust Fund has received free cash from the Town of Brewster, including a portion of Brewster’s Short Term Rental Revenue; these monies are not subject to the CPA restrictions, but are required to be used for the purposes of the Trust. 5 Brewster Affordable Housing Trust Program Guidelines and Application 5 III. Housing Trust Priority Initiatives for FY 2022-23 A. Develop and Preserve Affordable Housing:  Develop new affordable housing (by building): o Support and advance the development of community housing on the Millstone Road property. Subsequent to RFP issuance, select developer and support their efforts to develop rental housing in a timely manner. Determine the amount of funding that the Trust should reserve for a potential request, provide support through funding cycles and permitting process, continue to engage the public. o Participate in the exploration of the potential development of community housing on the Cape Cod Sea Camps Parcels.  Develop new affordable housing (without building): o Evaluate the effectiveness of the current accessory dwelling unit bylaws and advocate for policy, financial, or implementation changes if necessary. o Evaluate the effectiveness of the current rental voucher program. o Revisit the feasibility of a rent-to-own program.  Evaluate the effectiveness and reach of the existing Community Development Block Grant (CDBG) home rehabilitation program, refine procedures, and study whether the Trust needs to explore supplementing the program in any way.  Continue to work to preserve the existing 3 Subsidized Housing Inventory (SHI) homes in distress and other units through outreach and, when required, with financial support.  Work with the Community Preservation Committee (CPC) to determine the future of the Brewster Buy Down program  Develop rules and program guidelines for the BAHT, particularly around funding requests  Participate in the Local Comprehensive Plan (LCP) process, including advocate and explore a review of current zoning as it relates to housing. B. Educate:  Hold at least annual forums and Select Board updates as well as regularly post information on the Town website. o Community Housing Fair and Forum  Hold ongoing joint meetings with other committees such as CPC, BHP, SB & FC  Hold, and/or participate in, Community Housing education sessions and forums that address or include Fair Housing, Local Preference, and Regional Partnerships. 6 Brewster Affordable Housing Trust Program Guidelines and Application 6 IV. Eligible Activities The Trust Fund can be used to support the following activities. Note that CPA funds must be used only for those purposes specified in the CPA as allowable activities, while the Trustees may use non-CPA funds for programs offering a broader range of purposes that are consistent with the Declaration of Trust and the provisions of MGL Chapter 44, Section 55C. A. PRESERVATION PROGRAMS Preservation of Subsidized Housing Inventory (SHI) Affordable Homes: 1. Housing Preservation and Improvement Activities The BAHT received a CPA grant of $500,000 in November 2019 to assist in the preservation and acquisition of SHI homes. Funds will be prioritized for affordable homes identified as non-compliant (for example, uninhabited) and/or at risk of losing their affordable deed restriction. In certain instances, the BAHT may use funds to preserve affordability of units already included in the Town’s Subsidized Housing Inventory (“SHI”) by providing funds for repairs necessary to enable residents to continue to reside in their homes. This may include the purchase of homes in specific circumstances. CPA Allowable Activities: CPA funds may be used for repairs that are necessary to preserve affordable housing from injury, harm or destruction, which may include, but are not limited to, the following:  Building envelope and site work to preserve the structural integrity of the homes  Roof, siding and window replacements to assure the water tightness of the housing units  Upgrading of dangerous electrical or plumbing systems  Replacement of dangerous building systems that threaten the housing units  Failed Septic Systems  Installation of hard-wired smoke alarms, sprinklers and other building fire suppression systems  Funds cannot be spent for maintenance or operating costs Whether the BAHT will fund a particular project depends on the facts involved in each case, the amount of funds sought, the eligibility of persons seeking assistance, the necessity of the repairs, the funds available to the BAHT to support such program, whether the homes were acquired or created originally with CPA funds, and other factors. The BAHT may obtain new deed restrictions on properties to ensure the future affordability of the homes. There is no guarantee of financial assistance. 7 Brewster Affordable Housing Trust Program Guidelines and Application 7 B. SUPPORT PROGRAMS (Loans/Grants for Individuals) 1. Brewster Rental Assistance Program Provide a monthly rent subsidy and support to income eligible households. This program is currently managed by Housing Assistance Corporation (HAC) for the BAHT. For more information, see the Housing Office Webpage or this link: Microsoft Word - FACT SHEET Brewster Rental Assistance Program.docx (brewster-ma.gov) CPA Allowable Activities: Grants, loans, rental assistance, interest-rate write downs or other assistance directly to individuals who are eligible for community housing for the purpose of making housing affordable 2. Brewster Affordable Home Buyers Buy-Down Program The Town of Brewster, through Community Preservation Funds, provides up to $30,000 of grant assistance for eligible buyers purchasing a home in Brewster. The program, contingent on existing funds, is available to households qualifying at 80% AMI (Area Median Income) who agree to place a permanent affordable housing deed restriction on the home. The grant assistance is provided as an interest free loan which is forgivable after 30 years if the owners remain in compliance with the terms of the restriction. This program is overseen by the Community Preservation Committee and specific applications for this program are available at Town Hall and on the Housing Office webpage: Buy- Down Ready Buyer Application (laserfiche.com) CPA Allowable Activities: Grants, Loans, Rental assistance, interest-rate write downs or other assistance directly to individuals who are eligible for community housing for the purpose of making housing affordable 3. Community Development Block Grant (CDBG) Housing Rehabilitation & Childcare Assistance Program CDBG housing rehabilitation and childcare assistance funds are available for low to moderate income Brewster households earning up to 80% of the Area Median Income. Housing Rehabilitation funds can provide a 0% interest, deferred, forgivable loan to make critical home repairs. The program is designed to improve the housing conditions of income qualified households. Funds up to $50,000 are available to eligible residents to pay for critical home repairs, like: roofing and siding, electrical, heating and plumbing work, structural repairs, lead paint abatement and energy efficiency upgrades such as windows and storm doors. This program is managed by The Resource Inc. (TRI) and applications are available from TRI at jean@theresource.org. Childcare funding offers eligible families subsidies of up to $6,000 per child, to assist families in seeking or maintaining employment. Bailey Boyd Associates oversees the Childcare assistance and applications are available here: Childcare Programs — Bailey Boyd Associates. 8 Brewster Affordable Housing Trust Program Guidelines and Application 8 C. CREATION PROGRAMS (Development Loans/Grants) 1. DEVELOP NEW RENTAL HOUSING (Rental Expansion Program)  New Construction Units Provide funding assistance to developers for construction of new affordable rentals with deed restrictions required for long-term affordability. 2. DEVELOP NEW HOME OWNERSHIP HOUSING (Home Ownership Expansion Program)  New Construction Units Provide funding assistance to developers for construction of new home ownership properties with deed restrictions required for long-term affordability. V. Funding Guidance The BAHT has established the following funding guidelines for eligible activities:  All financial transactions undertaken by the BAHT where Community Preservation Act (CPA) funds are used must comply with the requirements of the Community Preservation Act (CPA).  All affordable rental and homeownership units created through new construction must be deed restricted.  Development loans provided under the Home Ownership and Rental Expansion Program are limited to up to $100,000 per affordable unit and a maximum project amount determined by the Trust. Tax credit units are limited to $50,000 per affordable unit. The BAHT will determine the applicable interest rate to assist with project feasibility. Payments will be deferred until the property is transferred unless the recipient is determined to be in violation of loan terms (allowances for extenuating circumstances with an appeal process), in which case payments will be due. Any loan proceeds will be deposited into the Housing Trust Fund. All loans must be secured by a mortgage against the property and may be subordinated to other project lenders. Deed riders for 10-15 years are required for projects where the loan is more than $20,000 per unit and required for at least 30 years or in perpetuity for loans of $50,000 or more per unit.  For rental developments, the project sponsor must enter into a Regulatory Agreement with the Town and subsidizing agency that insures affordability in perpetuity to the greatest extent possible.  A Land Development Agreement will be required for any Town-owned land. 9 Brewster Affordable Housing Trust Program Guidelines and Application 9  In addition to BAHT approval, expenditures over $50,000 require Select Board approval.  Funding is directed to creating and preserving affordable housing for low and moderate income households, as defined below: Low-income housing – Housing for those persons and families whose annual income is at or below 80% of the area median income (AMI) for the Barnstable County area as determined annually by the U.S. Department of Housing and Urban Development (HUD) and adjusted by household size. Moderate-income housing – Housing for those persons and families whose annual income is above 80% AMI but at or below 100% AMI for the Barnstable County area as determined annually by HUD and adjusted by household size. While funded projects can include income tiers above the 100% AMI threshold, the Trust Fund cannot be used for projects that are solely targeted to income levels above the 100% level.  Funding guidelines can be waived or modified, if permitted under applicable law, upon a majority vote of the BAHT and, if required, by the Select Board. VI. Project Monitoring The BAHT, with staff support from the Housing Office and/or management agency, will work with the state’s Department of Housing and Community Development (DHCD) and project sponsors to insure that all units that have been funded by the Trust Fund are eligible for inclusion on the SHI, meet all requirements to be counted as part of the SHI, and are monitored to ensure the continued affordability of such units. BAHT will also monitor the affordability of units that have received Trust funds but are not eligible for inclusion on the SHI. In these cases, the BAHT, with support from the Housing Office and/or a management company, will annually confirm the continued occupancy and eligibility of unit occupants by:  Checking Assessors records and resident mail listings to verify the continued occupancy of the units. If the units involve homeownership, the deed rider will require that the occupant notify the Town upon any intent to sell, and the Town will have an opportunity to purchase or resell the unit based on a prescribed process included in the deed rider (adaptation of DHCD’s deed rider). If the units involve rentals, send a letter to the project sponsor requesting documentation listing the incomes of the tenants and a copy of their leases to ensure that the tenants meet the income qualifications, and the rents continue to be affordable.  Checking the Barnstable County Registry of Deeds to make sure that there have been no changes in ownership/residency. 10 Brewster Affordable Housing Trust Program Guidelines and Application 10  Preparing an annual compliance report that documents the continued affordability of these units. VII. Reporting With staff support from the Housing Office, the BAHT shall prepare an annual report that summarizes the use of Trust funds during the fiscal year including amounts of funding, type of funding, project description and status, as well as the balance in the Trust Fund. The books and records of the Trust shall be maintained by the Town Accountant and audited annually as part of the annual audit of the Town of Brewster. The results of the audit shall be provided to the Town. VIII. Periodic Updating of the Guidelines These Housing Guidelines shall be reviewed at least every three (3) years by the BAHT, with input from the CPC and the Brewster Housing Partnership, and updated as necessary. The BAHT is responsible for approving any changes and can also choose to amend the Guidelines any time if it determines that certain requirements are no longer effective or viable or are necessary or appropriate. Section III will be updated regularly to reflect the BAHT’s new FY priorities. IX. Application Process The application process involves providing information to the BAHT before funding approvals can be granted. All submissions, scheduling and communications will be coordinated through the Brewster Housing Office. The BAHT will accept applications on a rolling basis. Only those projects that receive the approval of the Board of Trustees and, if required, the Select Board, are eligible to access funding from the Trust Fund. In making its determinations on funding, the BAHT may consult with the Brewster Community Preservation Committee, Planning Department and Planning Board, Zoning Board of Appeals, and/or other Town commissions or boards. The approved applicant must enter into an agreement with the BAHT that specifies the purpose and scope of the project, projected timeframe, and approved funding for the project. The applicant must submit an original copy of the signed contract. 11 Brewster Affordable Housing Trust Program Guidelines and Application 11 X. Selection Criteria The BAHT will apply the following selection criteria in its review of applications: Selection Criteria The project/program proposal is consistent with the BAHT’s Funding Priorities. These include the following: 1. Increase affordable housing opportunities for year-round community to the extent permitted by law, by prioritizing opportunities that support the Trust’s mission to expand and preserve year-round rental and home ownership homes that are affordable to moderate, low, and very low-income households. These projects should provide a welcoming environment for demographically and socio-economically diverse populations. Proposals may serve a range of local housing needs, even if some of the units may not be eligible for inclusion in the state’s Subsidized Housing Inventory (SHI). 2. Advance the creation of year-round affordable rental units to serve Brewster's most financially vulnerable residents and other income-qualified persons and households. 3. 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. 4. Promote affordable housing using methods that 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. 5. Develop a range of projects to serve a range of housing needs including housing for families, seniors, and special needs populations. 6. Encourage mixed-income development to promote diversity and inclusion. The funding request is reasonable as a portion of the overall project costs and on a per-unit basis and adheres to the BAHT Funding Guidelines. The development pro forma demonstrates that the project is feasible (not applicable if Trust Funds are requested for predevelopment activities to determine feasibility of a project). The applicant has demonstrated significant leveraging of the requested BAHT Funds with other public and/or private funding sources. The applicant is qualified to undertake the project and has demonstrated success in similar capacity with comparable projects. The applicant has demonstrated appropriate site control. Projects provide additional public benefits such as open space, environmental/conservation, energy efficiency, historic preservation, public safety, economic development, etc. The project meets demonstrated community needs. The applicant has demonstrated project support by other Town boards, committees, the Cape Cod Commission, other pertinent organizations, and Brewster citizens, as appropriate. 12 Brewster Affordable Housing Trust Program Guidelines and Application 12 XI. Application Form/ Attachment List 13 Brewster Affordable Housing Trust Program Guidelines and Application 13 Town of Brewster Affordable Housing Trust Application Package APPLICATION FORM Project/Program Name: ____________________________________________ Trust Program: __________________________________________ Project Location Street Address: ______________________________ Assessor’s Map & Lot #:_______ Legal Property Owner of Record:___________________________________________________ Sponsor(s)/Organization: _________________________________________________________ Contact Person Name & Title: _____________________________________________________ Telephone: __________________________Email: ______________________________ Mailing Address: __________________________________________________________ Budget Summary Total Trust Funds Requested: Total Project Cost: Sponsor’s Signature: _______________________________ Date: __________ 14 Brewster Affordable Housing Trust Program Guidelines and Application 14 Sponsor’s Printed Name & Title: ___________________________________________ Project Summary: Please summarize the proposed project and any special features (support services, sustainability or energy conservation components, historic preservation, etc.) 15 Brewster Affordable Housing Trust Program Guidelines and Application 15 1. Sources of Funds: Check all that apply, include dollar amount, and circle if funds are committed or proposed. Brewster Affordable Housing Trust $ __________________ committed/proposed *Brewster Community Preservation Fund $ __________________ ______________committed/proposed (*Some funding from the Trust is derived from Community Preservation Funds. Check this box if seeking additional funds from the Community Preservation Committee.) Private Bank Loan__________________$ committed/proposed Sales Revenue $ Other: $ Other: $ Other: $ 2. Uses of Funds: Check all that apply. Predevelopment (feasibility, engineering, appraisals, environmental studies/testing/mitigation, legal work, etc.) Acquisition Preservation Site Preparation (tree clearing, earth removal, etc.) New Construction Redevelopment Administration Operations Marketing Other (please explain) 3. Targeted Population: Check all that apply. Family Senior/Elderly Homeless/At Risk of Homelessness Special Needs (identify population): ___________ Housing with Support Services (identify service providers): Other (identify): 4. Type of Housing: Check all that apply. Homeownership: Rental: Single-family Single Room Occupancy Condominium Individual/Family Cooperative Group Residence, Congregate Other Other (identify): committed/proposed committed/proposed committed/proposed committed/proposed 16 Brewster Affordable Housing Trust Guidelines 16 5. Unit Composition (If Applicable): List number of units in each category Total <=30% AMI <=50% AMI <=80% AMI <=100% AMI <=120% AMI Market Rate SRO 1 Br 2 Br 3 Br 4 Br/+ Note: Refer to (www.huduser.org) for latest fair housing rates. 7. If applicable, Information about the Development Team including:  Owner/sponsor/development entity-  Experience-  Architect-  Engineer-  General Contractor (if known)-  Development Pro-forma-  Operating budget for rental project (For example- One Stop funding application)  Development pro-forma with sales prices for home ownership units. Submission: All completed application packets should be submitted to: Town of Brewster Affordable Housing Trust Jill Scalise, Housing Coordinator 2198 Main Street Brewster, MA 02631 Email: jscalise@brewster-ma.gov Phone: 508-896-3701, ext. 1169 17 Housing Trust 5 Year-Plan FY23-27 11.16.22 FY23 FY24 FY25 FY26 FY27 Carryforward Balance 1,195,879 1,190,879 893,879 714,569 1,053,821 Anticipated Revenues 1,891,900 2,870,580 2,344,461 2,519,557 2,425,927 Appropriations 1,896,900 3,167,580 2,523,771 2,180,304 2,567,196 End Balance 1,190,879 893,879 714,569 1,053,821 912,553 FY23 FY24 FY25 FY26 FY27 Projects:Funding Source Housing Coordinator CPA- Salary Only 66,900 70,580 74,461 78,557 82,877 Benefits paid by the Town-approx. 35K/ year Housing Program Asst.BAHT Salary Only -42,000 44,310 46,747 49,318 19 Hours- new non-benefitted position Rental Assistance CPA 150,000 150,000 150,000 Preservaton of SHI Homes CPA 300,000 200,000 Buy Down Program CPA 300,000 300,000 Housing Production Plan CPA 30,000 212 Yankee Drive BAHT 75,000 Town Development of Other Properties BAHT 500,000 500,000 Outside Applications for Funding BAHT 50,000 50,000 50,000 50,000 Millstone Road Community Housing CPA/BAHT 1,000,000 Legal Expenses CPA/BAHT 5,000 5,000 5,000 5,000 5,000 Housing Rehabilitation-Child Care Vouchers CDBG-Regional Grant 1,300,000 1,500,000 1,700,000 1,700,000 1,700,000 Town is lead community for Dennis, Wellfleet and Brewster Total Appropriations:1,896,900 3,167,580 2,523,771 2,180,304 2,567,196 Sources Short Term Rentals Allocation 375,000 400,000 420,000 441,000 463,050 Financial Forecast 5% escalator CPA Housing Coord. Wages 66,900 70,580 74,461 78,557 82,877 CPA Rental Assistance 150,000 150,000 150,000 CPA for SHI Homes -200,000 Proceeds on Re-sale of SHI Homes 150,000 CPA Buy Down 300,000 300,000 CPA Housing Production Plan 30,000 CPA Millstone Rd. Community Housing 250,000 Grants & Donations Community Development Block Grant (CDBG)1,300,000 1,500,000 1,700,000 1,700,000 1,700,000 Total Revenues:1,891,900 2,870,580 2,344,461 2,519,557 2,425,927 CPA Rev 216,900 820,580 224,461 378,557 262,877 CPA Exp 516,900 570,580 224,461 378,557 262,877 390,675.00 5 year average Estimated annual CPA revenue 1,492,304 1,529,612 1,567,852 1,607,048 1,647,225 Target Allocation Policy- Housing 30%447,691 458,884 470,356 482,115 494,167 TAP - Open Space 30%447,691 458,884 470,356 482,115 494,167 TAP - Recreation 10%149,230 152,961 156,785 160,705 164,722 TAP- Historic 10%149,230 152,961 156,785 160,705 164,722 CPA Recommended 20%298,461 305,922 313,570 321,410 329,445 1,492,304 1,529,612 1,567,852 1,607,048 1,647,225 18 Town of Brewster Housing Production Plan 2022-2027 APPROACH TO IMPLEMENTATION The table below outlines the potential responsible parties for each strategy, as well as possible time frames for select strategies. The final two columns on the right indicate whether the strategy follows a recommendation from the 2017 Housing Production Plan, and whether the strategy is connected to DHCD guidelines for Housing Production Plans (as outlined in Table 23 of this HPP). Implementation Table Implementation Strategies POTENTIAL Responsible Entities POTENTIAL Time Frame TBD Follow-up to 2017 HPP Strategy # Meets DHCD Guidelines for HPP Strategies Lead Support Regulatory Reform #1 Reevaluate the existing ADU and ACDU bylaws and other references to accessory apartments; explore amendments to streamline these provisions and improve their efficacy. Planning Building BHP HC SB Early (discussed) #1 ✓ #2 Amend zoning to clearly allow mixed uses that include housing in business-zoned areas. Planning BHP, SB HC, TA TBD #2 ✓ #3 Reevaluate the existing multifamily dwelling bylaw (Section 179-34) and consider changes and other regulatory measures to facilitate multi-unit residential development. Planning HC, TA SB TBD #5 ✓ #4 Explore measures to require or encourage the inclusion of affordable units in residential development over a certain number of units. Planning HC, TA SB TBD #4 ✓ #5 Allow and incentivize the adaptive reuse of existing buildings for the creation of affordable and mixed income housing. Planning Building TA, SB HC ZBA TBD #6 ✓ #6 Utilizing the findings of the ongoing Integrated Water Resource Management Plan, continue to identify appropriate wastewater treatment systems to enable the creation of denser housing development that can support the inclusion of affordable units. Interdepartmental: Health TA, SB, Planning Natural Resources HC TBD -- 19 Town of Brewster Housing Production Plan 2022-2027 2 Implementation Table Implementation Strategies POTENTIAL Responsible Entities POTENTIAL Time Frame TBD Follow-up to 2017 HPP Strategy # Meets DHCD Guidelines for HPP Strategies Lead Support Funding & Assets #7 Continue to work with nearby communities on the Cape by pooling CPA funds and other resources to construct affordable housing in suitable locations throughout the region and meet regional housing needs. CPC TA HC SB BHP BAHT Ongoing #9 ✓ #8 Develop a five-year financial plan for the BAHT and determine whether additional funding streams should be explored. BAHT & Finance (FT) Team & SB HC CPC First (In process) #7 & #8 #9 Based upon the BAHT five-year financial plan, explore other funding opportunities to support housing initiatives at a range of income levels. BAHT, CPC, FT, SB, TA & HC After #8 #7 #10 Explore local property tax incentives for the creation of affordable housing, such as offering a reduction of property taxes to an owner renting an affordable unit. SB TA Finance Assessor HC BAHT TBD #8 #11 Develop criteria for assessing a property’s suitability for the creation of affordable and attainable housing. Planning HC BAHT Building Health Cons Comm, Open Space TA, SB First #15 ✓ #12 Inventory existing Town-owned land using the criteria developed to determine suitability for housing; develop and issue an RFP for the development of affordable and attainable housing on properties identified as suitable for housing development. Planning HC TA BAHT Cons Comm Assessor SB Open Space After #11 #15 ✓ #13 If deemed necessary based upon the findings of the Town- owned land inventory, develop and issue an RFP for the acquisition of privately held land for the creation of affordable and attainable housing. BAHT TA HC Planning SB After #12 -- ✓ 20 3 Town of Brewster Housing Production Plan 2022-2027 Implementation Table Implementation Strategies POTENTIAL Responsible Entities POTENTIAL Time Frame TBD Follow-up to 2017 HPP Strategy # Meets DHCD Guidelines for HPP Strategies Lead Support Education & Advocacy #14 Develop a collaborative housing education plan that connects to the Town’s Local Comprehensive Plan (LCP). BAHT BHP HC Vision BHA COA Early (In process) #13 & #16 #15 Continue to ensure regular participation by staff and members of Town bodies in available trainings on housing-related issues including fair housing, local and regional housing needs, comprehensive permit administration, and other relevant topics. HC BAHT BHP Planning CPC ZBA SB Finance Ongoing #13 Local Policy & Planning Strategies #16 Continue to make good use of 40B, including the Local Initiative Program (LIP), as a vehicle for creating affordable housing. BHP BAHT HC, TA SB ZBA CPC Ongoing (Brewster Woods, Habitat) #14 ✓ #17 Encourage public/private partnerships to facilitate the collaborative production of affordable housing to meet a range of community needs. BAHT BHP HC TA SB Planning CPC TBD -- ✓ #18 Continue to monitor the impacts of short-term rentals on the availability of year-round rental units; review and consider changes to local policies accordingly. SB Finance TA BAHT HC Ongoing -- #19 Increase housing staff capacity to ensure continued and consistent collaboration with the Building, Conservation, Health, and Planning Departments. TA Finance HC Interdepartmental: Building Planning TBD #12 21 Town of Brewster Housing Production Plan 2022-2027 4 Implementation Table Implementation Strategies POTENTIAL Responsible Entities POTENTIAL Time Frame TBD Follow-up to 2017 HPP Strategy # Meets DHCD Guidelines for HPP Strategies Lead Support Community Resources & Local Support #20 Continue the CDBG-funded housing rehabilitation program to enable income-eligible homeowners to make critical home repairs. HC TA Finance Building SB Ongoing -- #21 Evaluate current CPC-funded housing initiatives and consider adjusting to meet current needs. BAHT CPC, SB HC BHP Early/ Ongoing (Discussed) -- #22 Explore other opportunities for direct support for eligible households, including partnerships with local non-profits and housing assistance providers. HC BHP BAHT COA CPC BHA TBD -- Notations: BAHT- Brewster Affordable Housing Trust FT- Finance Team BHA- Brewster Housing Authority HC- Housing Coordinator BHP- Brewster Housing Partnership SB- Select Board COA- Council on Aging TA- Town Administration CPC- Community Preservation Committee ZBA- Zoning Board of Appeals Cons Comm- Conservation Committee 22 Town of Brewster Housing Production Plan 2022-2027 68 Alternatively (or in addition to IZ), the Town could enrich the underutilized Major Residential Development (Section 139-35.2) or Planned Residential Development (Section 179-36) bylaws to encourage the inclusion of affordable units, as suggested in the 2017 HPP. The Town could also activate the “reserved” Affordable Multifamily Dwelling Units bylaw (Section 179-42.1[C][3]), which the Use Regulations table indicates would be allowed by right (as opposed to special permit) in the C- H district. However, as pointed out in the 2017 HPP, this should also involve revisiting the limitation on number of bedrooms in the definition of “Affordable Multifamily Dwelling Units (AMDU)” in Section 179-2 to eliminate potential fair housing conflicts. Additionally, reference to immediate family should be removed from the definition of “Affordable Housing" in Section 179-2 to avoid confusion about the intent of the bylaw. STRATEGY 5. Allow and incentivize the adaptive reuse of existing buildings for the creation of affordable and mixed income housing. In 2020, the Zoning Board of Appeals granted Elevation Financial a use variance to develop the former Wingate Rehabilitation Center into housing. While this successful public-private partnership will lead to the creation of 132 units of 55+ housing (27 units of which are affordable), the legal mechanism by which this was accomplished is difficult to replicate. Massachusetts law outlines the specific findings a ZBA must make to grant a variance, and generally it is challenging to meet these requirements. Instead, the Town could explore allowing conversion of existing structures to residential uses by special permit or incentivizing adaptive reuse of existing structures to facilitate housing production. STRATEGY 6. Utilizing the findings of the ongoing Integrated Water Resource Management Plan, continue to identify appropriate wastewater treatment systems to enable the creation of denser housing development that can support the inclusion of affordable units. The Town is currently in Phase III of its Integrated Water Resource Management Plan, or IWRMP, a long-term project to develop an integrated approach for the protection and restoration of the Town’s waters. This phase of the project will address water resources planning, including an evaluation of wastewater management alternatives and bylaw updates to implement the stormwater management recommendations of Phase II. The findings of this project will help inform solutions that may enable the provision of denser development alongside protection of the environment. Funding & Assets STRATEGY 7. Continue to work with nearby communities on the Cape by pooling CPA funds and other resources to construct affordable housing in suitable locations throughout the region and meet regional housing needs. Section 5(b)(1) of the Community Preservation Act legislation reads: “The community preservation committee shall study the needs, possibilities and resources of the city or town regarding community preservation, including the consideration of regional projects for community preservation.” (Emphasis added.) Recognizing that addressing regional housing creation benefits all area communities, Brewster has contributed CPA funds toward several regional housing initiatives in recent years, including funding for homes for adults with autism in Orleans (Cape Cod Village, 2016) and Dennis (FORWARD, 2019), a veterans’ home in Dennis (for CIVOC, 2021), and most recently 23 Town of Brewster Housing Production Plan 2022-2027 69 toward Pennrose in Orleans, a redevelopment project that will provide sixty-two rental units. The developer is proposing 65 percent local preference and 10 percent regional preference, the breakdown approved by DHCD for the Village at Nauset Green in Eastham. Based on DHCD local preference definitions, applicants who work in Orleans, for the Town of Orleans, or whose children attend the Nauset Regional Middle or High School, are considered part of the local preference pool even if they do not live in Orleans. STRATEGY 8. Develop a five-year financial plan for the Brewster Affordable Housing Trust and determine whether additional funding streams should be explored. Both the Select Board and Affordable Housing Trust identify this as a key priority; the Select Board’s FY2022-2023 Strategic Plan includes Goal H-1 to “Identify Affordable Housing Trust operating/capital needs and develop funding plan,” and the Affordable Housing Trust’s Key Priorities for 2022 include developing a “5-Year Financial Plan for the Trust.” STRATEGY 9. Based upon the BAHT five-year financial plan, explore other funding opportunities to support housing initiatives at a range of income levels. Depending on the needs identified through the BAHT’s financial plan, the Town can also look at creative ways to increase funding for housing initiatives. As an example, the BAHT could establish a “Housing Opportunity Fund” and regularly apply for CPA funds to build and replenish this resource annually. While Brewster has made excellent use of CPA funds for housing initiatives, having more substantial funds available would enable the BAHT to act quickly on property acquisition opportunities that may arise. The BAHT would still have to apply to annually for such funds, but once these CPA funds were awarded to the Trust, they would not need to be reappropriated at Town Meeting for a specific purpose. The Town of Hingham follows this practice and has for several years, with their AHT stating in their 2021 CPA application, “Often unknown opportunities to create new affordable housing units arise and require immediate responses…. Replenishing the ‘opportunity fund’ will allow the Trust to respond quickly to those opportunities…” The Town could also work to raise resident awareness that the BAHT can receive tax-deductible gifts in the form of “real property, personal property or money, by gift, grant, contribution, devise or transfer from any person, firm, corporation or other public or private entity…“60 Strategy 14 discusses developing a collaborative housing education plan, which could include a “fundraising” component that explains how residents can make such tax-deductible gifts to the BAHT, sets fundraising goals, describes how funds and other gifts will be used, and so forth. The Town can look to support the mission of the BAHT and the income levels it is intended to serve (up to 110 percent AMI), as well as potentially funding housing initiatives beyond this level. While the primary purpose of a Housing Production Plan is to increase the share of SHI-eligible units within a community and work toward the state’s 10 percent minimum goal, there are also substantial housing needs outside of these income levels because the supply of housing — particularly rental housing — does not meet the demand. Provincetown addressed this need by passing of a home rule petition to establish its Year-Round Market Rate Rental Housing Trust to “create and preserve year-round rental 60 MGL c. 44A, § 55C: Municipal Affordable Housing Trust 24 Town of Brewster Housing Production Plan 2022-2027 70 units in the town of Provincetown including, but not limited to, market rate units for the benefit of residents of the Town.” The Legislature approved the Town’s home rule petition, and the Trust was officially established in 2016. Chatham has recently taken a similar step, approving three home rule petitions in 2021 relating to funding the creation of housing for households earning up to 200 percent of the area median income. One such measure was the local approval of a real estate transfer tax of 0.5 percent on the sale of homes over $2,000,000, paid by the purchaser, with proceeds going into a “Housing Fund” that would have more leeway than the CPC or AHT in terms of income levels served. In 2021, several other Massachusetts communities approved the submission of home rule petitions relating to real estate transfer fees to the Legislature, although all of these petitions are pending at the state level. Because Brewster’s housing needs at lower income levels are the greatest as demonstrated by the Needs Assessment, the Town should take care not to propose diverting existing funding sources away from these needs and instead may wish to consider new funding solutions for income levels over 80 percent. STRATEGY 10. Explore local property tax incentives for the creation of affordable housing, such as offering a reduction of property taxes to an owner renting an affordable unit. By offering to reduce property taxes for property owners that voluntarily participate in meeting the Town’s affordable housing needs, Brewster can convert existing units to affordability fairly quickly and easily. Provincetown has had affordable housing property tax exemptions of this type on the books for years. The law, passed in 2002, makes residential properties occupied by low-income households exempt from taxes. If only some of a parcel is occupied by an eligible household, taxes are reduced proportionally to the percentage of the square footage of the structure occupied by that household. Unlike many other strategies in this section, a Provincetown-style tax incentive would not necessarily involve any formal deed restrictions, meaning that affordable units created under such a law would not count towards Brewster’s Subsidized Housing Inventory, but still can address important local needs. In addition, such a measure would require Town Meeting approval to submit a home rule petition to the Legislature. Another way for a town to utilize property taxes to incentivize affordable housing development is through tax increment financing (TIF). This approach targets new development by allowing a property owner to waive or reduce property taxes for a set period, which can then be phased back in gradually, in exchange for including some number of affordable units. TIFs require the establishment of TIF-designated area approved by the Economic Assistance Coordinating Council, which essentially requires that the area present “exceptional opportunities for economic development.” Such a measure may be dependent on the direction of the Vision Planning process with regards to establishing a true the Town Center or Town Centers. STRATEGY 11. Develop criteria for assessing a property’s suitability for the creation of affordable and attainable housing. Once developed, such criteria can be used in a variety of ways – as part of an RFP for acquiring land for housing; to assess Chapter 61 properties being considered for acquisition; or for 25 1 Jill Scalise From:Shirin Everett <SEverett@k-plaw.com> Sent:Monday, August 29, 2022 2:03 PM To:Donna Kalinick; Jill Scalise Subject:BREW: Draft Housing Trust Guidelines 08.18.22 for Review Attachments:KP-#828223-v1-BREW__BAHT_Guidelines.DOCX Donna and Jill, Attached are my recommended edits to the BAHT Guidelines. As you know, GL c. 44B expressly authorizes CPA funds to be used in any municipality. Although GL c.44, s.55C, the Affordable Housing Trust Fund statute, is silent on where Trust funds may be expended, it is my opinion that, since the purpose of GL c.44, s.55C is to create a local pool of funds, it would be best for the BAHT to use CPA funds for projects that are located in other municipalities, and reserve non-CPA AHT funds (such as AHT funds appropriated from free cash) for expenditures within the Town of Brewster. Please let me know if you have any other questions. Shirin Everett, Esq. KP | LAW 101 Arch Street, 12th Floor Boston, MA 02110 O: (617) 654 1731 F: (617) 654 1735 severett@k-plaw.com www.k-plaw.com This message and the documents attached to it, if any, are intended only for the use of the addressee and may contain information that is PRIVILEGED and CONFIDENTIAL and/or may contain ATTORNEY WORK PRODUCT. If you are not the intended recipient, you are hereby notified that any dissemination of this communication is strictly prohibited. If you have received this communication in error, please delete all electronic copies of this message and attachments thereto, if any, and destroy any hard copies you may have created and notify me immediately. From: Donna Kalinick <dkalinick@brewster-ma.gov> Sent: Monday, August 29, 2022 11:31 AM To: Shirin Everett <SEverett@k-plaw.com>; Jill Scalise <jwertz-scalise@brewster-ma.gov> Subject: RE: Draft Housing Trust Guidelines 08.18.22 for Review Thanks Shirin. Also as part of the review, can you tell us if the BAHT can fund projects outside of Brewster, similar to what CPC can do with regional application such as Pennrose. Thanks. Donna & Jill From: Shirin Everett <SEverett@k-plaw.com> Sent: Tuesday, August 23, 2022 11:41 AM To: Jill Scalise <jwertz-scalise@brewster-ma.gov> Cc: Donna Kalinick <dkalinick@brewster-ma.gov> Subject: RE: Draft Housing Trust Guidelines 08.18.22 for Review Hi Jill, I’ll review and get back to you. Shirin Everett, Esq. KP | LAW 26 2 101 Arch Street, 12th Floor Boston, MA 02110 O: (617) 654 1731 F: (617) 654 1735 severett@k-plaw.com www.k-plaw.com This message and the documents attached to it, if any, are intended only for the use of the addressee and may contain information that is PRIVILEGED and CONFIDENTIAL and/or may contain ATTORNEY WORK PRODUCT. If you are not the intended recipient, you are hereby notified that any dissemination of this communication is strictly prohibited. If you have received this communication in error, please delete all electronic copies of this message and attachments thereto, if any, and destroy any hard copies you may have created and notify me immediately. From: Jill Scalise <jwertz-scalise@brewster-ma.gov> Sent: Tuesday, August 23, 2022 11:20 AM To: Shirin Everett <SEverett@k-plaw.com> Cc: Donna Kalinick <dkalinick@brewster-ma.gov> Subject: Draft Housing Trust Guidelines 08.18.22 for Review Hi Shirin, The Housing Trust has been working to develop guidelines to better enable the Trust to fund affordable housing activities. Please see the attached draft document for your legal review. In addition to general review, we have a couple questions.  In the document, based on the Trust bylaws, it states that funds greater than $50,000 require Select Board approval. Does this adequately address the current requirement?  Does Trust funding have to remain in Brewster? For example, could the Trust support a regional affordable housing project like can be done with CPA funds? The Housing Trust meeting is Thursday September 1st. We would appreciate the review by Monday August 29th so we can put the document in the meeting packet on Tuesday. Thank you, Jill & Donna Jill Scalise Housing Coordinator Town of Brewster 2198 Main Street, Brewster, MA 02631 508-896-3701 ext. 1169 Brewster Town Offices are open to the public Monday through Thursday from 8:30 to 4:00pm, and by appointment on Fridays. For the latest updates on Town services, please visit www.brewster-ma.gov 27 Brewster Affordable Buydown Program Description 1.03.2023 Impact of the Buydown Program Twelve properties have been purchased with buydown funds (includes state funding). All were affordably purchased with housing costs under 30% of gross income. All received a universal deed rider. - 10 properties were already on the Subsidized Housing Inventory (SHI). Reasons for buydowns: resale formula unaffordable or required costs for needed property improvements. - 2 were market-rate properties (1 single family home, 1 condo) Not currently on the SHI. Current Affordable Buydown Program 2007- Present Provides up to $30,000 for eligible buyers (up to 80% AMI) purchasing a home in Brewster. Requires a permanent affordable home deed restriction on the home. The CPA funded award is an interest free loan, forgivable after 15 years. Current Funding of the Buydown Program  Original funding= $360,000 ($60,000 5/2007 TM & $300,000 11/2008 TM)  $62,500 remains in the CPC grant account  Average 1 buy-down/ year.  Anticipate 2023 CPA application for additional funds Oversight of Buydown Program  Obtain funding (for example, submit CPA grant application for funds)  Vote on approval of buydown award requests  Evaluate & consider making program changes: For example, current program functioning as a down payment & closing cost program. HAC is adjusting their SHI resale process.  Note: Housing Coordinator works with applicants and processes applications Decision Points: Whether to continue program? If so, what entity to oversee the program? How to fund the program? How to operate the program, as is or make changes? Background Information for decision points 28 Example of current affordable home resale that requires buydown assistance Background: On January 5,2023 the Town received notice of intent to sell an affordable Yankee Drive condo that was purchased in 2010 with a $30,000 CPA buydown grant. On January 9, the Select Board approved exercising the Town’s right to locate an eligible purchaser. Housing Assistance Corporation (HAC) is the Monitoring Agent working on the resale of the property. If not sold to an eligible purchaser, the affordable deed restriction can be lost. Resale Price: According to the affordable deed rider, Maximum Resale Price= $255,476 (Barnstable Median Family Income $115,600 X 2.21, resale multiplier from 2003 Regulatory Agreement) According to Assessment, FY22 Fair Market Value was lower than adjusted value. Affordability: A $49,476 buydown would make the property affordable at 80% AMI (Area Median Income). Mortgage Calculator below used to determine an affordable purchase price . Action: Within the next 30 days the CPC and/or Trust will need to address a potential buydown of this property. Affordable Purchase Price Limit Sales Price $206,000 5% Down payment $10,300 Mortgage $195,700 Interest rate 6.88% Amortization 30 Monthly P&I Payments $1,285.61 Tax Rate $6.99 monthly property tax $120 Hazard insurance $69 PMI $127 Condo/HOA fees (if applicable) $300 Monthly Housing Cost $1,901 Necessary Income: $76,059 Household Income: # of Bedrooms 2 Sample Household size 3 80% AMI/"Low-Income" Limit $78,300 Target Housing Cost (80%AMI) $1,958 10% Window $68,513 Target Housing Cost (70%AMI) $1,713