Loading...
HomeMy Public PortalAboutAffordable Housing Trust -- 2022-12-01 MinutesBrewster Housing Trust December 1, 20221 :),UUPm Virtual Meeting Housing Trust Members Present: Donna Kalinick, Tim Hackert, Maggie Spade -Aguilar, Madalyn Hillis -Dineen, Vanessa Greene, Ned Chatelain Others Present: Jill Scalise, Housing Coordinator, Robert Tobias, Finance Committee Liaison joined at 5:33PM. Absent: Paul Ruchinskas 1. Call to Order: Chair Hackert called the meeting to order at 5:06pm, read the required notice for virtual meetings, and declared a quorum. 2. Citizen's Forum: Chair Hackert read the Citizen's Forum description and recognized Glenn Casey. Mr. Casey stated that he is a CEO of a defense company in OK and works regularly with spreadsheets. Mr. Casey made several comments on the 5 -year financial plan, asked for clarification about the Community Development Block Grant (CDBG) items, suggested rounding up to dollars, and recommended keeping the item order above (projects) and below (sources) as consistent as possible. 3. Millstone Affordable Housing Property update: Ms. Scalise shared that POAH & HAC held an informal staff review with the Town. During this meeting staff went over the steps of the comprehensive permit process, noted any concerns, and encouraged coordination with the Town in areas such as examining the layout of the Millstone Road improvement, meeting with the Housing Partnership, updating the project schedule and proposing a name for the neighborhood. It was a good opportunity for communication and coordination. Ms. Kalinick noted that we hope to have an updated schedule for the next Trust meeting. Chair Hackert requested Trust members to share any name suggestions with Jill Scalise. 4. Housing Trust Financial Plan and possible discussion: Ms. Kalk thanked Mr. Casey for his comments on the plan. The Trust had made suggestions at the last meeting and those changes were incorporated into the revised financial plan and forecast. Descriptions were made more consistent and explanatory. The projects and sources were reordered to put them more in line with each other. This is a challenge because of the multiple funding sources impacting several projects and vice versa. Housing Rehabilitation and Childcare is Community Development Block Grant (CDBG). There was a clarification with 212 Yankee Drive as some funds will be from Community Preservation Act (CPA) and some will be paid by Trust funds. These amounts are estimates based on legal counsel guidance. Ms. Kalinick noted the complicated nature of how things are funded in the Town's housing program. The $50,000 for Housing Trust programs is a placeholder for funding requests that may be received through the Housing Trust Guidelines, Donna Kalinick, Town Administrator Peter Lombardi, and 1 Finance Director Mimi Bernardo continually do financial forecasts, they are fluid and different than budgets. They are predictions. The CPC and Select Board may also have comments on the plan. This is a document that will be regularly updated, at least on an annual basis. Mr. Chatelain thanked Donna Kalinick, Peter Lombardi, and Mimi Bernardo for their work. Chair Hackert also expressed his thanks. Ms. Spade -Aguilar praised the work and suggested having the projects under appropriations and revenues in the same order as much as possible. Ms. Spade- Aguilar asked about the repeated funding of the rental assistance program and the appropriations for the Millstone housing. Ms. Kalinick explained that for Millstone $250,000 is listed from CPA funds with the other $750,000 expected to come from the Trust. Some of the Trust sources are already in hand through Short Term Rental Revenue (STRR) funds. The Trust receives 50% of the forecasted STRR which then is directed into the Housing Trust fund. The rental assistance CPA grant of $150,000 was meant to cover three years. Thus, there is an expectation for another CPA request in the coming years. Housing Assistance Corporation manages the rental assistance program and bills the Town quarterly for funds expended. Going forward, Ms. Kalinick and the financial team will make some minor adjustments, clarify the CDBG, add the BAHT funds description to the STRR allocation, and look at further reordering of the items listed. Mr. Chatelain made a motion to approve the financial plan as updated by /Is. Kalinick. Madelyn Hillis- Dineen second. A roll call vote was taken. Donna Kalinick- Yes, Maggie Spade -Aguilar - Yes, Vanessa Greene - Yes, Madalyn Hillis -Dineen -Yes, Ned Chatelain-Yes, Chair Hackert-Yes. Chair Hackert also noted that Robert Tobias joined the meeting. The financial plan will be provided to the CPC for discussion at the joint meeting. Later it will be provided to the Select Board and, as an FYI, to the Finance Committee. The Trust financial plan will be part of the FY24 budget documents. 5. Town Meeting Report: Ms. Scalise reported that the revisions to CPC Bylaw and funding formula passed. The future CPA funding targets are listed on the financial forecast. The CPA bylaw now matches the bylaw in almost all MA CPA communities. The Local Comprehensive Plan (LCP) was not approved by the Town but was sent back for further study. This does impact the Trust's plan for a spring community meeting about the Housing Program and LCP. The Housing Program has used the Vision Plan and Housing Production Plan (HPP) as guiding documents. Ms. Kalinick noted there were a lot of very good comments about the LCP, the work that went into it, and the document in general. The Select Board will discuss next steps at a future meeting. The Trust will continue to do the work laid out in the HPP and to support the LCP process. Chair Hackert noted the comments about the LCP were very positive and the questions very narrow. 6. 212 Yankee Drive project update, discussion, and possible vote: Ms. Scalise noted the 212 Yankee Drive update memo in the Trust packet and highlighted several items. The Resource Inc.'s (TRI) examination of the property identified a need for mold and infestation remediation. This would also involve some demolition. By separating this remediation piece out there will be a better understanding of what other work has to be completed. A scope of proposed work is included. Ms. Kalinick explained that for public construction projects expected to be between $10,000 and $50,000, there is an advertised quote process. The larger project, the general scope with the major work to return the home to use, will involve an invitation for bid (IFB). Ms. Scalise noted how fortunate the Trust is to have Ms. Kalanick's knowledge and experience as a procurement officer in this process. The request before the Trust is to move forward with the advertised quote for the mold and infestation remediation. It is not clear whether this would be funded by CPA or trust funds. Ms. Spade -Aguilar asked about the septic tank being root bound. Ms. Scalise explained that the septic system is a separate issue and there is not yet an estimate for the repair cost. The septic inspection still requires further exploration of the leeching field. The septic work will also be separated from the main restoration of the home. Ms. Kalinick explained that septic is not considered vertical building. It's considered horizontal building and bid differently. It's a complex project which is why the Trust has an administrator involved in the project. With the water damage and years long home vacancy, there may be unexpected issues that arise. The end goal remains to rehab the home, get it in livable condition, and sell it to an affordable buyer in a fair marketing process. Ms. Spade -Aguilar asked about the septic repair. Ms. Scalise stated after the full status of the septic system is determined, it will be brought back to the Trust separately. The septic will not be included in the general scope of the project. Chair Hackert summarized, first the mold and infestation will be addressed, secondly the septic will be evaluated and addressed, then the scope will be put together for the general work on the home. Mr. Tobias asked about exploring an innovative alternative (I/A) septic for the property. Ms. Kalinick noted legal counsel will clarify what funds may be used for the septic system. If CPA funds are used, it can only be brought to standard that it was previously. Thus, CPA funds could not cover an I/A system. There would also not be funds for the upkeep of an I/A system. Without a program in place, it would be a concern to place that expense on an affordable buyer. Ms. Hillis -Dineen made a motion for Ms. Kalinick to work with TRI to put together the scope of work for mold and infestation remediation and proceed with an advertised quote process. Second- Maggie Spade -Aguilar. A roll call vote was taken. Donna Kalinick-Yes, Maggie Spade -Aguilar - Yes, Vanessa Greene - Yes, Madalyn Hillis - Dineen -Yes, Ned Chatelain-Yes, Chair Hackert-Yes, 7. Joint Meeting with Community Preservation Committee (CPC): Chair Hackert shared a draft agenda for a joint meeting with the CPC. Items to be discussed include the Trust financial plan, BAHT guidelines, projected BAHT funding requests to the CPC, consideration of annual CPA funding of the Trust, and oversight of the affordable home buy -down program. Ms. Kalinick noted that Chair Ellis had proposed a Wednesday January 11th for a joint meeting otherwise March/April. The January 11th date appears to work for Trust members. Ms. Scalise will send the draft agenda and January 11th date to Chair Ellis, Ms. Scalise went over the Affordable Buy -down flow chart in the packet which describes the current buydown program and a potential market rate buydown program. The chart is meant to identify the discussion points from last month's meeting. Ms. Spade -Aguilar requested clarification about the past program buydowns that have taken place. Ms. Scalise explained that there have been 2 market- rate buydowns over the life of the program since 2007. One was a condo. Today's market is very different 3 than what could be accomplished with $30,000 seven years ago. The buydown program currently provides up to $30,000 to help purchase an affordable, deed restricted home in Brewster. It requires a universal deed rider that survives foreclosure. The program is preserving homes that are already on the Town's SHI and keeping them affordable. Mr. Chatelain asked if $300,000 is the delta between median home price and median income. Ms. Scalise responded that the $300,000 is the buydown amount that has been used in other towns. An affordable home would be in the $250,000 sale -price range. The $300,000 is the anticipated minimum amount needed to reduce the cost of a market rate property (buydown) to an affordable price. There are also administrative costs to run a market -rate buydown program. The buydown funds would enable the purchase price to be affordable to a household at 80% AMI. Stated another way, the principal and interest payments would not exceed 30% of the household income. Ms. Kalinick noted that the median home value in Brewster is $636,700. This is not affordable to an 80% AMI household. These comments are decision points to talk through with the CPC. There is also a challenge to determine affordability right now with changing interest rates. Mr. Chatelain requested hypothetical scenarios at different buydown amounts and the corresponding impact on purchase price. Mr. Chatelain stated the financial numbers make more sense using the program as a preservation program for existing SHI properties. From a fiscal side, is it appropriate to spend $300,000 on one unit of housing? Mr. Hackert noted the cost of constructing new units is almost double $300,000 and asked about the SHI resale process. Ms. Scalise stated that each SHI resale is dictated by the specific deed rider for the property. All SHI homes are to be sold as affordable homes. Some of the older deed restrictions do not survive foreclosure and do not last in perpetuity. When purchased through the buydown program, these properties receive a universal deed restriction that survives foreclosure and lasts in perpetuity. Many SHI homes are resold affordably and do not need buydown assistance. The buydown funds are helpful when the SHI home purchase price is calculated as a percentage of market rate value or if a home needs significant work. As. Scalise noted that over the past 5 years, the purpose of the buy -down program has been a point of question. Should the program operate as it has, to basically preserve homes already on the SHI or should it also be expanded to also purchase market rate homes and make them affordable? A market -rate program would require a fair housing lottery component to choose the buydown homeowner. An administrator would run the program. It's expected that this would involve an RFP. Chair Hackert and Ms. Scalise summarized the process for a market -rate program. There is a lottery to choose the eligible homebuyer. Then the homebuyer has to find a property where the buy -down funds could be applied, reducing the homebuyer's contribution for the purchase to affordable mortgage amount. The purchased home is subject to a universal affordable deed restriction, and the Town would apply for the home to be placed on the SHI. The question remains whether the Town wishes to have a market -rate program. Based on tonight's meeting discussion, Ms. Scalise will edit to the flow chart for the next meeting, do research on buy -down amounts, and provide hypothetical scenarios. Ms. Spade - Aguilar asked if the current buy -down program is an area where the Housing Coordinator needs staff support, a housing assistant. Ms. Kalinick noted that the 11 financial plan includes a part-time housing program position because the program is currently stretched. Ms. Kalinick has also been spending a significant amount of work time on the housing program. There is not a determination of what programs may fall under an area of a housing assistant. This part-time position listed in the financial forecast would be funded by the Housing Trust. The Housing Coordinator position salary is funded by CPA funds with benefits funded in the Town budget. Mr. Tobias asked with the high cost of the buydown program, might it be a regional program? Mr. Chatelain suggested a possible regional program be discussed at the Lower Cape Peer Group meeting. There are always questions of what town gets credit on the SHI. Ms. Scalise is not aware of any regional collaborative buydown program, only individual municipalities. Mr. Tobias noted that $300,000 cost per unit is different than the Brewster funding component for affordable construction. Ms. Scalise noted that the total cost for new affordable construction is about $500,000 per unit. However, the Town contribution is much closer to $100,000 per home, not including the land. Ms. Scalise will research recent Town contributions for new affordable units. 8. Housing Coordinator Update: Ms. Scalise highlighted a few items from the October Housing Coordinator report. It was a busy month with 77 requests for assistance or information. This was impacted by the Housing Forum, Brewster Woods, and an increased need for financial assistance. The amended packet has HAC's quarterly Rental Assistance Program report. In September to November HAC assisted 7 Brewster households with $16,329. This is down from earlier quarters and consistent with the reduction in state and federal funds. 3 households entered the Brewster Rental Assistance Program (B -RAP) this quarter. There are now 5 households in B -RAP receiving $500/month assistance. All participating households are under 60% of AMI. The Housing Program will be asking the Select Board for the Town to continue as the lead community for the upcoming CDBG regional application. A Habitat home on Paul Hush Way is coming up for resale. DHCD is working with HAC to find an eligible purchaser of the affordable property. Folks can sign up to get on a notification list with HAC to receive information when affordable homes are being resold. This home will not need a buydown award as the price will be near $200,000 and the home is in excellent condition. Ms. Kalinick noted that in the CDBG report, there is also an uptick in applications for childcare assistance. Ms. Kalinick is thankful to the Town of Brewster for putting these programs together to support Brewster residents. 9. Cape Cod Sea Camps updates: Ms. Kalinick stated that Town has awarded a contract to the Reed Hilderbrand group for working on the comprehensive planning process. This work will begin with a discovery phase then community planning. The Pond Committee hopes to have a pond video prepared shortly. A few limited spring activities are planned; however, parking and access are a challenge at the Pond parcel. Ms. Spade - Aguilar shared that an art event will be taking place at the Bay Parcel Art Center this weekend. Several additional events are planned: polar plunge, kite flying, bike fest, and 5 Saturday walks with the COA. Mr. Chatelain added that the Bay committee is working with the Select Board on a facility use policy for outside organizations. Plans continue for a pool opening this summer. 10. For Your Information: Ms. Scalise included a flyer for the Lower Cape Housing Institute Quarterly Housing Peer group. 11. Any other business not anticipated: Mr. Tobias attended Housing 101 training and asked about the right forum to consider nonconforming lots for affordable homes and whether ADUs are by right. Ms. Kalinick noted that building on nonconforming lots would be a zoning topic. Many of the housing initiatives are centered around zoning and could have been addressed in the context of the Local Comprehensive Plan. Revising the ADU bylaw is in the Housing Production Plan (HPP). Ms. Scalise stated the ADU is as of right unless the property is in a watershed district, or the property is less than 30,000'. The Building Department has a one-page information sheet to guide folks through the steps. There is also an ADU Resource Center and Ms. Scalise can connect folks with these resources. Nonconforming lots are also addressed in the HPP. 12. Approval of Minutes from November 3, 2022: Deferred to January. 13. Next Meeting: January 5, 2022 at SPM, Virtual. Ms. Kalinick noted that the Select Board will be addressing meeting requirements at their December 19th meeting. The CPC has begun meeting in person and using a hybrid option. 14. Adjournment: Madalyn Hillis -Dineen moved adjournment at 6:49PM, Ned Chatelain second. A roll call vote was taken. Donna Kalinick-Yes, Maggie Spade -Aguilar - Yes, Vanessa Greene - Yes, Madalyn Hillis -Dineen -Yes, Ned Chatelain-Yes, Chair Hackert-Yes, Respectfully Submitted, Jill Scalise Housing Coordinator Approved: January 5, 2023 D