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HomeMy Public PortalAboutAffordable Housing Trust -- 2022-11-03 MinutesEL' T17fli Brewster Housing Trust November 3, 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 &Robert Tobias, Finance Committee Liaison 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. Citizerti's Forum: Chair Hackert read the Citizen's Forum description. Glenn Casey had his hand up to speak. Mr. Casey stated that he thought the Community Housing Forum was a good idea. He had a comment about a Millstone housing slide in the Community Housing Forum Presentation. In regard to the Millstone Affordable Housing Information Session, Mr. Casey said he thought they did a good job with the design layout and addressed two of his questions. He also commented about the financials, expressing concern about the construction costs, rental fees, and financial feasibility of the development. Mr. Casey thinks that the costs may end up being $750,000 per unit. Mr. Hackert stated that the economic issues and financials are complicated. Ms. Kalinick added that MA is grappling with the cost of developing housing and noted the rents are set by Housing and Urban Development. 3. Millstone Affordable Housing Property update: Ms. Kalinick shared that POAH &HAC filed for staff review, a common internal process which includes multiple departments commenting on a proposal. This occurs prior to a filing of a comprehensive or special permit. This speaks to the email in the packet from Mr. DiMaggio asking about coordination between the Millstone Road project and the Millstone affordable housing development. This is an example of that coordination and communication. POAH & HAC are moving through the processes they need to do for the regulatory permitting. Ms. Scalise added the Community Information Session POAH & HAC held in October was well attended with over 40 attendees. The session has been posted on the Housing Office webpage for viewing. Chair Hackert watched the forum and felt that it was done well. 4. Housing Forum follow-up —Chair Hackert noted that the forum was well attended and seemed to go well. Ms. Hillis -Dineen was pleased with the turnout and appreciated the ability to reconnect with people. Ms. Spade- Aguilar agreed and shared how nice it was to see people in person. The participating organizations provided a lot of great information. There are plans for another forum in the spring. Ms. Kalinick added there was a good mix of participants including residents looking for financial assistance, residents interested in the overall Brewster Housing Program, and folks with questions about Accessory Dwelling Units. There was also a good mix of local organizations r.7 participating. Ms. Kalinick thanked Maggie Spade -Aguilar, Madalyn Hillis -Dineen, Jillian Douglass, Ralph Marotti, and Jill Scalise for their work on the forum. Chair Hackert echoed the thanks. In response to Mr. Casey's comment about a slide from the Housing Forum presentation, Ms. Scalise clarified the difference between the terms affordable housing and subsidized housing. Some affordable units are subsidized so that the tenants are only paying 30% of their income for rent, others are not subsidized to that degree, yet the rents are considered affordable based on the area median income level. Chair Hackert agreed and thanked Ms. Scalise for the clarification. 5. Housing Trust Financial Plan and possible discussion: Ms. Kalinick highlighted material in the packet including the Trust account balances and the Housing Program five-year financial plan. Donna Kalinick, Town Administrator Peter Lombardi, and Finance Director Mimi Bernardo form the Town budget team. They met with Ned Chatelain and developed the enclosed format for the Housing Program finances and financial forecast. Ms. Kalinick walked the Trust through the 5 -year plan including projects (expenses) and the sources of funding going out to FY27. Some of the numbers are estimates, for example future rental assistance funds. The last category is Community Preservation Act (CPA) funds revenue and expenses, including the target CPA allocations with the estimated CPA revenues. Looking at expected CPA housing revenues (30% target housing allocation) and Housing Trust CPA expenses, in FY24 this would be approximately $459,000 for CPA housing funds and the anticipated Trust CPA requested expenses would be $391,000. Ms. Kalinick noted that this doesn't leave a lot of money for outside organization CPA housing applications. The financial plan is a first pass, and they are looking for input. Mr. Chatelain pointed out that the end balance is relatively stable, around $1 million, and that there is not a lot of room for outside applications. The meeting with the CPC is important to look at this global picture. Mr. Chatelain thanked Ms. Kalinick and the team for their work on the financial plan. Ms. Kalinick noted that a part time housing program assistant is included in FY 24 and that the Millstone Community Housing funding was adjusted from $500,000 from Trust and $500,000 from CPA to $750,000 from Trust and $250,000 from CPA. Town development of other properties refers to potential other opportunities for town -led projects. This land has not been identified although it could be related to the Sea Camps properties. Outside applications for funding refers to the potential for funding requests now that the Trust has funding guidelines. The financial plan is a document will be repeatedly updated based on real information. Ms. Spade -Aguilar stated this is great and asked about the CPA preservation of SHI homes and the Community Development Block Grant (CDBG) funds. Ms. Kalinick explained that the Trust has $300,000 in CPA preservation funds but the additional $200,000 will not be added until the first funds are spent. Secondly, the agreement Brewster made with the CDBG funds is that Brewster would be the lead community for one year, then it is a Select Board decision whether to continue as the lead community. It's been a positive experience and not a huge lift as the administrator, Bailey Boyd Associates, has been extremely helpful. Internally, Ms. Kalinick and Ms. Scalise appreciate the lead community opportunities and information 2 and will be requesting that Brewster continue as the lead community for the next grant cycle. Mr. Ruchinskas complimented Ms. Kalinick and Mr. Chatelain on their work and asked about the Short -Term Rental Revenue (STRR) policy of 50% of estimated revenue going to the Housing Trust, noting that in many communities the CDP (Community Development Partnership) is encouraging 100% to affordable housing. Mr. Chatelain said this is an important question and will become more relevant as the Town gets a better grasp of what those revenues will be. The Select Board has and will continue to evaluate the policy. It is not currently in discussion. Ms. Greene asked about the 5% escalator on the STRR and whether the Trust has ever had grants and donations or if there is a plan to accept donations. Ms. Kalinick responded that the estimates are based on last year's financial forecast, when this year's forecasts are complete, the numbers can be updated. It is very difficult to determine the actual amount of the STRR based on the information provided by the state. As for grants and donations, this has also been brought up by Mr. Tobias at past meetings. It is also something in the financial plan for future possibilities. Ms. Kalinick noted that we have had technical assistance grants such as for Mass Housing Partnership grant for the Millstone housing property. Ms. Hillis - Dineen commented about how well thought out and complete the financial plan is and that it is nice to see the financial growth of the Trust since its inception. Ms. Spade - Aguilar asked about the sources listed and there was a clarification that CPA and CPC were the same. Mr. Ruchinskas stated that the CPA calculations would be helpful for the joint meeting with the CPC. Mr. Tobias also found the presentation helpful. Chair Hackert asked about potential sources of grants to pursue and if the Trust should explore sources. Ms. Hillis -Dineen supported the suggestion and has done research for grants. Ms. Scalise noted that she has done some work looking for possible grants, that there are grants the Town has received, like the $1.68 million MassWorks grant for Brewster Woods, and that she has talked with residents about possible donations to the Trust. This is an area that can continue to be developed and pursued. Chair Hackert said the financial plan will be tweaked and then discussed at the next Trust meeting. Ms. Kalinick added that the financial plan will ultimately go to the Select Board as the financial plan is on the Housing Trust goals and the Select Board Strategic Plan. Ms. Kalinick noted that before the financial plan was started, she reached out to Mass Housing Partnership to see if they had a financial proforma for trusts. They did not, but they did ask the Trust to share any financial plan that was created. 6. Community Preservation Committee (CPC): Chair Hackert communicated with CPC Chair Ellis who shared two possible dates (November 30 &December 14th) for a joint meeting with the CPC. Topics for the meeting include projected Housing Trust funding requests to the CPC, potential annual CPA funding of the Trust, oversight of the affordable home buy -down program, and the Trust financial plan. Ms. Scalise explained that the buy -down program currently provides up to $30,000 to help purchase an affordable, deed restricted home in Brewster. These properties have mostly been homes already on the Town's Subsidized Housing Inventory (SHI) but still not affordable. Questions include whether the CPC continues with oversight of the buy -down program and whether $30,000 is an appropriate buy -down amount. Some towns have a larger 3 buy -down amount, like $300,000, to purchase a market rate home and make it affordable. However, this remains difficult with today's housing costs and mortgage rates. There is currently $62,500 in the CPC Buy -down account and the Town has averaged one buy -down a year for the past 5 years. Questions to be addressed include: What does the Town see as the goal of this program and what is the best way to facilitate that goal? Mr. Ruchinskas commented that this has been a preservation program. With interest rates increasing, it is worth considering increasing the amount to $50,000. The market rate buydown is really a policy question about the reasonable acceptable use of the funds to purchase one affordable unit. As to oversight, Mr. Ruchinskas noted that the Housing Coordinator does all the background work for the approval of homebuyer requests. One consideration is that this is time sensitive, and the CPC meets twice a month while the Housing Trust meets once a month. Mr. Chatelain concurs that the buydown program needs a good look. Ms. Greene agrees that more conversation is needed. Ms. Hillis -Dineen suggested considering an award limit as a percentage of the home's cost. Chair Hackert requested that at the December meeting the Trust put together a list of issues regarding the buy -down program. These can then be brought to the CPC joint meeting. Ms. Kalinick noted that this means a November meeting date would not work. The Trust should also provide the CPC with the Housing Trust Guidelines. With these guidelines, there may be funding requests made directly to the Trust. The current buy -down program is allowing people to purchase current SHI homes. Even at a $300,000 buy -down, it would still be difficult to purchase market rate homes at an affordable price. Ms. Spade -Aguilar asked how the buy -down has worked thus far. Ms. Scalise replied that almost all buy -down homes purchased have already been affordable homes. The buy -down was needed because of the resale formula the properties were not actually affordable. Chair Hackert will follow-up with the CPC. Mr. Ruchinskas cautioned about the buy -down program not dominating the CPC joint meeting. Ms. Kalinick noted that the CPC is almost out of buy -down funding and the date for applying for funds is approaching. If CPC buy -down funds were expended, with the Trust Guidelines, a request could potentially come to the Trust to fund a buy -down. Mr. Ruchinskas noted the original buy -down CPA funding request came from the CPC. Chair Hackert stated that a draft letter of support for the Town Administration Housing Coordinator CPA funding application is in the packet. Ms. Kalinick is preparing and submitting this application. Mr. Chatelain made a motion to approve the Chair signing the letter of support with revisions and corrections as noted. Second- Madalyn Hillis - Dineen. A roll call vote was taken. Donna Kalinick-Yes, Maggie Spade -Aguilar - Yes, Paul Ruchinskas- Yes, Vanessa Greene - Yes, Madalyn Hillis -Dineen -Yes, Ned Chatelain-Yes, Chair Hackert-Yes. 7. 212 Yankee Drive update on contract to preserve and rehabilitate affordable property, including discussion and possible vote on funds for needed expenditures such as a septic inspection: Paul Ruchinskas recused himself from this discussion because he is on the Board of Housing Assistance Corporation (HAC). Ms. Kalinick noted that the packet includes the signed contract with Housing Assistance Corporation (HAC), who is using The Resource Inc. (TRI) as a subcontractor. An onsite visit was held this week with Ms. Kalinick, Ms. Scalise, the DPW Director and Foreman, the Building Commissioner, and multiple members of HAC and TRI. There was a walk-through of the exterior and interior of the home. The DPW has agreed to do some of the outside work, including a clean-up and removal of some trees and patio bricks. There is a lot of Town support, as shown with the DPW involvement, for the Town's housing initiatives. Next steps, TRI will have their rehab specialists go through the home. After mold testing, they will work on the scope of the work. The septic system has not been tested in years and needs to be inspected. Funds are needed for this inspection. The Trust had allocated $10,000 for insurance, legal, and other expenses. Ms. Kalinick stated it should be clear that the Trust will be spending funds on the septic. Ms. Scalise shared that the inspection is estimated to be under $1,000 but there may also be other small items that need to be addressed without returning to the Trust for funding. The septic inspection needs to be done before resale and is valid for 2 years. Mr. Chatelain said the inspection should be about $400. Ms. Kalanick noted the Trust spent about $8,000 on insurance, this leaves about $2,000 to spend on legal and other miscellaneous items such as this. Ms. Kalinick requested a reaffirmation vote that allows discretion to perform these smaller expenses. During the Housing Forum, the Cape Light Contact and The Resource Inc were both present and were contacted about 212 Yankee Drive, Chair Hackert asked about authorizing $2,500 in additional funds. Ms. Kalanick agreed that would be helpful. Mr. Chatelain made a motion to approve an additional $2,500 and the use of these funds along with the remainder of the original $10,000 allocation to be used for inspections and other miscellaneous costs to move the project forward. Second- Madalyn Hillis - Dineen. 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. Local Comprehensive Plan (LCP) discussion and possible vote of support: Ms. Scalise shared that housing is one of the key components of the LCP. The housing program worked collaboratively with the Vision Planning Committee (VPC) on the LCP and on the Housing Production Plan (HPP) which is included in the LCP appendices. The LCP has been a several yearlong process with community input, it has been recommended by the VPC, endorsed by the Select and Planning Boards, and is on the Town Meeting Warrant for adoption. Materials about the plan are included in the packet. The HPP is guided by the state and focuses on obtaining the 10% mandate of lowAo-moderate income housing. Explaining broader scope of the LCP, Ms. Scalise read LCP housing goal and purposes. The LCP and HPP are side by side documents that complement each other and will guide the Town's housing program. Ms. Scalise asked if the Trust would like to make a statement of support for the LCP. Chair Hackert noted the housing focus of the pIan and the opportunity to express support and then asked if there were any questions. Ms. Kalinick made a motion: The Housing Trust supports the adoption of the LCP as approved by the Planning and Select Boards, Mr. Chatelain seconded. A roll call 5 vote was taken. Paul Ruchinskas- Yes, Donna Kalinick-Yes, Maggie Spade -Aguilar - Yes, Vanessa Greene - Yes, Madalyn Hillis -Dineen -Yes, Ned Chatelain-Yes, Chair Hackert-Yes. 8. Housing Coordinator Update: Ms. Scalise highlighted a few items. Several folks attended the "Housing to Protect Cape Cod" session held earlier in the day. The September Housing Coordinator report is in the packet along with the monthly CDBG report. It's encouraging to see the households being aided with new septic systems, roofs, and childcare assistance. Brewster Woods received the needed building component and has begun waitlist final documentation for leasing. Donna Kalinick and Peter Lombardi have been very helpful collaborating with Cape Cod Regional Transit for a bus stop to begin in January. Ms. Kalinick has worked hard on Brewster Woods, overseeing the MassWorks grant and continuing to help the project move forward. Ms. Kalinick shared the excitement on site, including workers cheering, when the second switchgear truck arrived. The end reward will be the 30 households moving into permanent housing in January. Chair Hackert thanked Ms. Kalinick for all her efforts to move Brewster Woods forward and for the cooperation of so many people in the Town. 9. Cape Cod Sea Camps updates: Tim Hackert noted that there are several Sea Camps items on the Town Meeting warrant. Mr. Ruchinskas said the Pond Committee is waiting for the consultant to begin work. Ms. Spade -Aguilar shared that the Bay Parcel committee is also looking forward to the consultant beginning work. The committee has been working on plans for the pool and the parking lot. Mr. Chatelain added they will be doing a site visit on Monday about the pool and parking logistics. Ms. Kalinick also noted there is a Town Meeting article for funding the consultant. 10. For Your Information: Ms. Scalise included flyers for the Lower Cape Housing Institute which is supported by Brewster CPA funds. A workshop on Zoning for Rural Communities will be held November 151h. Special Town meeting is November 14th at bpm at the Stony Brook Elementary School. 11. Any other business not anticipated: Tim Hackert shared that Robert Tobias sent an interesting article about Cincinnati working to retain rental housing. 12. Approval of Minutes from October 6, 2022: Paul Ruchinskas moved to approve the minutes of October 6,2022 with technical comments from Chair Hackert. Madalyn Dineen second, 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, 13. Next Meeting: December 1, 2022 at SPM, Virtual D 14. Adjournment: Ned Chatelain moved adjournment at 6:35pm, Paul Ruchinskas 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, Jill Scalise Housing Coordinator Meeting Packet: 11.03.22 BAHT Packet (laserfiche.com) Approved: January 5, 2023 7