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HomeMy Public PortalAboutCommunity Preservation Committee -- 2016-09-14 Minutes ,\\ A IEN1111/iii/i0//i� STS//ii / o``:. Approved: 09/28/16 3 U4 �D D VOTE: 4-0-2 - o . 2198 Main Street Brewster, Massachusetts 02631-1898 (508) 896-3701 FAX (508) 896-8089 COMMUNITY PRESERVATION COMMITTEE Held a Regular Meeting On Wednesday, September 14, 2016 at 4:30 p.m. At The Brewster Town Office Building, 2198 Main Street, Brewster, MA MEETING MINUTES OF September 14, 2016 Present: Chair Paul Ruchinskas,William Klein, Peter Johnson, Roland Bassett, and Elizabeth Taylor Absent: Barbara Burgo, Joan Carstanjen, and Jeanne Boehm The Chair called the meeting to order at 4:30 pm Recording or Taping Notification: `As required by the Open Meeting Law we are informing you that the Town will be video-taping and/or audio taping this public meeting. In addition, if anyone else intends to either video or audio tape this meeting they are required to inform the chair." We request that all cell phones be turned off or to vibrate. 1. Vote to approve the Community Preservation Committee meeting minutes of August 10, 2016. Following a review of the draft of the meeting minutes of August 10,2016,the "Recording or Taping Notification was amended to read, "video-taping and/or audio taping". Motion made by Roland Bassett to approve the CPC Meeting Minutes of August 10, 2016 as amended. William Klein seconded. VOTE: 5-0-0 2. Treasurer's report. Elizabeth Taylor distributed and reviewed The FY'17 Budget report as of July 1, 2016 and there was discussion of the FY '17 budget on how the funds in the 5th bucket and the 30% Reserve may be allocated and/or expended. On June 30th any monies left in the 30%Reserve are transferred to the 5th bucket. Town meeting needs to approve funds appropriated from the 5th bucket for projects in the four different categories. There was a review of the percentage of funds available for the different CPA fund categories. Elizabeth also distributed a spreadsheet of the Closed Projects as of August 31, 2016 and following a review by the Committee some minor changes were made and some project contacts and project liaisons will be added. CPC Meeting Minutes of September 14, 2016 Page I of 8 3. Discussion and votes on the draft Town Meeting article and the conditional award letter for the recommended $350,000 funding for Phase 1 of Habitat for Humanity of Cape Cod's Tubman Road ownership community housing development. The Chair reviewed the draft Town Meeting article distributed to the Committee prior to the meeting and as stated below: ARTICLE NO. To see if the Town will vote to act upon the recommendations of the Community Preservation Committee; to appropriate from Fiscal Year 2017 fund balances the amounts shown below; to authorize the Town Administrator to enter into contracts for the award of grants to the following agencies, and to include in said contracts any conditions as may be necessary to ensure compliance with General Laws, Chapter 44B, the Community Preservation Act, and Article 46, section 2 of the Massachusetts Constitution,the so-called Anti-Aid Amendment; and to authorize the Community Preservation Committee and/or the Board of Selectmen to pursue and apply for any grants, donations and/or reimbursements; to authorize the Community Preservation Committee, pursuant to the provisions of Massachusetts General Laws, Chapter 184, Sections 31 through 33, to require Historic Preservation and Affordable Housing Restrictions in the awarding of certain grants; and to authorize the Town of Brewster, acting by and through its Board of Selectmen, to hold and enforce such Historic Preservation and Affordable Housing Restrictions, all as follows: or to take any other action relative thereto. (Majority Vote Required) (Community Preservation Committee) 1 Community Housing: Habitat for Humanity of Cape Cod, Inc.: Phase 1 of $350,000.00 a Tubman Road Community Housing Ownership Development—Frans lF%-.r the sum of$350, /000 ($77,V6J^ J from Fund Balance Reserved for Community Housing and $272,367 from the Community Preservation Budget Reserve) Grand Total $350,000.00 SUMMARY In May of 2005, Brewster approved a ballot question which allowed for the adoption of the modified Community Preservation Act. The act appropriates a 3% surcharge on the town's real estate tax revenues, which are reserved in a special fund in order to finance projects and programs for the purposes of preservation of open space, recreation, community housing, and historic preservation. Brewster is also eligible to receive up to CPC Meeting Minutes of September 14, 2016 Page 2 of 8 100% in matching funds from the State, although we anticipate a reduced reimbursement rate from the State for Fiscal-Year 2017, which is projected at 22%. Brewster established, through a local bylaw, a distribution schedule for the CPA funds according to the following: 50% of the funds for open space, 10% for community housing, 10% for historic preservation, and 30%balance is available for housing, historic preservation and/or active recreation projects or programs. Community Housing 1 a. Habitat for Humanity of Cape Cod, Inc.: In May 2014 Town Meeting voted to approve Community Preservation Act funding for the acquisition of the approximately 14 acre parcel off 620 Tubman Road by Habitat. These additional funds will allow the construction of Phase 1, including related total project infrastructure, of six (6) of the fourteen (14) affordable ownership homes in the Tubman Road Community Housing development by Habitat. The homes will be initially sold to low-income (up to 65% of HUD area median income)households who will participate in Habitat's sweat equity model and devote 250- 500 hours building their homes along side community volunteers. All homes will have a deed restriction that ensures long term affordability for future buyers. Phase 1 will include the construction and sale of one 4-bedroom home; three 3- bedroom homes; and two 2-bedroom homes along with most of the infrastructure for the entire 14 home development. Total Project: $5,525,954 Requested CPC Funding: $350,000 Motion made by Peter Johnson to send the draft Town Warrant Article for Habitat for Humanity of Cape Cod Community Housing project to the Town Administrator and Town Counsel for any necessary changes. Roland Bassett seconded. VOTE: 5-0-0 The Chair reviewed with the Committee the following draft award letter: This letter is written to inform you that on August 10, 2016, the Brewster Community Preservation Committee ("CPC") voted to recommend to Brewster Town Meeting approval of Habitat for Humanity of Cape Cod, Inc.'s ("Habitat") $350,000 funding request for the creation and development of up to 14 units of affordable housing units on Habitat's property off Tubman Road, Brewster, Massachusetts ("the Property"), and the sale thereof to eligible purchasers ("the Project"), as described in Habitat's December 1, 2015 application(the "Application"), which Application is incorporated herein by reference. Brewster Town Meeting is scheduled to meet on November 14, 2016 to consider the CPC's recommendation and to appropriate $350,000 for the Project (the "Grant Funds") under G.L. c.44B, the Community Preservation Act (the "CPA"). If approved by Town Meeting, CPC Meeting Minutes of September 14, 2016 Page 3 of 8 the Town will make the Grant Funds available to Habitat upon the execution of a Grant Agreement containing terms substantially similar to the one attached hereto as Exhibit A and the terms set forth herein(the "Grant Agreement"). The Grant Agreement will provide that Habitat,which has obtained a Comprehensive Permit (the "Permit") from the Town, shall enter into a Regulatory Agreement and Declaration of Restrictions with the Massachusetts Department of Housing and Community Development("DHCD") and the Town, which shall survive foreclosure and grant the Town the independent right to enforce the terms thereof(the "Regulatory Agreement"). No Grant Funds will be paid to Habitat until the Regulatory Agreement is on record and Habitat has complied with the other terms of the Grant Agreement. PROJECT DESCRIPTION Habitat requests $350,000 to fund the construction of Phase 1 of 14 units of housing for very low income households—that is, for households earning up to 40% - 65% of area median income ("AMI"), as determined by the US Department of Housing and Urban Development("HUD"). The Project includes the construction of up to 14 single-family homes, with 1 home containing 4 bedrooms, 9 homes containing 3 bedrooms, and 4 homes containing 2 bedrooms. Each home will have a full kitchen, a full bath, a dining area and a living room. Habitat intends to construct the Project in 2 phases: 6 units will be constructed in Phase 1 and 8 units will be constructed in Phase 2. All 14 homes will be initially sold to very-low income households subject to deed riders approved by the Town and DHCD. The resulting Project will provide safe, secure and affordable housing for eligible households. Habitat's performance of the requirements of the Grant Agreement and its compliance under the Regulatory Agreement will be secured by a Mortgage on the Property granted by Habitat to the Town(a no-interest loan that will be forgiven according to the schedule set forth herein) and will be used to pay for construction period expenses of the Project. PROJECT ELIGIBILITY The Project is eligible for funding under the CPA pursuant to Section 5(b)(2), which provides that CPA funds may be expended "for the acquisition, creation,preservation and support of community housing." The Project meets the definition of"community housing" as that term is defined in the CPA because it will provide housing for households earning no more than 40% - 65% of the AMI. The expenditure of the Grant Funds will help the Town to acquire and create up to 14 units of community housing, all of which shall be subject to a Regulatory Agreement, thereby ensuring the long term public benefit of preserving affordable housing opportunities on lower Cape Cod. GRANT AWARD TERMS AND CONDITIONS CPC Meeting Minutes of September 14, 2016 Page 4 of 8 The disbursement of the Grant Funds awarded by the CPC is contingent upon the following terms and conditions: The Project is approved and $350,000 has been appropriated therefor by Brewster Town Meeting; Town Meeting is expected to vote on November 14, 2016. The parties have signed a Grant Agreement in substantially the form attached hereto as Exhibit A. Habitat has recorded the Regulatory Agreement and taken all steps to include all the units in the Town's Subsidized Housing Inventory ("SHI"). Habitat has complied with the terms of the Permit, the Town's contingent fee interest deed, the Grant Agreement, and the Regulatory Agreement. Habitat has signed a Promissory Note; Loan Agreement, and Mortgage in a form acceptable to Town Counsel and recorded the Mortgage. The Grant Funds will only be released to Habitat as reimbursement for work that has been completed in accordance with the provisions of this Award Letter and the Grant Agreement. Habitat shall use the Grant Funds for hard costs (including full Project site expenses) and soft costs for Phase 1 (as listed on the July 2016 pro forma attached to the Application) that are incurred after the November 14, 2016 Town Meeting vote. Prior to the release of any of the Grant Funds, Habitat shall provide evidence satisfactory to the CPC that other funds necessary for the completion for Phase 1 have been received and/or are committed and available. The Town will hold back 10% of the Grant Funds ($35,000)until Phase 1 of the Project has been completed, as evidenced by the recording of affordable housing deed riders on the 6 homes m Co�ilpllanCe with the Permit and DHC1_1 requirements sufficient to Include all units in the Town's SHI. Habitat may request a partial release (1/6 of the hold back) for each restriction recorded. This award will be in the form of a 0% loan, which will be discharged when all 6 individual units have been sold to income-eligible household and an affordable housing deed rider (as set forth above)has been recorded for each of the 6 lots in Phase 1. The Town will grant partial releases for individual units that are sold in compliance with the terms hereof. The Grant Funds will be made available for a period of 2 years from the date of the Town Meeting vote. The CPC liaison for this project shall be Jillian Douglass. CPC Meeting Minutes of September 14, 2016 Page 5 of 8 The CPC is pleased to be able to play a role in this historic community housing project. Please do not hesitate to contact your CPC liaison, Paul Ruchnskas f) eh@e,,,,east„o+ 508.896-5671, Jillian Douglas should you have any questions or concerns. "Phase I" will be added to the first paragraph of page 1 and the CPC liaison on page 3 in the last paragraph will be corrected to Jillian Douglas. Motion made by Roland Bassett to approve the Habitat for Humanity Cape Cod award letter as amended. Elizabeth Taylor seconded. VOTE: 5-0-0 4. Discussion and vote on the draft Town Meeting article to allocate the funds from Fiscal Years 2015 and 2016 from the undesignated fund balance account. The Chair reviewed the draft Town Meeting reallocation article as presented prior to the meeting to the Committee as follows: ARTICLE NO. : To see if the Town will vote to act upon the recommendations of the Community Preservation Committee; to appropriate from the Community Preservation Fund to hold for future expenditures the following sums from the Fund's Fiscal Year 2015 through 2016 revenues; all as follows: Item: Category: 1. Reserve Funds: a. Open Space: To hold, pursuant to the provisions of section 17-4 of the Brewster Community Preservation Committee Bylaw, in reserve for the purpose of Open Space and to transfer the sum of$438,728.00 from Community Preservation Fund's Fiscal Year 2015 through 2016 revenue for future expenses. b. Historic Preservation: To hold,pursuant to the provisions of section 17-4 of the Brewster Community Preservation Committee Bylaw, in reserve for the purpose of Historic Preservation and to transfer the sum of$87,746.00 oin Community Preservation Fund's Fiscal Year 2015 through 2016 revenue for future expenses. c. Community Housing: To hold, pursuant to the provisions of section 17-4 of the Brewster Community Preservation Committee Bylaw, in reserve for the purpose of Community Housing and to transfer the sum of$87,746.00 from Community Preservation Fund's Fiscal Year 2015 through 2016 revenue for future expenses. d. Budget Reserve: To hold, pursuant to the provisions of section 17-4 of the Brewster Community Preservation Committee Bylaw, in reserve for the purpose of Budget Reserve for housing, historic preservation and/or recreation uses and to transfer the sum of $474,357.00 from Community Preservation Fund's Fiscal Year 2015 through 2016 revenue for future expenses. CPC Meeting Minutes of September 14, 2016 Page 6 of 8 Grand-total $1,088,577.00 or to take any other action relative thereto. (Majority Vote Required) (Community Preservation Committee) SUMMARY In May of 2005, Brewster approved a ballot question which allowed for the adoption of the modified Community Preservation Act (CPA). The Act appropriates a 3% surcharge on the town's real estate tax revenues, which are reserved in a special fund in order to finance projects and programs for the purposes of preservation of open space, recreation, community housing, and historic preservation. Every year the Town estimates the amount of the 3% surcharge that will be collected and estimates the amount of matching funds that will be received from the state; however, the Town typically collects more revenue and receives more state matching funds than budgeted. The CPA also requires any unexpended administrative funds and unexpended funds from the 30%budget reserve account to be transferred at the end of each fiscal year to a separate account. These excess funds are reserved in a segregated account, referred to as the "Undesignated Fund Balance." The amounts in this article return the $211,121 transferred from the FY 2015 30% budget reserve fund back to that account and allocate the remaining balance of$877,457 of undesignated funds according our typical formula. Brewster established, through a local bylaw, a distribution schedule for the CPA funds according to the following: 50% of the funds for open space, 10% for community housing, 10% for historic preservation, and 30% balance is available for housing,historic preservation and/or active recreation projects or programs. Motion made by Roland Bassett to approve the draft Town Meeting article to allocate the funds from Fiscal Years 2015 and 2016 from the undesignated fund balance account as presented that will be sent to the Town Administrator and Finance Director for any necessary changes. William Klein seconded. VOTE: 5-0-0 5. Report/updates on the status of the following spring 2016 CPC awards: Crosby Barn, Cape Cod Village, and Harwich Ecumenical Council for the Homeless' emergency rehabilitation loan program. Peter Johnson updated the Committee on the Crosby Barn. There are some finishes that need to be approved by Eric Dray. The DCR issues are being worked on by Sarah Turano-Flores to resolve. It is expected that Cape Associates will be the contractor and the project is hoping to start in October. Paul Ruchinskas reviewed the Cape Cod Village project and necessary signatures are being sought. CPC Meeting Minutes of September 14, 2016 Page 7 of 8 There was a HECH Emergency Loan program update and it is hoped to fund 4 or 5 home repair projects from the 9 applications currently received. Some of the terms of this program have changed from last year and documents are being reworked to accommodate the changes. Concern expressed about winterization projects being delayed until December. 6. Report on prospective Bikeways Committee funding request. The Bikeways Committee has been in touch with the Chair and there are four areas in town where the bike trail crosses main thoroughfares that for safety reasons flashing yellow lights need to be installed. It will need to be determined if there are funds available for this purpose as well as investigated whether CPA funds may be used for this purpose though this has been done in other towns. An application will be made in the spring for about$70,000 of CPA funds for four intersection flashing lights. Varied concerns were briefly raised and this project will need to be vetted further at that time the application is received. 7. Items that the chair could not have reasonably anticipated. The Babe Ruth field bid quotes are in and it appears the project may come in less than expected. It is hoped to accomplish this project this fall. There was a very brief review of the status of the Brewster Baptist Church project that the attorney is negotiating and trying to resolve for all parties involved. In October it is hoped to have an outreach to the various committees in town as to any projects that may be coming forward. 8. Schedule next meeting The next meeting will be September 28, 2016 at 4:30 pm. Motion made by Peter Johnson to adjourn the meeting at 5:13 pm. William Klein seconded. VOTE: 5-0-0 Respectfully submitted, Donna J. Moberg, Recording Secretary Items used in the meeting: • Draft Meeting Minutes of August 10, 2016 • CPC FY 17 Budget as of 7/1/2016 • Closed Projects Spreadsheet as of 08/31/2016 • Draft Article for Community Housing Project for the Town Meeting Warrant • Draft Tubman Road Community Housing Project Award Letter • Draft Article for the Reallocation of CPC Funds for the Town Meeting Warrant CPC Meeting Minutes of September 14, 2016 Page 8 of 8