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Home My Public Portal AboutBrewster Municipal Affordable Housing Trust InformationShelly Goehring Massachusetts Housing Partnership (MHP) Massachusetts Housing Partnership Use private investment to bring more affordable housing to Massachusetts Privately-funded public non-profit organization Work with communities, non-profit, for-profit developers MISSION Lending • Over $1B for over 22,000 units • Affordable rental ONE Mortgage • First time homebuyers • Fixed-rate, 30- year Community Assistance • Technical assistance • 40B program Center for Housing Data • Collect, analyze & share info for effective policy creation MHP Services Community Assistance Team MISSION To increase the supply of affordable housing by fostering local leadership and providing technical support to municipalities, non-profits and local housing authorities Trainings Sampling Housing Institute Intensive two-day workshop, discussions & problem solving around affordable housing development Affirmative Fair Housing Marketing w/MassHousing Legal foundation of fair housing and elements of acceptable AFHM and Resident Selection Plan Lotteries for affordable housing units w/MassHousing Step by step guide to the lottery process Chapter 40B for municipal officials & board members An overview of the 40B statute and review of the roles and responsibilities of ZBA and other municipal boards Technical Support Small grants Engage consultants Staff time Predevelopment RFPs Zoning HAs Affordable Housing Trust Support Trainings • Regional • Community- based Resources • Reporting form • Topical one- pagers TA • Phone & email Supported by: Today’s agenda January 8, 2018 7 State trends Trusts Legal considerations Eligible activities Less housing production now than at almost any point in recent history. Large lot zoning drives up costs. Greater Boston median lot size: Greater Boston average lot size: The State of the MA Housing Market Source: 2014 1-Year ACS Estimates Housing Costs Among Highest in Nation Massachusetts: 9th highest rents Massachusetts: 4th most expensive home prices Source: 2014 ACS 1-Year Estimates, U.S. Census Bureau Same number of residents form more households and will need more housing units Decreasing Household Size 2010 2040 250 people = 250 people = Municipal Affordable Housing Trusts Chapter 44, section 55c Trusts Across the State Need new map from PHIL 14 What is a Municipal Affordable Housing Trust (MAHT)? •Public entity •Created by local legislative body •Create & preserve affordable housing •Led by Board of Trustees 15 Subject to public procurement, designer selection, conflict of interest and public meeting laws Trust Statute – MGL Ch.44, Sec 55c “…to provide for the creation and preservation of affordable housing in municipalities for the benefit of low and moderate income households…” •Limited scope •Low and moderate income only PURPOSE Changes to Statute – H. 4565 1.Expands allowable activities for MAHTs to match those of community housing as defined by CPA. Changes to Statute – H. 4565 2.Clarifies that all rules and restrictions of CPA (Ch.44b) remain in force after transfer to MAHT. Changes to Statute – H. 4565 3. Requires trusts to track CPA funds separately and annually account for funds in CP-3 report to DOR. Changes to Statute – H. 4565 4. Authorizes MAHTs to execute grant agreements. Getting off the Ground (and staying there) What can a housing trust do? •Actively address affordable housing needs •Support local control of housing initiatives •Engage in real estate activity •Make timely decisions related to housing •Accumulate funds from variety of sources 22 What can a housing trust do? More specifically $ for development Rehab/ conversion Increase affordability Develop municipal land Preserve expiring affordability Create programs Board Powers •Accept and receive real property, personal property or money, by gift, grant, or contribution…including but not limited to money, grants of funding or other property…. •Purchase and retain real or personal property, including instruments •Sell, lease, exchange or convey any personal, mixed, or real property at public auction or by private contract… Keys to Success 1. Money 2. Vision 3. Leadership 4. Transparency What funds can be used? CPA Special bylaw/ ordinance payments IZOr developer negotiated fees Cell phone tower lease payments General Fund Tax title sales Set up the trust fund account •Common to create municipal account through municipal treasurer •End of year, all funds in account remain trust property •Track revenue sources 27 Set a budget Start w/estimates Further prioritize based on income Track income & spending Where will your income come from? Cambridge = 80% CPA Somerville = 45% CPA What do you want to accomplish? Determining needs Setting priorities Create benchmarks Create a Mission Statement Example of Grafton An effective trust strikes a balance Capable, committed & knowledge- able trustees Technical & administrative support Dedicated chairperson Delegating Tasks Who does what? Chairperson • Provides leadership • Sets agenda • Keeps trustees on-task & moving forward Trustees • Attend meetings, provide input & vote • Complete assigned tasks • Participate in subcommittees • Be local AH advocate • Board packet Staff • Provides TA (perhaps feasibility studies, RFPs) • Lends continuity to projects • Completes admin tasks • Communicates with other town staff/boards Strong Leadership “The chair is the ‘driving force.’ To be effective in meeting its mission, a trust needs a leader to drive its activities and agenda.” --Westford AHT staffer Westford AHT chairperson • Approx. 6 hours/week • Sets agenda • Follow-up on projects • Contact with trustees • Multi-family zoning by-law work • AH world professionally • Involved in developing HPP Information gathered by JM Goldson for the Town of Amherst. Clarify roles Example of Manchester-by-the-Sea (HPP) HOUSING STRATEGIES Priority for Implementation Years 1-2 Years 3-5 # AH units Lead CAPACITY BUILDING Establish & capitalize MAHT X BOS/CPC Secure professional support X BOS Ongoing education X MAHT+ ZONING Pursue 40R/40S X PB/MAHT Modify multi-family requirements X PB/MAHT Modify accessory bylaw X PB/MAHT DEVELOPMENT Pursue mixed-use TOD X 5 PR/MAHT Public property for AH X 16 BOS/PB/MAHT Small-scale infill & conversions X 48 PB/MAHT Ensure transparency Communicate Report back regularly Promote efforts Use webpage and social media Westport Affordable Housing Trust Webpage Creating a culture of support •Balance people with places and systems •Tell “story of us” rather than “story of them” •Connect housing to other social issues and outcomes •Where you live affects you •Consider language that we use (e.g. home vs housing) Determine operating approach Funding entity Active initiator Both? Lessons Learned Trust statute does not define “low and moderate income” • Advice: Consult definitions commonly used in state/federal programs Be clear with parameters of fund distributions • Advice: Execute grant agreements for all distribution of funds Legal Consideration Open Meeting Law MGL Chapter 30A, sections 18-25 •Within two weeks of appointment, trustees must complete Certificate of Receipt of Open Meeting Law Materials •Some exceptions – executive session if deliberating purchasing, leasing or valuing of real property •“Public meeting” includes deliberations that involve a quorum – careful with email Legal Consideration Procurement Laws From MAHT statute: The trust is a board of the city or town for purposes of chapter 30B and section 15a of chapter 40; but agreements and conveyances between the trust and agencies, boards, commissions, authorities, departments and public instrumentalities of the city or town shall be exempt from said chapter 30b. Section 15a of Chapter 40: Requires 2/3 vote of legislative body to transfer land. Exception:Accepted provisions of Section 15a then majority vote for transfer for low and moderate income housing. Legal Consideration Procurement Laws Construction/capital improvement • Public construction & bidding requirements • Prevailing wage Real property disposition, lease or acquisition • Chapter 30b, Section 16 – various guidance • If bought with CPA funds, exempt from 30b Contracting professional services • Three Thresholds • Under $10,000 • $10-50,000 –3 written bids •$50,000+ -- sealed bids or proposals Legal Consideration Anti-aid Amendment to MA Constitution •Public funds cannot be given or loaned to individuals or organizations for their private purposes •Needs to have public benefit •Payment after service rendered Restriction Lease agreement Recapture Trusts & Fair Housing Federal Government institutionalized racism and segregation -- REDLINING Home Owners’ Loan Corporation Legal Consideration Federal Fair Housing Act MA Anti-Discrimination Law Protected Class Disparate impact Discrimi- nation Key Fair Housing Laws Protected Classes Federal (Fair Housing Act) •Race •Color •National Origin •Religion •Sex •Familial Status •Disability State (M.G.L. c. 151B) All federal bases plus: •Ancestry •Age •Marital Status •Source of Income/Public Assistance •Sexual Orientation •Gender Identity •Veteran History/ Military Status •Genetic Information Two Key Fair Housing Concepts Disparate Impact “Discriminatory Effect” Affirmatively Further Fair Housing Obligated to FH Discriminatory Effect Rule Three Part Burden Shifting Test Is it likely that policy or practice will negatively impact members of a protected class? Is the policy or practice necessary to achieve substantial, legitimate, non-discriminatory interests? Is there a less discriminatory alternative that would meet the same interests? Disparate Impact •Local plans or zoning bylaws prioritize studio and 1- bedroom units, restricting the number of bedrooms by unit rather than by development or lot. •A town is predominantly white and decides to advertise new affordable housing units with flyers at the local library, community center and Town Hall. •Planning or zoning approval processes mandate or prioritize townhouses. Obligation to Affirmatively Further Fair Housing End residential segregation Promote housing choice Eradicate discrimination Address disparities in housing needs & access to opportunity How to Affirmatively Further FH Affirmative Fair Marketing • Follow DHCD’s marketing & resident selection plan guidelines • Market to those least likely to apply Zoning • Consider ways that zoning may be creating disparate impact Diverse Housing Options • Multi-family AND single family • Rental AND homeownership • Family AND senior Local Preference Subject to subsidizing agency approval Evidence of need Certain categories 70% limit Brewster Demographic trends Population Older people Minimal ethnic/racial diversity Smaller households Brewster Economic Trends Median Household Income = $67,340 Residents that spend 30%+ of household income on housing. Homeowners Renters 27.2%44.1% Source: 2012-2016 American Community Survey 5-Year Estimates Brewster Housing Construction Trends 2012 2013 2014 2015 2016 5 Year total Single family 14 19 15 15 16 79 2-4 unit 0 0 0 0 0 0 Multi- family 0 0 0 0 0 0 TOTAL 14 19 15 15 16 79 Exclusively single-family development. Building Permit data from MassBenchmarks Eligible Activities for Trusts Affordable Housing Acquire Create Preserve Support Acquire Cromwell Court Apartments -- Barnstable •124 units of affordable family rental housing •Built in 1973. Acquired and rehabilitated in 2011. •$500,000 CPA funds Create Small Scale Production 61 Baker Street Apartments Foxboro, MA 20 family rental units Opened in 2005 Butternut Farm Amherst, MA 26 family rental units Opened in 2011 Developer: HAP Housing Dennis •Melpet Farm- new construction •Disposition town owned land •27 affordable townhouses, 1-, 2-, 3-bedroom units •60% AMI, family rental housing •$475,000 CPA funds Northampton Enhanced Single-Room-Occupancy (SRO) •10-units of enhanced SRO on King Street for 5- homeless & 5-very low income individuals •$225k CPA funds out of $2.1 million budget Infill Housing Boston Re-use Shoe Shop Place Middleboro 25 rental (family housing) Stevens Corner North Andover 42 rental (family housing) Rockport HS Apartments Rockport 31 rental (age restricted) Preserve Amherst Rolling Green affordable units preserved •204 unit multi-family development •Refinanced in 1998 under Mass Housing’s 80/20 prepayment program (15 year restrictions) •41 affordable units/Section 8 vouchers, $1.25m bonded w/CPA Cambridge Bishop Allen apartments preserved •32 units of family rental (27 three-bed & 5 two-bed) in four buildings •Purchased in March 2012 – restrictions due to expire in April 2012 •$4,638,750 CPA funds through the local Affordable Housing Trust Support Pre- develop- ment Buy Downs (create) Down- Payment Assistance Rental Assistance Sudbury MAHT Home Preservation Program Identify house Negotiate price Lottery $180,000 average subsidy Norfolk MAHT Small Scale Homeownership 17 homes $300k range 3/year All on SHI Sold for $155k in 2015 Sold for $140k in 2014 Rental Assistance Dukes County Regional Housing Authority Request funds Recruit owners Inspect homes Screen tenants Invoice CPC Martha’s Vineyard FY2014 •66 rental assistance subsidies •147 people on waiting list •$543,000 CPC appropriations •Average monthly subsidy = $499 •Average income served = 45% AMI Three Things Consider the local infrastructure – needs and resources. How would you fund a MAHT? What would be the focus of the MAHT and who can guide it? Housing Toolbox for Massachusetts Communities www.housingtoolbox.org Strategies and best practices for the creation and preservation of affordable housing. For local boards and committees, planners and municipal staff and developers MHP Online Resources On our website: http://www.mhp.net/community/publications-and- materials Questions? Massachusetts Housing Partnership www.mhp.net Shelly Goehring Program Manager sgoehring@mhp.net Direct line: 857-317-8525