C H I L M A R K H O U S I N G C O M M I T T E E
Minutes
Tuesday, November 7, 2013
Chilmark Town Hall,
3:30pm
Present: Ann Wallace, Andrew Goldman, Michelle Leonardi, Jessica Roddy, Bill Rossi, Tim Carroll (Chilmark Executive Secretary), Marina Lent (Housing Committee Staff), David Vingault (Dukes County Regional Housing Authority – DCRHA), Terri Keech (Administrator-DCRHA)
Absent: Jim Feiner, William Randol
In the absence of Housing Committee Chair Jim Feiner, Andrew Goldman chaired the meeting.
Memorandum of Understanding for Financial Management of Middle Line Road
Tim Carroll introduced a Memorandum of Understanding between Housing Committee, Municipal Housing Trust and Board of Selectmen. The MOU outlines procedures for budget and allocation of funds for the MLR rental project. Having such an agreement will record a framework for the Town to manage rental income, including annual payments of $10,000 into a capital repair and replacement account under the Trust and annual payments of $30,000 over the next 58 years to the Town’s General Fund to defray town debt costs. The Committee approved the draft MOU between Housing Committee, Housing Trust and Board of Selectmen.
First Annual Management and Budget Review of Middle Line Road
David Vignault and Terri Keech presented a proposed FY2015 budget for Middle Line Road. The budget format reflects the Management Agreement between the Town and the Dukes County Regional Housing Authority. The O’Brien Property Management firm is contracted to conduct required maintenance, and the DCRHA reported high satisfaction with the performance of the contract.
Bill Rossi asked that one month’s rent or 10%, be kept aside in the Operating Account; the amended budget will reflect this suggestion. The Committee approved the MLR budget as amended.
The Committee became aware that while income was reviewed annually by Dukes County Regional Housing Authority (“DCRHA”) and rents raised where warranted by increased income, if a tenant’s income decreased DCRHA had no authority to lower rents in order to maintain the same ratio of payments to income.
The Committee considered possible mechanisms to allow rents to lower as well as raise relative to income: 1. increase the rental assistance program to include tenancies at Middle Line Road; 2. seek funds from the Molly Flender Housing Trust for this purpose; or 3. modify the Town’s contract with DCRHA to allow it the flexibility to alter rents in both directions in relationship to changing income, down to a floor below which the tenant would have to pay such rent even if the ratio of rent to income increased.
The Committee noted that since the debt service on Middle Line bonds was not keyed to the pro forma, the rents could decrease without affecting the Town’s ability to meet debt service.
It was the consensus of the Committee that the rental assistance program was intended as an interface between private landlords and tenants to assure affordability, whereas at Middle Line Road the Town is the landlord.
It was further the consensus of the Committee that the Molly Flender Trust, not having had an organizing meeting yet, was an uncertain vehicle for such a program.
Consequently, upon motion duly made, seconded and unanimously passed, the DCRHA was directed to prepare and submit a proposal for a modification of the Middle Line Agreement which would authorize and direct the DCRHA to modify rents on an annual basis to maintain a consistent ratio between rents and income so that rents could be adjusted downward (but not lower than a certain percentage of median income) as well as upward.
Municipal Housing Trust
The Committee noted that Middle Line funds form only a part of the resources currently in and potentially to be added to the Trust. There is currently roughly $160,000 in the Trust.
Jessica Roddy reported on a meeting on Municipal Housing Trusts which she attended on the Cape. There are currently 80 Municipal Housing Trusts in Massachusetts, at various stages of functionality.
The Committee discussed possible goals for the Trust to address. Elders, young people/families and farm workers were three groups identified as evident housing needs in Chilmark.
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