Chilmark Housing Committee
Minutes
Thursday, August 10, 2017 9:00am
Chilmark Town Hall, 401 Middle Road, Chilmark, MA Conference Room #1
Committee Members Present: Jim Feiner (chair), William Randol, Jessica Roddy, Ann Wallace, Bill Rossi, and Roland Kluver
Others Present: Jeanne Ogden – MV Savings Bank Residential Lending VP, Jessie Holtham
Committee Members Absent: Michelle Leonardi, Andy Goldman
The meeting was called to order at 9:00am by the chairman.
Financing Issues - MVSB
Jeanne Ogden, from the Martha’s Vineyard Savings Bank, presented banking options regarding clients with affordable housing building sites. Discussed the pitfalls of new construction including that homebuyers often take on the general contractor roll. To save money, corners get cut and additional loans may be required. The bank prefers affordable rentals over ownership.
If ownership is a goal, Ogden thinks the safest and cleanest option is to work with a developer to offer turn-key homes at 95% financing. The greatest challenge then for most families is the initial down payment but the hazards of stick-building are avoided.
Second Mortgages
The Town needs a simple control model, similar to TRI (Tri Resource Incorporated) for its affordable Homesites. It was determined that best method is $1 second mortgage to the Town to allow monitoring of deed restricted homes. In the event of a refinance the Town would receive notice from lender and can monitor whether the second mortgage keeps the lease within the required affordability restriction.
The Committee had previously agreed that all future affordably restricted parcels would require the $1 second mortgage at sign-on. Chairman suggests a letter to all Homesite recipients of the intention to implement second mortgage monitoring. Admin to forward the draft letter to Ogden for initial comments/suggestions before presenting to the Selectmen & Town Counsel.
Ogden felt the initial cost to subordinate the property should fall on the Town.
Tax Credits for Property Owners Who Provide Affordable Rental Housing
Ann Wallace inquired. Ogden suggested an online book resource, MA Housing Monitoring Guide.
DCRHA offers info sessions, required by MA law, where all aspects of owning a home are presented. Ogden suggests offering these seminars periodically before there is a lottery. Jim Feiner suggests these would be best executed in a regional effort.
Letter from Ann Barry on behalf of Dan Greenbaum donated $1,000 to the Molly Flender Municipal Housing Trust. Chairman will write and send a thank you letter.
Molly Flender Municipal Housing Trust
Suggested to meet annually in the Fall. Meeting tentatively scheduled for October.
Peaked Hill Pasture Road
Working with CCC to identify and move boats stored on-site.
Review of minutes 4/4, 6/8, 6/15, 7/15 postponed to September 2017 meeting.
Meeting adjourned at 9:45am
Respectfully submitted, Jessie A. Holtham
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