DUXBURY LOCAL HOUSING PARTNERSHIP
COMMITTEE
Minutes of 4/17/08
Senior Center
Members Present: Diane Bartlett Brendan Keohan Charlie Rourke
Denece Clinton Andre Martecchini Matt Walsh
Jack Griffin Brian Murphy
Also Present: Phil Mayfield, Housing Consultant, Bill Campbell & Christine Stickney, Planning Director
Meeting convened at 7:00 PM
Matt Walsh reported the realtors are considering contributing 50% of their commissions for repair – to date only Donna Wood has committed none others
Informational Session: Representatives from Mass Housing, Rockland Trust and Plymouth Redevelopment Authority:
· Peter Milewski, Director of Mortgage Insurance/Manager of Business
Development – MassHousing (Duxbury Resident)
· Sara Martin-Brooks, Senior Loan Officer, Rockland Trust
· Laura Schaefer, Executive Director, Plymouth Redevelopment Authority
(Duxbury Resident)
Andre Martecchini asked Mr. Milewski if he was aware of any similar program where the units counted towards the 10%. Mr. Milewski said he did know of other communities, he added that Mass Housing would be glad to assist with the lottery and noted that lender’s pre-approval is most helpful with the lottery. Members noted concerns from DHCD regarding the deed rider. Mr. Milewski stated that Mass Housing’s universal deed rider was approved by Fannie Mae and the units count. Matt Walsh questioned if changes were proposed would this be problematic? Mr. Milewski stated the Mass Housing deed rider is developed to withstand foreclosure – any changes may not be prudent since Mass Housing needs the ability to sell to anyone in the event of a foreclosure to protect its investment.
Jack Griffin asked Mr. Milewski if he thought the Housing Authority could do the program pre-qualification. Mr. Milewski said that would make sense given the nature of their business and if they are qualified to do it.
Ms. Sara Martin-Brooks from Rockland Trust who was also invited to attend tonight’s meeting gave some preliminary remarks on the climate of mortgages these days and who is getting pre-qualified at what amounts. Andre Martecchini noted that one of the criticisms the LHP has received is that there is nothing in Duxbury that is truly affordable without a lot of work. He asked Ms. Brooks if she thought $50,000. is sufficient. Mr. Milewski responded that under the current market, deed restricted housing is having difficulties because a buyer can purchase a home close to the deed restricted amount with no restrictions, however it is perception. In a community like Duxbury, there are desirable schools and community amenities that add to the benefit of buying in the Town.
Denece Clinton added that the cheapest condo on the market today is $189,000. Mr. Milewski and Ms. Brooks agreed it needs to be tested – no one can say definitely one way or another. Mr. Milewski did note that Mass Housing has an extremely low foreclosure rate.
Discussion turned to the issue of affordable units in Comprehensive Permit (40B) projects and that some are encountering problems finding eligible buyers. Matt Walsh noted that this program was accepted by the Town because it sought preservation and not knew production. Andre Martecchini added that 40B never allows a community to reach the 10% because of the ever increasing housing count in the Town.
Bill Campbell asked what the turnover rate is for someone in an affordable unit. Mr. Milewski explained looking from at an analysis you need to look at the year the buyer entered into the home (he cited 2001 as a high turnover year due to interest rates) now with the economy as such they is a much lower turnover. Andre Martecchini explained that the LHP is in the process of refining the guidelines of the program and a question that continues to surface is what happens when someone’s income increases? Mr. Milewski answered it is self policing – hopefully an economic gain prompts them to move into another house however in a declining market with a deed restricted unit they have seen a situation where the minimum payment is not enough they walk from the property and allow it to go into
foreclosure – he said that this is on rare occasion. Matt Walsh questioned if under our program do we allow it to be subordinate to the next buyer? Mr. Milewski pointed out the theory the investment has grown and it is better to keep with the unit than require repayment – the universal deed rider accomplishes this under the Mass Housing soft second program. Mr. Milewski offered the group consider the affordable housing trust purchase homes and buy down to make them affordable.
Brendan Keohan asked about fees associated with transactions and how can these remain reasonable for buyers. Ms. Brooks responded in the case of Rockland Trust, we only pass fees through to the buyer that are required (title search etc.) – she gave an example of a $200,000. loan with 1% - 2,220 closing cost. Mr. Milewski noted that Mass Housing is even cheaper. At this point (8:45 PM) Mr. Milewski and Ms. Brooks left the meeting– Diane Bartlett thanked them for attending.
Laura Schaefer of the Plymouth Re-development Authority and Duxbury resident spoke to the group next about the educational services that her organization offers. She provided the group with a handout “Collaborative Seal of Approval” which outlined the standard curriculum a participating applicant must undertake for the different programs. She spoke of how they also assist buyers with options to a variety of assistance programs such as the USDA which is a 502 program that lends at 1% at 50% median income. There is also the American Dream Down payment Initiative that is HUD money administered by DHCD and that the Town of Duxbury should think of this in their next round – the town merely sends a letter letting them know of your interest. Returning to the curriculum, Laura noted a $25
dollar fee is charged to the applicant – in addition to the program which they receive a certificate that they can then present to their lender – the program also allows for one - on -one counseling to help with improve credit. Diane Bartlett questioned if Duxbury could participate and Laura responded that her organization is part of a housing collaborative and that if education becomes a mandatory requirement of your program listed it as taking courses from a “housing collaborative agency” – this would allow them to use her agency, South Shore Housing or the Quincy collaborative. She also noted that her agency provides “post purchasing counseling” to make sure the homeowner is doing ok – and answer any questions they may have annually. Laura suggested that applicant’s be directed to take the course first and then go to the lenders for pre-approval before shopping for a new home.
Diane Bartlett asked how inspections are handled. Laura said they have an inspector – she suggested that the LHP consider the following: 1) Have the DHA section 8 inspector look at the unit first. 2) Applicant hires a licensed home inspector as part of their due diligence with the lender 3) The Town would then have a Housing Quality Specialist look at it to accommodate the DHCD requirements 4) and depending on the first three steps another independent home inspection may be wanted to reconcile everything done before.
Phil Mayfield tried to summarize the steps an applicant would undertake. First become aware of the program & guidelines and obtain an application. Second, go to the DHA to seek pre-approval to apply to the program (income eligibility, residency verification etc). Thirdly go to the Housing Collaborative Agency for education, credit counseling etc.
Fourthly, go to a lender to see pre-qualification for a mortgage. Fifth begin shopping for a new home with either a realtor or on look their own.
Diane thanked Laura for coming and speaking with the group – she left at 9:25PM
Other Business:
There was a brief discussion on the BOS meeting on 4/14/08 regarding the Grange and the current issued that has come up with the lease of the Firehouse. Town Counsel is supposed to provide a ruling prior to the 4/28/08 meeting of the BOS. Christine noted that Town Counsel is having a title search on the property performed.
Diane informed members that Selectmen Witten has submitted draft guidelines for both LIP and non-LIP projects that he hopes to implement at an upcoming meeting. Diane read from an email he had provided to her. Members questioned what happened to the guidelines that the LHP had approved last November. Jack Griffin MOTION to not support the proposed draft from Selectmen Witten as proposed, seconded by Charlie Rourke – Unanimously voted.
Camp Wing – Christine informed members that perc tests will be done tomorrow (4/18) at the affordable housing site – Joe Grady will be there. The next door neighbor has asked if the Town will buy her property – she has concerns with the project.
Phil Mayfield informed the group of a new grant opportunity that should be looked into Individual Development Account – he feels the LHP should apply before the 5/9 deadline.
Charlie Rourke MOTION to adjourn, seconded by Jack Griffin - unanimously voted
Meeting adjourned at 10:05PM
Respectfully submitted,
Christine Stickney
Planning Director
APPROVED BY THE LHP ON 07/31/08
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