Town of Georgetown
Affordable Housing Trust
Minutes (approved 6-Dec-10)
Date: 9-Nov-10 6:00pm Town Hall 2nd floor meeting room
Attendance: Tim Gerraughty; David Surface; Paul Nelson; Chas Waters (late)
Guest: Nancy Scannell; Atty Phil Mason; Town Planner Nick Cracknell
Minutes
DS made a motion to approve the minutes of 18-Oct-10 as amended; PN 2nd Vote 3-0
Bidder Selection for HPP
Tabled until next meeting. PN to get his Selection Process Sheet to Mike Farrell.
Recording with Registry of Deeds / Land Registration Office
Paul Nelson has yet to hand carry his appointment to the Registry of Deeds and filed with the Land Registration Office but will comply before the December time line requirement.
Open Meeting Law
TG read a section of Kopelman & Paige’s hand out
Emails are expressly included in definition of “deliberation,” which is prohibited outside of open session; but distribution of agendas, scheduling information or reports to be discussed at future meetings is permitted.
This was just a general reminder and it was noted that all emails are kept in the Trust’s correspondence section of their official record keeping.
Storing of minutes and accessibility
Tabled until next meeting
4 True Lane
Attorney Mason informed the Trust that his client Ms. Scannell was thinking of listing her home at 4-True lane in the Spring of 2011 and wanted to get the boards input regarding the deed rider specifically the income eligibility requirements.
The unit was described as having three bedrooms and originally purchased in 1995 for a sum of $150K.
PN said that the new price may be increased to reflect increases in the Consumer Price Index.
Attorney Mason also said that the price could rise to reflect the actual cost of capital expenses paid by the seller improving the property. He also informed the board that his client expects to spend approximately an additional $10K getting the home ready for the market. Also the seller is allowed to add the usual and customary marketing and closing costs including brokers fees, deeds stamps and attorney fees.
The listing price of about $215K was used for discussion after a quick calculation of the original purchase price multiplied by the Consumer Price Index and the addition of $10K for future home improvements.
TG said that the seller has the right to list the unit per the original deed rider and the Trust can only get involved if the seller requests them to do so (PN thought the Trustees had more flexibility).
CW inquired about the number of parties involved and suggested that one possible solution could be that all parties with an interest in the property could agree on a “exclusive” broker and give them the authority to first market the unit at the maximum amount allowed by the deed rider for a specific period of time and then if no sale occurs the broker would be authorized to negotiate with the Trust. The benefit is a higher sale price for the sellers and the possibility of the Trust updating the Deed Rider clearing up some of the issues that exist today.
DS suggested getting a broker that specializes in affordable units. He also said that even though with the current deed rider the unit doesn’t qualify towards our “affordable” unit stock it is lower than market rate and aids a certain segment of our population rather that full market price unit.
Nick Cracknell said the sale of the property shall not be considered effective unless the Deed is accompanied by a certificate from the Planning Board saying the Planning Board has received an affidavit from The Seller, Purchaser and the institutional lender involved in the transaction stating that the parties have complied with the terms of the restriction and said certificate shall be recorded with the deed transferring the property. With that being said he questioned with conflicting requirements set forth in the current deed rider it could be difficult to find a lender willing to get involved.
PN asked if the board should take a vote to let the seller know we would be interested in a possible buy down on the property for the ability of updating the deed rider.
CW thought the more appropriate route would be for the seller(s) to find a broker and that person needs to do the ground work and get the listing price and then possibly a negotiation could take place.
201 Central Street
PN said he spoke with a John Burns (attorney for Ms Nickerson) on the phone regarding the possible sale of unit 2 an affordable unit. The unit most recently was purchased for $237,500.00 in May of 2004. He believes there have been some upgrades including granite counters in the kitchen.
There was discussion again of seemingly conflicting requirements regarding the maximum price the unit could be sold for and the income requirement of the grantees.
There was general discussion of the original sale in June 2002 for $185,600.00 and the transfer in May 2004 and weather title insurance was purchased.
It was determined the best course of action was to invite the property owner to our next meeting (most likely early December).
New Business
PN passed out a 2 page handout regarding Resales (from Feb 22, 2008 LIP Guidelines) and asked the Trustees to review for our next meeting.
PN made a motion to adjourn 7:25pm (DS 2nd) Vote 4-0 in favor.
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