Town of Georgetown
Affordable Housing Trust
Minutes (approved12-Apr-11)
Date: 1-Mar-11 6:45pm Town Hall basement meeting room
Attendance: Chas Waters; Tim Gerraughty; Paul Nelson; Phil Trapani (late)
Guests: Lori Nickerson; Andrew Ciano; Lynn Sweet (LDS Consultants) Eunice Kim
Meeting opened (6:45 pm)
Executive Meeting
Tim Gerraughty made a motion to go into executive session regarding 201 Central Street (#6) To consider the purchase, exchange, lease or value of real property, and that the discussion may have a detrimental effect on the negating position of the government body and a person, firm or corporation. The board will return to regular session at the conclusion of executive session at about 7pm. 2nd Paul Nelson
Chas Waters took a roll call vote CW-Yes; TG-Yes; PN-Yes; PT-Yes
Return to regular Session (7:10PM)
201 Central Street
CW recapped where we stand regarding the possibility of a buy down.
The affordable unit would have to sell for about $155K to be considered affordable plus $23K that the board supported as improvements. The buy down would be the difference between the purchase price of the unit by Ms. Nickerson in 2004 ($237.5K) plus $23K that the board supported as improvements (totaling $260.5K). The buy down would be the difference between those numbers added up ($105.5K). Other costs like closing will be borne by the seller. Other costs like closing would not be part of the buy down figure.
LN indicated that she would prefer to get what she paid for the unit plus improvements as well as closing costs and attorney fees.
CW went through the deed and pointed out how he interpits the language regarding “may be adjusted rather than shall” as well as other points and said he believes the Trust is acting on better than good faith.
TG pointed out that according to the Mass Assoc of Realtors Condominium selling prices in the Northeast region Peaked at $240K in 2005 and has dropped to $203.5K in 2010 anywhere from a 10 to 15% drop depending on timing and on a whole the home values in Georgetown have dropped as the market fluxuates.
CW asked if Ms. Nickerson understood were the Trust stood on closing costs as well as the pricing mechanism of the buy down. CW indicated that he was willing to move forward with what he believes is a generous offer that was on the table or if there was no agreement to withdraw that offer and start again from scratch.
PN stated that the Trust needs to start an approved buyers list by structuring an application process; creating a marketing plan; accept applications and search for potential buyers. The Trust would also need to engaging a Monitoring Agent (at the Trusts cost). PN stated that he spoke with Elsa at DHCD and she had a lead of a firm in Tewksbury that may be willing to help.
Mr. Ciano asked were the $155K came from and PN informed him that affordable number was based on 80% of Lawrence now and it was originally Boston, but DHCD agreed to raise it from what should be 70% to 80% to be more fair.
PT said there is culpability on both sides but if we go above and beyond the current offer it could set a bad president for the future.
LN how long of a process this will be? CW said that it will still take some time, but didn’t want push the process as certain steps need to take place.
PT stated that this is the market season and we (the Trust) need to speed the process forward. CW respectfully disagreed and said that the Trust needs to be methodical in this approach.
Mr. Ciano indicated that they were not adamant about any particular broker but wanted LN decision to hold some weight because she was the only one “with skin in the game”.
CW indicated again that the closing cost issues was done and would not be part of the buy down and the Trust is looking at the approx $105K buy down period.
LN agreed to move forward.
Update on HPP
LDS Consulting Group LLC was present and Lynn Sweet and Eunice Kim were introduced. Ms. Sweet gave an overview of what she believed to be included in the RFP and the pros and cons of a full blown HPP. She then asked for the Trusts input on what they felt were the need or goals for the town.
A break overview was that
PN wants a plan to act now and move forward with a business administrator.
CW wants a 1, 3 and 5 year plan that will hold the Trust accountable for action.
TG wants to fulfill the requirement of the original HPP that was funded at town meeting that could be easily updated in the future when the new census data is made available.
PT agreed with all the above and added that the plan needs to be certifiable with goals to accomplish.
LS indicated that all this was achievable but the scope of service was large and she could not entertain any reduction in price of that the firm originally quoted.
Discussion took place about timing and benchmarks as well as a payment schedule. LS was to work up a standard agreement and forward it to CW who then would send it along to the Trust as well as Town council for review.
Minutes
TG made a motion to approve the minutes of 9-Feb-11; PN 2nd Vote 4-0
Recording with Registry of Deeds / Land Registration Office
TJG made a motion to pay the $75 for recording of appointment papers at the Salem Deeds PN 2nd Vote 4-0. Paul Nelson to check on this for next meeting.
Affordable Housing SOP
CW is going to adapt the form hopefully to a single page and re-circulate it out for further review and it will be brought up at our next meeting.
TG made a motion to adjourn 8:55pm (PT 2nd) Vote 4-0 in favor
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