Lenox Affordable Housing Committee
May 2, 2011
Minutes
Members present: Dave Klausemeyer (DK), Ellen Jacobson (EJ), Debbie Burke (DB), Kate McNulty-Vaughan (KMV) and Jo Anne Magee (JM).
Absent: Roscoe Sandlin and Olga Weiss.
Also in attendance: Mary Albertson (MA), Town Planner.
DK opened the meeting at 3:05 PM.
JM made a motion to approve the April 11, 2011 – minutes with a minor correction. Seconded by DB and unanimously approved.
Recommendations to Town Meeting
DK noted that Frederick Keator is present to answer question regarding the Community Preservation Committee (CPC) recommendations.
Discussion ensued regarding the proposed Bartoni land purchase; the property is located at the intersection of Route 7/20 and Housatonic Street. (The project is also referred to as the Sawmill Brook Project.) Mr. Keator explained that the Community Development Corporation of Southern Berkshire (CDCSB) submitted a Fiscal Year 2012 funding request in the amount of $200,000. The CPC initiated a dialogue with the CDCSB to determine if it was feasible for the Town of Lenox to purchase the property. The CDCSB was receptive to this discussion and the CPC learned that the existing Purchase & Sales Agreement (P&S) was for $600,000 and would expire in August of 2011. The majority of the CPC members felt it would be in the Town’s best interest to own the property because the Town would
have discretion regarding the type of housing project that is developed on the property. The long term tax base benefits for an ownership project are greater than a rental project. The final CPC recommendation was to bond the purchase of the Bartoni property for a 6 year period.
Discussion ensued regarding short-term bonding and the potential for the repeal of the Community Preservation Act. Mr. Keator said that reason for the short-term bond was to ensure the property is paid-off in a timely manner. He went on to explain that the Town’s bond counsel recommended that the Town combine this project with another Town projects to ensure the best interest rates. Based on bond counsel’s input the bond period would be approximately six years at 21/4 percent. Finally, Mr. Keator said that if the Town repeals the Community Preservation Act (CPA) the Town would be required to collect the CPA surcharge until the bond is paid-off.
Discussion ensued regarding the $600,000 purchase price. Mr. Keator explained that the Town would be assuming the previously negotiated terms of the P&S including the $600,000 purchase price. It was noted that the P& S is dated December 2007. In reviewing this matter with bond counsel, the Town was advised that the Community Preservation Act specifies that the Town cannot buy land for more than the appraised value. If this article is passed at Town Meeting the Town will be required to complete an appraisal. It was noted that the current assessed value of the property is $298,000. The appraisal is the safety valve to ensure the Town pays a fair price for the property.
There was discussion regarding the fact that this property is zoned Commercial. Mr. Keator said that he has heard from residents who strongly believe that property should be developed for commercial purposes such as a retail establishment or a hotel. Mr. Keator said that he understands this sentiment but the reality of this situation is that this mixed income housing project has been in the works for a number of years. He suggested that the Town must work with the project that is on the table.
There was discussion regarding the future role of the CDCSB in the development of the Bartoni property. Mr. Keator explained that if Town funds are used to purchase the property the law requires that the Town must prepare a formal Request for Proposal (RFP). It is very possible that the CDCSB will not be the developer of the project. It is his understanding that the Board of Selectmen will probably put together a temporary ad hoc committee to select the developer for the project. As an aside, Mr. Keator said that if Tim Geller does not have an opportunity to bid on the project prior to the expiration of the P&S the CDCSB may decide to retain the option.
Discussion ensued regarding the feasibility of the Sawmill Brook project. JM voiced her concern regarding the feasibility of the project. She is concerned regarding the lack of private or public funding for an ownership housing project. Mr. Keator said that the project does have challenges but that there are more upsides than downsides.
DK thanked Mr. Keator for attending the meeting.
DB made a motion to endorse the two CPC recommendations that involve funding for affordable housing: 1) $10,000 for the Affordable Housing Trust; and 2) Article 14 to bond for and purchase the Bartoni property. Seconded by EJ and unanimously approved.
Peer-to-Peer Program
JM volunteered to work on the Peer-to-Peer request. MA contacted the Department of Housing and Community Development (DHCD) and it is anticipated that the program will be funded in FY’12. She will follow-up with DHCD to confirm funding availability for July 1, 2011.
Other Business
KMV said there was an editorial in the April 27, 2011 edition of the Boston Globe encouraging communities to use Community Preservation Act funds to build community housing projects. She also noted a recent Federal Reserve report regarding the lack of access for affordable housing ownership opportunities. There is a link to this report on the CHAPA website. There is also a link on the CHAPA website to a MacArthur Foundation report on affordable housing. DK asked KMV to review these reports and offer input at the next meeting.
KMV stated that when she was appointed to the Affordable Housing Committee in 2007 the Board of Selectmen identified four goals.
1. The work toward the adoption of an inclusionary zoning bylaw.
2. Develop a Lenox Housing Plan.
3. Work with landlords to convert existing rental units to units that can be counted toward the Town’s housing requirement.
4. Pursue a friendly “40B” project.
She believes the committee has kept to the original goals including support for the development of the Bartoni property as a friendly “40B” project.
DK said that JM and MA met to discuss potential affordable housing projects. JM and MA discussed the prospect of reaching-out to Berkshire Bank/Legacy Bank as they finalize their merger. JM contacted DK regarding this concept and he contacted Bill Dunlaevy, CEO of Legacy Bank. Mr. Dunlaevy indicated that the bank would like to sponsor affordable housing programs. Mr. Dunlaevy offered the following:
1. The bank would assign one or two loan officers to work with the Affordable Housing Committee.
2. The bank would sponsor a regional housing symposium.
JM suggested that we do not have a list of local housing resources. EJ asked who would coordinate and pay for the housing symposium. DK said the bank would pay for the symposium. KMV volunteer to put together a list of Lenox housing contacts to share with the bank for the symposium.
The consensus of the members was for DK to contact Mr. Dunlaevy and report that the committee is very favorable regarding the proposed projects. DK will suggest that the loan officer attend a committee meeting. JM suggested that the loan officer prepare an overview of the bank’s affordable housing activities. She felt this would be a good starting point and focus the discussion. The overview should address the following: 1) bank resources; 2) bank activities; 3) bank vision for the future; 4) bank partners; and 5) bank portfolio dedicated to affordable housing and the Community Reinvestment Act. DK will ask Mr. Dunlaevy if a loan officer can attend the June meeting. Discussion ensued and DK offered to prepare a list of questions.
EJ said the TRIAD meeting was shown on channel 16. She was pleased with the presentation. EJ will see if she can get copies of the presentation.
The next two meetings will be June 6 @ 3:00 PM and July 5 @ 3:00 PM.
Meeting adjourned at 4:40 PM.
Respectfully Submitted,
Mary Albertson, Town Planner
Approved: August 1, 2011
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