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Affordable Housing Committee Minutes 09/10/2012

Lenox Affordable Housing Committee and Trustees Joint Meeting
September 10, 2012
Minutes

Committee Members present:  Dave Klausemeyer (DK), Chair, Debbie Burke (DB), Kate McNulty-Vaughan (KMV), Jo Anne Magee (JAM), and Ellen Jacobson (EJ).   Trustees present:  Dave Klausemeyer (DK), Chair, Debbie Burke (DB), Kate McNulty-Vaughan (KMV), Ellen Jacobson (EJ) and Jo Anne Magee (JAM).

Absent:  Olga Weiss and Jackie McNinch  

Also in attendance: Mary Albertson (MA), Town Planner.  

DK opened the meeting at 3:05 PM.  

JAM made a motion to approve the August 6, 2012 minutes of the joint meeting of the Housing Committee and the Housing Trustees. DB seconded the motion and the vote was 5-0 to approve.

Subcommittee Reports

Public Relations - EJ and KMV prepared material to put on the Lenox website.  They explained that they decided to go with a question and answer format.  They distributed a handout labeled “Frequently Asked Questions”.  KMV and EJ said they did not receive comments for other members regarding content.  The members agreed that the following items should be but on the website:  1) The Housing Production Plan; 2) The Housing Trust document; and 3) The Peer-to-Peer Report.  Discussion ensued regarding the proposed “Frequently Asked Questions”.  

DK said it will be important to keep the website “evergreen”.  MA will be listed as the “day-to-day” contact.  Mike Wilser asked to address the Committee/Trustees.  Mr. Wilser suggested that the Committee/Trustees use the website as a marketing tool.  He said it is an opportunity to explain what affordable housing means and why it is important to the community. It is important to get the causal website user interested in affordable housing.  Solarize Mass was offered as an example of this approach.  It was agreed that comments regarding the “Frequently Asked Questions” document would be submitted to MA as soon as possible.  

Mortgage Program – JAM offered an update on behalf of the subcommittee.  She said that MA shared the subcommittee’s Ownership Grant Program proposal with the Department of Housing and Community Development (DHCD).  DHCD offered key input regarding the purchase price.  DHCD has a more conservative approach to the purchase price.  The subcommittee’s original proposal allowed for a purchase price of $290,000 or less.  DHCD would allow a purchase price of $209,000 or less.  At the $209,000 price point there are five or six single family listing as well a several condominiums.  A deed restriction is required to include units on the SHI.  In this market it is difficult to encourage potential buyers to accept a deed restriction that will limit long term equity in their home.  

The challenge continues to be developing a program that will allow the Town to add units to the Commonwealth’s Subsidized Housing Inventory (SHI).  The Trust has received 100% of its funds for the Community Preservation Act (CPA).  CPA guidelines for community housing are less restrictive than DHCD’s guidelines for the development of SHI units.  JAM suggested that the Ownership Grant program is still a viable option.  However, to implement the program in a timely manner it is virtually impossible to include units on the SHI.  JAM suggested that the Committee/Trustees consider the program even though it will not add units to the SHI.  In its current form it meets the standards for CPA community housing.  There would be a recapture provision that would require repayment of the loan to the Trust.

Discussion ensued regarding the merits of reserving Trust funds for SHI units only. To date, the policy has been to reserve Trust funds for the creation of housing units that count toward the SHI.  The Commonwealth requires each city and town to have 10% of its housing stock certified as affordable and Lenox has 7.2%.   Creating SHI units is extremely difficult and it might be reasonable to use a limited portion of Trust funds for non-SHI programs.  

JAM suggested that the Committee/Trustees review the program with the Board of Selectman (BoS) and seek their endorsement.   DB voiced her concern regarding this approach and suggested the Trustees have the power to make this decision.  KMV said the Trustees should work with the BoS and the CPC.  The overall consensus was that the Trustees have the authority to make this decision but in a spirit of cooperation – they should work with the BoS and CPC.  MA suggested that the CPC might be a good “sounding board” and the next CPC meeting is October 1, 2012.  KMV is a member of the CPC and she will meet with JAM and JM regarding placement on the October 1st agenda.  

DB made a motion to recommend that representatives of the Trustees meet with the CPC to review the concept of using Trust funds for non-SHI programs.  JAM seconded the motion and the vote was 5-0 to approve.

Sawmill Brook -  DB offered an update regarding the Sawmill Brook project.  Tim Geller attended the September 5, 2012 - BoS Meeting to give a status report.  She felt the presentation was straight-forward.   Given the current market coupled with DHCD funding policies, the Sawmill Brook project remains status quo.  Mr. Geller indicated that DHCD has formed a committee to review ownership programs.  In recent years, DHCD has not funded ownership programs.  Mr. Geller is cautiously optimistic the Commonwealth will consider funding ownership projects once again.  

DK said he attended the BoS meeting and offered an update regarding the Housing US Conference scheduled for September 19, 2012 in Great Barrington.  He said Aaron Gornstein, Undersecretary of Housing and Economic Development will be a speaker at the event. DB offered to contact Tim Geller to discuss the idea of trying to schedule a brief meeting with Undersecretary Gornstein when he is in Great Barrington.  

Resignations and Reorganization - EJ thanked DK for his service.  There was a brief discussion regarding recent resignations and the concept of merging the Committee and Trustees.   This matter was tabled to the next agenda.

Members discussed the next meeting date.  The Columbus Day holiday was discussed and October 1, 2012 and October 9, 2012 were proposed. The next meeting will be October 1, 2012 @ 3:00 PM.  MA will organize the agenda.   

Meeting adjourned at 4:45 PM.

Respectfully Submitted,
Mary Albertson, Town Planner
Approved: 11/5/2012