Community Preservation Committee
February 28, 2011
Minutes
Members present: Frederick Keator (FK), Acting Chair, Catherine May (CM), Joe G. Strauch (JGS), Suzanne Pelton (SP), Eugene Chague (EC), Dia Trancynger (DT) Olga Weiss (OW) and Kate McNulty Vaughan, (KMV).
Jim Sorrentino absent.
Also in attendance: Mary Albertson (MA), Town Planner.
FK opened the meeting at 7:02 p.m.
FK noted that SP offered corrections to the February 7th minutes. He suggested that the approval of the minutes be tabled to the next meeting to allow members to review the changes.
Curtis Porch Project
On behalf of the Lenox Housing Authority, Martha Joyner offered a presentation on the Curtis Porch project. She began by introducing Lenox Housing Authority Board members: Cindy Nasman, Marge Pero, and Catherine May.
Ms. Joyner noted that on January 10, 2011 she appeared before the CPC and offered an update on the project. For the benefit of CPC members who did not attend that meeting she offered a recap of the information she provided on January 10th. She said that the Housing Authority received $15,000 in FY’09 and FY’10. The funds were use to renovate the roof and the upper railing. Town Meeting approved $50,000 for FY’11. FY’11 funds are being used to replace columns and flooring. She has worked with the Historic District Commission to ensure all work in done in an appropriate manner. Bradley Architects prepared the renovation plans for the project.
Ms. Joyner said that the Housing Authority requests either $50,000 or $85,000 to continue the restoration of the Curtis Porch. She is hopeful that $85,000 will allow for the completion of the project. However, she stated that the project estimates are four years old and she cannot guarantee that if the town provides $85,000 that she would not file an application for additional CPA funds. She said that her concern is the unknown when dealing with this important historic structure. The work must be done correctly to ensure the building’s historic integrity.
KMV asked about DHCD funding. Ms. Joyner replied that The Commonwealth Capital Planning System has paid approximately $25,000 & $8,000 toward the roof project, approximately $15,000 for walkways, approximately $3,000 for Bradley Architects and an additional $15,000 toward labor and materials. The Housing Authority raised $500 from selling used walkway bricks and $1,800 from selling surplus light fixtures to the Dalton Housing Authority. The Curtis Consignment shop raised $1000 for the porch project. They have collected $13,000 in private donations. She notated that they have organized a new fundraiser at Arizona Pizza.
SP asked Ms. Joyner if DHCD will continue to provide funding for the project. Ms. Joyner replied that DHCD has instituted a new program call Formula Funding. She anticipates that funds will be available.
FK asked Ms. Joyner to comment on her preference regarding the two funding options. Ms. Joyner replied she is thankful for CPA funding. She asked her board members to help her answer the question. Ms. Nasman thanked the CPA for supporting the project and said that she would prefer $85,000.
FK suggested that prior to starting the Affordable Housing Trust presentation that the members discuss and vote on a request to pay the Community Coalition membership dues. The consensus of the members was that the Community Coalition is an excellent resource. OW made a motion to authorize the payment of the Community Coalition dues of $1,500 from the administrate account. The motion was seconded JGS and it was unanimously approved.
Lenox Affordable Housing Trust
On behalf of the Lenox Affordable Housing Trustees, David Klausmeyer offered a presentation. He introduced Debbie Burke who is a Trustee. He also noted that OW and KMV serve as Trustees. Mr. Klausmeyer said that the Trustees want to continue to build the Trust to ensure funds are available to develop affordable housing opportunities. Mr. Klausmeyer emphasized the fact that the Trust offers the community flexibility to act on housing opportunities because they can act quickly and do not have to wait for Town Meeting approval. Mr. Klausmeyer said that the Trustee have placed a priority on developing affordable ownership opportunities. This preference is based on the research in the Housing Production Plan.
Mr. Klausmeyer stressed the fact that the Trustees have devoted much of the last year to building intellectual capacity regarding affordable housing. The Trustees attended workshops and conferences and worked with local housing agencies such as Berkshire Housing and Habitat for Humanity. The Trustees contacted local banks and foundations. Recently the Trustees teamed with Great Barrington and the Berkshire Taconic Foundation to file a grant request to the Legacy Bank Foundation. The grant would fund education and outreach regarding Accessory Dwelling Units.
EC noted that if CPA funds are not in the Housing Trust then the Trustees would need to apply for specific projects. The CPC would make the decision and not the Trustees. FK asked if the Trustees need Town Meeting approval and DK and KMV said no. Discussion ensued regarding the merits of CPA funds being managed by the Trust vs. the CPC. There was also discussion regarding the fact that the Trust is authorized to borrow money.
DT raised concerns regarding liability. She noted that last year the Trust was awarded $120,000. This year the Trustees have requested an additional $100,000. She is concerned that the town could be liable for damages if the Trustees fund a project that defaults. She is uncomfortable with the risk. Ms. Burke noted that there are many successful project and the Trustees would partner with a group like Berkshire Housing to ensure the town is not at risk. OW said that the Trust is in its infancy and is very cautious. KMV said there are towns throughout the Commonwealth that have successful housing trusts. The Trustees are looking at concepts that have been successful in other communities.
Discussion ensued regarding affordable housing ownership opportunities. DK explained that the Trustees have explored the concept of a mortgage buy-down program. Trust money would be used to fund the affordability gap. The buyer would need to place a deed restriction on the property. JGS asked the length of the deed restriction. DK said it is a minimum of 15 years. CM asked how the project would be administered. Ms. Burke said the Trustees have investigated the idea of working with an organization like Berkshire Housing to administer the program.
Ms. Burke emphasized the fact that the Trustees are well schooled and are affordable housing specialists. The Trustees are in the best position to managed affordable housing projects. KMV stressed the fact that the Board of Selectmen (BOS) is responsible for appointing the Affordable Housing Trustees. Trustees service limited terms and must be reappointed; therefore, they are accountable to the BOS.
DT asked if the Trustees have asked residents for land donations. OW responded that the Trustees have canvassed the opportunities. She offered Hancock Shaker Village as an example of an innovative project. They are developing affordable housing units at their facility. OW said that the Trustees have invited Shakespeare and Company to attend a meeting and discuss this concept. DK confirmed that Marybeth Mitts, Shakespeare and Company, will attend the March 7th Affordable Housing Committee Meeting. Discussion ensued regarding fair housing requirements. KMV explained that to qualify for inclusion on the subsidized housing inventory there must be a fair housing plan. A requirement of the plan is that units must be offered to all residents.
DK explained that there are two tracks for affordable housing. The first track is to develop units that qualify for the subsidized housing inventory and therefore satisfy the mandate that communities provide 10% affordable housing. The second track is to develop opportunities that provide housing opportunities that do not necessarily qualify for inclusion on the subsidized housing inventory.
DK concluded by thanking the CPC for its support.
Sawmill Brook Housing Project – Land Purchase
On behalf of the Community Development Corporation Southern Berkshire (CDC), Tim Geller offered a presentation. He began by introducing Jeff Kittross who is a member of his Board of Directors.
Mr. Geller explained that Sawmill Brook is a proposed affordable housing ownership project. The proposed location is the “Bartoni Property” at the intersection of Route 7/20 and Housatonic Street across the street from Caligari’s Hardware. Four years ago the CDC received $40,000 in CPA money to assist with the pre-development costs. Three years ago the CDC received Town Meeting approval for an additional $110,000 for construction. However, given the current real estate market the project has stalled. The $110,000 has remained in the Town’s CPA account because it was contingent on state funding. Approximately, three years ago the state made a policy to discontinue funding affordable ownership projects. There are still state funds available for affordable
rental projects. Private funding is also unavailable.
The CDC extended its Purchase and Sales Agreement to August 2011. The owners have indicated that they will not extend this agreement. The CDC is asking for $200,000 to assist with the land purchase. The CDC would like to purchase the property and hold it until the real estate market improves and funds are available to development an affordable ownership project. Their other option is to purchase the property and develop it as an affordable rental project.
Mr. Geller said that for many reasons the CDC would prefer to hold the property and develop it as an ownership project. The CDC believes the ownership project is more in keeping with the needs identified in the Housing Production Plan. He also noted that there are property tax benefits for the town from an ownership project vs. a rental project. In addition to the $40,000 in CPA pre-development funds the CDC has invested over $100,000 into the project. They owe two faith based organization $50,000 each. If they do not receive assistance for the land purchase for the ownership project, they will need to purchase the land and develop it as an affordable rental project. He noted that it might not seem fair but there are state and federal funds available for all aspects of developing
affordable rental units including land purchase. Funds are not available for affordable ownership units.
FK asked about the potential for a rental project that is converted into an ownership project. Mr. Geller replied that if he had to develop this as a rental project he would model it after the Pine Woods project in Stockbridge. That project has 30 affordable rental units and 10 market rate units. Given the restrictions on the funding for rental housing development it would be impossible for the affordable units to be converted. However, the market rate units could potentially be converted to ownership units.
DT asked if the Housing Trust money could be used to fund this project. Mr. Klausmeyer said yes. Ms. Burke stated that two other developers are interested in the Bartoni property. If the property is purchased by a private developer the town will not have the same control. DT asked about other funding sources. Mr. Geller said he is meeting with the faith based organizations to determine if they will assist with the land purchase. Ms. Burke said there are also private funding raising efforts underway. DT suggested that David Ward was able to secure financing for his housing development. Mr. Geller said that Mr. Ward is a private developer and has strong private sources of funding. EC questioned why the CDC cannot get private funding.
FK said he has been involved with the review of this project for many years. He likes the project and would like to see it succeed. He wishes there was a clearer picture of the market. He suggested that it might be in the town’s interest to purchase the property. He suggested that the $600,000 be structured as a loan. Discussion ensued regarding this concept. Some members view the project as a mix of affordable housing and open space. Some see it as an affordable housing project only. Mrs. Strauch asked if there would be a violation of the separation of church and state since two faith-based organizations are involved. The consensus was it would not be a violation of the separation of church and state. Mrs. Strauch also asked which project could be
developed more quickly. Mr. Geller said a rental project.
Mr. Geller suggested that there be a meeting with town officials this week to discuss the concept of the town purchasing the property. MA will facilitate the meeting. Mr. Geller said that in addition to the $600,000 for the purchase of the property the CDC has approximately $100,000 invested in the project. He will put together exact costs for the meeting with town officials.
At 9:28 p.m. KMV made a motion to adjourn. Seconded by JGS and the committee voted unanimously to approve the motion.
Respectfully Submitted
Mary Albertson, Town Planner
Approved: 3/7/2011
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