DRAFT
Salem Affordable Housing Trust Fund
Minutes of Meeting
Tuesday, October 9, 2007
A regular meeting of the Salem Affordable Housing Trust Fund was held on Tuesday, October 9, 2007 at 9:00 a.m. in the 3rd floor Room 313 at 120 Washington Street.
Members present were Mayor Driscoll, Councillor Lucy Corchado, Councillor Jean Pelletier, Mary Dennesen, Michael Northcutt, Jennifer Raitt, Leonette Strout. Also present were Lynn Goonin Duncan, Director of DPCD, and Jennifer Kolodziej, Housing Coordinator.
Members absent were Councillor Matthew A. Veno, Kathleen Burke, Chad Colarusso, and Mary Lauby.
Approval of Minutes
The minutes of the Salem Affordable Housing Trust Fund Board meeting held on September 17, 2007 were presented for approval. Mickey Northcutt moved to approve the minutes, seconded by Mayor Driscoll and approved, (7-0).
Trust Goals and Objectives
The goals were reviewed. Mayor Driscoll moved to approve the goals, seconded by Mickey Northcutt and approved,(7-0).
Request for funding for St. Joseph’s redevelopment
The requested funds would cover taxes, insurance, interest on the current loan and other carrying costs till the end of the year. Mickey Northcutt motioned to appropriate $25,000 to Salem Lafayette Development LLC as predevelopment funding for the St. Joseph’s redevelopment project with the stipulation that if the project’s affordability changed, the project did not move forward, or the property was sold or transferred that the money would be recaptured by the Trust. Councillor Corchado seconded the motion and the motion carried with 5 votes in favor and 2 members (Mary Dennesen and Councillor Pelletier) abstaining from voting. Councillor Pelletier noted that he did not disapprove of the motion, but abstained from the vote because he was not present for prior meetings when the issue was discussed.
Lisa Alberghini, Executive Director or the Planning Office of Urban Affairs (POUA), provided the following answers to board members’ questions from the previous meeting:
Total number of housing units: 67
o 45 units in new building along Lafayette
of which 30 will be Affordable Units
o 8 Market-Rate units in the former rectory
o 14 Market-Rate units in former school building
Rents for households with income below 30% Area Median Income:
One-Bedroom $900
Two-Bedroom $1,072
Three-Bedroom $1,234
3 HOME-assisted units are available for these households
Rents for those below 50% Area Median Income: below 60% Area Median Income:
One bedroom $742 One bedroom $900
Two bedroom $883 Two bedroom $1,072
Three bedrooms $1,016 Three bedroom $1,234
16 units are available for these households 11 units are available for these households
If Section 8 is available, some rents could begin at $428 for 1BR, $509 for 2BR, and $584 for 3BR.
Prices for Affordable Homeownership Units: Market-Rate Homeownership Units:
One bedroom $140,000 One bedroom $199,000
Two bedroom $165,000 Two bedroom $238,000
Three bedroom $180,000 Three bedroom $269,000
Amount of taxes Salem Lafayette Development LLC has paid to date: $100,100
Amount of taxes the St. Joseph’s redevelopment project would generate: $114,873
Will the Trust be repaid if the development does not proceed?
In the event that the project did not proceed, the Trust Fund money would be secured by a lien on the property. If the property was sold or the bank took control of the property, the City’s position would be secured by that lien.
What is the status of the litigation?
The pre-trial hearing will be held on February 5, 2008 and the trial is set for February 25, 2008. POUA is pursuing a settlement agreement with the Plaintiffs.
Does the litigation have to be resolved by the end of October?
If the litigation is not resolved in the next few weeks, the project could still move forward but POUA would have to compete for funds again in the Commonwealth’s spring funding round. POUA still has other funding commitments in hand (FHLB, HOME consortium) and the State is committed to this project.
What are the plans for the first floor of the new building?
Salem Lafayette Development LLC is exploring several options for use of the first floor, including business or retail space and a Salem State College workforce development office.
Will you have to go back to zoning?
Depending upon the use, a slight modification may need to be requested. This may add some time, but does not prohibit the project from moving forward.
What is the proposed timeline?
POUA will work to secured project funding by the spring of 2008 and construction would
begin in late summer.
FY 2007 Annual Report
Jennifer Kolodziej explained that according to Article Seventeenth of the Declaration of Trust, the Trust is required to submit an annual fiscal report that details fund sources and expenditures to City Council. Members reviewed the report which noted that no funds were expended during FY07. Mayor Driscoll moved to approve the FY 2007 Annual Report, seconded by Councillor Pelletier and approved, (7-0).
Expiring Use Legislation S-2152
Mary Dennesen gave a brief report on the Joint Committee on Housing public hearing held on July 17, 2007 at the Statehouse. The Joint Committee on Housing looked at several bills to permanently preserve affordable housing. The Loring Towers Tenants Association and many others were present to support Senate Bill No. 2152, an act to adopt protections for Salem’s Governmentally Involved Housing Stock in the City of Salem. To the best of Mary’s knowledge, there has been no vote to date on S-2152. Councillor Pelletier moved to request that Representative John Keenan and Senator Frederick Berry send the Affordable Housing Trust Fund Board updates regarding the status of Senate Bill No. 2152 on a regular basis. Mickey Northcutt added that the request be expanded to reports on related
legislation as well. The motion was seconded by Mary Dennesen and approved, (7-0).
Election of Trust Treasurer
A nomination was made by Mayor Driscoll and seconded by Councillor Pelletier for Councillor Veno to serve as the Trust Treasurer subject to his approval. (Councillor Veno was not present.) A vote was held for the next meeting.
New-Business – Saunders Street Affordable Housing Development Proposal
George Fallon of Tache Real Estate has asked to make a presentation to the board regarding a proposal to develop 4 units of affordable housing on Saunders Street. Members expressed interest in hearing more about the project. Mr. Fallon will present the development proposal at the next meeting.
Next Step: Begin Review of Inclusionary Zoning Ordinance
Discussion was deferred to the next meeting.
Adjournment
There being no further business a motion was made by Councillor Pelletier to adjourn the meeting, seconded by Mickey Northcutt.
The meeting was adjourned at 11:00 a.m.
Respectfully submitted by:
____________________________
Jennifer Kolodziej, Housing Coordinator
Salem Affordable Housing Trust Fund
AHTF 10.9.2007
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