Salem Affordable Housing Trust Fund
Minutes of Meeting
Thursday, March 29, 2007
A regular meeting of the Salem Affordable Housing Trust Fund was held on Thursday, March 29, 2007 at 6:00 p.m. in the third floor Room 313 at 120 Washington Street.
Members present were Mayor Driscoll, Kathleen Burke, Chad Colarusso, Michael Northcutt, Leonette Strout, Jennifer Raitt, Mary Dennesen. Also present were Lynn Goonin Duncan, Director of DPCD and Julie Quinn, Housing Coordinator.
Members absent were Councilor Matthew A. Veno, Heather Picard and Mary Lauby.
Welcome/Introductions
Mayor Driscoll welcomed the Affordable Housing Trust members (the “Trust”) and described how the Trust was adopted through a City Ordinance to enact M.G.L.A. c. 44, s. 55C.
Discuss role of the Trust
The Mayor noted that there is currently $50,000 available to the Trust. She further noted that these funds were contributed through negotiation with developers. She continued that additional funds are slated to come from negotiated contributions from other developers.
Lynn Duncan noted that Community Preservation Act (CPA) would be discussed at the next City Council Committee of the Whole. She briefly described the CPA – at least 10% for affordable housing and the State matches 1:1 – and how these funds could help capitalize the Trust.
She then noted that the meeting was scheduled for April 3rd at 6:30 pm and stated that it would be great if a Trust member or two could attend.
The Trust briefly discussed possibilities for capitalizing the Trust. The Trust discussed the possibility of hiring a consultant to create a strategy to capitalize the fund and decided to take this matter up at another meeting.
The Trust then discussed options for Trust activities. Options included:
Housing study
· Mickey Northcutt noted that noted that small regional Cities CHAPA, advocate for funds to projects and work with partners, match funds. Mickey local leverage is important to the state. CHAPA & others have studies.
· Lynn Duncan noted that while the City does not have a housing plan, information in 5-year plan, Housing Needs Analysis and background – whole document online, excerpts handed out to board members.
· Lynn Duncan suggested that the Trust could fund an action plan that will include potential ways to capitalize the trust.
Housing Development
· The Trust was not interested in taking on the role of developer
· The Trust was very interested in supporting the local Community Development Corporation and other local non-profits and private developers to develop units and provide services.
Awareness and education
· The Mayor noted that it would be important for the Trust to educate and public and make them aware of both the need for affordable housing and who that housing serves.
Describe current affordable housing initiatives in the City
The Mayor noted that the City does not have Inclusionary Zoning or other City wide zoning encouragement for affordable housing. She noted that the City has a lot of hard to develop sites (brownfields, etc.) so it is important not to discourage development of these difficult sites. She noted that the North River Canal Corridor does have a density bonus for affordable units built.
Lynn Duncan noted that the City allocates 51% of their annual Community Development Block Grant to affordable housing programs and also receives HOME funds as a member of the North Shore HOME Consortium.
Julie Quinn described existing City’s existing affordable housing programs:
· FTHB Programs – FTHB Downpayment Assistance and ADDI
· Housing Rehab Programs – Owner-Occupied and Investor Owner (new program being developed)
The Mayor then described other projects throughout the city:
· New Projects – St. Joseph’s (45 units, both rental and homeownership), 50 Palmer (15 homeownership – to be complete by end of the year), 1 Harrison (2 units homeownership), 28 Goodhue (North River Canal Corridor, affordable housing density bonus –44 units homeownership, 4 of those affordable), 18 Crombie Street (1 ownership unit and historic preservation, completed Habitat for Humanity)
· Expiring Use Projects– Loring Towers 250 units (in negotiations) and Fairweather Apartments 127 units (being purchased by Preservation of Affordable Housing, owners of Salem Heights)
Lynn Duncan noted that units in hand better than cash.
Housing need - brainstorming
The Trust members spent approx. 20 minutes brainstorming housing needs and ideas.
Needs
· Diverse housing and fair housing
· Accessible/adaptable housing, even beyond ADA requirements
· Transitional housing fleeing domestic abuse
· Supportive services in housing
· Target very low- and low-income households, “affordable” housing often too expensive for many families
· Distinguish between senior housing (62+) – between affordable housing and elderly housing and the need for affordable elderly housing
Issues
· Ownership rates vastly different by neighborhood, neighborhood stabilization and balance is key
· Trust should formulate definition of “Local Preference”
· Trust should explore options for affordability restriction time periods– at least 15 years to place unit on Subsidized Housing Inventory list. Other thoughts: Permanent not necessarily the best option for homeownership 30-50 years and rental housing in perpetuity.
Ideas
· Creative homebuyer assistance: “rent to own”, multi-family homeownership where owners use rent to help pay mortgage, Section 8 to homeownership (some communities have, but not frequently used)
· Tracking foreclosures
· Workforce housing: work with large employers on housing issues – for example, North Shore Medical Center, Salem State College – Jenny to send Julie info.
· Transfer of Development Rights
· Affordable housing density bonus
Next Steps
Establish regularly scheduled meeting
Those members present indicated that morning meetings would work and suggested the second Monday of the month.
Establish Trust Documents
Julie Quinn noted that she would circulate draft documents before the next meeting.
Adjournment
The meeting was adjourned at 7:30 p.m.
Respectfully submitted by:
____________________________
Julie Quinn, Housing Coordinator
Salem Affordable Housing Trust Fund
AHT03292007
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