Salem Affordable Housing Trust Fund
Minutes of Meeting
Monday, March 10, 2008
A regular meeting of the Salem Affordable Housing Trust Fund was held on Monday, March 10, 2008 at 9:00 a.m. in Room 313 at 120 Washington Street.
Members present were Mayor Driscoll, Councillor Jean Pelletier, Jennifer Raitt, Michael Northcutt, Kathleen Burke, Mary Dennesen, Mary Lauby, and Leonette Strout. Also present were Lynn Goonin Duncan, Director of the Department of Planning and Community Development and Jennifer Kolodziej, Housing Coordinator.
Members absent were Councillor Matthew A. Veno, and Chad Colarusso.
Also Salem Gazette reporter, Kristin D’Agostino, and photographer, Ian Hurley, who were shadowing the Mayor for the day, attended the meeting.
Approval of Minutes
The minutes of the Salem Affordable Housing Trust Fund Board meeting held on February 11, 2008 were presented for approval. Councillor Pelletier moved to approve the draft minutes with no amendments, seconded by Mickey Northcutt and approved, (8-0).
Business Plan
Jennifer Kolodziej requested to proceed out of order from the Agenda to tackle discussion of the business plan before getting into the Accessory Dwelling Ordinance PowerPoint presentation. Chair, Jenny Raitt and rest of the Board agreed that the change in order would fine. In response to Mary Lauby request from the last meeting, Jennifer circulated a example business plan from the North Shore Housing Trust Fund. She highlighted elements of the plan and explained that she selected their 2003 plan because it was done at the time when the Trust was in its early stages of development and would be most relevant to where the Salem Trust Fund is now. Jennifer informed the Board that the plan would outline the following items: the Trust’s priorities, target populations, proposed activities with
timelines, market conditions, trends in housing needs and development, challenges, as well as potential partners and steps to undertake fundraising efforts. In addition, it would identify critical success factors and measures to help ensure the projects will move forward. The plan would serve as a tool to help attract financing from local banks and other potential investors such as Salem Hospital and Salem State College by informing them of the actions the Trust will pursue with the funds.
Jenny added that the plan will be a synthesis of what we have already done and target what projects we are going to fund. She said that the original idea of an initial fundraising plan has been expanded to a business plan. Lynne Goonin-Duncan stated that the Trust has been a little stuck in regards to getting the plan moving and urged the Board to move forward with the plan to show that if you were able to get X amount of money, this is how you would use it. The Mayor added that at this point the Trust has established the organizational structure to be able to carry this forward. Jenny interjected that the primary activity of the Trust is to manage money to fund projects and that the Trust is at a turning point in which it needs to find out where we can get money to fund what we want to
do.
Jennifer distributed a handout that charted the advantages and disadvantages of hiring a consultant to complete the plan versus having the plan done “in house”. At the last meeting, Jennifer volunteered to lend her formal training and experience in developing business plans for non-profits to do the business plan for the Trust so that the funds could be saved for a future project. Mickey Northcutt stated that the plan would provide the Trust with types of funding sources that are available and inform us of what other Trusts have done. He felt that this information would be best to come from a third-party consultant, who could give the Trust advice better than any person on the Trust. Mary Lauby expressed that she did not agree that leaning on a consultant is best for the Board.
She said that a number of the Board members and City staff have been able to inform the Board on many issues so far. Jenny said that the consultants would do stakeholder interviews and that hiring a consultant for a plan is what we have been talking about all along. Mickey stated that he did not know enough about what the affordable housing trust funds statewide are doing and that we need advise from a consultant. Councillor Pelletier motioned for Jennifer to draft a Request for Proposals for the business plan and present a scope of work to the Board at a future meeting, seconded by Mary Dennesen, and approved (8-0).
Accessory Dwelling Ordinance
Jennifer gave a PowerPoint presentation on Accessory Dwelling Ordinances (ADO) that reviewed what an Accessory Dwelling Unit is (a secondary unit on the same property as a main residence). An ADO is a vehicle to provide safe affordable housing that can be integrated into the community with a minimum impact on the character of a neighborhood. The presentation outlined the conditions under which a community should consider an ADO and the benefits it can bring. Jennifer pointed out that with approximately 80 foreclosures in the last six months in Salem, an increase in the demand/need for affordable rental housing will increase and that an ADO is a way for the City to be proactive in preparing for the aftermath of the current “mortgage crisis”. Jennifer also covered the regulatory issues
involved with an ADO and the pros and cons of making an affordable housing restriction part of the ADO.
Mickey wondered if an ADO was appropriate for the Trust to take on and if the Trust has the capacity and ability to generate enough political will to get this potentially controversial ordinance to be approved. Mary Lauby stated that she was compelled by the presentation and felt the ordinance was sold to her as part of a portfolio of one way to create affordable housing. Mickey said that if another organization was promoting an ADO that he would certainly support it, but does not think the Trust should necessarily undertake this activity. Lynn added that she does not know what other entity would take this on besides the Trust. He said that he realized that the Trust is the only realistic body to do this, but is concerned that if the ADO is not passed by City Council that this would affect the
chances of getting inclusionary zoning passed in the future.
Members began discussing components of the Ordinance as well as its benefits. Mary Lauby felt that there were two different discussions going on at the same time - a philosophical one about whether this endeavor fits with our mission and goals and a pragmatic one concerning the zoning and code requirements of an ADO. She added that there seems to be three silos of those who benefit: family members that might live with someone, homeowners trying to meet housing costs, and renter. Jenny stated that at the next meeting we can have a more strategic approach to the discussion. Jennifer will write up a list of the decisions that need to be made when drafting an ADO for the next meeting to help facilitate the discussion.
Adjournment
There being no further business a motion was made by Councillor Pelletier to adjourn the meeting, seconded by Kathleen Burke, approved (7-0). (The Mayor needed to leave towards the end of the ADU discussion.)
The meeting was adjourned at 10:45 a.m.
Respectfully submitted by:
Jennifer Kolodziej
Jennifer Kolodziej
Housing Coordinator
Department of Planning & Community Development
City of Salem
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