PUBLIC HEARING MINUTES
SEPTEMBER 20, 2004
7:30 P.M.
SOUTH WINDSOR COUNCIL CHAMBERS
PURPOSE: TO RECEIVE CITIZEN INPUT ON AN APPEAL FOR RELEASE FROM THE MODERATE PRICED HOUSING PROGRAM.
The Public Hearing was called to order at 7:32 p.m. by Mayor Havens. The Clerk of the Council read the Call of the Meeting (a copy of which is attached). The following Town Council members were present: Mayor Havens, Deputy Mayor Pelkey, and Councillors Aman, Delnicki, Fine, Paquin, Pendleton, and Streeter. Town Manager Matthew B. Galligan and Town Attorney Barry D. Guliano were also present.
Mayor Havens asked the Town Attorney to address this topic.
Atty. Guliano noted that this was not the type of Public Hearing to which the Town Council is accustomed. It is not as much a Public Hearing to receive public input as it is to receive input from Mr. George Marcotte regarding his request for release from the Moderate Priced Housing Program.
The Town Attorney then provided the following background information for the Council. Mr. Marcotte sent a letter dated June 25, 2004 (a copy of which is attached as Exhibit A) to the Town Council indicating that he wished to be released from the Moderate Priced Housing Program so that he could sell his house to anyone. Under the Program, he purchased the house at a price reduced from market value. In return, there is a filing placed on the Land Records indicating that he will keep it as Moderate Priced Housing so that when he sells it, it will be sold to individuals in a certain income situation at a certain level of price, so that the savings can be passed on to the next buyer. There is a procedure which allows someone within the Program to request, from the Council, removal
from the Program.
After Mr. Marcotte’s request for removal from the Program, the Town Council advised Atty. Guliano to notify the Housing Authority and the Planning and Zoning Commission. Under the policy, they are supposed to be notified and allowed to provide input. A letter has been received from the Planning and Zoning Commission (a copy of which is attached as Exhibit B). This Commission is involved because it is the one that originally set up the Program. The Housing Authority is no longer involved in the process, and a letter was received from them indicating that when the process was set up, they opted out of it.
Under the policy, once input is received, the individual requesting release then has an opportunity to make a presentation to the Council. There is no specific requirement as to when the Council must provide a decision. Atty. Guliano said that a resolution would ordinarily be placed on the Agenda of the next Town Council Meeting, which in this case would be Monday, October 4, 2004.
Minutes
Public Hearing – Appeal for Release from Moderate Priced Housing Program
Page 2
September 20, 2004
Mr. Marcotte, 24 Podunk Circle, then came forward to address the Council and began by stating that the situation is now affecting his livelihood. He is currently in a management candidate program. He referenced the letter which he had sent to Mayor Havens explaining his situation. (See details in letter – Exhibit A.)
Mr. Marcotte said that, knowing he would only be here for a few years, he would not have entered into a program where he would have a hard time with any kind of stipulation in moving. He explained that a couple of days before the closing of his house, the Realtor told him that he needed to provide some type of proof of income “because of this affordable housing situation and you can only make so much.” Mr. Marcotte said he provided the information because it was only a couple of days before the closing. He currently has the possibility of a promotion which would require a move; however, with this housing problem, he isn’t certain he could enter an agreement. He said the relocation company won’t involve themselves because of a lien on the property.
Continuing, Mr. Marcotte stated that for the resale of the units, you need to go to Human Services, complete an application (especially as a buyer), make sure you qualify for the housing, and then you are available to purchase any one of the affordable houses in Town. There is a potential waiting list. If there was a waiting list with qualified buyers, however, it wouldn’t be necessary for him to appear before the Council this evening. He said that, according to Irene Deneen in Human Services, the Town has never had a waiting list.
Mr. Marcotte said he is “stuck in this situation” since he cannot agree to a promotion if he cannot find someone to “hit the dollar and cents criteria.” The house was $3,000 or $4,000 less than what houses were selling for when he purchased it nine years ago. He is not looking for a windfall on the house; he simply wants to provide for his wife and family.
Mr. Marcotte then asked that the Town Council release his home from the Affordable Housing Program, so that he is not held back if an opportunity arises for him. He said he is willing to work with the Council and agree to a stipulation regarding his promotion, etc.
Atty. Guliano said that Section 7 (Selection of Prospective Initial Purchasers for Dedicated Moderate Price Units) of the Policy deals with the waiting list. He then quoted from that section: “The Program Administration Office will maintain a listing of all qualified purchasers and will refer qualified purchasers to the dedicator, as units become available.” Atty. Guliano stated that the “dedicator” is the developer. When the developer comes in and says, “I am going to set up homes in my development as moderate priced housing,” the Town keeps a waiting list and gives names to that particular developer as that developer attempts to sell the properties. He said that there is no language in the policy that required or suggested that the Town would keep a
waiting list for years and years.
Minutes
Public Hearing – Appeal for Release from Moderate Priced Housing Program
Page 3
September 20, 2004
Mr. Marcotte stated that Article V, Section 1 (Right to Sell) states: “Owners must notify the Program Administrative Office when ready to sell. Units can only be resold to qualified buyers as established through the South Windsor Moderate Price Housing Program and meet eligibility requirements as stipulated in Article III (Eligibility). First priority on resale will be given to those applicants on the program waiting list.” Unfortunately, he said, there is no list.
Mayor Havens asked how individuals go about selling a house under this program. Atty. Guliano said that when they are prepared to sell, they notify the Program Administrator, which is the Town’s Human Services Department, because that is the Organization which determines whether someone is qualified. He said this is the only point in which the Town is involved—determining whether someone is eligible. Once that is determined, the individuals sign off on the documents, showing that they are aware of the program and they understand their commitment under the program, and it is put on the Land Records. The Town is not involved in selling the house at all; the property owner would either sell it on his own or go through a realtor. The only difference would be that the Town (Human
Services) must be notified first to be certain that any buyer would be eligible to buy this particular type of home.
Mr. Marcotte stated that, although he is not ready to move right now, due to this situation, he cannot in good faith accept a position stating that he is willing to relocate. He said when he purchased the house, he did not go to any Administrative Office, nor did he fill out an application. He was simply told to furnish his financial information to qualify for the house.
Councillor Paquin questioned the precedence of such a move and asked if this had been done previously. Atty. Guliano said that he knew of only two or three other instances where requests had been made to be released from the program and the requests had been denied. In the one instance where a house was released from the program, it was learned that the appropriate paperwork had not been recorded as it was supposed to have been recorded by the developer. Under those circumstances, it created an entirely different issue because there was a real question as to whether or not the person was even aware that he/she was in the program.
Atty. Guliano was asked if, in this case, the appropriate paperwork had been completed by the developer and/or our organization prior to the purchase of the home. Atty. Guliano said that the appropriate paperwork was recorded, but he could not state whether the developer or Mr. Marcotte’s attorney had explained it to him. Mr. Marcotte said that he was told at the closing about the program; what he didn’t go through was the process of pre-qualifying. He said it might have made a difference at the time. He cannot, however, accept an offer from a company, knowing that he may be in a situation where it could take him months to sell his house.
Minutes
Public Hearing – Appeal for Release from Moderate Priced Housing Program
Page 4
September 20, 2004
Mayor Havens noted that this would be considered by the Council and addressed at its next meeting.
The Public Hearing then closed.
Respectfully submitted,
Merlyn Guild
Assistant to the Clerk of the Council
Attachments
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