Affordable Housing Mtg with Chapa and DHCD – 14th March 2007
The notes contained herein an informal summary, intended to convey a general sense of the content presented in this public informational session, and act as a permanent record of pertinent information for future reference.
Present: Sarah Del Mastro (SDM), Jeanette Wood (JW), Steve McClain (SM), Bill Crump (BC), Rob Garrity (RG)
Guest speakers: Aaron Gorenstein (AG) (works for Chapa, a private, non profit, statewide organization), Elisabeth Krautschied (EK)(State Department of Housing and Community Development, DHCD)
Also present: Paul Terrio (PT) (CPC), Andrea Langhauser (AL) (CPC), Scott Dietrich (SD) (Hsg Auth), Paul (Design Review Board, Master Plan SC)
AG: Congratulations on setting up a committee and getting together a plan. These are always the first steps that are recommended.
Q: What are the most effective ways of creating affordable housing?
A: It is a long term commitment, and a lengthy process……work towards annual goals… every effort in a step on the way. Needham for examplehas laid out a ten yr plan…. Effective strategies include:
1. Towns don’t typically develop themselves… work with developers (profit or non profit). More towns are now going through ‘friendly 40B’ process, often working with a local developer. Friendly 40B projects go through the local ZBA but working closely with the town officials. Preferred route
2. Initiate identification of land resources. By towns providing land or buildings, helps it happen and town has more control – put it out to bid, select developer etc. There are development consultants who can help the town with this (see list on Chapa website).
3. Combine aff hsg and protect open space on same site. Consultants are available who can come to town and do a free mini-workshop on that. Their presentation includes PowerPoint presentation with examples.
4. Zoning and land use strategies. There are zoning techniques to encourage SMART growth, mixed use and inclusionary zoning.
10:00 EK:
What is best use of Towns funds?
What other sources of funding and how do we apply for it????
What support is available for town govt?
Handout – Resources
Peer–to-Peer program: Small program . Bring in a employee or board member from another municipality, as advisor (approx $1000) useful for strategizing and troubleshooting. Money must ultimately assist low/moderate income households.
Technical assistance is available from Mass Housing Partnership: Connie Kruger at MHP runs 40B tech assistance program.
Handout: TownBoard.org. Training opportunities including housing, environmental, water, land conservation.
Other funding: State and federal.
Buy down : ‘HEADS UP’ (HDSP) program (Housing Development Support Program) Community Development Block Grant (CDBG) Funding – acquire and renovate small properties (<7/10 units?). Buy one or two units and convert to deed restricted. “Friendly, excellent little program.”
15:25 Bedford – Use CPA for a duplex program and buy down program (may be condos which we don’t have). Larger older homes that could be split might be an option. Making units up to code is an eligible activity for CPA funds.
Municipalities that do not meet HUD or State criteria for receiving HOME money can form a consortium of several communities. Region gets HOME funds and distributes to individual municipalities. To start a housing rehab program – people stay in homes but put a deed restriction in return for funds for new roof, septic, bringing up to code – can go via CBDG. Might be harder for Norfolk but not unobtainable
18:30 AG: 1/3 of all units added to SHI are rehab units.
Deed restriction goes with the owner. Must payback if they sell before 15 years. Through CDBG. towns can recapture the money and use for someone else. Income eligible program. Has been successful, especially for older residents who want to stay in there homes.
AG: Wheel chair ramps, senior modifications, child with disability can be eligble.
21:20 PT – Does the program create aff hsg or assist people with limited income. EK:Someone who doesn’t currently have a deed restriction now has one. Adds a unit to the inventory but does not create a new unit.
SD: Purchasing a four family home. Needs considerable rehab. Buy house first and apply for grant? EK: Yes, or apply first before purchasing.
SD:What are dollar limits ? EK: May be a per unit value or 5-600K for project. Acquisition may be covered – talk to heads up people.
SD: Time factor… how do we get through the time consuming process and make it work.
RG: Use AHTF
26:00 EK: Cannot reimburse the trust with grant funds.
SD: Program for within certain radius of down town area?
EK: It is a ‘bonus point’ on some grants. But we could do TOD grant (within 1/4mile from train station). TOD grant may be a possibility for a rehab project.
MHP is working with housing authorities and are doing trainings on small scale development… Check with MHP.
PT: Timing from application to answer?
EK: Depends on program. Fed grant funds (3-4months). TOD is undergoing staff changes, may take longer.
PT: 300K in CPA fund dedicated to aff hsg.
32:00 BC: Once you start app process. If it falls through… Is it project specific?
EK: Fed program – would have to be a new app. There may be some funds that are general assigned for a type of project rather than a specific project. Housing rehab program might be that kind of fund, where the fund is for an intended use. Questions should be directed to HeadsUp staff directly.
SD: Who can write these grants?
35:00 EK: If you are successful for CDBG you can be reimbursed for having someone prep the grant. About $3-4000. May have a consultant that can work with a group of towns. It would be an excellent use of AHTF funds to leverage an additional 500K (if successful). Much of the info can be reused in subsequent applications. Initial investment buys less work in the future.
38:00EK: State funds about a third of applications. Some projects go through multiple programs and multiple rounds before success.
SD: Need input from contractors for grant applications?
EK: Assessment identifying what needs to be done but not details such as materials. Need a ‘reasonable estimate from a experienced professional’ Grant consultants will help with that.
41:00 AG: There may be people in town who can help with writing grants (experienced in grant writing, housing/construction), probono on behalf of the town.
SDM: Extreme makeover AG: Habitat for Humanity like on south coast. AG: A lot of hard effort and organizing!
RG: Grants – do grants have prevailing wage requirement Can use volunteer labor. Use grant to leverage other funding.
RG: Accessory unit.
EK/AG: LAU with deed rider and for someone below 80%. If already occupied the restriction says when it changes hands the fair marketing kicks in.
RG: Reverse mortgage program, especially for seniors.
EK: Would need a home rule petition? (to hold a mortgage) No examples out there. AG: Tax breaks for deed rider EK: No successful existing model. Communities became bogged down in the legalities (Marian, Lakeville, Westport).
PT: Stow initiative. Buy back program
SD: Loan money interest free out on a deed restriction (80% of median income, approx $60K) In fifth year what happens to loan? EK : Ask program administrators – Contact Trisha Roushanei @DHCD (CBDG program 617-573-1100)
RG: AHTF can hold property why not mortgage – EK: Ask: Kathleen O’Donnell
Profits from Aff Hsg projects can go back into the AHTF.
AG: “Take on a project... Get your feet wet and get started and learn from that first experience… Take some risks… There’s a lot of help out there.”
53 David Larson – Headsup Program – 4 unit rehab
54 End
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