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BAHT Meeting Minutes_7.22.2020 CITY OF BEVERLY PUBLIC MEETING MINUTES Board: Beverly Affordable Housing Trust Date: July 22, 2020 Location: Virtual Meeting Members Present: Clerk Sue Gabriel, Mayor Michael Cahill, Treasurer Bryant Ayles, Richard Dinkin, Director of Planning Darlene Wynne Others Present: Kristen Carlson, HCP; Darcy Jameson, Beacon Strategies; Andrew DeFranza(at 11:15 am), HCP Recorder: Sharlyne Woodbury The meeting was called to order at 10:11 am. This is a virtual meeting with special meeting format as required to honor Governor Baker's State of Emergency declared due to the national crisis of COVID-19. Election of officers: Gabriel: Motion to nominate Darlene Wynne as Chair. Dinkin seconds. Motion caries 5-0. Dinkin: Motion to nominate Sue Gabriel as Clerk. Ayles seconds. Motion carries 5-0. Wynne: Motion to nominate Bryant Ayles as Treasurer. Dinkin seconds. Motion carries 5- 0. Meeting Minutes: Gabriel: Motion to accept minutes from meeting May 30, 2019. Dinkin seconds. Motion carries 5-0. Funding Application Review and Discussion Briscoe Village—Harborli2ht Community Partners,Inc. —Request for $200,000: The Trust begins discussion by reviewing the project. Kristin Carlson represents the applicant. Gabriel asks Ayles to clarify what the trust has to work with as it initially appears there is lack of funding to fully satisfy the grant request. Ayles reviews the numbers for the most recent projects confirming there is a shortfall of$135,000 for funding. The current available funding in the Trust is $65,000. Ayles details the expected $300,000 revenue to come during the fall, about$150,000 projected in September. Ayles said they would have certainty of those revenues for the funding pre-application which the applicant is expected to request as of November 2020. Carlson confirms preapplication due Oct 31/Nov 1 time line. Bryant, Wynne and City Solicitor are coordinating to ensure language in the award letter must stipulate they are not responsible for funding if the funding falls short. Ayles also stipulates there could be language also to protect the body from obligating any funds it does not have as well as protective language to include delay Beverly Affordable Housing Trust Fund Meeting Minutes July 22,2020 of fund if necessary. Cahill and Carlson discuss the RFP and funding stipulated in the RFP. Cahill discusses alternatives to make sure the funding is approved and available for the applicant. Gabriel summarizes the funding dilemma. The Trust is fairly assured funding will be available in the fall; they are also discussing steps to protect their commitment of funding if funding is lacking; and options to pursue outside the Trust for project funding. Dinkin and Gabriel are specific and concerned to the language of the award letter. They would like project approval and funding voted as two separate issues. The trustees discuss the finances and appropriate language of the award letter. Wynne speaks to the developers of other projects and their agreement of payment reassuring the committee funding is guaranteed. Carlson presents the application and detail deadlines for the trustees. Carlson agrees it would be beneficial to have some level of commitment for funding for the application. The full application is due mid-January of 2021. Carlson would like the full commitment in place to submit with the application to the state. Time line for commitment letter for the full amount end of Dec/early Jan to strengthen the application. Carlson details the project specifics of the mixed use building for senior housing and live-work studios for artists as well as preserving the auditorium as a theater, and returning the historic turf bowl back to its original design. This is partnership with Beacon Communities. Carlson speaks to the tax credits for the project including historic preservation, affordable housing, state and federal credits, etc. The state prefers to see the municipality is committed to the project where local investment is critical to securing state funding and tax credits. The team applied for a total of$lmil in local funding consisting of$200,000 from BAHT, $700,000 from CPC, and $100,000 from HOME money the city allocated. The total project cost is projected at$42 million. The $lmil of local commitment is crucial. The project includes 16 units for low income at 30%AMI and below. The senior units are affordable at 60% AMI and below. They are anticipating awards from the state summer 2021. Dinkin weighs in the over 55 decision and provides comments for further discussion. Carlson confirms there will be some medical assistance, healthcare and wellness components in the building. This is considered independent living not assisted living. Carlson explained the project wanted to allow more people who need the housing that would not otherwise be captured in a 62 and over living scenario. Dinkin asks why the decision to exclude family housing from the project. Per Carlson, the unit layout lends to smaller living quarters not suitable for family housing. The Anchor Point housing project is complementary to the Briscoe Village. Wynne clarifies it was a preference in the RFP based on need and a long waitlist for seniors looking for affordable housing options. She agrees that restricting housing to a certain age is not always preferable; however, this scenario lends to the need where the other project balances the family housing need. Cahill recognizes there are a large swath of Beverly's population struggling to afford and stay in Beverly. Cahill speaks to the YMCA project that will serve another segment of the population to satisfy individuals with adult special needs, the autism spectrum, homelessness, etc. Dinkin seeks clarification for the 6 artists live-work units, are they strictly market value or on a sliding scale per "starving artists" salary. Carlson replies the team is not looking to rent at full market value, but below market value. The rent would be stipulated in the deed to the property- 2 Beverly Affordable Housing Trust Fund Meeting Minutes July 22,2020 Ayles raises the issue of preference granted to residents awarded housing before non-residents. The developer can work with that preference. Ayles seeks clarification for a point of reference if it is the within the purview of the trust to use this moment as a mechanism to ensure resident preference. Carlson responds that the development team is allowed to request local preference up to 70% of the lottery. They must not violate any housing laws. Carlson emphasizes as developers they cannot guarantee this, but within the award letter the developer can advocate for 70% of local preference. Cahill explains the good faith agreement with neighboring municipalities Salem and Peabody. Cahill is willing to add specific language advocating for local preference as it is a major concern to residents. Wynne clarifies the language is specific to the application and state guidelines, not conditions of an award letter. Per Wynne, conditions included in the project application preference will be given to the following: tenant groups of 55 and older; and will seek a 70% local preference consistent with the regional MOU for housing agreed to by the Mayors of Beverly, Salem and Peabody. Wynne verifies that language is satisfactory to all present. Cahill would like to take the first part out. Cahill specifically focuses on the language preference for the collaboration of the local communities removing the age restrictions as that's already listed in the terms and conditions. Per Cahill the project by definition already accounts for the age restriction. Wynne provides the draft letter and the trustees review the terms and conditions. Trustees discuss the time lines of the funding and construction phases. Wynne inquires with Carlson are these units permanently affordable. Carlson was not in the Planning Board meeting but confirms the affordability can be extended based on the terms of the loan agreement upon refinance. Per Cahill, it's the nature of the financing that does define the use of the building. Per Cahill the commitment of the Trustees will ensure the intent of the project. Carlson replies in reference to Cahill's example of the Turtle Hill properties refinanced, when loans are refinanced the terms can include to maintain affordability. Wynne will also include such language in the letter. Cahill iterates if there is any language counterproductive to the effort of the project it can always be revisited. Cahill advises to seek consult from the city solicitor ensuring the language is appropriate to the vote. Commitment Letters and Vote: Wynne summarizes what will be in the letters. Letters to be dated with end of calendar year 2021 as expirations for these commitments. Gabriel: Motion, with amendment from Dinkin, that the Beverly Affordable Housing Trust award the current$65k presently available; the balance of$135k to be awarded pending receipt of funds; with the condition if funding is not available per the projected Trust revenue, the Trust will make a recommendation to the CPC for additional funding per the $135k balance awarded to the project. Ayles seconds motion as amended. The motion carries 5-0. Discussion of CPC Allocation of Funds: Cahill advises the Trust must go before the CPC and make a formal request to replenish funding for the transference of annual funds. Dinkin would favor a joint meeting with CPC and ask the 3 Beverly Affordable Housing Trust Fund Meeting Minutes July 22,2020 planning staff to draft a proposal of what can be asked for, either a one-time infusion or ongoing funding. Schedule Next Meeting TBD Adiournment Gabriel: Motion to adjourn. Dinkin second. Motion carries 5-0. Adjourned at 11:30 am. 4