BAHT Meeting Minutes July 19 17Beverly Affordable Housing Trust Fund
Regular Meeting
DATE: July 19, 2017
CITY OF BEVERLY
PUBLIC MEETING MINUTES
Board:
Beverly Affordable Housing Trust
Date:
July 19, 2017
Location:
Beverly City Hall, Conference Room "B"
Members Present
Chair Aaron Clausen, Treasurer Bryant Ayles, Clerk Sue Gabriel,
Richard Dinkin
Members Absent:
Mayor Michael Cahill
Others Present:
Assistant Planning Director Darlene Wynne, Environmental
Planner Amy Maxner, Massachusetts Housing Partnership (MHP)
Shelly Goehring, Guest Bob Butterworth from BEVCAM
Recorder:
Donna Musumeci
Adjournment
The meeting was called to order at 2: l Opm
Meeting Minutes:
Meeting Minutes were distributed just prior to the meeting. Clausen suggested we can approve at
a later date.
Handouts for the Meeting:
1) Wynne sent agenda and staff report memo to include discussion on Mission Statement
and Beverly Housing Trust Guidelines and Priorities inclusive of a) Section II, Funding
Priorities, b) Section V, Application process, and c) Section VI, Selection Criteria.
2) BAHT Fund Housing Guidelines and Application Package (done by consultant)
3) Summary of Draft Housing Strategies from Housing Plan
Mission Statement:
Draft for Review
To provide for the creation, preservation, and retention of affordable ownership and rental
housing in the City of Beverly for the benefit of low and moderate - income households through a
variety of programs, including education and advocacy.
Clausen said the trust has been in existence for 3 months and we should finalize the mission
statement. More tweaking is needed to reflect the guidelines. Dinkin commented a mission
statement is a marketing tool that should be short and snappy. Gabriel agreed it can be shorter
once we better understand goals for the Trust. Clausen said we are missing the words access to
for affordable housing, preservation, and brick and mortar programs. Wynne advised in the last
meeting we suggested "maximize access to affordable housing ". Gabriel said mission statement
should last the test of time. In ten years, we could be doing something different, it needs to be
short to adapt to changing needs. All agreed to include "maximize access to affordable housing ".
Priorities can be set annually. Clausen advised we take another stab at the mission statement, and
that it makes sense to include maximizing access to affordable housing, and adding, for families
and people in Beverly.
Beverly Affordable Housing Trust Fund
Regular Meeting
DATE: July 19, 2017
Draft Affordable Housing Trust Guidelines & Priorities:
Maxner invited to the meeting to assist with any questions around the transfer of CPC funds.
Goehring invited to provide guidance for the BAHT. Group reviews funding priorities, the
application process and the selection criteria from the guidelines.
Funding Priorities
The priorities were taken directly out of the city's Community Housing Plan. Goehring provided
comments on the list of priorities:
[This list references the list of Housing Plan goals provided to the Trust]
#1 Goehring advised to be explicit on workforce housing, market rates and low to moderate
income types. Need to define those incomes in the guidelines. Gabriel said these came out of the
housing plan, not sure they should be priorities for the trust. There was a lengthy discussion on
market conditions, incomes, comparisons of metro regions, and percentages to use. #1 will be
reworked.
92 Suggestion to shorten, and have a strong housing to jobs balance in the language. Good to
make the connection to the business community as at times employees have a hard time finding
housing. #2 ties to #1 with incomes.
#3 Keep to support the goals of the trust.
#5 Remove.
#6 Clausen added that this could be the #2 priority adding language on preservation of existing
units.
#7 Dinkin said he thought that this has been historically used to keep affordable housing out of
certain neighborhoods.
#8 Could add incentives or points when bringing in new resources, though Dinkin advised that
Developers should come in with significant funding already_
Discussion on Other Affordable Housing Priorities
Clausen liked Gabriel's comment that priorities should state what the Housing Trust is trying to
achieve. Gabriel said priorities should be reordered based on the goals of the Trust. Group
discussed having a number of categories within each priority. Goehring suggested we keep these
priorities tied to the housing plan, and then under each one, list specifics as it applies to the
Trust. Clausen felt when priorities change, so can the selection criteria. Gabriel suggested a
matrix and perhaps a bonus system on some of these. Goehring suggested included scenarios in
the priorities.
Ayles said somewhere in the process need to evaluate length over strength, i.e. is it better to have
10 new units for 5 years, or 5 units for 20 years. All agree needs to be added in the priorities.
Maybe it is best return on investment (ROI) for the trust. Dinkin says he is reluctant to use ROI
with the government, and for the city, the return is not necessarily money. Clausen said maybe
we maximize number of units. Gabriel asked is if it is the number of units that is important, or
the number of people. Clausen said it depends, noting the Housing Plan did not find one
demographic that has more need. Clausen suggested setting up two sets of priorities: one to
maximize the number of households, and one that talks about affordable housing units over time
- longevity. Goehring suggested being concrete on priorities for projects. Dinkin advised that
awarding public money has to be crystal clear on the process and there can be no ambiguity.
Beverly Affordable Housing Trust Fund
Regular Meeting
DATE: July 19, 2017
Clausen asked, do we go with small projects with larger costs, or large projects with smaller
costs. The Trust will have to decide, there is need on both. Maxner noted that there is some
concern among CPC members about giving all the housing funds over to the Trust. She added
they have some interest in keeping money to support smaller projects, such as Habitat. Gabriel
noted there needs to be a strong working relationship with the CPC. Any "handshake" solution to
allocating funds may be dependent on the relationship, noting that both groups want to maximize
the use of the funds. Clausen clarified that there isn't a division between the groups, but it is
important to ensure that the Trust follow the funding guidelines of the CPC when using CPA
funds.
Gabriel asked if there has been any data on what type of affordable housing has the greatest
need. Clausen said low- income (30 -60% of area median income) rental for families. Clausen said
we want to be open, but also as community be careful as projects are put on the books, that we
can support and provide services. Goehring suggested in the priorities to have a percentage of
certain types. Clausen said we have some indicators now, they are easy to get and can give us
some trends, i.e. what is the average rent, what is median income for region, for Beverly, etc.
The housing consultant did several months of work on this. Maxner questioned if we were to
start collecting data, who would work on that? At this time, determined we don't need to track
data annually, maybe every 2 -3 years, as projects take so much time to happen, maybe at 5 years
we justify bringing someone in. All agreed.
ADDlication Process and Selection Criteria
Clausen noted the consultant suggested two rounds. He advised that the trust may prefer rolling
applications, with quarterly meetings to receive apps and perhaps have a special meeting to be
more responsive. He added, the trust may only need one round with the limited funds currently.
Gabriel said we could have a year where no good project comes up but the next year a great one,
so fund to the criteria, not a timeline. Ayles commented that with rolling applications, we could
get one and check the box, deplete the funds then months later get a great project with no money
left, need to consider the rounds. Gabriel suggested we announce a funding round with an
amount of money we are willing to give out.
Maxner advised CPC projects are authorized by the City Council, so it's not a guarantee. Ayles
added that a benefit is CPC can bond. Goehring said perhaps that bigger projects could go to the
CPC if bonding is needed. Clausen said, as far as framework, there could be an annual notice of
funding, some limitations, no deadlines, call for projects etc. Maybe look at a letter of intent
(LOI) format, ask for that in the application to see what the scope of work would be.
Goehring advised that a colleague reviewed their guidelines and they believe the guidelines
appear very restrictive from a development perspective. She noted that with most CPC and trusts,
the funds are structured as a no- interest forgivable loan so that it is seen as equity into the
development package. The more equity means less debt for a project, therefore becoming more
affordable. The local money is used to leverage other money and often what makes a project
possible. She added to expect any money back is a challenge. Discussion held on tax credits and
equity. She notes the Anti -Aid Amendment requires you to show a public benefit. If there is no
deed restriction, there is no public benefit. Also, on adding interest after years, who is going to
administer that? Noting it is a lot of work. She suggested making the guidelines simpler.
Wd
Beverly Affordable Housing Trust Fund
Regular Meeting
DATE: July 19, 2017
Goehring suggested having Mickey Northcutt with North Shore CDC or Andrew DeFranza with
Harborlight come in and show some pro formas to inform the guidelines. She noted they may not
be as familiar with the Anti -Aid Amendment, but they could add how this might limit what they
do. Goehring notes having parameters around a rehab program makes sense and with pre -
development there may be some recoup of funds. But the lower affordability you are seeking the
less likely they will be able to give any money back. Flexibility is important.
CPC Funding
Maxner said the trust should dovetail with the CPC and how they will they interact with the
Trust. Some members of the CPC don't want to give all of the 10 %, they want to be able to
award it to projects as well. There is some perception that the Trust is looking to allocate all 10%
to go to mid to large projects, CPC wants to be there for the little guy.
Gabriel said the Trust needs to build a relationship with the CPC. There needs to be a
conversation about what each one will want to do. Clause said CPC will want to understand the
Trust process for allocation of money, what the priorities are and how is the funding being
tracked. Maxner said CPC wants to maximize all funds.
Clausen asked if there was a good model to look at with Trusts and CPC working together.
Somerville (gives 30 %) and Cambridge (gives 80 %) have good relationships, they see the Trust
as a group focused on affordable housing. Also, Beverly has strong staff support to build on
where some communities only work with volunteers. Goehring advised the Trust should ask
CPC for more than 10% of the funds. She noted the Trust's only focus is on affordable housing,
and while CPC only has to do 10 %, they can do more. There is a housing crisis in Beverly and
relying on 10% or $90,000 is not enough. Goehring said the Trust currently does not have a
certain amount allocated every year, so it will be hard to plan. The CPC needs to invest in the
Trust so it can be effective.
Outreach
Suggestion was that someone sit on both CPC and BAHT. The Trust should have a meeting with
the City Council, present the plan with a date to implement, and go through the guidelines to
make the case. The Trust should make a plan to introduce this to the community (press release
communications), and perhaps court a housing summit with all parties sometime in the future.
All in agreement.
Next Steps and Next Meeting:
Next steps include working on solidifying funding priorities, finesse the mission statement, invite
Mickey Northcutt, and Andrew DeFranza to next meeting to walk through a couple of pro
formas. Goehring will get some good funding guidelines examples to share. Goehring will send
along information on Somerville and Cambridge trusts.
Wynne advised there is no meeting set up for August; will coordinate with the Mayor's schedule.
Wednesdays at 2:00 is working; some may have a problem with attendance in August.
Adiournment•
Motion to adjourn by Gabriel. Ayles seconds the motion. The motion passes unanimously (4 -0).
Adjourned at 4:1Opm.