BAHT Meeting Minutes March 14 2018CITY OF BEVERLY
PUBLIC MEETING MINUTES
Board: Beverly Affordable Housing Trust
Date: March 14, 2018
Location: Beverly City Hall, Conference Room "B"
Members Present: Chair Aaron Clausen, Mayor Michael Cahill, Treasurer Bryant
Ayles, Clerk Sue Gabriel, Richard Dinkin
Others Present: Environmental Planner Amy Maxner, Andrew DeFranza,
Harborlight Community Partners
Absent: Assistant Planning Director Darlene Wynne (staff to the Trust)
Recorder: Donna Musumeci
Call to Order
The meeting was called to order at 2:00 pm
Continued Review & Decision: 2 Hardy Street — Harborlight Community Partners, Inc.
Funding Application
Clausen notes that at the last meeting
the
Board decided that a
commitment letter for the
requested
allocation
of $200K
and
all
the
meeting,
conditions
would
discussed
be
drafted
and
reviewed
at this
were prepared
meeting for a possible vote. He describes the letter was drafted with the assistance of the
Massachusetts Housing Partnership; 7P Goldson, a consultant out of Boston, who does work with
CPC's and Trusts around affordable housing; and language from an example of a housing
consortium loan made in 2002 to Turtle Creek.
Clausen describes information in the letter. The first half summarizes the request, and the next
section addresses the affordability elements tied to the terms of the loan. The letter proposes a
30 -year, zero percent loan, with payment due at the conveyance of the sale. Prior to the
financing, the applicant in this case will supply all the loan documents - the promissory note,
mortgage, and the affordability restrictions. Once these have been provided, the solicitor will do
a final review. Disbursement of the funds will be in a lump sum at the time of financial closing.
He notes that the letter states that this project should proceed to closing before the end of this
calendar year. He said if there are challenges, the trust can extend the date, but this could send a
message to the state.
The
Mayor
asked how the scoring
criteria factor into the
vote. Ayles
clarified that Trust did not
vote
at
last
meeting,
but
discussed
initial
thoughts
and
were prepared
to vote.
The Trust discussed scoring and criteria. Mayor questioned not knowing best how to apply some
of the individual criteria and impact on the scoring. He raised the notion that some scores could
be low. Do we need to add certain things to the criteria and have a longer list? Or, use the list and
add "included but not limited to ". General consensus was to use that language rather than making
the list longer. Also discussed was the benefit of being able to think about each criteria as it
Beverly Affordable Housing Trust Fund
Regular Meeting
March 14, 2018
relates to the project. It's not so much about the score that matters (unless there are multiple
projects), rather the process. Understanding there is some economic development and a TOD
benefit, the Mayor questioned how to determine giving a number versus a not applicable.
Dinkin stated the Trust agreed to do these on an individual basis and to knock off the outliers
(the upper and the lower); in his case he gave a 2, knowing he could throw it away. He reminded
the Board that in the process of drafting guidelines they identified this policy, to discard one high
and one low score. Dinkin emphasized the need to be cognizant that these score sheets will
become public record and future developers will look to them for guidance. Clausen is sure this
process was identified in the published guidelines. Ayles comments that there is generally a
unified perception of how these criteria are weighted. Gabriel says what's most important is that
the scoring sheets show a consensus. Clausen indicates there is plenty of consensus in the scoring
of this project. Since there is consensus in the scoring criteria areas, and after review, the Trust
votes.
Dinkin: Motion to approve $200,000 in funding for the project at 2 Hardy Street, the
applicant being Harborlight Community Partners, subject to the conditions in the
draft award letter, and to approve the draft letter unchanged. Gabriel seconded.
Motion carries (5 -0).
Cahill: Motion to take a brief recess. Dinkin seconded. Motion carries (5 -0).
CPC Allocation of Housing Funds
The Trust discussed whether to seek CPC allocation of housing funds to the Trust. Clausen
provided a document summarizing the applications currently before the CPC in Round 5. At the
CPC, $390K is under review for housing alone and there is approximately $278K - $280K of funds
in the specific housing pool. Mayor asked to see what the CPC has in their calculated total, how
much balance has yet to be spent, and how much of that is available for housing. Dinkin asked if
they pre - allocate. Mayor said they do not beyond the 10 percent.
Ayles explains that CPC funds go into 4 buckets - there are 3 reserve buckets for historic
preservation, affordable housing, and open spaces. The 4th bucket includes anything left over. He
says there is a 5% budget for administrative costs, which they underspend every year. Maxner says
that is spent on signs, appraisals, etc. Ayles says the budget is created for anticipated revenue in
the coming year, and that is where administrative costs are captured, any funds not used go back
to the 4 bucket. Dinkin clarifies that 65% of the fund is for discretionary use. The Board concurs.
Gabriel clarifies that any money not spent on affordable housing rolls forward.
Stated an example that Cambridge has 75% of funds allocated to housing resources, and less in
historic or open spaces. If the CPC trying to ensure they have all the funds they need, it would be
good to know what is in the buckets. There are not restrictions when they spend the funds,
Harborlight may not be ready to take it yet, but the funds are reserved.
CPC
is on the
agenda
to discuss how to
determine funding coming
to
the AHT and relationship
with
the
CPC.
Mayor
states the
primary
question is, does
the
Trust
go
to the
CPC
with
a formal
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Beverly Affordable Housing Trust Fund
Regular Meeting
March 14, 2018
request to transfer over the housing money to the AFHT and second, to the make that a recurring
request going forward. Mayor is not sure he is interested in a commitment of the other 65% rather
that should be expended on as- needed basis. Gabriel supports having unrestricted funds.
Gabriel asks if it matters to have support of multiple boards when trying to leverage funds or is it
better for the applicant to have a streamlined process. Dinkin suggest streamlined process is
favorable to the applicants. Clausen says it's an interesting question and it may be a stronger case
if more boards show support.
Mayor asks if have received any guidance from the state on best practices related to the CPC or
the AFHT. Massachusetts Housing Partnership had advised the Trust that many CPC's use a trust
to deal with housing, but the relationship can be different in every community, city vs. town etc.
First, trusts are used because they have a board with more specific experience. Second, trusts are
set up to move funds and can potentially move more quickly. Mayor notes that CPC funds require
City Council approving CPC allocations and public hearings; this could be problematic only with
timing of potential real estate transactions. Mayor says he thought he would be ready to go on this,
but notes the members could benefit from hearing more about how this works in other cities and
towns. Clausen notes that showing the CPC members how they've reviewed the Hardy Street
project is essential in showing thoughtfulness and care in review and they can use this to assuage
concerns of the CPC in the future. Dinkin says he's of two minds. He says that centralizing the
money in one body will expedite the construction of affordable housing; however he notes CPC
money is really taxpayer money whereas the AHT monies is really payment in lieu of.
Mayor notes that the argument could be made to allocate the 10% because the Trust is able to act
more quickly. Not looking for any of the 65% keeps the process running through the CPC statue
and keeps City Council involved. Gabriel likes that idea, noting the 10% funds are already
restricted for housing and the trust has shown to do it well. The CPC could decide to allocate more
money to the AHT if they see a need. Ayles suggests a joint meeting with the CPC. Mayor says
we will plan to go to the CPC when ready. He says we could ask them to allocate the 10 %, however
the applicant still has to make the case with the CPC and the City Council. The AHT can be part
of that voice with the applicant, if they feel strongly. Clausen notes that the AHT will have a letter
with the scoring matrix to be used for supporting CPC funding. Dinkin suggests AHT can also do
letters of support and show up for public hearings.
Clausen states that the next step is to convene a joint meeting with the CPC after they are done
with the current process which will allow time to put together the information on the trust. Mayor
asked to invite Shelley Goehring back and invite the CPC Chair and Vice -Chair for a fact finding
and discussion meeting, rather than a decision - making meeting. The members generally agree.
Mayor notes that the trust may take a vote to make a formal request to the City. Gabriel confirms
that the allocation is a yearly vote. Mayor asked Maxner to verify the yearly allocation and
requested the City Solicitor in the next meeting.
Ayles confirmed that the balance of the AHTF is approximately $550K. Maxner confirmed Mayor
would like her to confirm the need to vote each year for the transfer of the 10% funds from the
CPC. Discussion ensued as to when to hold a next meeting.
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Beverly Affordable Housing Trust Fund
Regular Meeting
March 14, 2018
Adiournment•
Gabriel: Motion to adjourn at 2:55pm. Dinkin seconded the motion. Motion passes (5 -0).
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