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BAHT Minutes 10-10-2018CITY OF BEVERLY PUBLIC MEETING MINUTES Board: Beverly Affordable Housing Trust Date: October 10, 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: Assistant Planning Director Darlene Wynne, Andrew DeFranza, Harborlight Partners, Kristen Carlson, HCP, Kevin McCarthy, YMCA, Amy Maxner (at 3:23PM) Recorder: Donna Musumeci The meeting was called to order at 2:00pm. Meeting Minutes: Acceptance of Meeting Minutes 2/21/18 and 3/13/19. There were two sets of outstanding minutes. Cahill: Motion to approve the draft meeting minutes for the February 21, 2018 meeting with the following changes: Page 3, second paragraph DeFranza is one word, not two words. Second sentence should read "it is the hardest type of money to get ". Dinkin seconded. Motion carries (5 -0). Gabriel: Motion to approve the draft meeting minutes for the March 13, 2018 meeting with the following changes: Page 3 where it says "they are able to act more quickly ", clarify to say "the trust is able to act more quickly ". Dinkin seconded. Motion carries (5 -0). Funding Application Review and Discussion a. Anchor Point — Harborlight Communitv Partners. Inc. — Reauest for $250.000: Andrew Defranza, Harborlight Community Partners, advised the site has been approved, and there is an upcoming hearing with the planning board. There are 75 units, all 2 and 3 BR, with 20% set aside for AFH. Significant design work and engineering was done with a site engineer along with some work around the traffic there; will hear on this plan by the end of this month. Noted there is also a donor created fund for kids who will grow up there; looking at pre -and after school services, a day care and partnering with entities, i.e., Beverly Bootstraps. This is Phase 1. Application round due late November early December. If it goes through, then a full application will be done for February. There is also a federal bank funding round but they will not know about that application until December. Discussion on how the application works. The state requires a formal document called the Tenant Selection Plan; in short version parameters are based on incomes, local preference, and homelessness. Advertisements for the opportunity are made in local communities, then there is Beverly Affordable Housing Trust Fund Regular Meeting October 10, 2018 an application process and a lottery. There will be a selected preference list, then a waiting list in that order. Local preference is that the state allows 70% selection for the first round, and then local preference given to local people that live there. Local area includes Beverly, Salem and Peabody and it's the state preference to accept this. Comment made that 3 mayors will submit a letter for this collaborative. Discussion on the process and who can qualify. Those living/not living in a shelter, or in a place not suitable for living. Families who crowd up other families are excluded (even though they are not unified, they don't qualify). There is the ability to select up to 15 applicants. The community and committee knows the applicants and help the families through the application. If they don't make the first round, they go on a waiting list, and then are part of Phase 2 automatically. Clausen commented that Section 3 is laid out well, indicates 38 units next with 30 -50% AMI, stating 30 -year terms for loan, and criteria is 70% local preference, 20% homeless and 10% for other. Committee decided to go through both applications, vote and then decide if it is necessary to review the criteria. Review of the funding request for $250K — total budget for Phase I is $18.2M, or 1.3 %, and it is approximately $600k per unit. DeFranza said the state is looking for local support from the city; in this case the city has CPC funds, a home fund and trust funds, all that are favorable to show a volume of capital. This project is expensive and the three sources of funding and rezoning should be very effective in getting the state's attention. b. Cabot Housing — YMCA of the North Shore — Request for $250,000: Kevin McCarthy, YMCA of the North Shore, and Kristin Carlson, Harborlight Community Partners, presented. Project currently has 45 small units with outdated kitchens and mechanical systems. Units will be preserved, in addition to adding new units for a total of 69 units, the new being studios, with bathrooms and kitchens. There will be common spaces, housing on the second floor, offices on the first floor and an elevator. Some of the basketball court may remain. Substantial structural work needs to be done with added square footage and another floor. The project will serve low income individuals with an AMI mix in the 30 -60% range, and includes all genders. Project is approved by Massachusetts Historic and Beverly Historic Commissions. Project is on the same funding schedule as Harborlight in November and December for the first round. Project received a CPC award and has another grant source for $500K. Cost estimates are complete and the construction document is 50% complete. At the YMCA, 42 of 45 units are occupied. As unit vacancies occur during the project, they may leave them open and relocate people temporarily through the construction to be as lease disruptive as possible. Construction to be completed in phases, i.e. 20 units at a time. The YMCA and day care functions will move out of the building. The 1S floor and basement remains. The gym becomes housing units. The YMCA sign remains. There is a capital maintenance plan for the building all part of compliance. Capital reserves is about $546K, and gets cycled into the project, of which $207K will be replacement reserves for capital; it won't be needed initially but there has to be a budget for it under the new financing. ►a Beverly Affordable Housing Trust Fund Regular Meeting October 10, 2018 Discussion on the region. Part of the problem is the cost of living being so high; when looking at AMI, does it serve the needier population due to economics behind the projects or is it a conscious strategy to serve only those populations. Both organizations are committed to get as deep a penetration as possible. There is a 60% AMI cap due to the tax credits, and the tax credits have the most equity for the deal. In dollar values, the AMI percentages in this region include: an example of a family of 6 for 60% is about $60K a year 80% is about $75K a year, and the median for this region is $95K a year. Regional AMI is essentially more like greater Boston, not a north shore AMI as it's skewed with more affluence in the area. Our 60% AMI almost sounds low given the region. Want to use a 60% AMI for $48 -50K to model our rents to qualify and to capture more people. Further discussion on gross salaries, rent vouchers and AMI percentages. Target population includes 10 units for developmentally disabled individuals in conjunction with ARC and DDS, and 10 units for others coming out of homelessness similar to Harborlight. Staffing models for the population includes a full -time property manager and resident case services manager. YMCA employees include the property manager and a maintenance person, Case worker will be sub contracted and get assistance from the service providers of the tenants who have them. There will be residents who don't need case management. The Board would like to be informed on staffing as it is firmed up. Staff hiring timeframe is a year out. Clausen comments on the commitment letter. Confirming information there will be 20 units with less than 30% AMI, 38 units with less than 50 %AMI and 11 units with less than 60 %AMI. Agreed this could be stated in the commitment letter and the loan 30 -year with zero percent. c. Commitment Letters and Vote: Before voting, Clausen recommends draft letter of commitments be read. 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 to commit funds to Anchor Point at $250K based on stated terms and conditions and with an additional condition of approval on permitting. Dinkins seconded. Motion carries (5 -0). Dinkin: Motion to commit funding as requested for Cabot Housing at $250K as presented on the stated terms of conditions assigned in the letter. Gabriel seconded. Motion carries (5 -0). Discussion on Potential Application for CPC Allocation of Funds: Amy Maxner, Community Preservation Committee staff person, arrived at 3:23. Committee agreed to have a meeting with the Chair and Vice Chair of the CPC to discuss allocation of funding. Sherry Goehring will be invited. Schedule Next Meeting Will not schedule a BAHT meeting until after the meeting with the CPC. Adjournment Beverly Affordable Housing Trust Fund Regular Meeting October 10, 2018 Cahill: Motion to adjourn. Ayles seconded. The motion carries (5 -0). Adjourned at 3:30pm.