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HomeMy WebLinkAbout2017-8-15NAIklTU L 2 01 17 uC'T 24 °N 2: 16 APPROVED MINUTES AFFORDABLE HOUSING TRUST FUND Tuesday, August 15, 2017 - Amended 11:00AM 2 Fairgrounds Road Conference Room maw-_v.nantucket-ma. aov Board Members Present: Linda Williams (Vice -Chairman), Rita Higgins, Brian Sullivan, Reema Sherry, John Trudel, III, Brooke S. Mohr. Absent: Isaiah Stover (Chairman), Others Present: Tucker Holland; Ken Beaugrand(CPC); Howard Dickler; Marita Scarlett; Virna Lynn Gonzalez I. Call meeting to order: The Vice Chairman called the meeting to order at 11:06 AM II.Approval of Agenda: There was a motion from Mr. Sullivan to approve the agenda, seconded bv_ Mr. Trudel. The motion carried unanimously. III. Election of Officers: Ms. Sherry nominated Linda Williams as Chair Mr. Trudel nominated Mr. Sullivan as Chair A vote was taken and the result was three votes for each nominee. Questions were asked about Roberts Rules with regard to election of officers — whether the meeting chair was eligible to make a motion? And whether a vote could be taken for Vice Chair? It was decided that the election of officers would be placed on the agenda of the next meeting. IV. FY18 Budget and FY19 Request to the Town The budget process for FY 19 has started. $500,000 was allocated to AHTF by the Town in the FY18 budget. There was a discussion of what the FY19 budget and CPC grant requests for AHTF should be. The importance of having a bank of funds available to allow AHTF to act quickly on land purchases or other projects was discussed. The likely timing of the home rule petition for a real estate transfer fee was discussed as well as the need for the Town to continue funding the AHTF in addition to the transfer fee. Ms. Sherry moved to request $1 Million from the Town in FY19. There was a second and the motion passed unanimously. V. Discuss FY19 CPC Request: The discussion of the CPC grant included input from Ken Beaugrand regarding the CPC's increased commitment to affordable housing in 2018 and their desire to have the funds earmarked for specific programs rather than remain open-ended as well as a desire from the CPC to have feedback on how the FY18 funds have been used. There was a discussion on the appropriate level of oversight by the CPC regarding their funding. When CPC funds are used for land purchases and infrastructure improvements, there is greater flexibility on the income levels served. Currently the CPC funds are being used for the Closing Cost Assistance program for applicants at 80% AML Reporting can be done through existing town financial reporting mechanisms to Glenna at the CPC. Mr. Beaugrand reminded the group that the number of applications to the CPC has risen sharply while the amount of funding from the state has declined. The application deadline is September 8`''. The CPC's priorities are determined by how critical each project is. A motion how much to request from the CPC was deferred until after the discussion of the AHTF budget and other programs requiring funding. VI. Discussion of Covenant Buy -Down Program: Marita Scarlett was introduced. Ms. Scarlett shared her experience as a potential buyer of a property that might have qualified for a buy -down program, had it been available when she was bidding on a home that was just on the edge of her ability to afford it. Had she been able to take advantage of buy -down funding, she could have subdivided the property creating a second, covenant lot with a small existing cottage and possibly placed a covenant restriction on the primary house as well, if pay -back had not been required. Discussion of the many possible configurations of a buy -down program took place. It was clear that the many variables would necessitate much more extension discussion. Mr. Trudel moved to establish an advisory committee that would be tasked with creating a proposal for a buy -down program that would be given to Mr. Holland to have reviewed by Town Counsel. Mr. Sullivan seconded. Mr. Trudel, Mr. Sullivan and Ms. Mohr volunteered to serve on the committee. Ms. Sherry moved to nominate Mr. Trudel, Mr. Sullivan and Ms. Mohr. Ms. Higgins seconded and the motion passed unanimously. The group expressed appreciation to Ms. Scarlett for sharing her experience. VII. Discussion of Closing Cost Program: Ms. Williams proposed that the program be expanded from 80%AMI to 100%AMI. Mr. Sullivan suggested that the cap of $15,000 remain the same. There was a discussion about the difference in the level of scrutiny of the finances of an 80% applicant whose application is screened by both Housing Nantucket & DHCD vs. a 100% applicant who is screened only by Housing Nantucket. There was a motion from Ms. Mohr to expand the Closing Cost Assistance program to applicants at 100%AMI. Ms. Higgins seconded. After discussion, the motion was revised to add that the remaining $300,000 from the FY18 CPC grant be allocated to the expanded program. The motion passed unanimously. Ms. Sherry moved to make a grant request of $400,000 from the CPC in FY19. Mr. Sullivan seconded and the motion passed unanimously. VIII. CHIP Grant Discussion: Tlie application deadline is August 18. Ms. Sherry suggested that the AHTF apply for funding for the Closing Cost and Down Payment Assistance programs, rather than the sober living house because the details of the proposal for the sober living house have not been established yet. There was a discussion of how much funding to request. A request of $150,000 would serve 10 families at $15,000 each. Ms. Sherry volunteered to write the grant application. Mr. Sullivan moved to apply to CHIP for $150,000. Ms. Higgins offered a second and the motion passed unanimously. Mr. Sullivan moved to authorize Ms. Williams to sign the application on behalf of the AHTF. Iris. Mohr seconded and the motion passed unanimously. IX. Virna Lynn Gonzalez (19 Wapposett Circle) — Review of application for down payment/closing cost assistance Ms. Gonzalez will be purchasing a home at Sachem's Path. She requested that one of the assistance programs offer a special exception to single -earner households at the 150% AMI level given the % of the family budget that would go to mortgage cost when there is only one working adult in the family. There was a lengthy discussion about whether to expand the program(s) to the 150% AMI level and the legality of doing so for only one type of buyer. In addition, concerns were expressed about further piecemeal expansion of financial assistance programs in response to a single applicant's circumstances. Ms. Mohr offered a motion to authorize Mr. Holland to seek an opinion from Town Counsel on whether it would be legal for AHTF to expand an assistance program to only single person households at 150% AMI. Ms. Sherry seconded. Ms. Higgins voiced the desire to set clear guidelines for any program expansion. The motion passed unanimously. The group expressed appreciation to Ms. Gonzalez for sharing her experience. Mr. Sullivan departed from the meeting. X. Updates on Statehouse Testimony; Undersecretary Kornegay visit Mr. Holland reported that the Undersecretary's visit went very well and that she may take the unusual action of weighing in on the housing bill supporting the home rule petition for a transfer fee for affordable housing. XI. Revisit 31 Fairgrounds Road Ms. Williams and Ms. Sherry reported that the sisters who co-own the property who live off - island are open to hearing a proposal from the AHTF for the purchase of this property that runs through to Trotter's Lane. After discussion, Mr. Trudel moved to open conversations with the entire Coffin family and to share the correspondence with the entire committee. Ms. Higgins seconded and the motion passed unanimously. XII. 39 Hummock Pond Road potential move to Lot 90 ****Not anticipated by the chair within 48 hours. The property at 39 Hummock Pond Road has a ranch home that has been offered to the AHTF for move -off by the current owners if it is moved by October 1 ". Members were encouraged to visit the property. A motion to pursue the opportunity was made by Ms. Mohr and seconded by Ms. Higgins. The motion passed unanimously. XIII. Public Comment None XIV. Vote on Minutes Ms. Higgins moved to approve the Minutes from July 18, 2017. Mr. Trudel seconded and the motion passed unanimously. XV. Discussion of getting Minutes Caught Up and Published There was a discussion and Mr. Holland indicated that this is not in his scope of responsibibn-. No action was taken. XVI. Other Business Ms. Sherry made note that the Habitat for Humanity Application from June that was in this month's meeting packet had not been acted upon. She requested that it be placed on the September agenda and that a representative from Habitat be invited to attend that meeting. XVII. Adjourn: Ms. Mohr moved to adjourn at 1:44 PM. The motion was seconded and was approved unanimously. Next Meeting: Tuesday, September 19, 2017 at 11:00 AM at 2 Fairgrounds Road Conference Room