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Home My WebLink About2017-9-19MINUTES ?917 OCT 24 PIM 2: I AFFORDABLE HOUSING TRUST FUND Tuesday, September 19, 2017 2 Fairgrounds Road Conference Room Board Members Present: Isaiah Stover (Chairman), Linda Williams (Vice -Chairman), Brian Sullivan, Reema Sherry, John Trudel, III, Brooke S. Mohr, Rita Higgins Affordable Housing Trust Fund Agenda for TUESDAY, SEPTEMBER 19, 2017 I. Call Meeting to Order: ❑ Mr. Stover Called the meeting to order at 11:06 A-,%1 II. Approval of Agenda: ❑ Ms. Sherry moved to postpone item III — Election of officers to the end of the agenda. Ms. Williams seconded and the motion was carried unanimously. The agenda was approved. Ms. Williams moved to reopen the agenda with a second from Mr. Sullivan. The motion carried unanimously. Ms. Williams moved to have item XII — Review of applications for down payment/closing cost assistance moved to the beginning of the agenda. Second from Mr. Sullivan. The motion carried unanimously. A discussion was held regarding the expansion of the Closing Cost Assistance Program to include applicants who qualify between 101% and 150% of AMI. Ms. Williams stated that the local banks have informed her that there is need for assistance for this group because their purchase prices/ mortgage payments/down payments are larger and can represent as large a share of their income/assets as those at 100% and below. Mr. Sullivan stated that he was not prepared to expand the program to 150% until a more detailed review of the AHFT budget were to be done. A discussion took place about the amounts of available funds (and the associated restrictions on their use) from the Town of Nantucket and CPC allocations from 2016 & 2017. Mr. Sullivan asked whether the requirement for BOS approval for disbursements in excess of $100,000 was on individual payments or the total for a specific program. No definitive answer was reached. There was a review of the recent and upcoming applications and their % of AMI to estimate the total amounts that will be needed for loans above and below 100% AMI level in order to anticipate the total that will need to be allocated from CPC funds (restricted to 100% AM!) and from Town of Nantucket Funds (>100% AMI). Ms. Williams moved to expand the Closing Cost Assistance program to include applicants up to 150% AMI. There was a second from Ms. Higgins. The vote was 6 in favor, 1 opposed (Mr. Sullivan) Ms. Williams moved to allocate 599,000 from the unrestricted town funds (FY2016) to fund the expanded program. Mr. Sullivan seconded and the motion carried unanimously. Closing Cost Assistance Applications (Agenda Item XII) ■ Virna Lynn Gonzalez (19 Wappossett Circle) — continued from 8/15/17 Moved by Ms. Williams and seconded by Ms. Sherry to allocate up to 515,000 in closing cost assistance to cover final actual closing costs. (150%AMI) The motion carried with 6 in favor, 1 opposed (Mr. Sullivan) ■ Dervon C. Williams (8 Wappossett Circle)❑ Moved by Ms. Williams and seconded by Mr. Sullivan to allocate up to S15,000 in closing cost assistance to cover final actual closing costs. (80%AMI) The motion carried unanimously. ■ Nicholas J. Bontempi (11 Wappossett Circle)[] Moved by Mr. Sullivan and seconded by Ms. Williams to allocate up to 515,000 in closing cost assistance to cover final actual closing costs. (100%AMI) The motion carried unanimously. ■ Luis Oviedo (12 Wappossett Circle)❑ Moved by Ms. Williams and seconded by Ms. Mohr to allocate up to $15,000 in closing cost assistance to cover final actual closing costs. (100%AMI) The motion carried unanimously. There was a brief discussion about the discrepancies iii the applications regarding title insurance and plot plan fees. The need for a consistent application format was discussed and Mr. Holland agreed to prepare one. ■ Jamie McCoy ( 14 Wappossett Circle)❑ Moved by Ms. Williams and seconded by Ms. Sherry to allocate up to 515,000 in closing cost assistance to cover final actual closing costs. (150%AMI) The motion carried unanimously. ■ Justin A. Sherburne (21 Wappossett Circle)❑ Moved by Ms. Williams and seconded by Ms. Sherry to allocate up to 515,000 in closing cost assistance to cover final actual closing costs. (100%AMI) The motion carried unanimously. ■ Ramon Romero Welch (6 Wappossett Circle)❑ Moved by Ms. Williams and seconded by Ms. Mohr to allocate up to 515,000 in closing cost assistance to cover final actual closing costs. (100%AT%II - ?)) The motion carried unanimously. ■ Alicia Graziadei & Jason Graziadei (22 Nanina Drive) ❑ Moved by Ms. Williams and seconded by Mr. Sullivan to allocate up to $15,000 in closing cost assistance to cover final actual closing costs. (150%AMI) The motion carried unanimously. The following application was held for later in the meeting pending receipt of missing application materials being brought to the meeting by the applicant. ■ Juraj Bencat (15 Wappossett Circle) III. Election of Officers: ❑ (MOVED TO END OF AGENDA) IV. Review and Discuss FYI Budget and FYI Request to the Town: This agenda item was postponed to the next meeting pending the creation of a comprehensive budget spreadsheet to help assess current and future funding needs. The spreadsheet will list the available funds, the associated restrictions on them, the amounts already allocated to applicants on the Closing Cost Assistance program as well as a list of affordable housing projects in the pipeline that are likely to result in future applications for assistance. Mr. Sullivan and Ms. Mohr will work on this project with Mr. Holland for the October meeting. Closing Cost Assistance Application (Agenda Item XII) ■ Juraj Bencat (15 Wappossett Circle) Moved by Ms. Williams and seconded by Ms. Higgins to allocate up to 515,000 in closing cost assistance to cover final actual closing costs. (80%AMI) The motion carried unanimously. V.Update of FY19 CPC Request: ❑ Ms. Sherry & Ms. Williams prepared and submitted the application for $400,000 for the existing closing cost assistance program and for the creation of a down -payment assistance program. Ms. Sherry- reported that the application included numerous letters of support from the community. The CPC interview will be held on 10/4 at 10:00 AM. Ms. Sherry and Mr. Sullivan will represent the AHTF at the interview. A meeting will be posted on the town website to allow as many AHTF members as possible to attend as well. VII. Discussion of Covenant Buy Down: (Taken out of order) Liz Almadobar asked the members if the AHTF could establish criteria for her real estate clients who are interested in taking advantage of the proposed covenant buv- down program. Thee was some discussion about how the program might be structured, but it was determined that the program is in the early stages of development so at this time no criteria have been established. XI. Update on CHIP Grant Application (Taken out of order) The application has been submitted and reviewed by the first committee of three that will weigh in on the applications. Grant decisions are anticipated in December. VI. Discussion for Habitat for Humanity Nantucket Grant Application request for funding: ❑ Joe Grouse & Gerry Keneally Mr. Grouse and Mr. Keneally provided an update on the application that they had submitted from Habitat in June 2017 requestiong a grant of $150,000 to allow Habitat to begin construction on two homes at the lot they have at #86/87 Waitt Drive. The Planning Board has encouraged Habitat to build two houses on the lot, and Habitat would like to do so because the economies of scale will reduce cost per home. However, Habitat does not have the cash flow available to fund the two homes simultaneously. Habitat expects to begin construction in the late Spring 2018. Habitat has adjusted their model to use more professional labor, which has increased costs while reducing the time taken to complete a home from 3 years down to 12 months. The members discussed possible sources of the funding from the various allocations available in the Trust Fund. Mr. Sullivan moved to request $150,000 from the 2016 Town of Nantucket allocation to be granted to Habitat for Humanity for the construction of homes on lot #86/87 Waitt Drive. Ms. Higgins seconded and the motion was carried unanimously. Ms. Williams moved to seek an opinion from Town Counsel to determine what documentation will be required to ensure that the project is eligible for AHTF funding given that Habitat for Humanity homes are not currently subject to affordable housing covenants. Ms. Sherry seconded and the motion was carried unanimously. VII. Discussion of Covenant Buy Down: ❑ (MOVED ABOVE ITEM VI.) VIII. Discussion of Expansion of Closing Cost Program from 100% to 150% of the AMI; ❑ (MOVED ABOVE ITEM III) IK Discussion of upcoming requests from covenant home -buyers ❑ No discussion Z.Discussion of expanding covenant to 200% AMI ❑ The expansion of the program to 200% AMI -qualified buyers would require a home rule petition. Provincetown has done so. Concerns were expressed about: -the impact the Richmond development will have on the rental market -the number of people at 150% and below who are still on waidists -the potential upward pressure on home prices. It waE decided to take a wait and see approach. XI. Update on CHIP Grant Application: ❑ (MOVED ABOVE ITEM VI) LII. Review of applications for down payment assistance/closing costs:❑ (SEE ABOVE) XIII. Update of 39 Hummock Pond Road potential move to Lot 90: ❑ ` " Ratify- vote from 8-15-17 ❑ Ms. Williams moved to ratify the vote from the last meeting. Mr. Sullivan seconded. The motion carried unanimously. XIV. Public Comment: ❑ XV. Vote on Minutes: ❑ ■ August 15, 2017 ❑ Ms. Williams moved to accept the minutes of the last meeting with corrections. Ms. Sherry seconded. Ms. Higgins and Mr. Stover abstained and the motion carried unanimously. III. Election of Officers Ms. Sherr, nominated Ms. Williams to be Chairman. Mr. Trudel nominated Nfr. Sullivan. Discussion was held. A vote was taken and Mr. Sullivan was elected by a vote of 5 to 2. Mr. Trudel nominated Ms. Williams to be Vice -Chair. Ms. Shern seconded the nomination and Ms. Williams was elected by unanimous vote. XVI. Other Business: ❑ XVII. Adjourn: L Ms. Williams moved to adjourn the meeting at 1:46 PM