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50 PALMER STREET - ZBA (4) -0F41wW.r , \ _ _ - _ . _ \ I� C r 3 Y � � R (� pONDITq,� CITY OF SALEM, MASSACHUSETTS BOARD OF APPEAL 120 WASHINGTON STREET, 3RD FLOOR SALEM, MASSACHUSETTS 01970 TELEPHONE: 978-745-9595 FAX: 978-740-9846 KIMBERLEY DRISCOLL jQpB SEP -5 A W 4b MAYOR C}IY Li :{` Ji ' b1ti�J5. September 5, 2008 Amended Decision City of Salem Zoning Board of Appeals Petition of Salem Harbor Developers, LLC requesting to amend the decision dated July 14, 2004 to remove all references and requirements that any of the units be owner-occupied, and allow for use of all units as either rental or ownership units at 50 Palmer Street (B-1). A public hearing on the above Petition was opened on July 16, 2008 pursuant to Mass General Law Ch. 40A, §§ 11. The public hearing was continued to August 27, 2008 and closed on August 27, 2008 with the following Zoning Board members present: Robin Stein (Chair), Elizabeth Debski, Rebecca Curran, Richard Dionne, and Annie Hams. Statements of fact: 1. The petition which is the subject of this decision was originally submitted by Salem Point Rental Properties, Corp. The name of the applicant was changed to "Salem Harbor Developers, LLC" at the request of the applicant. The request was explained in a letter from Attorney Bill Quinn dated August 13, 2008 and noted at the public hearing on August 27, 2008. 2. In a decision dated July 14, 2004, the Board of Appeals granted variances from lot coverage, side, rear and front setbacks, building height, and parking to allow fifteen(15) units of affordable housing to be constructed at 50 Palmer Street, located in the Business Neighborhood (B1) district. The affordable housing was to be made up of nine (9) owner-occupied condo units and six (6) rental units. 3. In an amended decision dated August 23, 2006, the Board of Appeals granted the petitioners request to allow all fifteen (15) units to be sold as owner-occupied condominiums. Additionally, the petitioner was granted amendments to the specific language regarding the nature of the affordable housing requirements. 4. Construction started in October of 2006 and took approximately fifteen (15) months. Certificates of Occupancy were issued for the units at 50 Palmer Street in January of 2007. 5. The Salem Harbor Community Development Corporation made a commitment to the City of Salem and other funding sources to market the units to income eligible 2 first time homebuyers through a lottery process. One person applied for the lottery. Between December and June three qualified households, submitted applications, though there were no sales. 6. Following the lack of sales, investors asked the Salem Harbor CDC to look at rental alternatives. 7. A letter dated August 22, 2008, from Lyne, Woodworth, & Evarts LLP, on behalf of RBS Citizens, National Association advised Salem Harbor Developers, LLC that they are in default on their loan. The letter specified that Citizens has the right to foreclosing the mortgage. 8. Foreclosure would remove affordable housing restrictions placed on the property. 9. Letters in support of the petitioner's request were submitted by Lynn Duncan (Director, Salem Department of Planning and Community Development), Mickey Northcutt (51 Lafayette Street), Elizabeth Hogan (Executive Director, North Shore Community Action Program), Eugenia Johnson (2 %Mason Street), Phyllis LeBlanc (Harbor Sweets, 85 Leavitt Street), James Haskell (10 Putnam Road, Ipswich, former Executive Director of the CDC), Kevin Hurley(North Shore HOME Consortium). 10. Letters of opposition were submitted by Katrina Sealey(86 Congress Street) and Peter Hackmeister(55 Perkins Street). 11. Mayor Kimberly Driscoll supplied a letter of support for the application by the Salem Harbor CDC to the Pre-Development Loan Program of the Community Economic Development Assistance Corporation. 12. A petition in support of the request was submitted by the Salem Harbor CDC and signed by approximately 300 residents. 13. A petition opposed to the amendment was submitted by Lucy Corchardo and signed by approximately 70 residents. 14. Numerous individuals attending the public hearings and spoke for and against the requested relief. The Board of Appeal, after careful consideration of the evidence presented at the public hearing, and after thorough review of the plans and petition submitted, makes the following findings: 1. Market conditions have changed substantially from the time the project started and the applicant has been unable to sell the units as affordable condominiums. 2. Allowing the petitioner's request to remove the requirement that the units must be ownership units will allow for the units to be rented; this alternative will prevent the project from going into foreclosure. 3 3. Foreclosure would remove the affordable housing restrictions and likely cause a change in the management entity of the project. The change to allow the units to be used as either rental or homeownership will ensure that the affordability componenet will remain. 4. Keeping the Salem Harbor Community Development Corporation (SHCDC) as the management entity is beneficial to the neighborhood. Allowing the project to go into foreclosure would be a great risk to the neighborhood leaving no certainty about how the property would be owned or managed. On the basis of the above findings of fact and all evidence presented at the public hearing including, but not limited to, the Plans, Documents and testimony, the Zoning Board of Appeals concludes: 1. The applicant's request to amend the decision dated July 14, 2004 is granted. This amendment will remove all references and requirement that any units be used as owner-occupied units, allowing the use of all units as either rental or ownership units. 2. In permitting such change, the Board of Appeals requires certain appropriate conditions and safeguards as noted below. In consideration of the above, the Salem Board of Appeals voted, five (5) in favor(Stein, Dionne, Curran, Harris, and Debski) and none (0) opposed, to grant petitioner's request subject to the following terms, conditions, and safeguards: 1. At the end of the fifteen (15) year period of the low income housing tax credits for affordable rental housing use of the premises, or in fifteen (15) years from the date of this decision, whichever is earlier, Salem Harbor Developers, LLC, or its successors in title or assigns, specifically including, but not limited to Salem Harbor Community Development Corporation, or any other entity owned or controlled by it (the "owner"), must enter into discussions with the City of Salem through its Department of Planning and Community Development, concerning disposition of the units in the premises. Such discussion may include review of options including, but not limited to: mix of tenure, rent to own, ownership, and rental. 2. All other conditions, not amended by this decision which were set forth in the original decision dated July 14, 2004, as well as the amended decision dated August 23, 2006, shall remain and be adhered to. Robin Stein, Chair Salem Zoning Board of Appeals 4 A COPY OF THIS DECISION HAS BEEN FILED WITH THE PLANNING BOARD AND THE CITY CLERK Appeal from this decision, if any,shall be made pursuant to Section 17 of the Massachusetts General Laws Chapter 40A,and shall be filed within 20 days of filing of this decision in the office of the City Clerk. Pursuant to the Massachusetts General Laws Chapter 40A, Section 11,the Variance or Special Permit granted herein shall not take effect until a copy of the decision bearing the certificate of the City Clerk has been filed with the Essex South Registry of Deeds. w ZONING BOARD OF APPEAL PETITION FORM r �covoip�t CITY OF SALEM,MASSACHUSETTS de , ZONING BOARD OF APPEAL 120 WASHINGTON STEET,31to FLOOR 6J SALEM,MASSACHUSETTS 01970 m c ':9 t OJr - T s ¢ Amy Lash,Staff Planner Thomas St.Pierre,Building Inspector r N 'GIN 978-619-5685/£978-740-0404 t.978-619-5641/f.978-740-9846 ° rn C fNF ., c r; TO THE BOARD OF APPEAL: 1� The Undersigned represent that he/she is/are the owners of a certain parcel of land located at: 1( 00 Address: 50 Palmer Street, Salem Zoning District: B — 1 An application is being submitted to the Board of Appeal for the following reason(s): This statement must describe what you propose to build, the dimensions,the zone property is in,and the zoning requirements. Example: 1 am proposing to construct a 10'x 10'one story addition to my home located at 3 Salem Lane, in the R-2 Zoning District. The Zoning Ordinance requires the minimum depth ofthe rear yard to be 30feet. The current depth of my rear yard is 32 feet;the proposed addition would reduce the depth of the rear yard to 22 feet. Applicant requests amendment of prior July 14, 2004 Decision to delete all references and requirements that any units be used as owner—occupied. units and to allow use of all units as either rental or owned units. For this reason I am requesting: O Variance(s)from provisions of Section of the Zoning Ordinance,specifically from N.A. (i.e.minimum depth ofrearyard). What is allowed is (ft?sq ft?stories? %?), and what I am proposing is (ft?sq ft?stories?%?). ( )A Special Permit under Section of the Zoning Ordinance in order to N. A. ( )Appeal of the Decision of the Building Inspector(described below): The Current Use of the Property IIS dwelling units Are the lot dimensions included on the plan? (example. Two Family Home) constructed' ( )Yes ( )No n/a because The Undersigned hereby petitions the Board of Appeal to vary the terms of the Salem Zoning Ordinance and allow the project to be constructed as per the plans submitted,as the enforcement of said Zoning By-Laws would involve practical difficulty or unnecessary hardship to the Undersigned and relief may be granted without substantially derogating from the intent and purpose of the Zoning Ordinance. , ZONING BOARD OF APPEAL PETITION FORM The following written statement has been submitted with this application: O For all Vanance requests a written Statement of Hardship demonstrating the following must be attached: a) Special conditions and circumstances that especially affect the land,building,or structure involved, generally not affecting other lands,buildings,and structures in the same district; b) Literal enforcement of the provisions of the Ordinance would involved substantial hardship to the applicant;and c) Desirable relief may be granted without substantial detriment to the public good,and without nullifying or substantially derogating from the intent of the district or the purpose of the ordinance. O For all Special Permit requests a Statement of Grounds must be attached. An application for a special permit for a nonconforming use or structure shall include a statement demonstrating how the proposed change shall not be substantially more detrimental than the existing nonconforming use to the neighborhood in accordance with Art.V, § 5-3. Such a statement should include reference to the following criteria: a) Social,economic,or community needs served by the proposal; b) Traffic flow and safety,including parking and loading; c) Adequacy of utilities and other public services; d) Impacts on the natural environment,including drainage; e) Neighborhood character;and f) Potential fiscal impact,including impact on City tax base and employment. Previous applications to the Board of Appeals involving this property have been submitted with this petition form. The Building Commissioner can provide documentation ofprevious applications to the petitioner or his representative. d ..,Salem Point Rental /f different than petitioner.' -Properties, Corp. Petitioner: Property Owner: Address: 102 Lafayette Street Address: Salem, MA 01970 Telephone: Telephone: Signature William F. Quinn, Esq. Signature(Attached consent letter is also acceptable) Attorney—in—fact 6/24/08 Date Date /f dii ferent than petitioner: A TRUE Representative: ATTEST Address: Telephone: Signature Date DATE SUBMITTED TO BOARD OF APPEALS: CITY CLERK This original application must be filed with the City Clerk. I Y CITY OF SALEM, MASSACHUSETTS BOARD OF APPEAL 120 WASHINGTON STREET, 9RD FLOOR - p SALEM, MASSACHUSETTS 01970 L" S •moi C iTANLEY J. USOVICZ, JR. TELEPHONE: 978-745-9595 L MAYOR FAX: 978-740-9846 N P D DECISION ON THE PETITION OF SALEM POINT RENTAL PROPERTIES LLC REQUESTING A VARIANCE FOKTHE PROPERTY LOCATED AT 50 PALMER" STREET B-1 A hearing on this petition was held on July 14,2004 with the following Board Members present;Nma Cohen Cbairman,Bonnie Belair,Stephen Harris,Joseph Barbeau and Edward Moriarty. Notice of the hearing was sent to abutters and others and notices of the hearing were properly published in the Salem Evening News in accordance with Massachusetts General Laws Chapter 40A. The petitioner is requesting Variances from lot coverage,side,rear and front setbacks, building height and parking for 15 cars to construct 15 units for the property at 50 Palmer Street located in a B-1 zone. The Variances,which have been requested,may be granted upon a finding by this Board that: a. Special conditions and circumstances most which especially affect the land, building or structure involved and which are not generally affecting other lands, buildings and structures involve. b. Literal enforcement of the provisions of the Zoning Ordinance would involve substantial hardship,financial or otherwise,to the ptCdiOwm c. Desirable relief may be granted without substantial detriment to the public good' and without nullifying or substantially derogating from the intent of the district of the purpose of the Ordinance. The Board of Appeal,after careful consideration of the evidence presented at the hearing, and *ter viewing the Plalte,maker is X110 .;&g'fia�..:t,gs of fact 1. Petitioner Salem Point Rental Properties Corporation,a Dort-profit Massachusetts Corporation,seeks variances to allow-c onsftue im upona.lot of vaeant land at 50 Palmer Street contains about 15,228 square feet,said construction to consist of a three-story townhouse style strumae which will contain fifim units of affordable housing,consisting of six three-story units each of which will contain both an affordable owner-occupied dwelling on the second and third floors and an affordable rental apartment on the first floor,and three affordable owner occupied flats with one of each of the first,second and third floors,and the associated landscaping and on-site parking spaces for fifteen cars as depicted in the plans. These improvements are more specifically laid out as shown on the 3 page of DECISION OF TIE PETITION SALEM POINT RENTAL PROPERTIES LLC REQUESTING A VARIANCE FOR THE PROPERTY LOCATED AT 50 PALMER STREET B-1 page two cn building and site plans for"50 Palmer Street"prepared by Luna Design Group fort OBoarSalem Harbor Community Development Group,dated May,2004,as Sled with 140— Board d of Appeals,Petitioners presentation was made by Attorney William Quinn,aD Executive Director of Salem Harbor CDC James Haskell and project Architec4 Joq> Luna of Luna Design Group. Mft 2. To construct the development,the petitioner has requested variances from the N provisions of the zoning ordinance applicable in the B-1 Zone,as follows:lot coverageto exceed 40.1.,fi+ont yard setback less.than 15 feet,side yard width less than 10 feet,rear yard width less'than 30 feet,building height over 30 feet and parking for 15 cars shown on the plans rather than the larger number and space sizes required by the Zoning Ordinance, all as shown and specified on the plans submitted Petitioner argues that the ground justifying the variances are a combination of factors unique to the land,as well as economic,as follows:the small size of the lot and the fact that it is surrounded on three sides by public streets constitutes physical impediments that prevent the lot from being developed in any meaningfid and economically feasible way in conformity with the setback requirements of the Zoning Bylaw: further,the size and density of residential uses in the buildings in the immediate area, combined with the modest economic means of area residents,are physical and economic factors that make it unfeasible to build a conforming structure on the land,and constitute a hardship to the owner that justifies the granting ofthe variances for this development. 3. Petitioner advocated the project as providing 15 units of affordable housing, including nine units for owner-occupancy,which is badly needed in the neighborhood and the City. Petitioner will conduct a lottery under the supervision of the Salem Planning Department,and/or other governmental officials as Program regulation or financing may require,to designate the purchases of the owner-occupied units,with the intent of providing preference to Salem residents for at-least 701/6 of the units to be sold. The affordability of all 15 units is to be assured for a period of fifty(50)years from the date of this decision by the incorporation of Affordable Housing Restrictions approved by the City of Salem Planning Department. 4. Several residents and municipal officials,including Ward 1 Councilor Lucy Corchado and Councilor At- Large Joan Lovely,spoke in favor of the proposal. Letters of support by neighbors, including one by the immediate abutter,were filed with the Board. Two neighborhood owners stated concerns about the adequacy of the on-site parking,and the applicant provided additional information in response to the concern that was satisfactory to the Board No one spoke or communicated to the Board in opposition to the petition. V) DECISION ON THE PETITION OF SALEM POINT RENTAL PROPERTIES� LLC c�. REQUESTING A VARIANCE FOR THE PROPERTY LOCATED AT 50 PALMED STREET B-1as page three D .: 5. The Board found that the proposal as designed was the product more than a year'O_, Vft work by the applicant to identify and obtain feedback on affordable housing needs N from community advocates and residents,plan development with the City of Salem Planning Department,and review by the City of Salem Design Review Board. The applicant will also go through the site plan approval process with the City of Salem Planning Board,and will be subject to affordable housing requirements imposed with governmental grants and/or financing for the development On the basis of the above findings of fact,and on,the evidence presented at the hearing, the Zoning Board of Appeal concludes as follows: 1. Special conditions exist when especially affect the subject property but not he District 2. Literal enforcement of the provisions of the Zoning Ordinance would involve substantial hardship to the petitioner. 3. Desirable relief can be granted without substantial detriment to the public good and without nullifying or substantially derogating from the intent of the district or the purpose of the Ordinance. Therefore,the Zoning Board of Appeal voted 5 in favor and 0 in opposition to grant the Variances requested, subject to the following conditions: 1. Petitioner shall comply with all city and state stature,ordinance,codes and regulations. 2. All construction shall be done as per the plans and dimensions submitted and approved by the Building Commissioner. 3. All requirements of the Salem Fire Department relative to smoke and fire safety shall be strictly adhered to. 4. Petitioner shall obtain a building permit prior to beginning any construction. DECISION OF TIE PETITION OF SALEM HARBOR RENTAL PROPERTIES LLC REQUESTING A VARIANCE FOR THE PROPETY LOCATED AT 50 PALMER STREET B-1 page four 5. Petitioner shall obtain approval from any City Board of Commission having g� jurisdiction,including,but not limited to the Planning Board00 6. Petitioner shall obtain a CertlScate of Occupancy. D 3 7. The Petitioner shall adopt and incorporate into the ownership documents for 4b dwelling units of the project such as Affordable Housing Restrictions as are approved by the City of Salem Planning Department whether acting for itself,or as the designee of any other governmental agency or department,including the United States Department of Urban Housing and Development and/or the North Shore Home Consortium,as will assure that all fifteen(15)dwelling units of the project will be retained as affordable housing by low and.very low income individuals and families for a period of fifty(50)years from the date of this decision. Variance Granted July 14,2004 Una CohenV_ Lam\ Boatel of Appeal ` •1 A COPY OF THIS DECISION HAS BEEN FILED WITH THE PLANNING BOARD AND THE CITY CLERK Appeal from this decision, if any,shall be made pursuant to Section 17 of the Massachusetts General Laws Chapter 40A,and shall be filed within 20 days date of Sling of this decision in the office of the City Clerk Pursuant to Massachusetts General Laws Chapter 40A,Section 11,the Variance or Special Permit granted herein shall not take effect until a copy of the decision bearing the certificate of the City Clerk that 20 days have elapsed and no appeal has been filed,or that,if such appeal has been filed,that's has been dismissed or denied is recorded in the South Essex Registry of Deeds and indexed under the name of the owner of record or is recorded and noted on the ownces Certificate of Title. ESSv, "'`C,ISTRY DISTRICT Board of Appeal Date AUG 1 7 2004 JORI"_.v c 1 OF DEEDS I hereby certdy that 20 days have expired from the date this instrument was received. DATE and that NO APPEAL has been filed in this office. RECEIVED_0'CLOCK_h'__ EiK s'G A True Copy v ATTEST—CITY RK, Salem, Mass. 2006090600205 W26058 P1;562 MOSQUE M03:00 OTHER a MG HOME INVESTMENT PARTNERSHIPS PROGRAM 1 AFFORDABLE HOUSING RESTRICTION SALEM POINT RENTAL PROPERTIES CORPORATION, a Massachusetts non-profit corporation organized and operating under M.G.L.c.180,with an address of 102 Lafayette Street, Salem, MA 01970 (the 'Borrower")grants with quitclaim covenants,to the North Shore HOME Consortium, its successors and permitted assigns (the "Lender"), exclusively for the purpose of ensuring the sale of housing for homeownership by low income persons and families,the following described Affordable Housing Restriction on land located in Salem, Massachusetts, having an address of 50 Palmer Street,said land being described in Exhibit A,("Premises"). The terms of this Affordable Housing Restriction,authorized by G.L.,c. 184,as.31-33,and otherwise by law,are as follows: 1. The purpose of this Affordable Housing Restriction is to assure that the Premises will be retained as affordable housing for occupancy by low and very low income families. 2. The Borrower intends,declares and covenants,on behalf of itself and its successors and assigns, that the covenants and restrictions set forth in this Affordable Housing Restriction regulating and restricting the use, occupancy and transfer of the Premises (i) shall be and are . covenants running with the Premises, encumbering the Premises for a term of fifty (50) years following completion of the Project(as defined below),which shall in no event occur later than December,2007,binding upon the Borrower's successors in title and all subsequent owners of the Premises,(ii)are not merely personal covenants of the Borrower,and(iii)shall bind the Borrower and its successors and assigns(and the benefits shall inure to the Lender and to any past,present or prospective tenant of the Premises). The Borrower acknowledges that it has received assistance from the Lender in developing the Premises as affordable housing for homeownership, which assistance includes a loan from the Lender under the HOME Investment Partnerships Program (the"HOME Program"). This Affordable Housing Restriction shall continue in force for its stated term regardless of the prior repayment of such loan. 3. This Affordable Housing Restriction is intended to be construed as an affordable housing restriction as defined in Section 31 of Chapter 184 of the Massachusetts General Laws which has the benefit of Section 32 of said Chapter 184, such that the restrictions contained herein shall not be limited in duration by any rule or operation of law except to the period of fifty(50)years set forth in the Promissory Note. The Borrower hereby agrees that any and all requirements of the laws of The Commonwealth of Massachusetts to be satisfied in order for this Affordable Housing Restriction to constitute deed restrictions and covenants miming with the land shall be deemed to be satisfied in full and that any requirements of privity of estate are intended to be satisfied,or in the alternative,that an equitable servitude has been created to insure that this Affordable Housing Restriction runs with the land. 4. Each and every contract, deed or other instrument hereafter executed conveying the Premises or portion thereof shall expressly provide that such conveyance is subject to this Affordable Housing Restriction, provided, however, that the covenants contained herein shall survive and be effective regardless of whether such contract, deed or other instrument hereafter executed conveying the Premises or portion thereof provides that such conveyance is subject to this Affordable Housing Restriction. 5. The Premises shall be used as the location for fifteen(15)owner occupied,dwellings, eleven (11) of which are assisted by the proceeds of this loan (the "Project"). The Project shall contain complete facilities for living,sleeping,eating,cooking and sanitation which are to be used on an owner occupied basis. Each unit in the Project shall meet the housing quality standards set forth in the regulations of the Department of Housing and Urban Development as 24 C.F.R. See. 982.401 or any successor thereto. 6. (a)The Borrower shall not discriminate on the basis of race,creed,color,sex,age, handicap,marital status,sexual preference,national origin,or any other basis prohibited by law in the sale, lease, use and occupancy of the Project or in connection with the employment or application for employment of persons for the operation and management of the Project. The Borrower shall not discriminate against,or refuse to sell, lease,rent or otherwise make available units in the Project to, a holder of a certificate of family participation under the Federal Rental Certificate Program (24 C.F.R. Part 882) or a rental voucher under the Federal Rental Voucher Program(24 C.F.R.Part 887)or a holder of a comparable document evidencing participation in a HOME Program tenant-based assistance program because of the status of the prospective tenant as a holder of such certificate of family participation,rental voucher or comparable HOME Program tenant-based assistance document. (b) The Borrower shall adopt and submit to Lender for approval sale selection policies and criteria acceptable to Lender that are consistent with 24 CFR 92.254. 7. (a) During the term of this Affordable Housing Restriction,the Premises shall be marketed as Affordable Housing for purchase exclusively by Families (as defined below) whose annual incomes are eighty percent(80%)or less of the median income for the Area("Low Income Families") based on family size as determined by HUD. A "Family" is defined as one or more individuals occupying a unit and satisfying the standard adopted by HUD for the so-called Section 8 program under the United States Housing Act of 1937 and promulgated at 24 C.F.R.Part 812. The "Area"is defined as Boston PMSA. A Family's annual income shall be anticipated total income from all sources received by the Family head and spouse(even if temporarily absent)and by each additional member of the Family(other than children under the age of 18 year), including all net income derived from assets for the twelve-month period following the effective date of certification of income. Annual Income specifically includes and excludes certain types of income as set forth in, and shall be determined in accordance with, 24 C.F.R., Sec. 813.106 (or any successor regulations). (b)The Premises will have an initial purchase price and estimated appraised value at acquisition that does not exceed 95%of the median purchase price for the Area,for the type of dwelling for the jurisdiction as determined by HUD,which amount may be appealed in accordance with 24 CFR 203.18(b). (c) The Premises shall be the principal residence of the owner whose family qualifies as a low-income family at the time of purchase. 8. The Borrower represents, warrants and covenants that the determination of whether a Family meets the income requirements set forth herein shall be made by Borrower at the time of sale of a unit in the Project. Borrower shall maintain as part of its Project records,copies of all purchase and sale agreements,and all initial and annual income certifications by purchasers of the Project. 9. In the event that the Borrower is unable to sell the Premises as set forth above,with the consent of the Lender, the Borrower may rent the Premises but only to tenants on the terms and conditions set forth in 24 CFR 92. 10. The Premises shall be available for subsequent purchase, after the initial sale by the Borrower, only to a low income family which will use the property as its principal residence and only in compliance with the requirements set forth in Section 7 above. Any such subsequent sale must be approved in writing by the Lender,which must determine in granting such approval that the owner will receive in such subsequent sale a fair return on investment including any improvements made by the owner. 11. The Borrower shall not include in any agreement for the sale of a unit or lease for a unit in the Project any of the following provisions: (i) Agreement by the buyer or tenant to be sued,to admit guilt or to a judgment in favor of the Borrower in a lawsuit brought in connection with the deed or lease. (ii) Agreement by the tenant that the Borrower may take,hold or sell personal property of household members without notice to the buyer or tenant and a court decision on the rights of the parties. This prohibition, however, does not apply to an agreement by the tenant concerning disposition ofpersonal property remaining in the unit after the tenant has moved out of the unit. The Borrower may dispose of such personal property in accordance with state law. (iii) Agreement by the buyer or tenant not to hold the Borrower or the Borrower's agents legally responsible for any action or failure to act,whether intentional or negligent. (iv) Agreement of the buyer or tenant that the Borrower may institute a lawsuit without notice to the buyer or tenant. (v) Agreement by tenant that the Borrower may evict the tenant or household members without instituting a civil court proceeding in which the tenant has the opportunity to present a defense,or before a court decision on the rights of the parties. (vi) Agreement by the buyer or tenant to waive any right to a trial by jury. (vii) Agreement by the tenant to waive the buyer's or tenant's right to appeal, or to otherwise challenge in court,a court decision in connection with the purchase and sale agreement or lease. (viii) Agreement by the buyer or tenant to pay attorney's fees or other legal costs even if the buyer or tenant wins in a court proceeding by the Borrower against the buyer or tenant. The buyer or tenant,however,may be obligated to pay costs if the tenant loses. 12.The Borrower shall not demolish any part of the Project or substantially subtract from any real or personal property of the Project except in conjunction with renovation or rehabilitation of the Project subject to the prior written consent of the Lender,which consent may be granted or withheld in the Lender's sole judgment. The Borrower shall not permit the use of any residential unit for any purpose other than single family home ownership or rental housing. 13.The Borrower represents,warrants and agrees that if the Project,or any part thereof,shall be damaged or destroyed,the Borrower(subject to the approval of the Lender(s)which will provide the financing)will use reasonable efforts to repair and restore the Project to substantially the same condition as existed prior to the event causing such damage or destruction, and the Borrower represents, warrants and agrees that the Project shall thereafter continue to operate in accordance with the terms of this Affordable Housing Restriction. 14.Any use of the Premises or activity thereon which is inconsistent with the purpose of this Affordable Housing Restriction is expressly prohibited. Borrower shall carry out each activity provided for in this Agreement in compliance with all applicable federal laws and regulations described in 24 C.F.R., Sec 92.350(equal opportunity and fair housing),Sec. 92.351 (affirmative marketing),Sec.92.353(displacement,relocation and acquisition),Sec.92.355(lead-based paint), Sec. 92.356 (conflict of interest), See. 92.357 (debarment and suspension and Sec. 92.358 (flood insurance). Borrower, during its ownership hereby grants to Lender and its duly authorized representatives the right to enter the Premises(a)at reasonable times and in a reasonable manner for the purpose of inspecting the Premises to determine compliance with this Affordable Housing Restriction or any other agreement between Borrower and Lender and(b)after thirty(30)days prior written notice, to take any reasonable and appropriate action under the circumstances to cure any violation of the provisions of this Affordable Housing Restriction. The notice referred to in clause (b)shall include a clear description of the course and approximate cost of the proposed cure. 15. The rights hereby granted shall include the right of Lender to enforce this Affordable Housing Restriction by appropriate legal proceedings and to obtain injunctive and other equitable reliefagainst any violations,including without limitation relief requiring restoration of the Premises to its condition prior to any such violation(it being agreed that the Lender will have no adequate remedy at law),and shall be in addition to,and not in limitation of,any other rights and remedies available to the Lender. Borrower,during its ownership covenants and agrees to reimburse Lender all reasonable costs and expenses (including without limitation reasonable counsel fees) incurred in enforcing this Affordable Housing Restriction is acknowledged by Borrower or determined by a court of competent jurisdiction to have occurred. By its acceptance of this Affordable Housing Restriction, Lender does not undertake any liability or obligation relating to the condition of the Premises. If any provision ofthis Affordable Housing Restriction shall to any extent be held invalid, the remainder shall not be affected. 16. The Lender is authorized to record or file any notices or instruments appropriate to assuring the enforceability of this Affordable Housing Restriction; and the Borrower on behalf of itself and its successors and assigns appoints the Lender its attomey-in-fact to execute,acknowledge and deliver any such instruments on its behalf. Without limiting the foregoing,the Borrower and its successors and assigns agrees to execute any such instruments upon request. The benefits of this Affordable Housing Restriction shall be in gross and shall be assignable by the Lender. The t Borrower and the Lender intend that the restrictions arising hereunder take effect upon the date hereof, and to the extent enforceability by any person ever depends upon the approval of governmental officials,such approval when given shall relate back to the date hereof regardless of the date of actual approval or the date of filing or recording of any instrument evidencing such approval. 17. Notwithstanding anything herein to the contrary, but subject to the next succeeding paragraph hereof,if the holder of record of a first mort a e g2jLd to a state or national bank,state or federal savings and loan association, cooperative bank, mortgage company, trust company, insurance company or other institutional lend eF shall acquire the Property by reason of foreclosure or similar remedial action under the provisions ofsuch mortgage or upon conveyance ofthe Property in lieu of foreclosure,and provided that the holder of such mortgage(x)has given Lender not less than sixty(60)days'prior written notice of its intention to foreclose upon its mortgage or to accept a conveyance of the Property in lieu of foreclosure and(y)agrees to recognize any contractual or legal rights of public agencies, non-profit sponsors, or others to take actions that would avoid termination of low-income affordability of the Project, then the rights and restrictions herein i ed shall not avEly to such holder u on such ac uisition of the Pm er or to anpurchase of the Property from such holder, and such Property sha , subject to a next two suttee m sentences, thereafter be free from all such rights and restrictions. The rights an restredons contained herein s not apse r e roperty rs acqure oug foreclosure or deed in lieu of foreclosure by(i)Borrower;(ii)any person with a direct or indirect financial interest in Borrower; (iii)any person related to a person described in clause(ii)by blood,adoption or marriage;(iv)any person who is or at any time was a business associate of a person described in clause(ii);and(v) any entity in which any of the foregoing have a direct or indirect financial interest(each a"Related Party"). Furthermore,ifthe Premises are subsequently acquired by a Related Party during the period in which this Affordable Housing Restriction would have remained in effect but for the provisions of this Section,this Affordable Housing Restriction shall be revived and shall apply to the Property as though it had never lapsed. In the event such holder conducts aforeclosure or other proceeding enforcing its rights under such mortgage and the Property is sold for a price in excess of the sum of the outstanding principal balances of all notes secured by mortgages of the Property plus all future advances,accrued interest and all reasonable costs and expenses which the holders thereof are entitled to recover pursuant to the terms of such mortgages,such excess shall be paid to the Lender in consideration of the loss of the value and benefit of the rights and restrictions herein contained and released by the Lender pursuant to this Section in connection with such proceeding(provided,that in the event that such excess shall be so paid to the Lender by such holder,the Lender shall thereafter indemnify such holder against loss or damage to such holder resulting from any claim made by the mortgagor of such mortgage to the extent that such claim is based upon payment of such excess by such holder to the Lender in accordance herewith,provided that such holder shall give the prompt notice of any such claim and shall not object to intervention by the Lender in any proceeding relating thereto). To the extent the Borrower possesses any interest in any amount which would otherwise by payable to the Lender under this paragraph, to the full extent permissible by law, the Borrower hereby assigns its interest in such amount to said holder for payment to the Lender. 18. Any notice,request or other communication which either party hereto may be required or may desire to give hereunder shall be in writing,and shall be deemed to have been properly given if hand delivered or if mailed by United States registered or certified mail,postage prepaid,return receipt requested,addressed as follows: If to Borrower: Salem Point Rental Properties 102 Lafayette Street Salem,MA 01970 If to Lender: The North Shore HOME Consortium City Hall 24 Lowell Street Peabody,MA 01960 ATTN: Executive Director or such other address as the party to be served with notice may have furnished in writing to the party seeking or desiring to serve notice as a place for the service of notice. A notice sent by fust class mail shall be deemed given two days after mailing;a notice delivered by hand shall be deemed given upon receipt. 19. This Affordable Housing Restriction may not be amended,nor may any obligation hereunder be waived or released,without fust obtaining the written consent of the Lender,which consent shall not be unreasonably withheld or delayed. No documentary stamps are required as this Affordable Housing Restriction is not being purchased by the Lender. Executed under seal this((day of_04t1i.4/,2006. 1 SALEM POINT RENTAL PROPERTIES CORPORATION v Michael Whelan,Executive Director Hereunto duly authorized COMMONWEALTH OF MASSACHUSETTS Essex, ss On this�� day of 006,before me,the undersigned notary public,personally appeared Michael Whelan as E ecutive Director of SALEM POINT RENTAL PROPERTIES CORPORATION, proved to me through satisfactory evidence of identification, which was P/1 oAiaf /GIt(!w/ to be the person who signed the preceding or attached document in my presence,and who swore or affirmed to me that the contents of the document are truthful and accurate to the best of his knowledge and lief. � Notary Public �— My commission expires: ACCEPTANCE OF GRANT BY LENDER The above Affordable Housing Restriction is accepted this jday of$g«rryy8Q006. THE NORTH SHORE HOME CONSORTIUM h J! e� grrHFii.r:G. Michael J.Bonfanti Mayor,City of Peabody-the Representative Community for the North Shore HOME Consortium COMMONWEALTH OF MASSACHUSETTS Essex, ss. On this day of 2006,before me,the undersigned notary public,personally appeared Michael J.Bonfantl,as Nlayor of the City of Peabody,proved to me through satisfactory evidence of identification,which was p aAA~— 0 IAN&e 4 g to be the person who signed the preceding or attached docum nt in my presence,and who swore or affirmed to me that the contents of the document are truthful and accurate to the best of his knowledge and belief. otary Public My commission expires: jko%L�IAt a0 it �'t LIS<ati(�ftS'cNE •': f•iY yuan Fj:rn;E;na?s :c.Ll11i ACCEPTANCE OF GRANT BY LENDER The above Affordable Housing Restriction is accepted this day of L006. NORTH SHORE HOME CONSORTIUM, its successors and permitted assigns,acting by and through the City of Salem Kimberley Driscoll Mayor, City of Sale COMMONWEALTH OF MASSACHUSETTS Essex, ss. On this�day of � V L f 2006,before me,the undersigned notary public,personally appeared Kimberley Driscoll,as ayor of the CITY OF SALEM,proved tome through satisfactory evidence of identification,which was ena, o,,. l.n.� ,to be the person who signed the preceding or attached document in my presence,and who swore or affirmed to me that the contents of the document are truthful and accurate to the best of her knowledge and belief. �� 2 _ Notary Publ c L-r— ",A� JULIE LYNN QUINN My commission expires: rvw LS zo,Z Notary Public CommomveaAh of Massachusetts My Commission Expires November 23,2012 ACCEPTANCE OF GRANT BY LENDER /� The above Affordable Housing Restriction is accepted this Z 3 day of /duCrwt/}20o6. LIFE INSURANCE COMMUNITY` INVESTMENT INITIATIVE,LLC COMMONWEALTH OF MASSACHUSETTS ss. , On this a day of d 7006,before me,the undersigned notary public,personally appeared SO. 7-3 . S�-61f SJAt j e( as &a PNa; "4of LIFE INSURANCE COMMUNITY INVESTMENT INITIATIVE,LLC,proved to me through satisfactory evidence of identification, which was ti5Cn o , to be the person who signed the preceding or attached document in my presence,and who swore or affirmed to me that the contents of the document are truthful and accurate to the best of his/her knowledd/ge and belief. / d. Notary Public My commission expires: ALLISON ANN SHERRICK ' Notary Public CCo Massachusetts My My Commission Expires August 3,2012 Exhibit A-Property Description Exhibit A Property Description The land and buildings situated in said Salem,and shown as Lot 1 on a"Plan of Land in Salem,MA prepared for Keefe's Hayloft,Inc.By David P.Terenzoni,P.L.S.dated August 21,2003. Address of granted premises: 50 Palmer Street,Salem,Essex County,Massachusetts Title Reference:Book 21656, Page 298,Dated August 29,2003 Grantor(s): Keefe's Hayloft,Inc. i 1 Salem ' Harbor COMMUNITY DEVELOPMENT CORPORATION 102 Lafayette Street, Salem, Massachusetts 01970 Telephone: (978)745-8071 • Fax: (978)745-4345 To: Salem Board of Appeals Date: August 18, 2008 From: David Jacobson, President Salem Harbor CDC Re: Petition to Amend Variance grant for 50 Palmer St. 1 appreciate this opportunity to address you concerning the Salem Harbor Community Development Corporation (SHCDC). Since May 2008, I have been the President of this organization. I-began my participation with the SHCDC in order to give back to the community and I chose this organization in particular knowing the importance of affordable housing to the citizens of Salem and the reputation of the SHCDC while blending in my interest in real estate and finance. Since its organization in 1979, the SHCDC has been dedicated to providing affordable and good housing to the people of Salem, particularly in the Point area. It has also provided numerous other services to improve the lives of those same citizens. We are now here before you, the Board of Appeals, to ask your help. Without this assistance, the very ability of the SHCDC to continue providing affordable housing for the benefit of the community will be greatly impaired if not eliminated. In 2004, this Board granted the SHCDC the right to construct 15 affordable condominium units on Palmer Street. Everyone was pleased with this result. Our plans, our budget, our dreams, and our goals foresaw a further advance in the community's housing through affordable home ownership. This goal was another example of the SHCDC's dedication to the community. Our intention was to provide new housing to the residents of the area and not just a recycled old building, thereby updating the housing stock for the first time in over 75 years. This development was and still is an example of our commitment to the Point. We completed this beautiful project in January 2008 in conformity with all of our pledges and promises. Unfortunately, we are all at the mercy of economic and political forces. We all know that the economic environment in which we now find ourselves is one of rising fuel and food costs, tighter mortgage requirements. a growing bank and mortgage crisis, and a general. decline in economic activity and production. This situation combined with increased layoffs and a lack of funds available for affordable housing has altered the entire economic environment in which we now find ourselves. This situation was never anticipated in 2004 and has resulted in major problems for numerous developers including the SHCDC. THIS AGENCY SUPPORTED BY United @Way Combine the above with the poor current state of the SHCDC's financial position and we have a situation that requires immediate action and your assistance. As a non-profit, the SHCDC does not have the resources or the same options that may be available to for profit organizations. We cannot"carry" this development for months or years waiting to sell the units nor do we have the financial backing to do so. We also do not have other developments or the income necessary to cover the high costs of Palmer Street. Additionally, many residents depend upon the SHCDC for their housing needs and any disruption in our ability to provide affordable housing to both current and future tenants in the Point would be at risk from a failure on the part of this Board to act. I would just like to remind you that the SHCDC's management is totally new and was not involved in the organization in 2004 so any promises that were made then or any actions taken by the SHCDC since the new management team has been in place should not be attributed personally to current management. However, we do not disavow our former promises but seek to broaden our ability to achieve them. Ultimately, our goal and the communities' goal should and must be to provide affordable housing to those in need whether by rental or ownership. It would be easy to point the finger of blame and refuse to make changes that rationality requires. It would be easy to force the SHCDC to continue on a course of almost certain disaster. It would be easy to hold the SHCDC to promises made 4 years ago when the real estate market and economy were far different. But who gains from this position? Certainly not the SHCDC which could fail thus eliminating the major stock of affordable housing in the area. Absolutely not the residents who would lose the access to this housing and future development by the SHCDC. Not the current tenants of SHCDC properties who would have new private landlords without the mission of the SHCDC. Finally, not the community, for whatever might be said of the SHCDC, no one can claim that this organization has not provided affordable housing for many thousands of area residents over the years. Many arguments have been made against approval of this change. Some local landlords have opposed this change because of personal financial harm. They fear that renting these 15 units will create a glut of units on the market thus impacting on their ability to rent their own units. We do not deny them this right and in fact understand and sympathize with them. However, we also believe they are incorrectly reading the situation. Whether we are allowed to rent or forced to sell these units, the current residents of this area will be the prime residents of our property. So there will be 15 new units as part of the local stock one way or the other. They will all be part of the current tenants. Others, in the community at large, would argue against the SHCDC's request because of their perception that the SHCDC's actions have been harmful to the area. I cannot imagine a more hurtful complaint. The SHCDC is a non-profit whose dedication to the Point is above reproach. It has always been totally committed to helping the community and any attempt to paint the CDC as an interloper or a cancer are totally without any substance. We admit that perhaps, our communications have not always been as frequent or coordinated as they could be and we have already begun to rectify that mistake. In particular, since the last ZBA meeting, we have had our own meetings with landlords from the Point to discuss areas of mutual interest and how we can work together to improve our relationship with the police department and obtain their commitment for increased activity. We have also had multiple meetings with Lucy Corchado and other community leaders. These meetings focused first upon their views of the SHCDC and secondly on the Palmer Street Development. These preliminary meetings will lead to further occasions at which we can discuss with both the leaders and residents of the community how to undertake improvements in the area and especially improve their perception of the SHCDC. No matter what those actions already undertaken by the SHCDC may achieve, what we now seek from this Board today is nothing more than a change in zoning that will allow us to rent rather than sell those units on Palmer Street. This change would allow for the successful conclusion of the project and bring more units of affordable housing to the area, all laudable goals. Since last November the SHCDC has attempted to live by its promises to the Board and to sell these units but have been unable to do so. Our efforts were far-reaching. Anyone who believes that we have not tried hard enough is wrong. Yet none of our efforts resulted in even one P & S being signed despite our best efforts. Certainly, we could always spend more money on marketing and delay this request for a change to rental units into the future, but given the current economic environment and the future trends and prognostications this would not help because, 1. it would require the expenditure of large sums of money for more marketing which the CDC does not have., 2. it would mean continuing mortgage payments and other carrying costs that the CDC also does not have, 3. it would mean obtaining the cooperation of our bank which cannot be guaranteed, 4. it would mean that the CDC must obtain additional sources of funding simply to pay-off the contractor which funds are unavailable, and 5. it would mean accepting a risk that we could actually sell the units and within a reasonable time period. The risk of total failure is too great. The likely result would be a mortgage foreclosure against the SHCDC that would immediately remove this property as affordable housing and allow some private investor to sell at market rates, if they so desired. At a minimum, it would bring into the community a developer no longer dedicated to the area but seeking only profits. r It would also mean an end to the SHCDC's ability to borrow funds in the future and therefore our ability to provide future stocks of affordable housing. It would also mean a severe financial loss to the SHCDC in the I00,000s of dollars. Finally, it could mean the eventual sale of all currently SHCDC-owned property to private developers with the possible demise of the SHCDC. Any scenario in which the SHCDC is destroyed or financially neutered is an unacceptable event for the SHCDC itself, its numerous tenants, the community, and the city as a whole. Is this scenario inevitable?No. There is always the possibility that the economy and real estate market will turn around quickly. But this is highly unlikely as we all know. The Massachusetts real estate market will be in funk for years to come. The alternative is for the SHCDC to be allowed to rent the property and therefore continue its history of providing affordable housing now and in the future. We must remember that the community's needs do not end even if this entire development was sold as condominiums and the work of the SHCDC will not cease whether it is sold or rented. Is there an alternative to no change? Yes,the units could be converted into rental units. The CDC, itself, is not the only one convinced that renting is the only viable alternative. The mayor, the planning department, the DHCD, CEDAC have all recognized that the only solution to our current problem is the transformation of this property into rental units. Suggestions, by some, to a"rent to sell"paradigm ignores the fact that to take this direction would force the CDC to carry a mortgage far greater than can be covered by the rent of this property for an undetermined period of time without any guarantee that the units would eventually sell which would result in a financial disaster for the SHCDC. Meanwhile, once some units are sold,the opportunity to change direction again to rental, if needed, would be gone. There could be no going back to the solution that we now present to the Board. An appraisal done for the CDC by an independent appraiser clearly demonstrated that in the current economy we would have to reduce the selling prices dramatically before even attempting to sell the units. If we sold them at these suggested reduced prices the CDC would lose at least $600,000. Yet, even these suggested prices are not certain to encourage sales, given the current economy and future predictions. Some real estate agents have told us that we must sell as close to $100,000 as possible to move them and then it may take up to 18 months to do so. Yes, at some price,they might sell, but at that nebulous price the SHCDC would be the greatest financial loser. Even then, to sell at fire sale prices the SHCDC would be in violation of the terms of our note and the bank could foreclose causing the same irreparable harm as indicated above. Then why should the Board not approve this request? The destruction of the SHCDC is not what is best for the community The SHCDC is going through a major transitional period now. For the first time in the last few years, our financial results are improving rather than degrading. Just when the SHCDC is on the verge of reversing it's fortunes is not the time to force it into financial ruin. We have and will continue reaching out to the community in ways that will enhance the opportunities and living conditions of all the residents but this can only be accomplished if the SHCDC survives as a viable financially-strong organization. We pledge to improve our communications with community organizations, residents, landlords and community leaders to merge our actions and goals and create a stronger bond. This process has already begun. We do recognize that this change that we request from the Board alters the goals and dreams of some in the community, but are they better served by having no non-profit organization offering affordable housing? Is it actually better to force a result upon the SHCDC that ends in fewer options for the community in the future merely to emphasize the "breaking" of the SHCDC's original promise back in 2004? There is nothing wrong with opposing any change that substantially impacts a community. However, this Board exists to evaluate the rationale behind all requests and to apply reason not emotion to its decisions. We beseech this Board to look beyond this one development at the totality of the results that could flow from a refusal to grant our �request. � l David M Jacobson C , Esq. Professor of Accounting Salem State College President of the Salem Harbor CDC MEMO. To: City of Salem Zoning Board of Appeals From: Mike Whelan, Executive Director Salem Harbor CDC Re: Petition to Amend Zoning Board of Appeals Decision to Grant Variance for the property located at 50 Palmer St On July 14 2004,the Zoning Board of Appeals granted variances from lot coverage, side, rear and front setbacks,building height and parking to construct fifteen residential units at the above referenced property. Since this relief was granted, the petitioner has met all of the conditions except for last which is to create affordable housing that will be retained for 50 years. The reason for this request is to allow Salem Harbor CDC meet this condition. Between September 2007 and March 2008, the value of the property dropped more than $850,000 which is more than a 31% decline in value. Values of homes in the Point neighborhood have continued to drop since March. As a result, it is financially impossible to sell these units to families as owner occupied condominiums because the proceeds from the sale at these reduced prices will put SHCDC in default with the construction lender. Under the terms of the loan agreement, we cannot convey clear title to buyers because,it would require the construction lender to release its lien for a sale price that is below the amount of the construction loan that needs to be repaid. The only way to preserve this property as affordable housing is to change it to affordable rental housing because we have received a commitment of Low Income Housing Tax Credits that will generate the funds to pay off the construction loan. Failure to do this will end in a foreclosure that will eliminate the affordability restrictions and lose more than $2 million dollars of public funds that have been loaned to this project. In addition to the loss of affordable housing, SHCDC will lose control of the property. It will most likely end up in the hands of an investor who does not have the interest of the neighborhood in mind. The following attachments and supporting information provide more detail on the reasons that there is no other option than to convert this to affordable rental housing. I. Brief History and Change in Market Conditions II. Financial Analysis III. Community Process IV. Consequence of failure to receive requested relief I. Brief History and Change in Market Conditions Salem Harbor Community Development Corporation (SHCDC)purchased the property at 50 Palmer St in August 2003. In the period prior to 2003 and the construction started in October of 2006, the organization secured financing and implemented an environmental remediation plan for the site, secured acquisition and predevelopment financing, went through an extended community process which included the review and final approval of permits for the project from the Zoning Board of Appeals, Planning Board and Design Review Board. During this same time frame, SHCDC secured funding commitments from the North Shore Home Consortium, City of Salem, Affordable Housing Trust Fund and Citizens Bank. Subsequent to permitting, there was an extended design and engineering process through the end of 2005 when contract documents were distributed to qualified contractors for bid. This was an unusually lengthy pre-development period during which construction costs continued to rise. When construction bids were received and reviewed, they were over the projected budget. This required a redesign to lower construction costs (eg. value engineering process). The project concept was also modified from a mixed rental and ownership to 100% ownership. The project was subsequently brought into line with an achievable budget and construction began in October of 2006. SHCDC made a commitment to the City of Salem and other funding sources to market the units to income eligible first time homebuyers through a lottery process that included a preference for Salem residents. This effort was synchronized with First Time Homebuyer Training Programs which the SHCDC offers throughout the year. Housing Resources Group, LLC which is marketing consultant firm with specialized expertise in affordable housing lotteries was retained to work with SHCDC staff to implement the marketing program. Preparation occurred during the summer of 2007 and actual marketing ran from October through early December of the same year. When the outcome of these efforts produced a single applicant, we immediately engaged in a series of meetings with the Department of Housing and Community Development. At that time we learned that the experience in Salem was similar to other affordable homeownership developments in Boston and Worcester. We made a strong case that we could sell these units through a revised marketing strategy. Marketing The attached marketing plan describes the team and the activities that were implemented from December 2007 through June 2008. We engaged the assistance of Mr. George Fallon who was running the sales effort of a market rate condominium development at Peabody Crossing in Peabody. It should also be mentioned that Jason Pina who is on the staff of SHCDC is a licensed real estate agent. This combined expertise of professionals and the senior staff at SHCDC developed an approach which would address the unique challenges specific to the Palmer Cove Development. The three unique factors of product, location and price defined the parameters of the marketing challenge. Product These units contain deed restrictions which limit the resale price and require that they be conveyed to income eligible households through a 50 year affordability period. Income eligibility is not to exceed households earning more that 80% of the Area Median Income based on household size for the Boston-Cambridge Metropolitan Area as defined by the Department of Housing and Urban Development on an annual basis. For the current year maximum incomes range is between $46,500 and $71,450 for one to five person households. The target income groups were households earning between $35,000 and $60,000 per year. Location The gross data of declines in median sale prices conceals the.fact that certain segments of the market have retained more value while others have lost value at a more rapid rate. Inner city urban neighborhoods like the"Point"are more severely affected by the decline in values than other sections of Salem and beyond. hi June of this year there were two hundred condominiums on the market in Salem. The current pricing of the Palmer Cove Units was in the bottom 16%of the price ranges for Salem condominiums. According to the March study, the price points that were set between$142,500 and $189,900 were still - too high for the property location. Price In mid December the news came out that a softening national housing market had turned into a market of declining values in the third quarter of 2007. The Standard and Poor's Case-Schiller Index reported that slowing rates of annual returns (appreciating housing values)turned into a negative annual return of-3.5% for the Boston Metropolitan area. We proceeded with the revision and implementation of a marketing plan with the intention of determining the validity of price points which were confirmed through an opinion of value prepared by the Appraisal Company of New England in September of 2007. This report rendered two values for each of the three unit types based on an "unrestricted market value"approach and a"restricted market value"approach which took the deed restrictions for each of the three unit types into consideration. Unit T e Unrestricted Value Restricted Value Sale Price 2 BR 741 sq. ft. $205,000 $185,000 $142,500 2 BR 1,140 sq. ft. 5215,000 $176,000 $169,900 3 BR 1,470 sq, ft. $250,000 $194,000 $189,900 As our efforts produced a reasonable level of activity and interest through January and early February, the monthly reports on the local and national housing market continued to get worse. Although there was a great deal of positive feed back and interest from prospective homebuyers, there were signed agreements to purchase. We commissioned a second study to determine what adjustments to price would be required in order to move the units. The results which were provided in early March revealed a substantial decline in values and provided no assurance that lowering prices would accelerate sales to a level where all the units would be absorbed prior to the end of 2008. Unit Type Restricted Value Restricted Value Change 9/07 3/08 9/07 to 3/08 2 BR 741 sq. ft. $185,000 $109,900 $75,100 2 BR 1,140 sq. ft. $176,000 $129,900 $46,100 3 BR 1,470 sq, ft. $194,000 $149,900 ($44,100) Although the directive for the March study is different from the opinion of value rendered in September '07 there is an$858,900 difference in gross sale proceeds between these two reports. The actual effect of reducing the current sale price to the March '08 level is a reduction of$555,000 in gross sale proceeds which creates a$608,000 gap when additional carrying costs through December 2008 were factored into the budget. More than one hundred and fifty households viewed the units between December and June. Feed back was positive. Several applications were received during this period but not all were qualified.-Three qualified applications were received and the unit-was reserved for these households until it became clear that we were not going to be able to adjust prices to levels that would stimulate additional commitments. By the end of March it became clear that these units would not sell at the current price levels. The anticipated burst of spring time activity was not realized and activity diminished significantly in April and May. Attachments: • 8.17.08 Globe North Article • September 2007 Opinion of Value • March 2008 Market Analysis • Palmer Cove Marketing Plan 8.17.08 Globe North Article Condo auctions skyrocket-The Boston Globe Page 1 of 2 bostoll.Coto THIS STORY HAS BEEN FORMATTED FOR EASY PRINTING REGION �11C 3t108tO1t�1p11C Condo auctions skyrocket Foreclosures triple in cities north of Boston By Kathy McCabe, Globe Staff I August 17, 2008 Pond View Village promised to turn an old glue factory in Gloucester into 125 affordable apartments and condominiums. But with only the first two phases completed, and many units unsold, a foreclosure auction is scheduled Tuesday for three lots on which the final units were to be built. Palmer Cove Condominium, a 15-unit development in Salem, was built to create affordable home ownership in The Point, the city's poorest neighborhood. But after only one person applied to buy, the nonprofit developer now wants to rent out the units to avoid foreclosure. 'When we started this project in 2004, there was a need for home ownership,"said Michael Whelan, executive director of Salem Harbor CommunityDevelopment Corp. "There still is a need but I P p clearly there has been a market adjustment." Y Condo foreclosures are picking up across the region north of Boston. Hardest hit are cities,where developers once rushed to convert old buildings and homes. For the first six months of the year, the rate of condo foreclosures more than tripled in the largest cities north of Boston, according to The Warren Group, a Boston publisher of real estate data. In Haverhill, 32 condos were sold at foreclosure auctions from January to June, a 129 percent increase over the 11 units sold in the same period in 2007. In Lynn, where old commercial space downtown was turned into lofts, condo foreclosures jumped 118 percent, to 24 for the first six months of this year, compared with 11 the year before, the data show. Chelsea had 15 condo foreclosures for first six months of this year, a 114 percent increase, from seven for the same period last year. In Revere, foreclosures surged 340 percent, to 22 condo units, compared with five sold at auction for the first half of 2007. Salem's condo foreclosure rate jumped 78 percent, with 16 units foreclosed upon from January to June, compared with nine units for the same time last year, the data show. Statewide, foreclosures of all residential property- including single-and multi-family homes-more than doubled for the first half of 2008, rising 118 percent compared with the same period in 2007, according to The Warren Group. In Essex County,foreclosures continue to outpace the state average, rising 130 percent from January to June, compared with the same period in 2007. In Middlesex County, which includes Everett and Malden, foreclosures increased 114 percent, slightly less than the statewide average. Foreclosures likely will continue to hamper the Bay State's housing market, said Tim Warren, chief executive of The Warren Group. "I don't think the market will really recover this year,"Warren said. "I hope it does so in the first half of next year, when prices could stabilize. In order for that to happen, sales will have to pick up." The credit crunch is one reason the condo developments in Gloucester and Salem are on the brink of foreclosure. Cape Ann Housing Opportunity Inc., a nonprofit developer, purchased the former LePage's glue factory in West Gloucester in 2002.The group received almost$20 million in public and private financing, with the largest stake made by the Massachusetts Housing Investment Corp., a nonprofit community development http://www.boston.com/news/local/articles/2008/08/17/condo_auctions_skyrocket?mode=PF 8/18/2008 Condo auctions skyrocket- The Boston Globe Page 2 of 2 bank. MassHousing invested about$16 million, through a mix of loans and tax credits, to finance the project. The first phase, consisting of 43 apartments, was built on time. But construction delays, a lawsuit filed by abutters, and the real estate slowdown combined to hurt the second and third phases. Cape Ann Housing Opportunity couldn't make its loan payments to MassHousing. A spokeswoman for Cape Ann Housing deferred comment to its Boston lawyer, Travis Norton,who did not return a telephone call. MassHousing last year took title to half of the condo units,which now are being sold for about$200,000 each, an official said. "You sell for what the market will bear,"said Joseph Flatley, president of MassHousing. 'The units are more affordable than we intended." MassHousing moved to foreclose on the third phase of the project. Three lots of land are due to be auctioned Tuesday. The agency will submit a bid, hoping to gain a clear title to the property, Flatley said. "We need to get control of this land," he said. "It's a good housing development.We just hit the market at the wrong time." In Salem,the$4.6 million-Palmer-Cove Condominiums includes 15 condominiums, ranging in price from $142,500 to$189,900. Salem Harbor Community Development planned to sell them through an affordable housing lottery. But the lotterydrew only one applicant, despite marketing efforts that included first-time homebuyer workshops,Whelan said. With a $2.2 million construction loan overdue, Salem Harbor asked the city's zoning board to convert the project to rental units.A public hearing on the request is due to continue on Aug. 27. The state Department of Housing and Community Development has agreed to let Salem Harbor participate in a low-income housing tax-credit program, Whelan said. Salem Harbor would generate equity on its investments and repay the construction loan. The units would be kept as affordable rental housing for at least 15 years, he said. "We feel its a very good plan,"Whelan said. "It's far better than the alternative-foreclosure. That's what we're trying,to avoid." Kathy McCabe can be reached at kmccabeCi7a globe.com. ■ ©Copyright 2008 The New York Times Company ht4)://.www.boston.com/news/local/articles/2008/08/17/condo auctions_skyrocket?mode=PF 8/18/2008 September 2007 Opinion of Value APPRAISAL COMPANY OF NEW ENGLAND Appraisers & Consultants 230 Jones Road,Unit 6,Falmouth,MA 02540•Phone: 508-540-0448 Fax: 508-548-2995 1411aw.appraisalcornpmrvcom E-Mail:paul(a?.appraisalcompanv.com Date: September 18,2007 To: Michael Whelan, Executive Director From: Paul J. Hartel Re: Estimated As Restricted Values RESTRICTION SUMMARY The units are restricted by a deed restriction, which limits the fee ownership rights; these restrictions reduce the market value of the property. The units are to be restricted for a period of fifty years as follows: • The unit must be a principal residence of the owner, • The unit cannot be rented or leased, • The property cannot be refinanced in an amount greater than 90%of the"Limited Resale Price", • Any financing must be approved by DHCD,MHP, &AHT, and • Financing can not be variable rate and must be considered commercially reasonable An owner of a restricted unit that wishes to sell their unit will need to follow a specific series of steps: • Upon decision to sell they must provide DHCD, MHP, &AHT with o a written notice of the desire to sell; o a appraisal of the fair market value of the unit; o a list of the existing secured debt; and o a supportable list of capital expenditures for which recovery is sought • Within 30 days DHCD, MHP, &AHT will either: o Allow the property to be sold unrestricted and collect a"Recapture Amount" o Purchase the property at the"Limited Resale Price" with a closing in 90 days o Notify the owner that they intend to sell the property to a qualified family, with a closing to be within 135 days • If no sale occurs with 135 days, the owner may sell the unit as unrestricted, but must pay a"Recapture Amount' Any sale to a qualified family will be subject to the"Limited Resale Price" The Limited Resale Price" is defined as the price the current owner paid inflated by the cost of living index (CPI) plus any reasonable accepted capital improvements to the property. This effectively allows the unit owner to realize a leveraged return of 2% to 3% (based on historical changes) on the unit, and provides a substantial upside to a homeowner. For example: Assuming the original purchased paid of $180,000 with 95% financing ($9,000 down payment) in 2007 and desires to sell in 2010. If inflation is at 2.5% annually, the Limited Resale Price -- would-be $193,840± and the gain to the seller of $13,840 would — - represent a 36%±annual rate of return on the down payment. The restriction is unclear on how to handle a circumstance where CPI has increased(causing the Limited Resale Price to rise); but the Area Median Income (AMI) has dropped or interest rates have climbed, or a combination of both (causing the eligible Purchasers Maximum Price to drop), such that a qualified family would not be eligible for the"Limited Resale Price". Any sale prior to the lapsing of the Restriction(50 Years) that will result in the restrictions being cancelled is subject to a"Recapture Amount' The"Recapture Amount' is the greater of either; • an amount equal to the HSF Assistance Amount(as reduced at 1150 per year since the restrictions inception) and the AHT Assistance Amount(also reduced at 1150 per year since the restrictions inception)or • the Actual Sale price less the"Limit Resale Price'; but in no event will the Recapture be greater than the "Net Proceeds" (Sale Price less allowable secured debt,real estate commission,recording costs, appraisal fee, and excise taxes) Depending on the amount of the HSF Investment and the AHT Assistance amount at purchase the net gain to a seller would appear to be generally higher if the restriction stays in place and avoids the "Recapture,Amount', the "Limited Resale Price" allows some profit to be retained by the seller; the recapture clause appears to eliminate any. MARKET VALUE"AS RESTRICTED" The terms of the restriction provides formula driven pricing. The units are to be sold to an "Eligible Buyer" who shall meet the "Qualified First Time Buyer" provision and the "Qualified Family" provisions. The primary limitations on sales price are the limits on the amount of income that can be spent on housing. A "Qualified Family" is one earning less than 80% of the median income for the area as defined by HUD According to HUD's specifications the Area Median Income by household size is as follows: Area Median Income 2 Person 3 Person 4 Person 100% $ 66,188 $ 74,438 $ 82,688 The unit size based on number of bedrooms determines the maximum family size, which can be used; two bedroom units are based on the maximum of a three person household and three bedroom units are based on a four person household. The maximum amount of household income that be used for housing is limited to 30% of total income; this amount must include real estate taxes, property insurance, condominium fees, private mortgage insurance, and mortgage payments. The project has estimated condominium fees for each unit type, real estate taxes are estimated based on restricted market value and the current mill rate of$10.77, and PMI is based on.78%of the mortgage amount. A check of BankRate monitor indicated that as of September 19, 2007, searching for the best 30 year, zero point products in the area with 5% down yielded several sources of loans between 5.750% and 6.125%: Bankrate Monitor Metheun Area Rate Points 30 Yr Fixed 5%Down Daylight Discount Mtg 6.000% 0 - HomeQuest Mtg 6.125% 0 Mortgage Capital Associates 6.125% 0 American Enterprise-Bank of Florida 6.125% 0 Amerisave 5.750% 0 Typical practice for developer calculations includes a 50 basis point cushion be added to these rates to allow for increases in rates. In this instance, a 25 basis point cushion is considered reasonable, given a December close. The recent Federal interest rate cut and low inflation numbers supports downward pressure on rates over the next several months. We have utilized 6.250%as our fixed rate. The final values for the restricted price are summarized below along with the unrestricted prices: Type Beds Size Unrestricted Restricted Value Value Unit A 2 Bed 741 $ 205,000 $185,000 Unit B 3 Bed 1,470 $ 250,000 $194,000 Unit C&D* 2 Bed 1,140 $ 215,000 $176,000 *This is a lower value than the smaller Unit A as the condo fee is less for Unit A allosing for more money to be put toward mortgage payments,therefore,a bigger mortgage for Unit A and a higher value than Units C&D. Please see the attached worksheets. Model A Worksheet 2 Bedroom Small Annual Monthly Housing Limit 80%AMI 3 person $ 59,550.00 $ 4,963 Max to Housing 30% $ 17,865.00 $ 1,489 Housing Expense Assessment Rate RE taxes $ 175,000 $ 10.77 $ 1,884.75 $ 157.06 Condo Fees $ 1,332.00 $ 111.00 PMI $ 160,710 75.00% $ 1,253.54 $ 104.46 Property Insurance - $ . 1,100.00 $ 91.67 Total Estimate Housing Expense $ 5,570.29 $ 464.19 Available for Debt Service $ 12,294.71 $ 1,024.56 Maximum Mortage 90% Term 30 Rate 6.000% Rate Cushion 0.250% Rate Utilized 6.250% Calculated Maximum Mortgage $166,401 Indicated Restricted Sales Price $184,890 Restricted Value(rounded) $185,000 Model B Worksheet 3 Bedroom Annual Monthly Housing Limit 80%AMI 4 person $ 66,150.00 $ 5,513 Max to Housing 30% $ 19,845.00 $ 1,654 Housing Expense Assessment Rate RE Taxes $ 175,000 $ 10.77 $ 1,884.75 $ 157.06 Condo Fees $ 2,640.00 $ 220.00 PMI $ 168,111 0.75% $ 1,311.27 $ 109.27- Property Insurance $ 1,100.00 $ 91.67 Total Estimate Housing Expense $ 6,936.02 $ 578.00 Available for Debt Service $ 12,908.98 $ 1,075.75 Maximum Mortage 90% Term 30 Rate 6.000% Rate Cushion 0.250% Rate Utilized 6.250% Calculated Maximum Mortgage $174,715 - Indicated Restricted Sales Price $194,127 Restricted Value(rounded) $194,000 - Model C& D Worksheet 2 Bedroom Large - Annual Monthly Housing Limit 80%AMI 3 person $ 59,550.00 $ 4,963 Max to Housing 30% $ 17,865.00 $ 1,489 Housing Expense Assessment Rate RE Taxes $ 160,000 $ 10.77 $ 1,723.20 $ 143.60 Condo Fees $ 2,052.00 $ 171.00 PMI $ 160,000 75.00% $ 1,248.00 $ - 104.00 Property Insurance - $ 1,100.00 $ 91.67 Total Estimate Housing Expense $ 6,123.20 $ 510.27 Available for Debt Service $ 11,741.80 $ 978.48 Mortage Assumption 90% Term 30 Rate 6.000% Rate Cushion 0.250% Rate Utilized 6.250% Calculated Maximum Mortgage $158,918 Indicated Restricted Sales Price - $176,575 Restricted Value(rounded) $176,000 SUMMARY OF SALIENT FEATURES Subject Address 50 Palmer St Legal Descripdon Book:26501 Page:59 City Salem - County Essex - State MA lip Code 019703953 - Census Tract 2043.00 Map Reference 21604 Sale Price $ WA Date of Sale - 001:9/7/07 - - - '-' --'- - - Borrower WA Lender/Ceem Salem Harbor CDC Size(Square Feet) 750 - Price per Square Foot $ Location Average Age 0 Condition Good Total Rooms 4 Bedrooms - 2 Baths 1 Appraiser Paul Hartel Date of Appraised Value September 7,2007 Opinion of Value $205,000 Fan SS02—'WInTOTAL'appmisal software by a k mode,me.—.1-B00.ALAMODE SUMMARY OF SALIENT FEATURES Subject Address 50 Palmer Sl Legal Description Book:26501 Page:59 City Salem County Essex State MA his Code - 019703953 - Census Tract 2043.00 Map Reference 21604 Sale Price $ N/A .. _. .. Dateof Sale 1301:9/7/07 Borrower N/A —- Lender/Cherc Salem Harbor CDC Size(Square Feet) 1,065 Price per Square Foot E Location Average - Age 0 condition Good Total Roams 4 Bedrooms 2 Baths i Appraiser Paul Hartel Date of Appraised Value September 7,2007 Opinion of Value $ 215,000 Form SSD2—'WinTOTAL'appraisal software by a In mode,mc.—1.800-ALAMODE SUMMARY OF SALIENT FEATURES Subject Acidness 50 Palmer St Legal Description Book:26501 Page:59 City Salem County Essex State MA Zip Code 01970-0953 Census Tract 2043.00 Map Reference 21604 Sale Nee - $ WA Date of Sale D01:9/7/07 _ .. _. .. .. Borrower N/A Lender/Client Salem Harbor CDC Size(Square Feet) 1,470 Price per Square Foot $ Location Average Age 0 CmMiM1on Good Total Roome 6 Bedroom 3 Baths 1.5 Appraiser Paul Hartel Date of Appraised Value September 7,2007 Opinion of Value $250,000 Farm SS02—'WinTOTW appraisal software by a Is mode,inc.—1-80D AtAMODE March 2008 Market Analysis APPRAISAL COMPANY OF NEW ENGLAND Appraisers & Consultants Since 1987 230 Jones Road,Unit 6,Falmouth,MA 02540•Phone: 508-540-0448 Fax: 508-548-2995 www.aanraisalcompany.com E-Mail:paul(uannraisalcoinoamzcom March 6,2008 Michael Whelan,Executive Director Salem Harbor Community Development Corporation 102 Lafayette Street Salem,MA 01970 RE: Palmer Cove at 50 Palmer Street in Salem,MA Dear Mr.Whelan: _ The Appraisal Company of New England has been requested to provide an overview of the market conditions facing the new affordable condominium project at 50 Palmer Street in Salem, MA and to provide an opinion of pricing alternatives and a strategy to hasten absorption. Recent reports have forecast a housing slump or continued down turn through 2009 for parts of the country. While New England is not likely to be part of the hardest hit, areas with urban blight will be more affected. Nationwide declines of 9% to 12% have been predicted by economists at Freddie Mac. Forecasts are always nearly impossible to quantify but given enough publicity, they can become self fulfilling. While no empirical evidence can be found, the appraiser believes the current media rich environment has influenced many people into not pursuing major investments like a home, for fear that the economy will deteriorate, interest rates will drop further, or housing prices will be lower next year; any of which leads the prospective buyers to take a wait and see stance. Despite recent cuts in interest rates by the FED, the mortgage lending industry has been under substantial pressure to be more rigid and have tighter guidelines; lending rates have actually Michael Whelan,Executive Director Salem Harbor Community Development Corporation March 6, 2008 increased over the last few months. Furthermore, most economic indicators point to the country either being in or approaching a recession. The US dollar is at an all time low as measured against many foreign currencies, gold, oil and other commodities are at all time high prices and the equity markets have seen wild fluctuations, mainly to the down side (the DOW is 15%off it's recent high in October 2007). To reflect local conditions in the immediate area; we have reviewed historical data for trends. We have interviewed local brokers and lenders to understand their views on the influences of the housing market, this information and our research into previous sales and current offerings provides the basis for out analyses. After reviewing market conditions we have reviewed the subject's appeal and how it fits with general market expectations. We have considered alternative options for prospective buyers and tried to quantify their intuitive decision making steps. Finally we have looked at the demand for the subject. Market Conditions There are two primary sources of tracking data; the Warren Group (formerly known as Banker & Tradesman) and the Multiple Listing Service, which is utilized by the brokerage industry. Both sources have their strengths and weaknesses, in this assignment we have studied the data sources carefully to understand the historical trends, both indicate that the market is experiencing a down tum. The number of closed transactions is dramatically down as is the average recorded sale price. The average condominium sale price in Salem as reported by Warren Group in January 2006 was $329,200 and has fallen 24% to $249,599 in January 2008; MLS had a less dramatic decline from$334,104 to $276,645 (17%) over the same two year period. Appraisal Company of New England Page 2 of 13 Michael Whelan,Executive Director Salem Harbor Community Development Corporation March 6, 2008 $350,000 Average Sale Price ®B&T ■MLS $325,000 $300,000 $275,000 $250,000 $225,000 $200,000 . 50 ob pb of oo d°_ P^ o^ PC o� oe o� P� Seo The volume of closed sales fell from 28 to 10 (64%)by Warren Group statistics, MLS reported a 54% decline(24 to 11) from January 2006 to January 2008. Number of Sales 60 B&T *MLS 50 40 30 20 t0 0 Ob 03 Ob ro S 5�4 o Appraisal Company of New England Page 3 of 13 I Michael Whelan, Executive Director Salem Harbor Community Development Corporation March 6, 2008 The appraiser considered the impact that foreclosure sales may have had on these statistics and found that in general, while bank foreclosures and subsequent resales are present in the data, they have not materially altered the underlying market. Some lenders appear to foreclose and record amounts that reflect all outstanding loans, fees and expenses, while others appear to record a price reflecting the actual market price, regardless of the outstanding debt. The number of foreclosure related sales appears to be about 5% of the market's total transactions each month. Marketing time for condominiums has increased, in the most recent months, MLS is showing that Salem condominium units took an average of about 110 days (about 3 %: months) on the open market to sell. Further, the current inventory in Salem has 178 condominiums listed with an average of asking price of$279,363 and average days on market of 158.6 (5.3 months). With a current absorption of about 15 sales per month, the existing inventory is sufficient to supply sales for the next 10 months. Competitive Sales Activity Within Salem, the subject's immediate area has very few owner occupied units or houses and a source of steady police activity. The location was specifically chosen for a. new project to inspire rejuvenation of the entire neighborhood. As the fust substantial project, it is facing difficulties common to urban pioneers. Nearby, at 65 Palmer St a multifamily complex was purchased on August 5, 2004 for $1,000,000 and underwent conversion and limited renovation into 12 units ranging from $174,900 to $209,900. The units have been marketed since April 2007, with four units having been sold between $179,900 and $199,900. Seller has reduced prices on several units; is currently offering to pay 6 months of condominium fees on others, and has reduced co- brokerage commissions. The owner is also offering to rent for up to one year and apply '`/� of a Appraisal Company of New England Page 4 of 13 Michael Whelan,Executive Director Salem Harbor Community Development Corporation March 6, 2008 $1,300/month rent toward the down payment on $199,900 (unit #63-1 two bed one and half bath 1,089±SF). 65 Palmer's renovation was not as dramatic as the ground up new construction for the subject, rather a paint and cosmetic type upgrade. Several sales of nearby units have recently been completed after dramatic price cuts; 90 Congress St(unit 4R) located one block from the subject was listed in April 2007 for$169,900 and was reduced several times over the next several months, finally to $129,900 and sold in late November 2007. The unit was remodeled inside and had 3 bedrooms and one bath with a total of 1,350± SF of living space. Within the same complex, 86-88 Congress St#4 a smaller 771± SF 2 bedroom unit which was originally listed for$185,000 in May 2006 sold for$130,000 in March 2007 for$130,000. 90- 92 #3R Congress St originally listed for $164,500 for a 1,350± SF three bedroom unit was briefly under agreement in October 2007 back came back on the market until February 2008 when the listing was canceled . The last asking price was$134,500. The Salem market as a whole has not been as affected; several areas of relative growth and vitality continue to see steady sales activity. In particular condominiums in and around the downtown area are considered strong. This region appears to be appealing to both young professionals and older retires, the wide variety of attractions, shops and restaurants all located along pedestrian friendly streets and sidewalks are all contributors to its current strength. One new and active project is "Latitude" at 281 Essex St. The converted mill/office building features restaurant and retail space on first floor, lofts units on the second thru fourth floor and some units on the first as well. 20 residential units total; from 716± SF one bed, one bath for $185,000 to 1,222± SF two bed, two bath penthouse for$320,000. Units have been marketed since September 2007. These units are located near the center of Salem's downtown region. and offer significant local amenities and attractions within walking distance. Reportedly 14 Appraisal Company of New England Page 5 of 13 Michael Whelan, Executive Director Salem Harbor Community Development Corporation March 6, 2008 units are under agreement for closing in spring upon final certificate of occupancy. The likelihood of these units closing is uncertain, the appraiser was unable to ascertain the level of "reserved" that the units had been place, it is possible that the reservations are offers and could have significant contingencies such as the sale of another property or home. The sales activity appears to have created urgency for people to "reserve" these units and its marketing appears very effective to date. Its true effectiveness will only be realized when the units are actually recorded and the realized prices can studied for incentives or discounts. The subject's area does not yet have any of the positive influences that the downtown region has attained and appears to have suffered the brunt of the current downturn. The immediate market has rapidly deteriorated, based on sales and offerings in the locus of the subject, with several units' asking prices being dropped about 25% before selling and others still unable to sell with even larger price changes. Simultaneously the number of offerings and the creativity of incentives to induce buyers have grown. Market values for condominiums in the subject's area have declined about 20%over the last year. The subject's current pricing vanes from$142,500 for a 747± SF two bedroom to $189,900 for a 1,4701 SF three bedroom one and half bath unit. The condition of the subject is clearly superior to all of the surrounding properties, being the only newly built building in the immediate neighborhood and also one of the few properties with on site parking, both of which are substantial positive benefits. Subject's Deed Restrictions The subject is deed restricted to remain an affordable housing unit. These restrictions have several limitations which affect its marketability. The unit can only be sold to a qualifying individual, in general a first time home buyer whose family income is limited to specific. calculated values and who have limited assets. The unit can not be rented, but must remain Appraisal Company of New England Page 6 of 13 Michael Whelan,Executive Director Salem Harbor Community Development Corporation March 6, 2008 owner occupied. These restriction limit the return any purchaser could realize in the future, the units can not become a second home or investment when the buyer decides to move, it must be sold and the return on their sale price will be limited by the resale price limitations which is tied to the growth of the economy(CPI). These limitations are severe compared to an unrestricted unit which can be used to build equity. The restrictions hinder the size of the market in which the units can be sold, an investor cannot purchase the units, nor can an individual making more than$47,000± (for a family size of 1). A downsizing couple can not purchase the units with proceeds of a house sale as they are likely to be disqualified by both excessive assets and not being fust time homebuyers. The "market" is compromised of a limited number of current renters, typically earning less than $20/hour. The dilemma facing the subject property is not unique; many affordable housing for sale projects have faced similar issues. At issue is the inability to attract potential purchasers for affordable restricted units. The restrictions place a cap on the sale price of any resale, and limit the amount of encumbrances permitted. The market values in the subject's immediate area are currently falling, and at present, are within a few percentage points of the calculated maximum restricted affordable sale prices. This nominal differential places the restriction limitations into focus; how much of an additional return would a prospective buyer require to purchase a restricted unit? At issue is the spread that the market will demand between the price of a restricted unit and an unrestricted unit. In areas with high housing costs, where median condominium prices approach $500,000 or more and affordable units are priced in the $150,000 range, the spread allows the market to easily absorb the units. When the spread between a community whose median price is near$200,000 and affordable units are priced at $150,000, the market is not as ready to assume.that the affordable unit option offers much advantage. At the subject where Appraisal Company of New England Page 7 of 13 Michael Whelan, Executive Director Salem Harbor Community Development Corporation March 6,2008 the market value appears to be almost in line with the current affordable pricing, the market sees little to any advantage to the restrictions. The current deteriorating market conditions make the decision to not purchase an affordable unit even more compelling; the market prices of unrestricted units will tend to fall more rapidly than restricted units. The public will tend to watch overall market conditions more closely in a community that could see market values of unrestricted units approach the price and affordability of restricted units and then be able to realize the benefit of ownership without the restrictions of limited resale prices which limit profit potential and other options such as converting the unit into investment property. Price Differential The Appraiser has reviewed the trends in the local Salem community and other areas where median market values are in close proximity affordable restricted units and estimated that in a declining market, the "spread" or differential to attract activity needs to be at least 20% for a traditional mixed project that entails both market rate units and affordable units. The subject's 100% affordable mix of two and three bedrooms has created some additional concern in the market. The project appears to segregate all affordable units into one building; this is counter the concept of a 40B development where the development typically contains only 25% affordable and no exterior indicators as to the difference between a market unit and an affordable unit are seen. The standard 40B model blends the affordable units into the community. Proponents of the 40B concept argue that it hides the affordable units within the community to give everyone an unblemished prospective. The intermixing of affordable units and market. rates units does not appear to impact the value of unrestricted units. Conversely a fully Appraisal Company of New England Page 8 of 13 Michael Whelan, Executive Director Salem Harbor Community Development Corporation March 6,2008 subsidized project along the lines of the subject tends to draw attention to the affordable aspects of the housing and can cast a negative stigma over the project. In the current market,pricing is one of the few controls that make a property stand out from the marketplace in a positive light; the new construction and parking are positive.attributes, but overall the surrounding neighborhood does not appear to be on the verge of revitalization. The market has completely reversed from the point at which this project was initiated and the surrounding property owners are not in a position to remodel and improve their own properties in a falling market with tight credit restriction and a failing economy. The appraiser estimated that the pricing of the subject units should be dramatically reduced on the order of 25% from current levels. Rent versus Own Given the limited financial upside a potential purchaser of a restricted unit can realize; it was deemed appropriate to analyze the differential between purchasing a unit and renting a unit with the cost differential invested in a savings account. We have estimated that the holding period for an affordable unit would be about five years on average. Market rent for a Type C two bedroom unit is estimated at $850/month plus utilities and initial occupancy is assumed to require fust, last and security deposit, or $2,550. The additional expenses incurred by a tenant include utilities of gas and electric, cable and phone; these same expenses would be incurred by an owner and are offsetting and not considered. To purchase a Type C unit at the current offering price of$169,900 requires a down payment of 3% or$5,097 and will entail monthly principal and interest payments of$1,105. In addition to the mortgage payments, as an owner, the purchaser will be responsible for the same utilities Appraisal Company of New England Page 9 of 13 Michael Whelan, Executive Director Salem Harbor Community Development Corporation March 6, 2008 as a renter plus, condominium fees of approximately $220, real estate taxes of $140, and property insurance of about $90, ignoring any repairs and general maintenance, an owner's estimated monthly cost of mortgage and expenses above those of a tenant are about $610 and the initial cash requirement is about$2,547. After five years the owner will have paid down their mortgage by just under $11,000 and assuming that CPI has averaged 3%, the unit will be restricted to a sale price of$196,900; after paying off the mortgage balance of$153,800 and recovering the down payment, the maximum total return is $37,400. If the tenant were to deposit the difference between the initial cash outlay of$2,550 (first, last and security) and the down payment of $5,097 or $2,547 and then added each month the difference of$610; at the end of five years the account balance at a 4% interest rate would be about$49,100. This simplistic analysis indicates that a person would be financially rewarded almost $12,000 by renting instead of owning, but we have ignored several issues including repairs and maintenance and escalating costs. Rents could increase, but simultaneously insurance, condo fees, and property taxes are all likely to increase more in the aggregate. We have also not considered possible after tax implications; for 2007 the standard deductions are $5,300 for an individual, $10,700 for a married couple filing jointly, and $7,850 for head of household, to reach$10,700 in interest deductions the sale price would need to be in excess of$178,000. We have generally assumed that the standard deduction would be more beneficial to the typical purchaser than the itemized mortgage interest and assumed that no after tax benefit would be realized by owning versus renting. Using our previous analyses, the break even point whereby the return of owning and renting are equal would be with a purchase price of approximately $121,000± for a Type C two Appraisal Company of New England Page 10 of 13 i Michael WhelanExecutive Director o Salem Harbor Community Development Corporation March 6, 2008 bedroom model. (Type D is effectively the same; rents would be similar as are condo fees) The Type B three bedroom model is estimated to have a market rent of$1,000 which results in a break even point of $140,000±. The Type A small two bedroom is estimated to have a market rent of$700 and its resulting break point would be approximately$105,000±. Prosoectin2/Marketine Avenues The subject has received some press coverage, has placed listings in the Multiple Listing Service, has held weekly open houses, and invited local brokers to informational open house; the reported traffic at the public open houses has been good, but prospects have been low. The open houses are attracting only a limited number of qualifying prospects; many have been disqualified for earning too much or having excess assets. The marketing will need to be more focused and directed at qualified prospects. The appraiser spoke to a few brokers that were aware of the subject, but more details could be presented to the brokerage community to help them get their prospects to view the property. Specific targeting of leasing agents maybe most effective, a strong rental prospect may be the best purchaser of the subject and leasing agents have more contact with these prospects than traditional selling brokers. Direct discussions with larger employers, especially those with strong long term ties to the community, represent one of the best sources of prospects. A careful marketing push to meet with the heads of these companies can highlight the benefits of helping employees to purchase a home in the area. Employers know which of their employees are in the general income guidelines needed and could offer as bonuses or other incentives some down payment assistance. This can be used as community good will advertising and also helps with employee moral, while also befitting the stability of the workforce. An employee with home ownership in the area is more likely to stay than someone that has only an annual lease, opening up the Appraisal Company of New England Page 11 of 13 Michael Whelan,Executive Director Salem Harbor Community Development Corporation March 6, 2008 possibility of a deciding to move or renew the lease each year and relocate, possible to a new area and new job. Some of the large employers include the Hospital, Salem State College, and the City itself. These options should be careful explored and tested. Conclusions The market conditions locally and the overall national economy have created a difficult housing market for marginally affordable housing units which carry very restrictive covenants. In order to absorb these units in to the marketplace they must be viewed as "Great Opportunities"to the proper market(Prospects). To create this opportunity, the subject should reduce its pricing structure to no more than: Type B Three bedroom(1,489± SF) $189,900 to$149,900($101/SF) Type D Two bedroom(1,156-+SF) $169,900 to $129,900($112/SF) Type C Two bedroom(1,113±SF) $169,900 to $129,900($117/SF) Type A Two bedroom(747±SF) $142,500 to $109,900($147/SF) As sales progress, it may be possible to increase these prices, if the market is exceeding the anticipated absorption rate. A scheduled price increase can be an effective marketing incentive to motivate prospective buyers that are"on the fence"; if they know the prices will increase. Furthermore the units needs to be exposed to the.right demographic, those that are in the lower wage earning categories, but have stable employment and incentives to remains in the area. These people can found by going to the employers and those that have traditionally help locate their housing,rental real estate agents. Contact with these sources will need to be informative, positive,and highlight the benefits to employee, employer and rental agent. Appraisal Company of New England Page 12 of 13 �I Michael Whelan, Executive Director Salem Harbor Community Development Corporation March 6, 2008 The subject has been well built and represents a dramatic improvement to the area, but its timing is unfortunate. The ultimate success of this project will not be known until the market improves and other nearby investors have the courage and incentive to undertake their own gimprovement projects, at which time the neighborhood revitalization will have begun in earnest. Thank you for this opportunity to be of service. Respectfully submitted, Appruisal Company of New-England _,._ Paul J. Hartel,RA Russell Dieter Massachusetts Certified General Massachusetts Certified General Real Estate Appraiser#531 Real Estate Appraiser#75230 PJWrd Appraisal Company of New England Page 13 of 13 Palmer Cove Marketing Plan Palmer Cove Condominium Marketing Plan Updated: April 2008 Marketing Team SHDCDC Development Staff Developer and Sales Representatives Salem Property Managers Management Agent and Marketing Support Appraisal Company of New England Advisor: Market conditions George Fallon Advisor:.Sales Strategies Rachel Kerstner Graphic Designer Marcie Hauber Closing Attorney, Tinti, Quinn Grover& Frey Marketing Statement The objective of this marketing strategy is to motivate prospective homebuyers to take a series of concrete actions which lead to fifteen signed purchase and sales agreements for units at the Palmer Cove Condominium Development. This will be informed by the message that the quality and pricing of these units creates an opportunity for first time home buyers to purchase, property that has no comparable alternative. This project addresses the desire of moderate and low income working families to own their own home. It was developed to meet these needs as well as the needs of future generations of moderate and low income households. This will be accomplished through sustained, consistent and targeted communication directed to qualified first time homebuyers followed up with direction and support through the financing process. This communication and support will be targeted to prospective first time homebuyers who currently rent in urban neighborhoods on the lower North Shore. These household are likely to have fair to good credit ratings with annual household incomes between$40,000 and$65,000. Communication will be delivered through advertising and other promotional methods that are developed, measured and refined throughout a marketing period that is currently projected to last six months. Appropriate levels of direction and support will be delivered to interested homebuyers through SHCDC staff, its agents and partners. Strategic Considerations The timing of this projects' entry into the market defines the primary challenge of this plan. The last quarter of 2007 signaled a dramatic downturn in the national and regional housing market which is comparable to the period following the Savings and Loan crisis in the late 1980's and early 1990's. There is a growing consensus among economists that the decline in sales activity and values will continue through 2008. This shift and the publicity which it has received is accompanied by a series of reactions that have effected consumer confidence and stimulated actions within the secondary mortgage market that have tightened credit. The upside to these reactions is that the Federal Reserve has taken action which will lower interest rates and is likely to continue this policy through 2008. Though some markets in the country may be protected from these trends, Salem, MA is not. According to the Warren Group, the median price of condominiums in Salem decreased by 9.77% from January 1 through November 30 of 2007. This statistic fails to eliminate sales of bank owned properties through foreclosure. It should be noted that since these sales are not valid indications of value, the actual decline in value is overstated in this statistic. The number of condominium sales decreased by 16.62% during the same period. This substantial decrease in sales activity is a clear signal that the market has shifted to a"buyers"market and there is a growing consensus among economists that continued price adjustments are likely to follow. On the positive side, we believe that the first time homebuyer population is a distinct submarket that does not rely on existing home sales to make purchase decisions. This puts them in a position to take advantage of declining prices and interest rates. The primary barrier for this group is access to credit and availability of sufficient cash to complete the transaction. Whether these trends continue at the same rate or not, we have to assume that declining sales and values will continue through the marketing period. Product The following is a summary of factors which define the competitive advantages and disadvantages of Palmer Cove Condominiums in this market. Strengths: • Quality product priced below market with no comparable alternatives in this price range. • Marketing Program includes continuum of support for prospective buyers on their first venture through the home buying process. • Financial assistance in the form of specialized mortgage financing and down payment assistance which enable households with limited cash to purchase and maintain predictable housing costs for the life of the mortgage. • Located in an urban neighborhood which is close to services, employment centers, the amenities of downtown Salem and transportation links to metropolitan Boston. • Development is sponsored by an established community development corporation with a twenty eight year commitment to improving the neighborhood. Challenges: • Current market conditions for condominium sales characterized by: 1. Consumer expectation that home prices will continue to fall. 2. Tightening of credit markets and underwriting standards. 3. Oversupply as a result of foreclosures from the sub prime lending crisis. • Deed restrictions which limit the resale value of the investment require the motivation of a non traditional homebuyer. • Safety concerns of families moving to the Point neighborhood. Price Current pricing of each unit type is based on an Opinion of Value conducted by the Appraisal Group of New England in September 2007. They rendered an opinion of"Fair Market Value"based on comparable sales and an "As Restricted Value"that calculated the attainable purchase price which would be affordable to households at 80%of the Area Median Income. SHCDC made adjustments which attempted to preserve a minimum of a 20% cushion between the sale price and fair market value. A second consideration was to find a price point which was attainable to households in the 60-80%AMI range. As market values decline, the cushion between current Sale Prices and FMV continues to erode. In the current finance structure, the project has limited flexibility to adjust sale prices. The current approach is to address the specific challenge that faces first time homebuyers which is limited cash to cover the front end expenses of a home purchase prior to reducing prices. An approach which incorporates the down payment assistance programs with concessions made by the Seller to ease this front end burden is the most efficient use of dollars to complete the sale. Seller paid closing costs, and estimated prepaid expenses are under consideration. A third concession which enhances the borrowing capability is for the seller to cover the cost of PMI out of the sale proceeds. Within the current dynamics of the market, pricing is an unresolved issue. SHCDC is testing current prices through exposure to the market and will make a decision about potential price adjustments prior to the first sale which will close at the end of February 2008. Position The goal of marketing and communications activities is to create the perception and reinforce the belief that purchasing a property at the Palmer Cove Condominium is a rare opportunity to own a home of this quality within this price range. Objectives are to: 1. Identify and refine knowledge of wants and desires of prospective first time homebuyers who currently rent in urban neighborhoods on the lower North Shore with incomes between$40,000 and$65,000. 2.. Adopt and refine the message which distinguishes Palmer Cove Condominium from other properties on the market. 3. Utilize effective channels to communicate this message to our target market as well as other parties who have contact with these households. Distinctive Characteristics: • No other new construction in this price range. • Associated energy cost saving aspects of new construction. • Limited supply of three bedroom duplex style properties • Availability of financing designed for the specific needs of first time homebuyers: • Availability of down payment assistance and other forms of support. • Developed by a community based organization which has substantial real estate holdings in the neighborhood. Promotion The promotion strategy is to organize resources to maximize activity that motivates our target market to see the units. This will consist of a combination of advertising and direct mail. Units will be shown by appointment and through regularly scheduled Open Houses. Efforts will be made to engage the Real Estate Brokerage and Finance Communities to promote our product. We will collaborate with our public partners through the City of Salem, the North Shore HOME Consortium and service organizations which have contact with our target population. Current efforts to engage area employers will also continue. Implementation Plan Sales Process The sales process will include record keeping protocols that measure advertising effectiveness, feed back on preferences and obstacles of prospective homebuyers and tracking of the contact history with all active prospects. Contact with active prospects will be managed from initial contact through the signing of a Purchase and Sale Agreement and reviewed on a weekly basis. The benchmarks of this process are: Completion of Initial Intake form Contact History (telephone, showing, loan officer feedback) Preliminary reservation of unit Application and Income verification DHCDC Approval Purchase and Sale Agreement Hand off to Closing Attorneys Promotions Plan As stated, the objective is to create maximum exposure for Palmer Cove Condominium which is oriented to motivating prospective homebuyers and those who have regular contact with prospective homebuyers to view the product. Promotions tools such as Special Events, print marketing materials, signage, direct mail and advertising will be selected based on the their effectiveness at different stages of the marketing cycle and the efficiency of the use of marketing dollars. Some of these tools will be directed to a general audience. Minimal marketing dollars will be allocated to this audience since there are low cost and informal communication networks that can be engaged to reach the general audience. This will be maintained at a sustained level throughout the marketing period. Primary investment will be made to achieve consistent contact with prospective first time homebuyers who currently rent in urban neighborhoods on the lower North Shore with annual income between $40,000 and $65,000 and those who have contact with these prospective homebuyers. The Target Audiences are: o Current and former residents of SHCDC housing and other Salem residents who currently rent. o Households that currently rent in Lynn, Peabody, Beverly and other cities and towns between Boston and Salem. o Employees of local and regional employers specifically city of Salem, Salem Hospital, Salem State College and businesses in Shetland Mills. Target Groups who have contact with these prospective homebuyers are: o Real Estate brokers o Mortgage Loan Officers o Regional employers as mentioned above. o Churches The tools that are currently or about to be used to achieve contact with these groups are: Signage We believe the most effective marketing strategy is to get people to see the units. This means that we want to tie our message to concrete actions that prospective homebuyers can take to make this step. Signage is one of the most cost effective ways to create sustained exposure which is directly tied to the product. A banner with contact information has been mounted in a high profile position at the site. A second sign is also displayed at the SHCDC Offices. On open house days, signs will be strategically placed in high traffic areas to direct traffic to the building. Events . Since the objective of advertising and promotion activity is to get people to see the units. Events are planned to maximize project exposure to prospective home buyers and potential partners who have regular contact with prospective first time home buyers. Ribbon Cutting: In addition to creating an opportunity to celebrate the construction phase of this project and acknowledge our investors, this launching event provides a benchmark for launching the marketing period. Open House: An initial bi weekly Open House schedule is set. Opportunities for private viewings will be scheduled by appointment. First Time Home Buyer Classes: A first time homebuyer class has been scheduled for February 25 through March 5 Marketing Collateral Marketing collateral is developed to support the specific monthly activities in the marketing plan. This is an ongoing process which will adjust as we gain feedback from our experience in the market. We have engaged the graphic design services of Rachel Kerstner to develop this collateral in the most cost effective way. Following is a list of materials which have or will be developed in the next thirty days. Info Package and Application: Revised and updated Ad Copy Revised and updated Advertising The following advertising channels will be utilized at appropriate points in the marketing cycle. Multiple Listing Service: All three units are now listed on the Multiple Listing Service( MLS). This listing is intended to engage `buyer brokers" as well as individuals who log into this service or the other web sites that are linked to this listing. This listing is linked to the following sites: Realtor.com, Boston.com (The on-line Boston Globe), Telegram.com, DailyHomeowner.com, Eagle Tribune (renorth.com), Google Base, Homefind.com(The on- line Boston Herald), Homes.com, Homes and Land, The Sun Sentinel & Enterprise Nashoba Publications, MassLive (Western MA), MetroWest Homes, MassachusettsRealEstate.com, REALTOR Association of the Pioneer Valley, Suburban Real Estate News, The Sun Chronicle, An Online Real Estate Magazine, WWLPRealEstate.com. Other Internet: Craigslist City of Salem Distribution Lists North Shore HOME Consortium Distribution List Media Press release Salem News, Globe North, Lynn Item Print Advertising: Salem News Lynn Item Parishcomm Siglio 21 Bay State Banner El Mundo The Sampan Budget The marketing budget for the project is $40,000 with a remaining balance of$22,917. The choice of promotions methods identified above to achieve results will require a disciplined approach to the use of resources. Evaluation The selection and measurement of tools that will be used to generate prospects and follow up will require a cycle of measurement and evaluation. This will initially consist of reports that are brought to a weekly team meeting. Il. Financial Analysis Unlike for profit developments, this project does not have investors who are standing behind the project with the ability to increase investment and endure losses when and if original projections are not realized. On the contrary, there are public funding agencies that are charged with the stewardship of public funds which are designated for specific uses: In the case of this development, each of these funds is designated for the creation and preservation of affordable housing whether it is for rental or homeownership forms of tenure. The Department of Housing and Community Development (DHCD) is the agency within the Commonwealth of Massachusetts which is responsible for two of the four sources of public funding in the Palmer Cove Development. Communications and meetings have been underway with DHCD from December 2007 through to the present. When it became clear in mid February 2008 that the trend in declining values was accelerating and the basis for the price points established through the September 2007 opinion of value was eroding, we submitted a request to DHCD for additional funding. The March recommendations for price adjustments came out simultaneous to this. Though DHCD was willing to consider an increase funding they were not willing to increase it to the level of the $604,000 that would be required if pricing were adjusted to the levels identified in the March 2008 market report. DHCD asked us to come back with a proposal that closed the gap and included an assumed increase of funding from them that was slightly less than half of the total gap of$604,000. Subsequent to discussions with the construction lender, North Shore HOME Consortium and the City of Salem, it was clear that the corresponding match of new sources that would close this gap was not forthcoming. The only additional source that came forward was and additional commitment of$46,500 in HOME funds from the City of Salem. Though this left us substantially short of the level of development sources needed, we did submit a proposal at the end of March 2008 that would enable us to achieve an effective housing cost that would be equivalent to the recommended price point adjustments through the creation of a third tier of downpayment assistance to first time homebuyers. This third tier would supplement the two programs already in place with the City of Salem. The identified sources for the creation of this third tier were the State Affordable Housing Trust Fund, Federal Home Loan Bank Equity Builders Program and the North Shore HOME Consortium. This and other options were studied and discussed throughout April and into May. When it became clear that the Affordable Housing Trust Fund would not be able to obtain the approval to fund the downpayment assistance initiative and commitments from other source were not forthcoming, DHCD asked us to examine alternatives which would involve converting Palmer Cove into a rental development. Based on the operating budget projections for a conversion to rental, we knew that the maximum debt that could be carried by rental income was $500,000. The monthly interest expense on the construction loan alone could not be supported by rental income. The challenge was to find a way to restructure the financing to a level that would limit the permanent debt to a level that the rental income could support and generate sufficient development sources to meet our$2,210,000 obligation to the construction lender. Prior to this, interim approaches such as "rent to own"or temporary rental use were considered. The fundamental flaw in these alternatives was that it would require the construction lender to extend the term of the loan as well as defer a portion of the interest payments for an indefinite period. Conservative estimates indicate that this would be a minimum of five years. This in addition to the extended risk assumed by the project over this length of time in the context of current market uncertainties made this an unacceptable option to the primary and secondary lenders. The only way to meet this challenge in a way that creates a solid financial structure for the property going forward as well as preserve its affordability is through the use of Low Income Housing Tax Credits. This is the conclusion that was reached after more than six months of examination of alternative ways to adapt to a housing market that was declining in value before our very eyes. DHCD made an unprecedented move in its decision to allocate $274,000 of 9% Low Income Housing Tax Credits to this project. This-will generate an estimated $2.2 million in equity from investors who-purchase these tax credits. (See attached reservation letter and proposal from Massachusetts Housing Investment Corp.)This will be sufficient to repay the construction lender, cover associated transaction costs and create reserves to assure the financial stability of the property through a fifteen year compliance period. . SHCDC and its subsidiary Salem Property Managers, Inc. is responsible for 152 . residential and commercial units in the Point neighborhood. One hundred and thirty eight of these residential units have been financed through the use of low income housing tax credits. The construction loan became due on June 22, 2008. We have maintained communication with the construction lender throughout the marketing period. They have acted as partners throughout this process but have a fiduciary responsibility to the interests of the bank. The presentation of this plan will enable them to grant a modest extension to the term of the loan that will give us the time to complete this conversion to affordable rental housing. Attachments: • Low Income Housing Tax Credit Unit Reservation Agreement • Massachusetts Housing Investment Corp. Proposal Low Income Housing Tax Credit Unit Reservation Agreement 3 Commonwealth of Massachusetts DEPARTMENT OF HOUSING & COMMUNITY DEVELOPMENT Pcval L.Paaick,Governor ♦ Timothy P.Many,tt.Go vrmr ♦ tiro Brooks,UMenemtery . July 11,2008 Mr.Mike Whelan Salem Harbor Community Development.Corporation 102 Lafayette Street Salem,MA 01970 Re: Palmer Cove Apartments-Salem Dear Mr.Whelan: On behalf of Governor Deval Patrick,I am issuing a Conditional Reservation of Low-Income Housing Tax Credits to Palmer Cove Apartments (the "Project"), located in Salem, Massachusetts. The Department of Housing and Community Development ("DHCD'I is setting aside $274,000 of its 2008 federal Low-Income Housing Tax Credits for the project. This letter represents a Conditional Reservation of the stated amount of tax credits. This amount is based upon DHCD's determination that this is the least amount of tax credits necessary for the feasibility of the Project This tax credit amount is subject to DHCD review at the time of allocation and at the time the Project is placed in service pursuant to Section 42 of the Internal Revenue Code. At the time these subsequent reviews take place, DHCD reserves the right to reduce the tax credit amount based on DHCD's determination of the least amount of tax credits necessary for the feasibility of the Project at that time. This Conditional Reservation is issued pursuant to and in reliance upon information presented in the Low- Income Housing Tax Credit Program/One Stop Application revised on July 6,2008;which stated the developer shall lease all of the 15 units(or 100"/x)in the Project to individuals or families whose income is 60%or less of the area median gross income as determined in accordance with Section 42 of the Internal Revenue Code. DHCD's award is conditioned on the project also including three or four units,depending on the availability of operating subsidies or vouchers,reserved for households, earning less than 301/o of the area median income adjusted to family size. Please note that you must notify DHCD immediately of any changes to the current proposal,and if there are changes,DHCD reserves the right to reduce and/or withdraw this Conditional Reservation. With the Issuance of this award letter,DHCD will not permit an increase in the total developer fee,overhead,and consulting costs(as calculated in accordance with the calculation schedule provided In the 2008 QAP), from the calculation submitted in the approved One Stop Application. This Conditional Reservation for the Low-Income Housing Tax Credits is subject to the Project's meeting one of the following requirements: 1)The Project is eligible for a Carryover Allocation pursuant to Section 42 of the Internal Revenue Code. 100 Cambridge Street,Suite 300 www.mass.gov/dhcd Boston,Massachusetts 02114 617.573.1.100 If the Project has not been Placed in Service pursuant to Section 42 of the Internal Revenue Code by December 31,2008,the Project may be eligible to receive a Carryover Allocation of 2008 tax credits if all conditions stipulated by DHCD in Attachment 1 have been met. The Project will then have until December 31, 2010, in which,to be Placed in Service. Documentation verifying that the conditions in Attachment 1 have been met as stipulated must be submitted to Michelle O'Meara DHCD 100 Cambridge Street, Suite 300 Boston.MA 02114 no later than October 1 2008 DHCD expressly reserves the richt to reduce or withdraw this Conditional Reservation if all conditions in Attachment l are not met to DHCD's satisfaction by October 1.2008. If the Project receives a 2008 Carryover Allocation,a binding election must be made by December 1, 2008,whether to freeze the tax credit rate at the December rate or select the rate for the month the Project is placed in service. 2)The Project or one or more buildings in the Project is Placed in Service pursuant to Section 42 of the Internal Revenue Code. If the Project or one or more buildings in the Project is placed in service by the end of 2008,the Project or one or more buildings in the Project may be eligible to receive an IRS Fort 8609 (Final Allocation)of credits provided that the Project satisfies all pertinent IRS and DHCD requirements. You must contact Michelle O'Meara in writing at the above address no later than September 1 2008 if your project will be pliicxii iii serdice liv-December 31.2008. All projects will be subject to annual compliance monitoring to allow DHCD to certify the Project's compliance with Section 42(g)of the Internal Revenue Code. I am pleased by your interest in using the Low-income Housing Tax Credit to provide affordable housing and look forward to seeing the Project move toward completion. Sincerely, Tina Brooks Undersecretary Cc: Senator Frederick E.Berry Representative John D.Kennan Massachusetts Housing Investment Corp. Proposal MASSACHUSETTS HOUSING EQUITY FUND,INC. 70 Federal Street,6th Floor Boston,Massachusetts 02110 July 30,2008 Mr. Michael Whelan Salem Harbor CDC 102 Lafayette Street Salem, MA 01970 Re: Palmer Cove Apartments,50 Palmer Street, Salem(the "Project") Dear Mike: This proposal sets forth the terms and conditions under which one or more of the Massachusetts Housing Equity Funds("MHEF")will acquire an interest in the project limited partnership or limited liability company(the "Partnership"). This proposal is based on the information provided to us; any material issues uncovered during our due diligence review may invalidate this proposal. In addition,this proposal is subject to approval of MHEF's board of directors. MHEF reserves the right to alter or withdraw this proposal prior to its acceptance. The terms and conditions of this proposal are: 1. Price: MHEF's Capital Contribution for a 99.99%share of the limited partnership as sole limited partner will be $2,321,768 ($0.86 per$1.00 of Low Income Housing Tax Credit(the"Capital Contribution"), subject to change as outlined below. The price is based upon information provided by the Sponsor as of the date of this letter, including annual Low Income Housing Tax Credits("LIHTC")of$270,000(the"Projected LIHTC"),of which$270,000(the"Projected First Year LIHTC")will be available in Year 2009, $270,000 will be available each year between Years 2010 and 2018,and $0 will be available in Year 2019. Any material change to the financing structure,scope of the Project,development budget,anticipated completion and lease-up schedules,amount of LIHTC allocation or number of tax-credit units will result in a change to the final price. MHEF will make its Capital Contribution in three(3) BOSTI\1034.2 Salem Harbor CDC - July 30,2008 Page 2 installments: (i)$1,857,414,or 80%of the Capital Contribution,upon closing of the syndication,and receipt by MHEF of a certificate by the Project Architect that the certificate of occupancy has been issued and the construction project has achieved 100%completion(expected to occur in December 2008);(ii)$454,354,within twenty business days after the closing of the Project's permanent financing, and upon receipt by MHEF of evidence that the project has operated for three consecutive months at break-even, (expected to occur in February 2009)(the "Second:Installment");-and(iii)$10,000 within ten . . business days following receipt by MHEF of. (a)evidence that the Partnership has received a Form - 8609 from DHCD with respect to the low-income housing tax credit and(b)the tax recur and annual report for the Partnership for the.first year in which LIHTC is available(the"Third Installment"). The sum of the Second Installment and the Third Installment is equal to or greater than the sum of the amount of development fee projected to be paid to the Sponsor from development funds(the"Nondeferred Development Fee")plus the operating reserve to be established by the Partnership. Should the capital contribution schedule differ from the above,we will work with you to adjust the price to achieve the same yield to MHEF. The general partner will be required to make certain warranties and representations prior to the delivery of each installment of the Capital Contribution by MHEF. 2. Adjustments to Capital The Capital Contribution of MHEF shall be adjusted Contribution for Reduced by the general partner to reflect any reduction in the LIHTC: LIHTC as of the date of the Second Installment. The adjustment,if any is required,shall be calculated by MHEF within 10 business days after receipt by MHEF of certain information and certifications from the general partner that will be specified in the BOST1\1034.2 Salem Harbor CDC July 30,2008 Page 3 partnership agreement,provided that the general partner has promptly fulfilled all reasonable requests by MHEF for additional information necessary to the computation of such adjustment. In the event that, as of such date, actual LIHTC based on Form 8609 is less than the Projected LIHTC,then the Second Installment shall be reduced by an amount(the "LIHTC Reduction Adjuster Amount")which shall equal the product of$0.86 multiplied by the amount of such shortfall. If the LIHTC Reduction Adjuster Amount exceeds the amount of the Second Installment,the general partner shall cause the -- , Partnership to make a distribution to MHEF in the amount of such excess. If the actual LIHTC based on - Form 8609 is greater than the Projected LIHTC,then the Second Installment shall be increased by an amount(the "LIHTC Upward Adjuster Amount') which shall equal$0.86 per dollar of excess of the actual LIHTC over the Projected LIHTC; subject to the limitation set forth below. 3. Adjustments to Capital The Capital Contribution of MHEF shall be adjusted Contribution for LIHTC by the General Partner to reflect any change in the Timing: timing of delivery of the LIHTC. The adjustment,if any is required,shall be calculated by MHEF at the time of payment of the Second Installment. In the event that the actual first year LIHTC based on Form 8609 is less than the Projected First Year LIHTC,then the Second Installment shall be reduced by an amount(the"First Year Shortfall Adjuster Amount')which shall equal$0.76 per dollar of shortfall. If the actual first year LIHTC based on Form 8609 is greater than the Projected First Year LIHTC(and such increase is not attributable to an overall increase in the actual LIHTC over the Projected LIHTC),then the Second Installment shall be increased by an amount(the "First Year LIHTC Upward Adjuster Amount")which shall equal $0.40 per dollar of the excess of the actual first year LIHTC over the Projected First Year LIHTC not attributable to an increase in the actual LIHTC over the Projected - BOSTI\1034.2 Salem Harbor CDC - July 30, 2008 Page 4 LIHTC, subject to the limitation set forth below. 4. Cap on Upward Adjusters: The sum of the LIHTC Upward Adjuster Amount and the First Year LIHTC Upward Adjuster Amount shall not exceed the lesser of(x)2%of the total amount of MHEF's Capital Contribution and(y)$50,000. If the Partnership or MHEF suffers recapture of all or 5. Credit Recapture: a portion of the LIHTC for any reason other than a change of law,the General Partner shall cause the Partnership to make a distribution to MHEF equal to $1.00 for each$1.0_0 of recaptured credit(a "Recapture Distribution"). 6. Expiration Date: This offer must be accepted within 30 days of the offer date. If the offer is not accepted within 30 days, the terms offered by MHEF in this letter shall be null and void,unless this offer is extended by MHEF in its sole discretion. 7. Sponsor: The Project sponsor is Salem Harbor Community Development Corporation(the"Sponsor"). 8. Project Partnership: Salem Harbor Developer LLC,a Massachusetts limited liability company,(the "Partnership")will be the owner of the Project. The general partner of the Partnership will be a to-be-formed for-profit corporation(the "General Partner")to be owned by the Sponsor. 9. Scope of Work: The project is a new construction of 15 units(9 two- bedroom and 6 three-bedroom)in seven three-story attached buildings and 15 on site parking spaces. The project was completed in January 2008. The work is detailed in architectural Plans and Specifications to be submitted to MHEF.MHEF will engage an engineer to review the Plans and Specifications and to inspect the completed Project. MHEF reserves the right to require additions to the scope of work based upon the engineer's review and inspection. BOSTn1034.2 - Salem Harbor CDC July 30, 2008 Page 5 10. Project Schedule: The Sponsor represents that the requirements of the Project's tax credit allocation will be met at the end of 2008. The Sponsor plans to lease up the buildings no later than February 2009. 11. Minority Participation: The Sponsor must agree to a plan to cause a percentage of annual operating expenses to be paid to minority-owned businesses. 12. Management Agent: MHEF must consent to the management agent, subject to provisions for termination and replacement - -- - - -- —-- set forth in the MHEF-form partnership agreement and the MHEF form management agreement. 13. Construction Financing: Currently the project has a construction loan from Citizens Bank. The loan will be repaid upon syndication closing. 14. Permanent Financing: Based on information provided to us,the financial forecasts incorporate the following assumptions on permanent financing: (1)a$500,000 first mortgage loan from Massachusetts Housing Partnership Fund at an interest rate of 6.75%and a term of 20 years; (2)a $425,000 subordinate cash flow loan from North Shore Consortium HOME funds at an interest rate of 5.0%and a term of 30 years; (3)a$321,995 subordinate cash flow loan from Salem HOME funds at an interest rate of 5.0%and a term of 30 years; (4) a$750,000 subordinate cash flow loan from DHCD HSF funds at an interest rate of 0%and a term of 30 years;and(5)a$750,000 subordinate cash flow loan from Affordable Housing Trust funds at an interest rate of 3%and a term of 30 years. The above- described loans must be on terms and conditions acceptable to MHEF and MHEF must be satisfied that these terms and conditions can be met. MHEF has incorporated in the financial forecasts specific terms and conditions for these loans. Any changes in the terms and conditions of these loans prior to the syndication closing may result in a change in the amount,terms,and conditions of MHEF's Capital BOSTAI034.2 Salem Harbor CDC July 30,2008 Page 6 Contribution. 15. Rental Assistance: The financial forecast assumes 3 of the units(2 two- bedroom, 1 three-bedroom)will be occupied by Section 8 voucher holders.Any changes to the anticipated rental assistance may result in a change in the amount,terms,and conditions of MHEF's Capital Contribution. 16. Guarantees: The general partner will,under the terms set forth in the MHEF form partnership agreement,be required to -- - - —-- -- -- guarantee the development and operations of the_ Project,including the Partner's obligation to make Adjuster Distributions and Recapture Distributions. The general partner's liability will be unlimited. The Sponsor will,under the terms set forth in the MHEF form sponsor's guaranty,be required to guarantee certain obligations of the general partner with respect to development costs,operating deficits,unauthorized withdrawals,Adjuster Distributions and Recapture Distributions. The Sponsor's aggregate liability for its guaranty of the general partner's obligations will be limited as follows: a. In the event of a withdrawal of the general partner without the consent of MHEF,there will be liquidated damages equal to the sum of Nondeferred Development Fee,all development overhead reimbursed by the Partnership to the Sponsor("Overhead"), and the deferred development fee payable to the Sponsor(the"Deferred Development Fee"), provided that the Sponsor's liability for payment of such liquidated damages in excess of the Nondeferred Development Fee and Overhead shall be limited to a right by the Partnership to offset such liability against payments of the Deferred Development Fee as they come due. The obligations of the Sponsor and the general partner under the guaranties shall continue despite any BOSTI\1034.2 Salem Harbor CDC July 30, 2008 Page 7 withdrawal. b. The Sponsor's liability for payment of any development cost overrun,including operating deficits occurring prior to the due date of the Second Installment,shall be unlimited. This guaranty will terminate on the later of (x)issuance of permanent certificates of occupancy for all units and common areas in _ the Project, (y) 100%completion under the Partnership's construction contract and(z)the due.date of the Second Installment. C. The Sponsor's liability for payment of operating deficits shall be limited as follows: until such time as the Partnership has achieved three consecutive twelve-month periods of break-even operations,the Sponsor's liability for any unpaid operating deficits shall be limited to an amount equal to twice the sum of the Nondeferred Development Fee plus Overhead. After the Partnership achieves three consecutive twelve-month periods of break-even operations,the Sponsor shall have no liability for operating deficits. d. The Sponsor's liability to contribute funds to the General Partner for purposes of enabling the General Partner to meet its obligations with respect to distributions to MHEF under Sections 2 and 3 above(collectively, "Adjuster Distributions")shall be unlimited. This guaranty will terminate 30 days after MHEF has determined all adjuster amounts as described above,provided the Sponsor has paid all amounts determined by MHEF to be due. e. The Sponsor's liability to contribute funds to the General Partner for purposes of enabling the General Partner to meet its obligations BOSTM034.2 Salem Harbor CDC July 30,2008 Page 8 with respect to distributions under Section 5 above("Recapture Distributions")shall be unlimited. This guaranty will terminate 30 days after the end of the Compliance Period,provided there has been no recapture of any LIHTC with respect to which MHEF has not received all Recapture Distributions due it. f. The liability limitations described above shall apply if and only if(i)the events or circumstances giving rise to the liability in question did not result from fraud or intentional misrepresentation on the part of the Sponsor,the general partner or their affiliates; and(ii)the Sponsor(or the general partner) pays amounts owed under the Sponsor's guaranty promptly when due, but in no event later than sixty calendar days after it receives actual or constructive notice that an amount is owed or,alternatively,presents an acceptable plan for payment with interest accruing after 60 days at 1.5%per month. g. The Sponsor shall receive credit toward the amounts set forth in clause(c)above for the following: (i)amounts paid by the general partner on account of the operating deficit; and(ii)amounts received by the Partnership from rent increases,grants,loans or other financing sources arranged by the Sponsor or the general partner and applied to the operating deficits,provided that such rent increases, grants,loans and financial sources, as the case may be,do not impair the tax benefits expected to be derived by MHEF. h. The Sponsor shall have a net worth at closing and throughout the Compliance Period(tested annually)of at least 25%of the total development costs of the Project and at least BOSTI\10342 Salem Harbor CDC July 30, 2008 Page 9 20%of such amount shall be held in liquid investments. 17. Required Reserves: The Partnership will be required to establish an operating reserve with an initial deposit of$75,000, which shall be made at the time of the Second Installment of MHEF's Capital Contribution. Thereafter,in any month in which the balance of funds in the operating reserve is less than _ 50%of annual operating expenses(the "Operating Reserve Minimum"), a deposit shall be made to the operating reserve of an amount equal to all net cash flow until such time as the balance in the operating reserve again equals the Operating Reserve Minimum. In addition to the foregoing operating reserve,the Partnership will be required to maintain a replacement reserve by making monthly installment deposits as shown in the financial forecasts. Reserves required by any lender shall be counted toward the above reserve requirements only with the consent of MHEF. 18. Distribution of Profits,Losses, Profits, losses and tax credits shall be allocated Tax Credits, Cash Flow and 99.99%to MHEF and 0.01%to the General Partner. Proceeds from Capital Unless otherwise specified herein or in the final Transactions: partnership agreement,cash flow from operations after costs, liabilities and reserves shall be applied as follows: (a)fust,to the operating reserve to the extent required above;(b) second,to the payment of the Deferred Development Fee,including interest thereon;(c)third,to the payment of an asset management fee to the Sponsor(up to an amount equal to$8,500 annually); (d)fourth, 50%to the Sponsor as incentive management fee up to 4%of gross income of the project and; (e) fifth,the balance to the operating reserve. Proceeds from a capital transaction shall be used first for the payment of all debts and liabilities,then, in the case of a sale of the Property to pay a disposition fee to MHEF equal to 3%of the sale price and then to fund distributions to MHEF to the extent necessary to yield the forecasted BOSTI\1034.2 Salem Harbor CDC July 30, 2008 Page 10 benefits. The balance will be split 80%to the General Partner and 20%to MHEF. 19. Publicity: The Sponsor shall: (a)consult with MHEF regarding any publicity for the Project such as marketing events, announcements,brochures,project signs; etc.; b) upon request,provide MHEF with photographs, renderings,slides or any available reproducible image of the Project;c)provide at the site of the Project, from the commencement of construction work until substantial occupancy,a sign satisfactory to MHEF -- - - — - and in accordance with applicable law identifying MHEF as a source of funding for the Project; and d) make appropriate reference to MHEF as.a source of funding in all publicity relating to the Project during the term of the Partnership. 20. Closing Binders The Partnership shall pay for the preparation by MHEF's attorney of three closing binders containing all documents related to the syndication and other project financing,for use by MHEF. 21. Reports: The General Partner will be responsible for providing unaudited quarterly and audited annual financial reports and statements,budgets,tax returns and K-l's, annual reports, certificates of insurance and such other information on the management and operation of the Partnership's property as MHEF may request, as detailed in the MHEF form partnership agreement. 22. General Conditions: In addition to the foregoing,closing and funding of this investment shall be contingent upon the following: (a) Issuance,effective as of closing, of an ALTA owner's title insurance policy satisfactory to MHEF and containing no exceptions and evidence,including without limitation,opinions of counsel,satisfactory to MHEF that the Project complies with all applicable laws, including zoning and aosnuo3az Salem Harbor CDC - July 30, 2008 Page 11 environmental laws and laws governing existing and proposed uses of the Project. (b) Submission to MHEF of a report,prepared by a qualified person,based on an assessment satisfactory to MHEF, demonstrating the absence of a release or threat of release of hazardous materials or oil(as those terms are defined in M.G.L. - c.21E)from,at or on the Project site. -- _- — —-- --. (c)- Submission to MHEF of organizational documents of the Sponsor and the General Partner and an opinion of counsel, in form - and substance satisfactory to MHEF, that all agreements and instruments executed by the Sponsor and the General Partner in connection with the transaction are legal, valid,binding and enforceable. (d) Submission to MHEF of certificates or binders of insurance,effective as of closing, with respect to comprehensive general liability insurance and with respect to all-risk insurance on the Project and in amounts as follows: (i) for all-risk insurance,in amounts sufficient to satisfy the provisions of an"agreed amount" coinsurance endorsement, or, if such endorsement is not available, in amounts sufficient to prevent the Partnership from becoming a coinsurer,and in either case not less than 100%of the full insurable replacement cost of the Project;and (ii) for general liability insurance,in amounts not less than$2,000,000 per occurrence for bodily injury or death BOSTA1034.2 Salem Harbor CDC July 30, 2008 Page 12 and$2,000,000 per occurrence for property damage. (e) Submission to MHEF of any and all information which it may reasonably request from time to time concerning the financial condition of the Sponsor,the General Partner, the Partnership and the Project both before and after closing. (f) Submission to MHEF prior to closing of an opinion of counsel,in form and substance satisfactory to MHEF,regarding the availability of tax credits and deductions to MHEF and other federal income tax matters. (g) Submission to MHEF prior to closing of copies of the management plan,marketing and affirmative marketing plans and other documents relating to the operation of the Project,all in form satisfactory to MHEF. (h) Submission to MHEF of an instrument survey of the Project site and surveyor's report sufficient to delete the survey exception from the owner's title insurance policy and identifying all easements,improvements, utility locations,encroachments and public ways. (i) Submission to MHEF of all loan documentation with respect to financing for the Project, all in form satisfactory to MHEF. Such documentation shall include binding commitment letters for any permanent financing together with evidence of approval by the permanent lenders of all due diligence submitted in connection with the closing. (j) Submission to MHEF of an architect's contract,a construction contract,payment, aosrniosas Salem Harbor CDC July 30, 2008 Page 13 performance and lien bonds with respect to the construction contract, a construction review agreement between the partnership,the construction lender and an independent inspecting engineer,and such other construction documentation as MHEF may reasonably request,all in form acceptable to MHEF. (k) Submission to MHEF of a certification by the Partnership accountant that the accountant(i) -- - - --_--- - _.has reviewed the financial forecasts and _ _ __ . benefit projections prepared by MHEF and the tax opinion prepared by the Partnership's tax - counsel and(ii)agrees with the assumptions and methodologies used therein. (1) Absence of any material change in the financial condition of the Sponsor or in the nature or condition of the Project. For purposes of this paragraph, a material change shall include the acquisition by MHEF at any time subsequent to the date of this letter of information concerning an existing condition different from MHEF's understanding of the Project or the Sponsor as of the date of this letter. The foregoing is not intended to describe all of the terms and provisions of the investment,but is intended as a summary of the major conditions of the investment. Prior to closing,complete draft documents covering the transaction will be provided to you and your legal counsel,for review and comment. MHEF has prepared forms of documents,including partnership agreement,fee agreements, sponsor guaranty and management agreement,and it will be a condition of the investment that such forms of documents be utilized in connection with the Project. As we have previously stated,this proposal is,of course, subject to approval of MHEF's board of directors. BOSTI\1034.2 Salem Harbor CDC July 30, 2008 Page 14 If you find these terms acceptable,please sign below and return the original to my attention by August 15,2008, so that we may begin processing investment approval. We look forward to working with you to bring the Project successfully to completion. If you have any questions,please do not hesitate to call me at 617-850-1088. 4ire erely, ctor of Development Read and Accepted by: Salem Harbor Community Development Corporation By: Name: Title: BOSTI\1034.2 I11. Community Process Since the July 16a'meeting of the Zoning Board of Appeals, SHCDC has convened meetings with the three groups which expressed opposition to the request for an amendment to the current decision. This was attended by members of the SHCDC Board of Directors as well as senior staff. Although the outcome of these meetings did not reconcile the divergence of interests that have been expressed, we believe that the level of communication has improved and an opportunity for honest dialogue was opened. We met with owners of other rental properties in the neighborhood. Although there are areas of substantial disagreement,; property owners, SHCDC Board and senior staff did identify areas of common interest that may provide a basis for collaboration in the future. This clearly pertains to matters of health, safety and crime with specific focus on drug related activity in the neighborhood. Jason Pina, SPMI Property Manager, made it clear that we appreciate feed back and information with respect to any activity that affects the properties that we manage. (see attached memo) Two meeting were held with Lucy Corchado, Domingo Dominguez, Javier Rincon and YolenyYnoa.The first meeting created the opportunity for each of these individuals to express their disagreement with the direction of the CDC. We acknowledged that there were services which supported such initiatives as the Hispanic Festival, creation of a community center and community organizing support for the Point Neighborhood Association that are no longer available. Although there are financial as well as other reasons for this shift in the manner of community engagement by the CDC, those present were not satisfied. The specific matter of Palmer St. was not discussed at the first meeting. A second meeting was held with these same and other individuals. The purpose was to explore the specific reasons for their opposition to the request that is before the Zoning Board of Appeals. Although it was difficult to distinguish this opposition from an underlying disagreement about the priorities of SHCDC, there was a stated belief that the CDC made a promise to the community that it has not kept by failing to deliver homeownership to the neighborhood. Although we understand the disappointment that individuals have of the outcome of this project, we had to agree to disagree on this point. The meeting quickly drifted into subjects similar to the discussions in the first meeting. Members of the Board expressed their appreciation for the honest feed back from each of the individuals present and pledged to take up many of the matters discussed at the September meeting of the Board of Directors. Senior staff of SHCDC met with Leah McCoy and.John Shaw, residents of the single family home on Congress St. which is right next to 50 Palmer. Though it is difficult to determine the outcome of this meeting, I believe there was a very civil level of communication. I also believe that this resulted in an improved understanding of the real position of the property and the realistic consequences of a foreclosure. SHCDC has labored to bring this project to fruition since 2003. It is difficult to believe that anyone could be more disappointed than the CDC. As an organization, we are responsible to a mission to create and preserve affordable housing opportunities for low and moderate income households. Although homeownership opportunities for first time home buyers was a clear need that could be addressed in different market conditions,it cannot be addressed in the current market conditions. The opportunity for homeownership was created and implemented with good faith and in the face of numerous obstacles. We met each one of those challenges and presented the end product to first time homebuyers. Our marketing efforts drew more than one hundred and fifty households to come and look at the units. We offered training workshops for first time homebuyers. We provided assistance to prospective buyers through a complex application process. We connected them with a lender that had loan products which were specially designed for first time homebuyers that also navigated a way through a changing credit market. We also connected prospective buyers with down payment assistance products offered through the City of Salem. At the end of the day, no one entered into a contract to purchase. We do not fault prospective buyers who have made - decisions which they believe are in their best interest:-Our belief is that we delivered the , product that we promised. SHCDC manages one hundred and forty eight rental units in the neighborhood. These have offered safe harbor to thousands of families over the years. We believe that the preservation of these properties has provided an anchor which has maintained stability in a neighborhood which is clearly challenged. The evidence is clear that there is no demand for ownership housing as it is offered through the Palmer Cove development. Our experience with our rental portfolio indicates that there is strong demand for rental housing. The proposal to adjust to market conditions will result in the delivery of housing that is more affordable than homeownership to many of the working-families who live in the Point as well as other parts of Salem. Attachments: • Property Management Memo • Petitions in Support of Amendment Property Management Memo To: Mike Whelan, Executive Director From: Jason C. Pina, Property Manager Date: August 5, 2008 Re: Alleged Suspicious Activity at 34 Prince Street As you know, during our recent meeting with property owners in the neighborhood, one property owner claims to have witnessed on more the one occasion a male and a female in front of 34 Prince Street acting suspiciously. The property owner alleges that she observed the female running up to multiple vehicles that have come down the street and after brief interaction, the vehicles would leave and the female would return to the front of building 34 Prince Street with an unidentified male and at other times go directly into the building. As a follow-up to this-claim,-our staff was able to communicate with members of each household at 34 Prince Street to investigate this alleged activity or any other concerns and observations they may have regarding suspicious activity around the building. The following detail represents the household composition and response to this inquiry: 34 Prince Street Unit KI. Father and daughter(age 16). Moved in, January 2008. The father states, he's never noticed any suspicious activity around the building or a male and female hanging in the front of the building. Unit#2. Father(Head of Household), daughter(age 30), (2) grandchildren under age 12. Moved in, March 1998. The father explains that there are people that may hang out across street at the park playing chess or card games. Says he has never been aware of suspicious activity around the building. Unit#3. Mom, son (age 21), daughter(age 34), grandson under age 10. Moved in, October 2006. They have not observed any suspicious activity around the building or people hanging in front of the building. Unit#4. There are (2)middle-aged women. Moved in, April 2005. They both explained that the on occasion there are teenaged boys that stand in the rear of the building and smoke marijuana. They did not recognize any of these boys as residents of the building. Unit #5. Husband and wife, elderly mother, (2) children under aged 14. Moved in, February 2008. They report that no suspicious activity has ever been witnessed around the bldg. Not aware of anyone hanging in the front of the building. Unit#6. Mother, (2)boys, age 15 & 16. Moved in, April 2007. The mother has not observed any suspicious activity. Not aware of anyone hanging in the front of the building. Unit#7. Mother, (2) young children under age 10. Moved in,November 2007. The mother has not observed any suspicious activity. Not aware of anyone hanging in the front of the building. Unit#8. Father, son(age 16). Moved in, April 2007. The father has not observed any suspicious activity. He says that people who live in the neighborhood hang out at the park across the street, but it's nothing unusual and not a nuisance. All residents of the building were encouraged to inform our management staff immediately if there is any suspicious activity around the building or in the common areas. Additionally we purchased and installed a NO TRESSPASS sign in the rear of the building. Petitions in Support of Change PP to Affordable Rental Housing Count as of 8/18/08: Cherry St. 3 Congress St. 14 Harbor St. 21 Harrison Ave. 3 Leavitt St. 15 Leach St. 1 Palmer St. 4 Park St. l Perkins St. 25 Peabody-St. 2_ . _ - Porter St. 9 Prince St. 28 Ropes St. 10 Salem St. 41 Ward St. 42 TOTAL 218 SUPPORT SALEM HARBOR CDC S� . Founded in 1979,the Salem Harbor Community Development Corporation(SHCDC)is a nonprofit, 3 community-based organization which develops housing,improves neighborhoods and promotes educational efforts to advance the economic self sufficiency of families and individuals. Our goals are: develop,manage and preserve affordable housing;enable people to obtain skills to earn a living wage,and increase access to knowledge and capital in order to grow neighborhood businesses. After five years of hard work,we have completed construction of the building at 50 Palmer St.located on the comer of Palmer and Congress St.in the Point Neighborhood.We intended to provide 15 affordable two and three bedroom units to first time homebuyers.We are very sad to say that the recent housing crisis has prevented us from finding income eligible first time home buyers.We plan to make these units available to low and moderate income families as affordable rental housing.We ask for your support for a request to the Salem Zoning Board of Appeals to approve this change to affordable rental housing. Petition I hereby support the request of Salem Harbor Community Development Corporation to amend the Decision ,granted by the Zoning Board of Appeals for 50 Palmer St.to allow 100%affordable rental housing for low and moderate income families.By signing this petition,I certify that I am at least eighteen years of age and have not received any benefits in exchange for my support of this petition. Name Address Phone# 1. ��ia9rhRorica� e✓7ei. P1iPhn/Sf � 9'�Sf'�7J0-�.�-�3"y 3. 4. 5 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Join us on Wednesday August 27 at 6:30 PM at 120 Washington St. Room 313 to support affordable homes for working families. SUPPORT SALEM HARBOR CDC Founded in 1979,the Salem Harbor Community Development Corporation(SHCDC) is a nonprofit, community-based organization which develops housing,improves neighborhoods and promotes educational efforts to advance the economic self sufficiency of families and individuals.Our goals are: develop,manage and preserve affordable housing;enable people to obtain skills to earn a living wage,and increase access to knowledge and capital in order to grow neighborhood businesses. After five years of hard work,we have completed construction of the building at 50 Palmer St.located on the corner of Palmer and Congress St.in the Point Neighborhood. We intended to provide 15 affordable two and three bedroom units to fust time homebuyers.We are very sad to say that the recent housing crisis has prevented us from finding income eligible fit time home buyers.We plan to make these units available to low and moderate income families as affordable rental housing.We ask for your support for a request to the Salem Zoning Board of Appeals to approve this change to affordable rental housing. Petition I hereby support the request of Salem Harbor Community Development Corporation to amend the Decision granted by the Zoning Board of Appeals for 50 Palmer St,to allow 100%affordable rental housing for low and moderate income families.By signing this petition,I certify that I am at least eighteen years of age and have not received any benefits in exchange for my support of this petition. Na Address Phone# 1. 2. 7. _ 7 3. � 13c�� 4. 4C� ✓1, r d �J 5. 6. "b �fDel s. DOCae� // t4 Z- 9. - 9 CJD ass �� 10. 11. IT91-1 12. �!7 LL � . 13. S 14. 17y 15. /L92 16. 17. 18. 19. 20. Join us on Wednesday August 27 at 6:30 PM at 120 Washington St. Room 313 to support affordable homes for working families. SUPPORT SALEM HARBOR CDCYr Founded in 1979,the Salem Harbor Community Development Corporation(SHCDC)is a nonprofit, community-based organization which develops housing,improves neighborhoods and promotes educational efforts to advance the economic self sufficiency of families and individuals.Our goals are: develop,manage and preserve affordable housing;enable people to obtain skills to earn a living wage,and increase access to knowledge and capital in order to grow neighborhood businesses. After five years of hard work,we have completed construction of the building at 50 Palmer St. located on the comer of Palmer and Congress St. in the Point Neighborhood. We intended to provide 15 affordable two and three bedroom units to fust time homebuyers. We are very sad to say that the recent housing crisis has prevented us from finding income eligible first time home buyers. We plan to make these units available to low and moderate income families as affordable rental housing.We ask for.your support for a request to the Salem Zoning Board of Appeals to approve this change to affordable rental housing. Petition I hereby support the request of Salem Harbor Community Development Corporation to amend the Decision granted by the Zoning Board of Appeals for 50 Palmer St.to allow 100%affordable rental housing for low and moderate income families.By signing this petition,I certify that I am at least eighteen years of age and have not received any benefits in exchange for my support of this petition. e Address Phone# 1. � . 3. 4. GI' b 5. %L- 7. 7. 3 a 8. — 9. 10 ar 1t. 0 d 1z. 6+ 13 c og 13. 14. 15. '( 5 16. S g, 17. 0,1169.-n 3 I(Qls 18. oku Gcl I9. ALZ I M 2 Join us on Wednesday August 27 at 6:30 PM at 120 Washington St. Room 313 to support affordable homes for working families. SUPPORT SALEM HARBOR CDC "I' Founded in 1979,the Salem Harbor Community Development Corporation(SHCDC)is a nonprofit, community-based organization which develops housing, improves neighborhoods and promotes educational efforts to advance the economic self sufficiency of families and individuals.Our goals are: develop,manage and preserve affordable housing;enable people to obtain skills to earn a living wage, and increase access to knowledge and capital in order to grow neighborhood businesses. After five years of hard work,we have completed construction of the building at 50 Palmer St. located on the comer of Palmer and Congress St.in the Point Neighborhood.We intended to provide 15 affordable two and three bedroom units to fust time homebuyers.We are very sad to say that the recent housing crisis has prevented us from finding income eligible first time home buyers.We plan to make these units available to low and moderate income families as affordable rental housing.We ask for your support for a request to the Salem Zoning Board of Appeals to approve this change to affordable rental housing. Petition I hereby support the request of Salem Harbor Community Development Corporation to amend the Decision granted by the Zoning Board of Appeals for 50 Palmer St.to allow 100°/o affordable rental housing for low and moderate income families.By signing this petition,I certify that I am at least eighteen years of age and have not received any benefits in exchange for my support of this petition. NameAddres Phone# 1. Q�lt�G Y _,/ 9?9 2. 3. - -p 3 4. 1 5 6. 7. 8. 9. 10. 11. 12. 13. 14. T 15. 16. 17. 18. 19. 20. Join us on Wednesday August 27 at 6:30 PM at 120 Washington St. Room 313 to support affordable homes for working families. SUPPORT SALEM HARBOR CDC 4- -_ Founded in 1979,the Salem Harbor Community Development Corporation(SHCDC)is a nonprofit, community-based organization which develops housing, improves neighborhoods and promotes educational efforts to advance the economic self sufficiency of families and individuals. Our goals are: develop,manage and preserve affordable housing; enable people to obtain skills to earn a living wage,and increase access to knowledge and capital in order to grow neighborhood businesses. After five years of hard work,we have completed construction of the building at 50 Palmer St.located on the comer of Palmer and Congress St.in the Point Neighborhood.We intended to provide 15 affordable two and three bedroom units to first time homebuyers. We are very sad to say that the recent housing crisis has prevented us from finding income eligible first time home buyers. We plan to make these units available to low and moderate income families as affordable rental housing.We ask for your support for a request to the Salem Zoning Board of Appeals to approve this change to affordable rental housing. Petition I hereby support the request of Salem Harbor Community Development Corporation to amend the Decision granted by the Zoning Board of Appeals for 50 Palmer St.to allow 100%affordable rental housing for low and moderate income families.By signing this petition,I certify that I am at least eighteen years of age and have not received any benefits in exchange for my support of this petition. 1. (0600 C4 C / dress, hon it 3. 4. VO4, _ dq 6 ' —alt iZ �?P� ZAOtJ 6. 7. 8. 9. 10. it. 12. 13. 14. 15. 16. 17. 18. 19. 20. Join us on Wednesday August 27 at 6:30 PM at 120 Washington St. Room 313 to support affordable homes for working families. SUPPORT SALEM HARBOR CDC Founded in 1979,the Salem Harbor Community Development Corporation(SHCDC)is a nonprofit, (" community-based organization which develops housing, improves neighborhoods and promotes educational efforts to advance the economic self sufficiency of families and individuals. Our goals are: develop,manage and preserve affordable housing;enable people to obtain skills to earn a living wage,and increase access to knowledge and capital in order to grow neighborhood businesses. After five years of hard work,we have completed construction of the building at 50 Palmer St. located on the comer of Palmer and Congress St. in the Point Neighborhood.We intended to provide 15 affordable two and three bedroom units to fust time homebuyers. We are very sad to say that the recent housing crisis has prevented us from finding income eligible first time home buyers.We plan to make these units available to low and moderate income families as affordable rental housing.We ask for your support for a request to the Salem Zoning Board of Appeals to approve this change to affordable rental housing. Petition I hereby support the request of Salem Harbor Community Development Corporation to amend the Decision granted by the Zoning Board of Appeals for 50 Palmer St.to allow 100%affordable rental housing for low and moderate income families.By signing this petition,I certify that I am at least eighteen years of age and have not received any benefits in exchange for my support of this petition. t e Address Phone# - .2 3. 4. t �! Zbnq 6. Al r- 7. I I0-31-1q 8. t On qQ , acr 10.r c �� LeAv/ 4 •1� �f�/� 31� I 11. (7 q vt--f 5 Z 1A _ 12. 13. C14 I V' A-Jb� I 14 15. _364 16. 17. 18. 19. 20. Join us on Wednesday August 27 at 6:30 PM at 120 Washington St. Room 313 to support affordable homes for working families. SUPPORT SALEM HARBOR CDC Founded in 1979,the Salem Harbor Community Development Corporation(SHCDC)is a nonprofit, community-based organization which develops housing,improves neighborhoods and promotes educational efforts to advance the economic self sufficiency of families and individuals. Our goals are: develop,manage and preserve affordable housing;enable people to obtain skills to earn a living wage,and increase access to knowledge and capital in order to grow neighborhood businesses. After five years of hard work,we have completed construction of the building at 50 Palmer St.located on the corner of Palmer and Congress St.in the Point Neighborhood.We intended to provide 15 affordable two and three bedroom units to first time homebuyers.We are very sad to say that the recent housing crisis has prevented us from finding income eligible first time home buyers. We plan to make these units available to low and moderate income families as affordable rental housing.We ask for your support for a request to the Salem Zoning Board of Appeals to approve this change to affordable rental housing. Petition I hereby support the request of Salem Harbor Community Development Corporation to amend the Decision granted by the Zoning Board of Appeals for 50 Palmer St.to allow 100%affordable rental housing for low and moderate income families.By signing this petition,I certify that I am at least eighteen years of age and have not received any benefits in exchange for my support of this petition. Name / Ad ress Pltopei _ 2. .. _.. .. _._ ... _ _._. _. . - 3 4 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15, 16. 17. 18. 19. 20. Join us on Wednesday August 27 at 6:30 PM at 120 Washington St. Room 313 to support affordable homes for working families. SUPPORT SALEM HARBOR CDC Founded in 1979,the Salem Harbor Community Development Corporation(SHCDC)is a nonprofit, community-based organization which develops housing, improves neighborhoods and promotes educational efforts to advance the economic self sufficiency of families and individuals. Our goals are: develop,manage and preserve affordable housing;enable people to obtain skills to earn a living wage,and increase access to knowledge and capital in order to grow neighborhood businesses. After five years of hard work,we have completed construction of the building at 50 Palmer St.located on the comer of Palmer and Congress St. in the Point Neighborhood.We intended to provide 15 affordable two and three bedroom units to fust time homebuyers. We are very sad to say that the recent housing crisis has prevented us from finding income eligible first time home buyers.We plan to make these units available to low and moderate income families as affordable rental housing.We ask for your support for a request to the Salem Zoning Board of Appeals to approve this change to affordable rental housing. Petition I hereby support the request of Salem Harbor Community Development Corporation to amend the Decision granted by the Zoning Board of Appeals for 50 Palmer St.to allow 100%affordable rental housing for low and moderate income families.By signing this petition,I certify that I am at least eighteen years of age and have not received any benefits in exchange for my support of this petition. Name Address Phone t# 1. /I �g 6 Z 3. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Join us on Wednesday August 27 at 6:30 PM at 120 Washington St.Room 313 to support affordable homes for working families. SUPPORT SALEM HARBOR CDC Founded in 1979, the Salem Harbor Community Development Corporation(SHCDC)is a nonprofit, community-based organization which develops housing, improves neighborhoods and promotes educational efforts to advance the economic self sufficiency of families and individuals.Our goals are: .develop,manage and preserve affordable housing; enable people to obtain skills to eam a living wage,and increase access to knowledge and capital in order to grow neighborhood businesses. After five years of hard work,we have completed construction of the building at 50 Palmer St. located on the corner of Palmer and Congress St. in the Point Neighborhood.We intended to provide 15 affordable two and three bedroom units to first time homebuyers. We are very sad to say that the recent housing crisis has prevented as from fmding income eligible first time home buyers. We plan to make these units available to low and moderate income families as affordable rental housing.We ask for your support for a request to the Salem Zoning Board of Appeals to approve this change to affordable rental housing. Petition I hereby support the request of Salem Harbor Community Development Corporation to amend the Decision granted by the Zoning Board of Appeals for 50 Palmer St.to allow 100%affordable rental housing for low and moderate income families.By signing this petition, I certify that I am at least eighteen years of age and have not received any benefits in exchange for my support of this petition. ame A g�ress hone# 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Join us on Wednesday August 27 at 6:30 PM at 120 Washington St. Room 313 to support affordable homes for working families. SUPPORT SALEM HARBOR CDC Founded ' in 1979,the Salem Harbor Community Development Corporation(SHCDC)is a nonprofit, •�-i� co*nmunity-based organization which develops housing, improves neighborhoods and promotes educational efforts to advance the economic self sufficiency of families and individuals. Our goals are: develop,manage and preserve affordable housing;enable people to obtain skills to earn a living wage,and increase access to knowledge and capital in order to grow neighborhood businesses. After five years of hard work, we have completed construction of the building at 50 Palmer St. located on the comer of Palmer and Congress St. in the Point Neighborhood. We intended to provide 15 affordable two and three bedroom units to first time homebuyers.We are very sad to say that the recent housing crisis has prevented us from finding income eligible first time home buyers. We plan to make these units available to low and moderate income families as affordable rental housing.We ask for your support for a request to the Salem Zoning Board of Appeals to approve this change to affordable rental housing. Petition I hereby support the request of Salem Harbor Community Development Corporation to amend the Decision granted by the Zoning Board of Appeals for 50 Palmer St.to allow 100%affordable rental housing for low and moderate income families.By signing this petition,I certify that I am at least eighteen years of age and have not received any benefits in exchange for my support of this petition. Name Address Phone# I yncn (ttallb --_6a olluns 41Y- ?oq- 7gi I_ - MiJc —tufa /79i $SP 49 3. Cory Ary''Sjydn� lrrk>T 197,f- 5%V .5 /,22� y� 4. Z25>"z `n li�,/ J`��/::1P Yk'/JS' f� N� 3g'�US�-OS/YV 5. n,,��acz 5$ Per k i n'5 529. 9L -��30 6. Qi K n 9 �-5 �y 7. 38` 0� i '� 7 F F (0 536 8. 9. L /6/6IZrJ iA YLt' Z <�� /+j cj f> t7!g` _ 7l 10. 6 12. 1r ' 6 - S/ 7 , 1 GIC k 1111 15. L✓ .d L�f � f F .-_r `' C9T G=J -i 0- 16.` 62 19 20. 1 , Join us on Wednesday August 27 at 6:30 PM at 120 Washington St. Room 313 to support affordable homes for working families. SUPPORT SALEM HARBOR CDC ° Founded in 1979,the Salem Harbor Community Development Corporation(SHCDC)is a nonprofit, community-based organization which develops housing,improves neighborhoods and promotes 5 educational efforts to advance the economic self sufficiency of families and individuals. Our goals are: develop,manage and preserve affordable housing;enable people to obtain skills to earn a living wage,and increase access to knowledge and capital in order to grow neighborhood businesses. After five years of hard work,we have completed construction of the building at 50 Palmer St. located on the corner of Palmer and Congress St. in the Point Neighborhood.We intended to provide 15 affordable two and three bedroom units to first time homebuyers.We are very sad to say.that the recent housing crisis has prevented us from finding income eligible first time home buyers.We plan to make these units available to low and moderate income families as affordable rental housing.We ask for your support for a request to the Salem Zoning Board of Appeals to approve this change to affordable rental housing. Petition I hereby support the request of Salem Harbor Community Development Corporation to amend the Decision granted by the Zoning Board of Appeals for 50 Palmer St.to allow 100%affordable rental housing for low and moderate income families.By signing this petition,I certify that I am at least eighteen years of age and have not received any benefits in exchange for my support of this petition. Name o l Addres Phone# a .. �� _ � ray 3 r 0 0 / — 7,0 7J OSr 4. ( r 7L,1 s 5. u Nl( 1 6. 7 8. 9. 10. it. 12. 13. 14. 15. 16. 17. is. 19. 20. Join us on Wednesday August 27 at 6:30 PM at 120 Washington St. Room 313 to support affordable homes for working families. t SUPPORT SALEM HARBOR CDC Yz`.3"a ( '>-t ' Founded in 1979,the Salem Harbor Community Development Corporation(SHCDC)is a nonprofit, Z community-based organization which develops housing, improves neighborhoods and promotes educational efforts to advance the economic self sufficiency of families and individuals.Our goals are: develop,manage and preserve affordable housing;enable people to obtain skills to earn a living wage,and increase access to knowledge and capital in order to grow neighborhood businesses. After five years of hard work,we have completed construction of the building at 50 Palmer St. located on the corner of Palmer and Congress St. in the Point Neighborhood.We intended to provide 15 affordable two and three bedroom units to first time homebuyers. We are very sad to say.that the recent housing crisis has prevented us from fording income eligible first time home buyers.We plan to make these units available to low and moderate income families as affordable rental housing.We ask for your support for a request to the Salem Zoning Board of Appeals to approve this change to affordable rental housing. Petition I hereby support the request of Salem Harbor Community Development Corporation to amend the Decision granted by the Zoning Bo d of Appeals for 50 Palmer St.to allow 100%affordable rental housing for low and moderate incom li s.By signing this petition,I certify that I am at least eighteen years of age and have not received any e of is in exc ge for my support of this petition. 1 � Na e j d s ` Phone# 1. Q74 ��' 51O -6p 3. 4. 5. 6. 7 8. 9. 10. IL 12. 13. 14. 15. 16. 17. 18. 19. 20. Join us on Wednesday August 27 at 6:30 PM at 120 Washington St.Room 313 to support affordable homes for working families. SUPPORT SALEM HARBOR CDC Founded in 1979,the Salem Harbor Community Development Corporation(SHCDC)is a nonprofit, community-based organization which develops housing,improves neighborhoods and promotes educational efforts to advance the economic self sufficiency of families and individuals.Our goals are: develop,manage and preserve affordable housing;enable people to obtain skills to earn a living wage,and increase access to knowledge and capital in order to grow neighborhood businesses. After five years of hard work,we have completed construction of the building at 50 Palmer St.located on the comer of Palmer and Congress St. in the Point Neighborhood. We intended to provide 15 affordable two and three bedroom units to first time homebuyers. We are very sad to say that the recent housing crisis has prevented us from finding income eligible first time home buyers. We plan to make these units available to low and moderate income families as affordable rental housing.We ask for your support for a request to the Salem Zoning Board of Appeals to approve this change to affordable rental housing. Petition I hereby support the request of Salem Harbor Community Development Corporation to amend the Decision granted by the Zoning Board of Appeals for 50 Palmer St.to allow 100%affordable rental housing for low and moderate income families.By signing this petition,I certify that I am at least eighteen years of age and have not received any benefits in exchange for my support of this petition. Na a Address one 1 le. '-Ye r ajVJ , 5. .3 6. arm sr - s7/ 7. 8. 9. -, 176 10. 11. 12. 13. 14. 15. 16. 17. 18. 19, 20. Join us on Wednesday August 27 at 6:30 PM at 120 Washington St. Room 313 to support affordable homes for working families. SUPPORT SALEM HARBOR CDC Cl— Founded in 1979,the Salem Harbor Community Development Corporation(SHCDC)is a nonprofit, �L community-based organization which develops housing, improves neighborhoods and promotes educational efforts to advance the economic self sufficiency of families and individuals. Our goals are: develop,manage and preserve affordable housing; enable people to obtain skills to earn a living wage,and increase access to knowledge and capital in order to grow neighborhood businesses. After five years of hard work,we have completed construction of the building at 50 Palmer St.located on the corner of Palmer and Congress St.in the Point Neighborhood.We intended to provide 15 affordable two and three bedroom units to first time homebuyers. We are very sad to say-that the recent housing crisis has prevented us from finding income eligible first time home buyers.We plan to make these units available to low and moderate income families as affordable rental housing. We ask for your support for a request to the Salem Zoning Board of Appeals to approve this change to affordable rental housing. Petition I hereby support the request of Salem Harbor Community Development Corporation to amend the Decision granted by the Zoning Board of Appeals for 50 Palmer St.to allow 100%affordable rental housing for low and moderate income families.By signing this petition,I certify that I am at least eighteen years of age and have not received any benefits in exchange for my support of this petition. NathIL dr _.. 3 ®j 7>r Z4'm-3c�46 6. cZ 7 l- 7`ro__0113 . 9. 10. 6 12. G Lf 7415 — 14. e f 7 33Sj'�jo�- 15. 0, Afi ZZ tSPA(c/. 3c96('00 c96 /0G 16. L �. � 18 19. v 20. Join us on Wednesday August 27 at 6:30 PM at 120 Washington St. Room 313 to support affordable homes for working families. SUPPORT SALEM HARBOR CDC Founded in 1979,the Salem Harbor Community Development Corporation(SHCDC)is a nonprofit, (/ community-based organization which develops housing,improves neighborhoods and promotes 0 educational efforts to advance the economic self sufficiency of families and individuals.Our goals are: develop,manage and preserve affordable housing;enable people to obtain skills to earn a living wage,and increase access to knowledge and capital in order to grow neighborhood businesses. After five years of hard work,we have completed construction of the building at 50 Palmer St. located on the comer of Palmer and Congress St.in the Point Neighborhood. We intended to provide 15 affordable two and three bedroom units to first time homebuyers.We are very sad to say that the recent housing crisis has prevented us from finding income eligible first time home buyers. We plan to make these units available to low and moderate income families as affordable rental housing.We ask for your support for a request to the Salem Zoning Board of Appeals to approve this change to affordable rental housing. Petition I hereby support the request of Salem Harbor Community Development Corporation to amend the Decision granted by the Zoning Board of Appeals for 50 Palmer St.to allow 100%affordable rental housing for low and moderate income families.By signing this petition,I certify that I am at least eighteen years of age and have not received any benefits in exchange for my support of this petition. Name AcIdress Phone 0 I. r0 A q - 2 l ZZ - 2: 3. 4. ...J 5. .IXSr d> 24 9-Y 6 E -';7- 7.7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Join us on Wednesday August 27 at 6:30 PM at 120 Washington St. Room 313 to support affordable homes for working families. i SUPPORT SALEM HARBOR CDC V-'9 S� Founded in 1979,the Salem Harbor Community Development Corporation(SHCDC)is a nonprofit, r community-based organization which develops housing,improves neighborhoods and promotes educational efforts to advance the economic self sufficiency of families and individuals.Our goals are: develop,manage and preserve affordable housing;enable people to obtain skills to earn a living wage,and increase access to knowledge and capital in order to grow neighborhood businesses. After five years of hard work,we have completed construction of the building at 50 Palmer St. located on the comer of Palmer and Congress St.in the Point Neighborhood.We intended to provide 15 affordable two and three bedroom units to first time homebuyers. We are very sad to say that the recent housing crisis has prevented us from fording income eligible first time home buyers.We plan to make these units available to low and moderate income families as affordable rental housing.We ask for your support for a request to the Salem Zoning Board of Appeals to approve this change to affordable rental housing. Petition I hereby support the request of Salem Harbor Community Development Corporation to amend the Decision granted by the Zoning Board of Appeals for 50 Palmer St.to allow 100%affordable rental housing for low and moderate income families.By signing this petition,I certify that I am at least eighteen years of age and have not received any benefits in exchange for my support of this petition. Name Address hon 3. s G -l30 4. OtL 8. Q ! ate— O 9.-'ft to 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Join us on Wednesday August 27 at 6:30 PM at 120 Washington St.Room 313 to support affordable homes for working families. SUPPORT SALEM HARBOR CDC ^^^ Founded in 1979,the Salem Harbor Community Development Corporation(SHCDC)is a nonprofit, community-based organization which develops housing,improves neighborhoods and promotes educational efforts to advance the economic self sufficiency of families and individuals. Our goals are: develop,manage and preserve affordable housing;enable people to obtain skills to earn a living wage,and increase access to knowledge and capital in order to grow neighborhood businesses. After five years of hard work,we have completed construction of the building at 50 Palmer St.located on the comer of Palmer and Congress St. in the Point Neighborhood.We intended to provide 15 affordable two and three bedroom units to first time homebuyers. We are very sad to say that the recent housing crisis has prevented us from finding income eligible fust time home buyers.We plan to make these units available to low and moderate income families as affordable rental housing.We ask for your support for a request to the Salem Zoning Board of Appeals to approve this change to affordable rental housing. Petition I hereby support the request of Salem Harbor Community Development Corporation to amend the Decision granted by the Zoning Board of Appeals for 50 Palmer St.to allow 100%affordable rental housing for low and moderate income families.By signing this petition, I certify that I am at least eighteen years of age and have not received any benefits in exchange for my support of this petition. Name Address Phone# 1. Cl,50 N 3 �ocKw1h 7o sGlew, s+ W 3-/j/ or63 3. w1,,f 7` 4. 5 (21 7. -. 41 In `S aoZ3�Pq( s. 10. 3S 5% r ,� �7 > li. l ��i 12. _ 13. 14. r 15. 16. 17. 1 a. 19. < . Too 5atim '(b Join us on Wednesday August 27 at 6:30 PM at 120 Washington St. Room 313 to support affordable homes for working families. I .. I SUPPORT SALEM HARBOR CDC ) Founded in 1979,the Salem Harbor Community Development Corporation(SHCDC)is a nonprofit, ` community-based organization which develops housing,improves neighborhoods and promotes educational efforts to advance the economic self sufficiency of families and individuals. Our goals are: develop,manage and preserve affordable housing;enable people to obtain skills to earn a living wage,and increase access to knowledge and capital in order to grow neighborhood businesses. After five years of hard work, we have completed construction of the building at 50 Palmer St. located on the comer of Palmer and Congress St. in the Point Neighborhood.We intended to provide 15 affordable two and three bedroom units to first time homebuyers. We are very sad to say that the recent housing crisis has prevented us from finding income eligible first time home buyers. We plan to make these units available to low and moderate income families as affordable rental housing.We ask for your support for a request to the Salem Zoning Board of Appeals to approve this change to affordable rental housing. Petition I hereby support the request of Salem Harbor Community Development Corporation to amend the Decision granted by the Zoning Board of Appeals for 50 Palmer St.to allow 100%affordable rental housing for low and moderate income families.By signing this petition,I certify that I am at least eighteen years of age and have not received any benefits in exchange for my support of this petition. Name Address Phone# i. 2 le 5�i 3i9- Q 3 Y-- l Z22 4. � o� ey ,i—i'lZ) s. :2-9- ens ' 3i 6. 7. ,r s. S �S 3 9. oil 12. 13. 14. 15. 16. 17. 18. 19. 20. Join us on Wednesday August 27 at 6:30 PM at 120 Washington St. Room 313 to support affordable homes for working families. SUPPORT SALEM HARBOR CDC <1 wC-elt . _ZS Founded in 1979,the Salem Harbor Community Development Corporation(SHCDC)is a nonprofit, community-based organization which develops housing, improves neighborhoods and promotes educational efforts to advance the economic self sufficiency of families and individuals. Our goals are: develop,manage and preserve affordable housing;enable people to obtain skills to earn a living wage,and increase access to knowledge and capital in order to grow neighborhood businesses. After five years of hard work,we have completed construction of the building at 50 Palmer St. located on the comer of Palmer and Congress St.in the Point Neighborhood.We intended to provide 15 affordable two and three bedroom units to first time homebuyers. We are very sad to say that the recent housing crisis has prevented us from fmding income eligible first time home buyers.We plan to make these units available to low and moderate income families as affordable rental housing. We ask for your support for a request to the Salem Zoning Board of Appeals to approve this change to affordable rental housing. Petition I hereby support the request of Salem Harbor Community Development Corporation to amend the Decision granted by the Zoning Board of Appeals for 50 Palmer St:to allow 100%affordable rental housing for low and moderate income families.By signing this petition,I certify that I am at least eighteen years of age and have not received any benefits in exchange for my support of this petition. Name Adaress Phone# 1. �a �PiMV ��,� 7-7 [e4✓ ; fs� A� �z S'p�PniY'y 7Z- 0 Z 07Z -, V tf- ST-� ._ - 3 4. 5. 1alen ' a/(c� 7. I L,� 5� AQP" 1l 8• ,' A,A ry Sn.Co1� 9. 3 s? 10.-> X1,2 12.- 13. 14. 15. 16. 17. 18. 19. 20. Join us on Wednesday August 27 at 6:30 PM at 120 Washington St. Room 313 to support affordable homes for working families. SUPPORT SALEM HARBOR CDC Founded in 1979,the Salem Harbor Community Development Corporation(SHCDC)is a nonprofit, community-based organization which develops housing,improves neighborhoods and promotes educational efforts to advance the economic self sufficiency of families and individuals. Our goals are: develop,manage and preserve affordable housing;enable people to obtain skills to earn a living wage,and increase access to knowledge and capital in order to grow neighborhood businesses. After five years of hard work,we have completed construction of the building at 50 Palmer St.located on the corner of Palmer and Congress St. in the Point Neighborhood. We intended to provide 15 affordable two and three bedroom units to first time homebuyers. We are very sad to say that the recent housing crisis has prevented us from finding income eligible first time home buyers.We plan to make these units available to low and moderate income families as affordable rental housing.We ask for your support for a request to the Salem Zoning Board of Appeals to approve this change to affordable rental housing. Petition I hereby support the request of Salem Harbor Community Development Corporation to amend the Decision granted by the Zoning Board of Appeals for 50 Palmer St.to allow 100%affordable rental housing for low and moderate income families.By signing this petition,I certify that I am at least eighteen years of age and have not received any benefits in exchange for my support of this petition. Name Address hone# I. : —• _ 3 _ .. _.. Q�_ 31. 4. l06t/e. 023 / s. 1 Cf A449ja 670 6: LS of —L } 25 7. s. 9. 7'q 7�. s�37 10. L'Q �y. 11. t �y y�_� ,z— a—/ V 12. ( �/ ✓.r W �� Q � ! ��" y- )- � 6 13. 14. / 1/ 15. A RZZ,V1 R-1,11 Ita a Yy5 f ��a 16. aINI'GL O� G�� G7- 0 woI- ST 7 is 17. 3Zc 57L 74�i-3z�} y 18. l�(YlQtm`aE �OL t J rA < 1 rZ 19. Ilk �3 w� 'Z/_ '5-k. A'P'r--F 2_P o. 3W— (;o -76 Join us on Wednesday August 27 at 6:30 PM at 120 Washington St. Room 313 to support affordable homes for working families. SUPPORT SALEM HARBOR CDC Founded in 1979,the Salem Harbor Community Development Corporation(SHCDC)is a nonprofit, community-based organization which develops housing,improves neighborhoods and promotes educational efforts to advance the economic self sufficiency of families and individuals.Our goals are: develop,manage and preserve affordable housing;enable people to obtain skills to earn a living wage,and increase access to knowledge and capital in order to grow neighborhood businesses. After five years of hard work,we have completed construction of the building at 50 Palmer St.located on the comer of Palmer and Congress St.in the Point Neighborhood. We intended to provide 15 affordable two and three bedroom units to first time homebuyers.We are very sad to say that the recent housing crisis has prevented us from finding income eligible first time home buyers. We plan to make these units available to low and moderate income families as affordable rental housing.We ask for your support for a request to the Salem Zoning Board of Appeals to approve this change to affordable rental housing. Petition I hereby support the request of Salem Harbor Community Development Corporation to amend the Decision granted by the Zoning Board of Appeals for 50 Palmer St.to allow 100%affordable rental housing for low and moderate income families.By signing this petition,I certify that I am at least eighteen years of age and have not received any benefits in exchange for my support of this petition. NameAddress Phone# �T ci t y C j .�.. .. ___ _._ .___2. �(nn�c'► >4me�cY �tti'i -- �nkj,�LSfiao� i 41� a. r Q1 71It! cx�ay s. 0` G Or y CXJac/ 7. 8• 4 UC L�7✓C(G 9.\_ < - 10. y 12. tal 13 LJ 15 16. 17. 18. ` CQ t., 2-1 19 20. i5 Join us on Wednesday August 27 at 6:30 PM at 120 Washington St. Room 313 to support affordable homes for working families. SUPPORT SALEM HARBOR CDC L(J,k 7 Founded in 1979,the Salem Harbor Community Development Corporation(SHCDC)is a nonprofit, community-based organization which develops housing, improves neighborhoods and promotes educational efforts to advance the economic self sufficiency of families and individuals. Our goals are: develop,manage and preserve affordable housing;enable people to obtain skills to earn a living wage,and increase access to knowledge and capital in order to grow neighborhood businesses. After five years of hard work,we have completed construction of the building at 50 Palmer St.located on the comer of Palmer and Congress St.in the Point Neighborhood.We intended to provide 15 affordable two and three bedroom units to fust time homebuyers. We are very sad to say that the recent housing crisis has prevented us from finding income eligible fast time home buyers. We plan to make these units available to low and moderate income families as affordable rental housing.We ask for your support for a request to the Salem Zoning Board of Appeals to approve this change to affordable rental housing. Petition I hereby support the request of Salem Harbor Community Development Corporation to amend the Decision granted by the Zoning Board of Appeals for 50 Palmer St.to allow 100%affordable rental housing for low and moderate income families.By signing this petition,l certify that I am at least eighteen years of age and have not received any benefits in exchange for my support of this petition. 1 Na ; / Address Phone# 2. 3. 4. 5. 6. 7 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Join us on Wednesday August 27 at 6:30 PM at 120 Washington St.Room 313 to support affordable homes for working families. IV. Consequence of failure to receive requested relief: 1) Status of Affordability Restrictions: These units will be kept affordable in two ways. One is through the mortgages held by four public funding sources. The second is in the Zoning Decision. Mortgage Agreements: Since the mortgages of the public funding sources are subordinate to the construction loan, they will be eliminated in a foreclosure. The result will be the loss of$2,214,000 public funds dedicated to creating and preserving affordable housing. As shown by the attached docs, under Section 17 of the recorded "Affordable Housing Restriction", if the bank acquires the property through a foreclosure, then the restrictions shall not apply to the bank or any purchaser from the bank, and the property shall thereafter be free of all such rights and restrictions. This is further assured by Paragraph 1. A. on page 4 of the Master Subordination and Inter-creditor Agreement, which was _ executed by all-parties and all project lenders, and recorded as part of the January 23, 2007 construction loan closing, which specifies that all Junior Loans and rights hereunder (including the Affordable Housing Restriction) are subordinate to Citizens Bank rights under its construction loan. Zoning Decision The Zoning decision delegates the determination of the affordability of the units to the City of Salem Department of Planning and Community Development. As a condition of closing, the senior construction lender required that the Department of Planning and Community Development provide a waiver of these restrictions in the event of foreclosure. As a result the affordability restrictions do not survive the event of foreclosure. 2) Status of Ownership Restrictions: William Quinn, legal counsel to SHCDC,has advised us that the title to foreclosure will be subject to provisions of the decision of the ZBA. This means that the provision that the units must be sold as owner occupied units will survive. As a practical matter, it is not clear how this can be enforced. Under this scenario, it is possible and perhaps likely that this will be purchased by an investor at a"fire sale"price and then either held or sold to other investors who will in turn rent them out for an indefinite period of time until and if the market changes. A likely short term result will be the degradation of the property to uncontrolled rental tenure with multiple interests and no unified management presence. 3) Impairment of Salem Harbor Community Development Corporation As described in the cover letter from the President of Salem Harbor Community Development Corporation, David Jacobson; the consequence of a foreclosure to this non profit organization at a time of financial vulnerability could be fatal. SHCDC has served Salem thirty years. Its ability to continue to act as a housing developer and provider is in jeopardy. We assert, that we have acted as a responsible agent and simply seek the relief that is necessary to adapt to market conditions in a manner which is financially feasible and consistent with the mission of the organization by providing affordable housing. Attachments: • 2004 Zoning Decision and Amendment • Master Subordination and Inter-creditor Agreement 2004 Zoning Decision and Amendment CITY OF SALEM, MASSACHUSETTS BOARD OF APPEAL 120 WASHINGTON STREET, 3RD FLOOR + p SALEM, MASSACHUSETTS 01970 �+i iTANLEY J. USOVICZ,'JR. TELEPHONE: 978-745-9595 MAYOR FAX: 978-740.9846 co co D DECISION ON THE PETITION OF SALEM POINT RENTAL PROPERTIES LLC REQUESTING A VARIANCE FOP,TEE PROPERTY LOCATED AT 50 PALMER" STREET H-1 A hearing on this petition was held on July 14,2004 with the following Board Members proomr Nina Cohen Chain,Bonnie Belau.Stephen Harris.Joseph Barbeau and Edward Moriarty. Notice of the hearing wsa no to abutters and others and notices of the hearing were property published in the Salam Evening News in accordance with Massachusetts General Laws amptw 40A. -' The petitioner is requesting Variances fiom lot coverage,side,near and fiomt setbacks, building height and parking for 15 cars to construct 15 units for the property at 50 Paltrier Street located in a B-I zone. The Variances,which have been requested,may be granted upon a finding by this Board that. a. Spacial conditions and circa exist which especially affect the land, building or anteaters involved and which we not generally affwft other lands, buildings and stracwms imrolm b. Literal enforcement ofdw provisions of the Zoning Ordinance would involve sulstantal hardship,finnadd or ,to the petitlonera c. Desirable relief may be gmokd wWxxtt suhstefial detdmms tD to public good- - and without nullifying or substantially deogating fiiom the kftW of the district of the purpose of the Ordinaries. The Board of Appeal,alter carenil consideration of the evidence presented at the hearin8, and atter viewing the pleas,malms the b1la :n$'`m3.n OffaCt L Petitioner Salem point Rental Properties Corporation,a narpmlit Massacbuaetts Corporation,seeks variances to allow.construction>pon,a Iat of vaaantland at 50 Palmer.Street containing about I5,228 square feet,add cwnsauodon to consist of a three-story townhouse style structure which will contain fifteen units of affordable housing,consisting of six three-story units each ofwbkh will contain both an affordable 0wna-0oeupa`&venmg on the second and third floor and an affordable rental on ,and three affordable owner cecu�ied_ flats with one of each of the first,second and thine floors.aoa here aseoctama landscaping and on-site parking spaces for fitleen car's as depicted in the plans. These improvements are more specifically laid out as shown on the 3 page of DECISION OF THE PETrnoN SALEM POINT RENTAL PROPERTIES LLC REQUESTING A VARIANCE FOR THE PROPERTY LOCATED AT 50 PALMBR STREET B-1 page two cs building and site pleas for"50Palmer Street"prepared by Luna Design Group `" ,a Salem Harbor Community Development Getup,dated May,2004,as filed with 1 Hoard ofAppeals,Petitioners presentation was made by Attorney William Quian,oD Executive Director of Salem Harbor CDC James Haskell and project Architect,Joh Luna of Luna Design Group. $ 2. To construct the development,the petitioner has requested variances from the Provisions ofthe zoning ordinance applicable in the B-1 Zone,as f)IlM:lot eoverage.to exceed 40%.,,fi+ont yard setback less.than IS feet,side yard width lea than 10 feet,rest yard width less than 30 fed,building Leight over 30 feet and parldng for 15 cars shown on the plans ral>rdr than the larger number and space sizes required by the Zoning Ordinance,all as shown and specified on the pians ,_ - submkk d. Petitioner argues that the giround justifying.tbe variances are a combination of factors unique to the land,as wall as economic,as follows:the small size of the lot NO the fact that it is surmunded on three aides by public streets constitutes physical impediments that praveat the lot from being developed in any memagfal and economically feasible way is conformity with the setback requirements ofthe Zoning Bylaw:further,the size and density ofresidential uses in the buildings m the immediate area,combined with the modest economic means of area residents,ane physical and economic factors that make it unfeasible to build a conforming sttuxture on the land,and uwnstidue a hardship to the owner that justifies the granting of the variances for this development. 3. Petitioner advocated the project as providing 15 units of affordable bouft v/ including roue g+r^WWWcoyancy Bich is badly needed in the ue►gbborn�and the City. Petitioner will conduct a lottery under the supervision of the Salem Planning Department,and/or other governmental officials:as program regulation or 6namang may n **% to designate the purchascs of the owner-occupied units,with the intent ofpr'nvid*p vhrenoe to Salem residents for atdeast.70%.of the units to be sold."The affordability.of all 15 units is to be assured for a period of fifty(50)years from the date of this decision by the Ponof Affordable Housing Restrictions anroved by the City of Salem Planning Department. 4. Several residents and municipal officials,including Ward 1 Councilor Lucy Cowhado and Councilor At Large Joan Lovely,spoke m favor of the proposal. Letters of support by neighbors,including one by the immediate abutter,were filed with the Board. Two neighborhood owners stated concerns about the adequacy of the on-site parking,and the applicant provided additional information in response to the concern that was satisfactory to the Board. No one spoke or communicated to the Board in opposition to the petition. naJ2s'OG 10:34 FAX 971,7413415. Ta GF RFAL FS'7Ahg awl. CITY OF SALEM, MASSACHUSETTS BOARD OF APPEAL L;` 7h 120 WASHINGTON STREET.340 FLOOR SALEM.MASSACNUSrTTS 01970 TELEPHONE'978745.9595 6) FAX'978.740.9848 :�`'� dUG-23 P KIMeERLEY DRISCOLL MAYOR August 23,2006 Amendment to Decision Dated July 14, 2004 Petition of Salem Point Rental Properties, LLC requesting an amendment to an approved Variance for property located at 50 Palmer Street, B-1 District City of Salem Zoning Board of Appeals A public hearing on the above petition was opened on-August 16,2006 pursuant to Mass General Law Ch.40A,Sec.11,the following Zoning Board members being presents Robin Stein, Annie Harris,Elizabeth Debsld,Steve Piolo,Bonnie Belau. The petitioner,Salary Point Rental Properties,LLC,is requesting an amendment to their / previous Zoning Board Decision dated July 14,2004 to allow ell fifteen(15)units at 50 t/ Palmer Street to be sold as owneroccupled condominium.rather than the previously- approved nine(9)owner-ow plancondo units and six(6)rental units.Additionally,the petitioner is seeking to specify language regarding the nature of the affordable housing requirements for the properties. The Board of Appeals,after careful consideration of the evidence presented at the public MuW&and after thorough review of the Plans and Petition submitted,makes the following findings of fact: 1. The property at 50 Palmer Street is within the 13-1 zoning district. 2 The petitioner is proposing to amend the previously granted ZBA decision dated July K'20114 to allow a change in tle.numbecof owner-occupied units fromnine (9)to all fifteen(15)units. 3. The petitioner is further seeking to amend the language of the decision regarding the requirement of the units to be affordable to low and very low income individuals and families(condition#7)to specify as follows:"All units in the project will be marketed as Affordable Housing for purchase exclusively by Individuals or Families whose annual incomes am 80%or less of the median income for the Area(low Income Families)baud on farrdly size as determined by l IIJD."The foregoing sentence is to be added to the end of condition#7 in the decision dated July 14,2004. 4. The petitioner further seeks to amend the previous decision so that the words"by low and very low income individuals and-families"are stricken from The original language of the decision under condition V. r13,25/06 10:15 FAX 9767417475 TOGF REAL F.51:4TR Qeaft S. All other conditions of the previous decision dated July 14,2004 are to remain as written. 6. Councilor Lucy Corchado spoke in favor of the requested amendments. 7. Councilor Jean Pelletier spoke in favor or the requested amendments. On the basis of the above findings of fact,including all evidence presented at the public hearing,including,but not limited to,the Petition and detailed plans,the Zoning Board of Appeals concludes as follows: 1, The decision dated July 14,2004 shall be amended to allow for all fifteen(15) units to be owner-occupiod units. 2. The decision dated July 14,20%shall be amended to change the language of the decision regarding the requirement of the uNts to be affordable,to low and very low income individuals and families(conditi(n M7)to specify as follows: ,,All units in the project will be marketed as Affordable Housing for purchase exclusively by Mviduals or Families whose annual incomes are 60%or less of the median income for the Area(low Income Families)based on family size as determined by HUD.'The foregoing sentence is to be added to the end of condition 871 n the decision dated July 14,2004. 3. The petitioner further seeks to amend the previous decision so that the words "by low and very lav income individuals and families"are stricken from the original language of the decision under condition V. 4. The psiddoner s request for an amendment to the previous decision and the resultant amended conditions do not constitute a substantial detrirJent to the public good d The proposedamended language does not sullify or substantially derogate. from the intent or purpose of the zoning ordinance. 6. In permitting such change.the Board of Appeals requires certai a appropriate conditions and safeguards as noted below. In consideration of the above,the Salem Board of Appeals voted,five(5)in favor(Stein, Harris,Pinto,Oebski,BaWr)and none(0)opposed,to grant the request to amend the previous decision dated July 14,M,subject to the following terms,conditions,and safeguards: 1. No other condition of the previous decision or decisions for SO Palmer Street shall be affected by these amendments un)ess expressly stated above. ' 1 nn r; 06 10:36 FnF 0157,41361:1 TQGF REAL FATATF 400 Eliza th DchM Salem Zoning Board of Appeals A COPY OF THIS DECISION HAS BEEN FRED WITH THE PLANNING BOARD AND THE CITY CLERK AppWAI from rich decision,irnay,shin be made punumt to Sad-=V of the Mmzcbuseta Gemd Laws Cbaptar 4nA,and dun be filed within 40 days of sling of this decision in the of&a of da City Clerk. Pursuing to the Mauwbusatts 0e00CW LaW6 Chapter 40A.Station 11,the VsAsm or Special Persalt gsamed hertin shall not rake effect wail a copy of the decision bearing the taoficata of she Clty Clark that 20 days have dap od anal no appeal has been filed.or that.ifsuch appal has been filed.that it has ben . - dismissed or denied and is recorded in that South Eases Registry of Deeds and itdexed under We Game of . the owner of neord w it mmded and noted on the owlet's CeniOuta of Tido. - Master Subordination and Inter-creditor Agreement l U ��III�51W�I51IIII�I��II�IdI��l��lltllb 2008090800205 W26058 P$:562 08/0012000 10:00:00 0TWR a 1110 � 1 HOME INVESTMENT PARTNERSHIPS PROGRAM AFFORDABLE HOUSING RESTRICTION SALEM POINT RENTAL PROPERTIES CORPORATION, a Massachusetts non-profit corporation organized and operating under M.G.L.c.180,with an address of 102 Lafayette Street, Salem, MA 01970(the "Borrower")grants with quitclaim covenants,to the North Shore HOME Consortium, its successors and permitted assigns (the "Lender"), exclusively for the purpose of ensuring the sale of housing for homeownership by low income persons and families,the following described Affordable Housing Restriction on land located in Salem, Massachusetts, having an address of 50 Palmer Street,said land being described in Exhibit A,('Premises"). The terms of this Affordable Housing Restriction,authorized by G.L.,c. 184,ss.31-33,and otherwise by law,are as follows: 1. The purpose of this Affordable Housing Restriction is to assure that the Premises will be retained as affordable housing for occupancy by low and very low income families. 2. The Borrower intends,declares and covenants,on behalf of itself and its successors and assigns, that the covenants and restrictions set forth in this Affordable Housing Restriction regulating and restricting the use, occupancy and transfer of the Premises (i) shall be and are covenants running with the Premises, encumbering the Premises for a term of fifty (50) years following completion of the Project(as defined below),which shall in no event occur later than December,2007,binding upon the Borrower's successors in title and all subsequent owners of the Premises,(ii)are not merely personal covenants of the Borfower,and(iii)shall bind the Borrower and its successors and assigns(and the benefits shall inure to the Lender and to any past,present or prospective tenant of the Premises). The Borrower acknowledges that it has received assistance from the Lender in developing the Premises as affordable housing for homeownership, which assistance includes a loan from the Lender under the HOME Investment Partnerships Program (the"HOME Program"). This Affordable Housing Restriction shall continue in force for its stated term regardless of the prior repayment of such loan. 3. This Affordable Housing Restriction is intended to be construed as an affordable housing restriction as defined in Section 31 of Chapter 184 of the Massachusetts General Laws which has the benefit of Section 32 of said Chapter 184,such that the restrictions contained herein shall not be limited in duration by any rule or operation of law except to the period of fifty(50)years set forth in the Promissory Note. The Borrower hereby agrees that any and all requirements of the laws of The Commonwealth of Massachusetts to be satisfied in order for this Affordable Housing Restriction to constitute deed restrictions and covenants running with the land shall be deemed to be satisfied in full and that any requirements of privity of estate are intended to be satisfied,or in the alternative,that an equitable servitude has been created to insure that this Affordable Housing Restriction runs with the land. Restriction, Lender does not undertake any liability or obligation relating to the condition of the Premises. If any provision of this Affordable Housing Restriction shall to any extent be held invalid, the remainder shall not be affected. 16. The Lender is authorized to record or file any notices or instruments appropriate to assuring the enforceability of this Affordable Housing Restriction;and the Borrower on behalf of itself and its successors and assigns appoints the Lender its attorney-in-fact to execute,acknowledge and deliver any such instruments on its behalf. Without limiting the foregoing,the Borrower and its successors and assigns agrees to execute any such instruments upon request. The benefits of this Affordable Housing Restriction shall be in gross and shall be assignable by the Lender. The Borrower and the Lender intend that the restrictions arising hereunder take effect upon the date hereof, and to the extent enforceability by any person ever depends upon the approval of governmental officials,such approval when given shall relate back to the date hereof regardless of the date of actual approval or the date of filing or recording of any instrument evidencing such approval. 17. Notwithstanding anything herein to the contrary, but subject to the next succeeding paragraph hereof,if the holder of record of a first mort a eanted to a state or national bank,state or federal savings"and-lbaa'association, cooperative b , mortgage company, trust company, insurance company or other institutional lender shall acquire the Property by reason of foreclosure or similar remedial action under the provisions ofsuch mortgage or uponconveyance ofthe Property in lieu of foreclosure,and provided that the holder of such mortgage(x)has given Lender not less than sixty(60)days'prior written notice of its intention to foreclose upon its mortgage or to accept a conveyance of the Property in lieu of foreclosure and(y)agrees to recognize any contractual or legal rights of public agencies, non-profit sponsors, or others to take actions that would avoid termination of low-income affordability of the Project, then the rights and restrictions herein gg=iagd shall not apply to such holder u on such ac uisition of the Property or to purchase of the Property from such holder,and such Pro a subject to the next two succeeding sentences thereafter be free from all such rights and restrictions. The rights an restnctrons containedherein shall not lapse if gre PropeMy is acTMMoughforeclosure or deed in lieu of foreclosure by(i)Borrower;(ii)any person with a direct or indirect financial interest in Borrower, (iii)any person related to a person described in clause(ii)by blood,adoption or marriage;(iv)any person who is or at any time was a business associate of a person described in clause(ii);and(v) any entity in which any of the foregoing have a direct or indirect financial interest(each a"Related Party"). Furthermore,if the Premises are subsequently acquired by a Related Party during the period in which this Affordable Housing Restriction would have remained in effect but for the provisions of this Section,this Affordable Housing Restriction shall be revived and shall apply to the Property as though it had never lapsed. In the event such holder conducts a foreclosure or otherproceeding enforcing its rights under such mortgage and the Property is sold for a price in excess of the sum of the outstanding principal balances of all notes secured by mortgages of the Property plus all future advances,accrued interest and all reasonable costs and expenses which the holders thereof are entitled to recover pursuant to the terms of such mortgages,such excess shall be paid to the Lender in consideration of the loss of the value and benefit of the rights and restrictions herein contained and released by the Lender pursuant to this Section in connection with such proceeding(provided,that in the event that such Executed under seal this(/day of " J 2006. SALEM POINT RENTAL PROPERTIES CORPORATION Michael Whelan,Executive Director Hereunto duly authorized COMMONWEALTH OF MASSACHUSETTS Essex,ss On this —/ day of 006,before me,the undersigned notary public,personally appeared'Michael�Vhelan-as=•E ecutive Director of SALEM POINT-RENTAL.PROPERTIES CORPORATION, proved to me through satisfactory evidence of identification, which was Qei1a�✓!/t( lGnOw/ta�4� , to be the person who signed the preceding or attached document in my presence,and who swore or affirmed to me that the contents of the document are truthful and accurate to the best of his knowledge and lief. V/ Notary Public — My commission expires: ACCEPTANCE OF GRANT BY LENDER The above Affordable Housing Restriction is accepted this L�day o£jgjnt§V& 006. THE NORTH SHORE HOME CONSORTIUM Michael J.Bonfanti Mayor,City of Peabody-the Representative Community for the North Shore HOME Consortium COMMONWEALTH OF MASSACHUSETTS Essex, ss. On this]A* day of_J&pL�2006,before me,the undersigned notary public,personally appeared Michael J.Bonfanti,as Mayor of the City of Peabody,proved to me through satisfactory evidence of identification,which was to be the person who signed the preceding or attached docum nt in my presence,and who swore or affirmed to me that the contents of the document are truthful and accurate to the best of his knowledge and belief. �l 1t otary Public My commission expires: �4 L ap►t �+ o ,;...;.� USzf4GCi4cNE ¢ly(pta. 4%OK,4 n4pi:4.7�1; ACCEPTANCE OF GRANT BY LENDER The above Affordable Housing Restriction is accepted this VJ day of 006. NORTH SHORE HOME CONSORTIUM, its successors and permitted assigns,acting by ar d through the City of Salem Kimberley Driscoll Mayor, City of Sale COMMONWEALTH OF MASSACHUSETTS Essex„ ss,._ On this�f^day of d 2006,before me,the undersigned notary public,personally appeared Kimberley Driscoll,as Mayor of the CITY OF SALEM,proved to me through satisfactory evidence of identification,which was s,% Da,.,, UL., ,to be the person who signed the preceding or attached document in my presence,and who swore or afTumed to me that the contents of the document are truthful and accurate to the best of her knowledge and belief. NotaryPubl c 3.t:c {,.. C+.Iri JULIE LYNN QUINN My commission expires: ,Uow o miwNofary Public fMassa CanmsaM of Massachuseps My Commission Expires November 23,2012 ACCEPTANCE OF GRANT BY LENDER The above Affordable Housing Restriction is accepted this 3 day of 006. LIFE INSURANCE COMMUNITY INVESTMENT MTIATIVE,LLC COMMONWEALTH OF MASSACHUSETTS as. On this day-6f USfi 3006,before me,the undersigned notary public;personally appeared SOJ 4 12 S'� IeS/n r as &r Prr ; and—of LIFE INSURANCE COMMUNITY INVESTMENTIIITIATIVE,LLC,proved to me through satisfactory evidence of identification, which was Ji$C ncia— , to be the person who signed the preceding or attached document in my presence,and who swore or affirmed to that the contents of the document are truthful and accurate to the best of his/her knowledge and belief. oJ Notary Public My commission expires: ALLISON ANN SHERMCK ' Notary Public CDmmonweafth My Commission Fxpiras August 3,2012 Exhibit A-Property Description MASTER SUBORDINATION and INTERCREDITOR AGREEMENT Project Name: 50 Palmer Street AII��ItlII�Il1IIlIIIlI011Ullltllullll� Property Address: 50 Palmer Street,Salem,Massachusetts 20070123IN43B BUNN Og g 2 1/17 This Agreement made as of the 2a day of De C. ,2006 by and among CITIZENS BANK OF MASSACHUSETTS,a Massachusetts Bank having an address at 28 State Street, Boston,Massachusetts 02109,Attn:Daniel R. Ouellette,Senior Vice President("Senior Lender");MASSACHUSETTS HOUSING PARTNERSHIP FUND BOARD,a Massachusetts public instrumentality and body politic and corporate,having an office at 160 Federal Street,2nd Floor,Boston,MA 02110 acting as financial intermediary for The Commonwealth of Massachusetts acting by and through its Department of Housing and Community Development ("DHCD'J,under the Housing Stabilization Fund Program;THE COMMONWEALTH OF MASSACHUSETTS ACTING BY AND THROUGH THE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT UNDER THE AFFORDABLE HOUSING TRUST FUND STATUTE,M.G.L. C. 121D,ACTING BY THE MASSACHUSETTS HOUSING FINANCE AGENCY AS ADMINISTRATOR,having its address at One Beacon Street,Boston, MA 02108,( AHT );-;.and the NORTH SHORE HOME CONSORTIUM,a consortium of participating municipalities under the HOME Investment Partnerships Program,its successors and assigns,having an address of Peabody City Hall,24 Lowell Street,Peabody,MA 01960, acting on its own behalf C NSHC")and acting by and through the City of Salem,having an address at 120 Washington Street,Salem,Massachusetts C'City"),which together with Senior Lender,MHP,AHT,and the NSHC each is referred to herein as a"Lender"and collectively as the"Lenders'); and SALEM HARBOR DEVELOPERS LLC,a Massachusetts limited liability company,having an address c/o Salem Harbor Community Development Corporation, 102 Lafayette Street, Salem,Massachusetts 01970(the"Borrowee . BACKGROUND A. Borrower is the owner of certain real property and improvements thereon as more particularly described on Exhibit A(the"Property"). B. Borrower is obtaining financing from the Lenders to construct at the Property a Condominium project consisting of fifteen(15)single family condominium units,all of which will be affordable for sale to low income first time homebuyers(the"Project"). C. Senior Lender has agreed to provide a construction loan to Borrower for the Project in the original principal amount of up to Two Million Two Hundred Ten Thousand Dollars($2,210,000.00) (the"Senior Loan'). The Senior Loan is evidenced and secured by the following documents, each of even date herewith: (a)a Promissory Note in the amount of the Senior Loan(the"Senior Note"),(b) a Construction Loan Agreement,(c)a first priority Mortgage encumbering the Property(the"Senior Mortgage"),to be recorded in the Essex County (South District)Registry of Deeds(the"Registry"),(d)an Assignment of Rents,Leases and Sale RN 1'� 1R®X-82 zzd Rents recorded at the Registry in Book 21656,Page 321 (the"2003 City Mortgage"),and an Affordable Housing Restriction recorded in Book 21656,Page 334(the"2003 City AHR")(all of the foregoing being referred to herein as the"2003 City Loan Documents"). H. NSHC has previously provided a shared second priority loan to Borrower for the Project in the principal amount of Seventy Five Thousand Dollars($75,000.00)under the HOME Investment Partnerships Program(the"2003 NSHC Loan'),which loan is evidenced and secured by the following documents: : (a)a Promissory Note in the amount of the 2003 NSHC Loan,(b) a Loan Agreement,(c)a Mortgage Security Agreement and Conditional Assignment of Leases and Rents recorded at the Registry in Book 21656,Page 32lencumbering the Property(the "2003 NSHC Mortgage"),and(d)such other documents as may be required by NSHC(all of the foregoing being referred to herein as the"2003 NSHC Loan Documents"). 1. The NSHC has previously provided a shared second priority loan to Borrower for the Project in the principal amount of One Hundred Fifty Thousand Dollars($150,000.00)under the HOME Investment Partnerships Program(the"February 2006 NSHC Loan"),which loan is evidenced and secured by the following documents: (a)a Promissory Note in the amount of the February 2006 NSHC Loan,(b)a Loan Agreement,(c)a Mortgage Security Agreement and Conditional Assignment of Leases and Rents recorded at the Registry in Book 25408,Page 588(the"February 2006 NSHC Mortgage%and an Affordable Housing Restriction recorded in Book 25409,Page I(the "February 2006 NSHC AHR')(all of the foregoing being referred to herein as the"February 2006 NSHC Loan Documents"). J. , The NSHC has previously provided a shared second priority loan to Borrower for the Project in the principal amount of Two Hundred Thousand Dollars($200,000.00)under the HOME Investment Partnerships Program(the"September 2006 NSHC Loan),which loan is evidenced and secured by the following documents: (a)a Promissory Note in the amount of the September 2006 NSHC Loan,(b)a Lean Agreement,(c)a Mortgage Security Agreement and Conditional Assignment of Leases and Rents recorded at the Registry in Book 26058,Page 550 (the"September 2006 NSHC Mortgage"),and an Affordable Housing Restriction recorded in Book 26058,Page 562(the"September 2006 NSHC AMC) all of the foregoing being referred to herein as the"September 2006 NSHC Loan Documents"). K MHP,AHT,the City and NSHC are collectively referred to as the"Public Lenders"or the`Junior Lenders",and the HSF Mortgage,the AHT Mortgage,the City Mortgage,the 2003 City Mortgage,the 2003 NSHC Mortgage,The February 2006 NSHC Mortgage,and the September 2006 NSHC Mortgage are collectivelyreferred to as the"Public Lender Mortgages."The HSF Loan Documents,the AHT Loan Documents the City Loan Documents,the 2003 City Loan Documents,the 2003 NSHC Loan Documents,the February 2006 NSHC Loan Documents,apd the September 2006 NSHC Loan Documents are collectively referred to as the"Junior Loan Documents-. L. In connection with the sale of each single family dwelling within the Project,the Borrower intends to enter into one or more Deed Riders with the purchaser thereof for the benefit of DHCD,ART,the City and NSHC,in a form satisfactory to each of them,to be recorded with the Registry as part of the deed conveying each dwelling and prior to any financing thereof, 3- setting forth certain affordable housing restrictions,covenants and agreements with respect to such dwelling(collectively,the"Affordable Housing Restrictions'). M. The Lenders wish to establish the(i)relative priorities of their respective notes, mortgages and assignments of rents, financing statements and agreements and the Affordable Housing Restrictions with respect to the Property notwithstanding the order of recording of the Lenders'documents;(ii)priorities of their respective security interests with respect to the personal property and fixtures owned by the Borrower and used in connection with the Property; and(iii)rights arising from their respective loan documents(all the documents in the foregoing paragraphs,collectively,the"Loan Documents"). AGREEMENTS Now,therefore,in consideration of the mutual covenants and agreements hereinafter set forth and other good and valuable consideration,the parties hereby mutually covenant and agree _ as follows:, .. � - - - -- _ 1. LENDERS'PRIORITY. A. The covenants and obli 'ons of the Borrower under dee Junior Loan Docume shall be subordinate in all res ects,including,wt out tmr on,payment; ten an to the covenants and obhgattons o e Borrower under the Senior Note and the Senior Loan Documents,subject to a terms o this ement a Junior en ocuments an TMens created thereunder shall be subject and subordinate ti)to the lien created by,as well as to all the tarts,covenants and conditions contained in,each of the Cenior roan nnnw+e = and(n)to any and all advances secured by the Senior Loan Documents whether prior to or subsequent to the execution and recording of the Junior Low Documents,Affordable Houainer Rmtricdnns,or of this Agreement,including,without limitation,any and ell increases therein made or incurred with respect to principal(but only if such increases are made in accordance with this Agreement), interest and other charges payable to the Senior Lender and secured by the Senior Loan Documents or to preserve the Property or the priority of the lien of the Senior Mortgage,or the collection of any indebtedness secured by the Senior Loan Documents(all of the foregoing clauses(i)and(ii)are collectively referred to as the"Senior Debt"). In case of any inconsistency between the provisions of this Agreement and the provisions of the Loan Documents,the provisions of this Agreement shall govern. B. Notwithstanding the order in which the various mortgages and documents evidencing the security interests granted by the Borrower to the Lenders have been or are -4- Master Subordination and Intercreditor Agreement Signature Page 50 Palmer Street December A 2006 IN WITNESS WHEREOF,the parties hereto have executed this Agreement as a sealed instrument under Massachusetts law,as of the date and year first above written. CITIZENS BANKQF-MASSACHUSETTS By: Name I tt/ 09 e Title: U/> Hereunto duly authorized UU THE COMMONWEALTH OF MASSACHUSETTS Suffo k,as. v '-2&V On this" day of r,2806,p.ersonally appeared before me,the undersigned notary public,the above-named-&A if 1 Q /J el / the S VP of Citizens Bank of Massachusetts,proved to me through satisfactory evidence of identification,which was[aeurmw Mw '"Denae)[ [my personal knowledge],to be the person whose name is signed on the preceding instrument and acknowledged to me that he/she signed the foregoing instrument voluntarily for its stated purpose as �_of Citizens Bank of Massachusetts No blit Print Name: My Commission Expires: MARY L.MI7iCHANT aim hre eboamm�on Mipu0tal.2M2 - -II- Master Subordination and Intercreditor Agreement Signature Page 50 Palmer Street DecembercLP,-2006 MASSACHUSETTS HOUSING PARTNERSHIP FUND BOARD / By:_ Name: Mark L.Zloglar Its: Executive Director Hereunto duly authorized THE COMMONWEALTH OF MASSACHUSETTS Suffolk, as On this L0(day of Aeeatbdr,200k ersonally appeared bef re me,the undersigned notary public,the above-named / theeM�gf the Massachusetts Housing Partnership Fund Board,proved to me through satisfactory evidence of identification, which was ] [ [my personal knowledge],to be the person whose name is signed on the preceding instrument and acknowledged to me that he(ghr<signed the.foregoing instrument voluntarily for its stated purpose as fC r e of the Massachusetts Housing Partnership Fund Board. Notary Public FATRIA M.JOSSELYN,NOTARY PUBLIC Print Name: MY COMMISSION EXPIRES AUGUST 14,2009 j My Commission Expires: -12- Master Subordination and Intercreditor Agreement Signature Page 50 Palmer Street December 2?2006 THE COMMONWEALTH OF MASSACHUSETTS acting by and through the DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT under the AFFORDABLE HOUSING TRUST FUND STATUTE, M.G.L. c. 12 11) By:MASSACHUSETTS HOUSING FINANCE AGENCY,as Administrator Name:Laurie R.Wallach Title: General Counsel Hereunto Duly Authorized COMMONWEALTH OF MASSACHUSETTS Suffolk,as. On this Z day of December,2006,personally appeared before me,the undersigned notary public,the above-named Laurie R. Wallach,the General Counsel of The Commonwealth of Massachusetts acting by and through its Department of Housing and Community Development,proved to me through satisfactory evidence of identification,which was }[my personal knowledge],to be the person whose name is signed on the preceding instrument and acknowledged to me that he/she signed the foregoing instrument voluntarily for its stated purpose as General Counsel of The Commonwealth of Massachusetts acting by and through its Department of Hous�ingg and CommunityDevelopment C/C Notary Public ^" p HE RF •i Print Name: CHRISTOPHER F.BURNS .............. M Exb • O e' Notary Publla ,£'`y:,;• •• G My Commission Expi o iq\, CWy co eatN of on Expire ris • Q•; p��30•Ap�^ �y 11 My Commission Expires �vig ' N1 - April 30,2010 6 3!i = t IINN� 13 Master Subordination and Intercreditor Agreement Signature Page 50 Palmer Street December 2006 THE NORTH SHORE HOME CONSORTIUM, acting by and through the CITY OF SALEM By: Kimberley Driscoll Title: Mayor,Cityf Salem Hereunto Duly Authorized COMMONWEALTH OF MASSACHUSETTS Essex. ss. 2cb� On this q P day of De a�be�,"2066,before me, the undersigned notary public, personally appeared Kimberley Driscoll,, Mayor for the City of Salem, ,proved to me through satisfactory evidence of identification,which were 44 1;, Lxc f to be the persons whose names are signed on the preceding document,and each acknowledged to me that she signed it voluntarily for its stated purpose as Mayor for The City of Salem. No ry Publid Print Name: 5,,1:e L.rw.. tea. n JULIE LYNN QUINN My Commission Expires: NA 2 S 2or2 Note ry Public CommmreatJ'�of ldassachuseits - &AyCommission Expires - - November23,2012 -14- Master Subordination and Intercreditor Agreement Signature Page 50 Palmer Street December 2L�, 2006 NORTH SHORE HOME CONSORTIUM Michael J. Bonfanti Mayor,City of Peabody—the Representative Community for the North Shore HOME Consortium Hereunto Duly Authorized COMMONWEALTH OF MASSACHUSETTS Essex,ss. pp On this j6hay of fir,2006,personally appeared before me,the undersigned notary public,the above-named Michael J. Bonfanti, the Mayor of the City of Peabody as Representative Member of the North Shore HOME Consortium,proved to me through satisfactory evidence of identification,which was[a current driver!&4ieexse] fa-en . jampert]f6y personal knowledge],to be the person whose name is signed on the preceding instrument and acknowledged to me that he signed the foregoing instrument voluntarily for its stated purpose as Mayor of the City of Peabody,as Representative Member of the North Shore HOME Consortium. 'Notary Public Print Name: jLi Sa.Creme My Commission Expires: Tune_16,a01 I Y . -15- Master Subordination and Intercreditor Agreement Signature Page 50 Palmer Street December?,P 2006 SALEM HARBOR DEVELOPERS LLC BY: SALEM HARBOR COMMUNITY DEVELOPMENT CORPORATION, its Manager Br Name: M, Chad WYve\w1 Title: q6_r, Hereunto duly authorized THE COMMONWEALTH OF MASSACHUSETTS County of Essex,ss., I On this?&y of December,2006 before me,the undersigned notary public,personally appeared W0 �Whebyt, as the&P1.u_4ikc f Salem Harbor Community Development Corporation,being the Manager of Salem Harbor Developers LLC,proved to m_e through satisfactory evidence of identification,which was p{6wrs J LCe�,to be the . person whose name is signed on the preceding or attached document, and acknowledged to me that he/she signed it voluntarily for its stated purpose as girdarc Tbc-con of Salem Harbor Community Development Corporation,the Manager for Salem Harbor Developers LLC istotwy Public Print Name: 0-V(-Al (7 • Na t t 6��` My Commission Expires: �- ( � �✓� c^G�t p. HgVe., �••Q .pMM••EXa�q lC wfallry Of N'4 .\V�,T . 16 TINTI, QUINN, GROVER & FREY, P.C. 27'CONGRESS STREET,SUITE 414 SALEM, MASSACHUSETTS 01970 WILLIAM J.TINTI WILLIAM B.ARDIFF(1965- 1995) [inti@tintilaw.com :.r� - TELEPHONE - WILLIAM F.QUINN 5 , ,.; (978)7458065 (978)744-2948 - MARCIA MULFORD CINI WilliamFQuinn,@aol.com OF COUNSEL- SCOTT M:-GROVER:x3J ,'. TELECOPIER JOHN D.KEENAN smgrover@tintilaw.com-- (978)745-3369 OF COUNSEL - _ ww' Antilaw.com MARC P.FRE Y mpfrey@tintilaw.com MARCY D.HAUBER RECEIVED JAMES G.GIiBERTm JAMES G.GILBERT jgilbert@tintilaw.com h1 0 UG I O O 2008 8/13/08 DEPT.OF PLANPMG& Chair and Members GOAMJ-UkITY OEVELOPaAsNT Salem Board of Zoning Appeals 120 Washington Street Salem, MA 01970 ATTN: Amy Lash RE: Variance Application for 50 Palmer Street Dear Chair and Members: With regard to this pending application for amendment of the existing variance, continued to August 27, 2008, I hereby request that the name of the applicant on the petition be amended to "Salem Harbor Developers, LLC", rather than Salem Point Rental Properties, LLC as stated'in the application. The reason for this request is that although the original 2004 variance decision was issued in the name of Salem Point Rental Properties, LLC, in 2006, at the time of the construction loan closing, Salem Harbor Community Development Corp. formed another entity to hold the property and construct the project, and organized Salem Harbor Developers, LLC for that purpose. That new company is wholly owned and managed by Salem Harbor Community Development Corp., a Mass. non-profit corporation. For your information, I have attached copies of the 12/22/06 deed into the new LLC and copies of the documents on file evidencing that this entity is owned and managed by the CDC. Thank you. Very trulyyour William F. Quinn DEED 01/p3/2007 75ZZBk 26501 P4;59 :00 DEED Salem Point Rental Properties Corporation,a Massachusetts Corporation with an address of 102 Lafayette Street, Salem,Essex County, Massachusetts, for nominal consideration, grants to Salem Harbor Developers, LLC, a Massachusetts Limited Liability Company, The land and buildings situated in said Salem, and shown as Lot 1 on a Plan of Land in Salem,MA prepared for Keefe's Hayloft, Inc.by David P.Terenzoni,P.L.S. dated August 21, 2003,recorded with the Essex South District Registry of Deeds in Plan Book 370,Page 68, to which plan reference may be made for a more particular description. Address of granted premises: 50 Palmer Street, Salem,Essex County, Massachusetts For title reference: see deed from Keefe's Hayloft, Inc. to the Grantor, recorded in Essex South District Registry of Deeds in Book 21656, Page 298 WITNESS my hand and seal this 22nd day of December 2006 Salem Point Rental Properties Corporation By: M ( J Title: l9 C�Mwi� Hereunto Duly Authorized COMMONWEALTH OF MASSACHUSETTS Essex, ss. December 2', 2006 On this 22nd day of December 2006,before me,the undersigned notary public, personally appeared Wh 14,p,,theMafia of Salem Point Rental Properties Corporation, personally known to me, hsati&fartery to be the person whose name is signed on the preceding or attached document, and acknowledged to me that he signed it voluntarily in such capacity and for its stated purpose. Notgry Public: N i ncL V Co kcy. My Commission Expires: ce_ MA SOC Filing_Number,:.200656007510Date: 09/14/2006 8:54 AM The Commonwealth of Massachusetts MinimiumFee:$ William Francis Galvin r Secretary of the Commonwealth i z` One Ashburton Place,Boston,Massachusetts 02108-1512 11 )I A Telephone: (617) 727-9640 SO Federal Employer Identification Number: 000933185 (must be 9 digits) 1. The exact name of the limited liability company is: SALEM HARBOR DEVELOPERS LLC i 2a. Location of its principal office is: 1 No. and Street: C/O SALEM HARBOR CDC 102 LAFAYETTE STREET City or Town: SALEM State:MA Zip: 01970 Country:USA 2b. Street address of the office in the Commonwealth at which the records will be maintained: No. and Street: C/O SALEM HARBOR CDC 102 LAFAYETTE STREET City or Town: SALEM State: MA Zip: 01970 Country:USA 4 3. The general character of business, and if the limited liability company is organized to render professional service,the service to be rendered: ' TO ENGAGE EXCLUSIVELY IN THE SINGLE PURPOSE OF THE BUSINESS OF ACQUIRING MORTGAGING I REHABILITATING,OPERATING,MANAGING, DEDICATING TO CONDOMINIUM USE AND SELLING CERTA REAL ESTATE,LOCATED AT 50 PALMER STREET,SALEM,MASSACHUSETTS AND TO ENGAGE IN ANY �i BUSINESS SPECIFICALLY RELATED THERETO OR USEFUL IN CONNECTION THEREWITH AND ALL ACTIVITIES NECESSARY OR INCIDENTAL THERETO AND ANY OTHER LAWFUL ACT OR ACTIVITY FOR WHICH LIMITED LIABILITY COMPANIES MAY BE FORMED UNDER THE ACT, SO LONG AS IT RELATES TC SAID PURPOSE AND SAID POWERS CANNOT BE USED FOR THE PURCHASE OF ANY ASSET OR PROPERT OR TO ENGAGE IN ANY BUSINESS THAT IS NOT RELATED TO 50 PALMER STREET, SALEM MASSACHUSETTS. 4. The latest date of dissolution, if specified: S. Name and address of the Resident Agent is: Name: SALEM HARBOR COMMUNITY DEVELOPMENT CORPORATION No. and Street: 102 LAFAYEM STREET City or Town: SALEM State:MA Zip: 01970 Country:: 6. The name and business address of each manager: 1' '., Title Individual Name Address Ino PO Box) i, First,Middle,Last,Suffix Address,City or Town,State,Zip Code i MANAGER j SALEM HARBOR CDC SEE OTHER MATTERS GO SALEM HARBOR CDC ___ �� SALEM,MA 01970 USA 7. The name and business address of the person in addition to the manager,who is authorized to execute documents to filed with the Corporations Division, and at least one person shall be named if there are no managers. Title Individual Name Address( Po BoxSuffixFirs[,Middle,Last,Suffix Address,City or Town, State,Zip Code SOC SIGNATORY SALEM HARBOR CDC SALEM HARBOR CDC SALEM,MA 01970 USA I 8. The name and business address of the person(s)authorized to execute, acknowledge, deliver and record any recorda instrument purporting to'affect an interest in real property: Title Individual Name Address(no PO Box) First,Middle,Last,Suffix Address,City or Town,State,Zip Code REAL PROPERTY SALEM HARBOR CDC C/O SALEM HARBOR CDC y 1 ' SALEM,MA 01970 USA 9. Any additional matters the authorized persons determine to include therein: THE FULL NAME AND BUSINESS ADDRESS OF THE MANAGER IS: (! SALEM HARBOR COMMUNITY DEVELOPMENT CORPORATION l 102 LAFAYETTE STREET SALEM,MA 01970 G' SIGNED UNDER THE PENALTIES OF PERJURY,this 14 Day of September,2006, SALEM HARBOR COMMUNITY DEVELOPMENT CORPORATION (The certificate must be signed by the person forming the LLC.) i 2001 -2006 Commonwealth of Massachusetts All Rights Reserved MA SOC Filing Number: 200656007510 Date: 09/14/2006 8:54 AM THE COMMONWEALTH OF MASSACHUSETTS I hereby certify that, upon examination of this document, duly submitted to me, it appears that the provisions of the General Laws relative to corporations have been complied with, and I hereby approve said articles; and the filing fee having been paid, said articles are deemed to have been filed with me on: September 14, 2006 8:54 AM WILLIAM FRANCIS GALVIN Secretary of the Commonwealth 0-5987-0 f PETITION I hereby oppose the petition of the Salem Point Rental Properties Corp. to amend its original Homeownership Project on 50 Palmer Street to allow rentals. Yo me opongo a la peticion de Salem Point Rental Properties a cambiar su proyecto en la 50 Palmer St. de ventas a propiedad de renta. Name/Nombre Address/Direccion 2. �4� M JS�-,(OM SOrfPi- 3. 4. u Gc 5. 6. roe/Aix 7. S v 8 12. 13. 5 16. b ft r 2 , (�✓ers s as IPz li4 17. �� 18. �( J Q 19. vVll�� 38 SI # 3 PETITION I hereby oppose the petition of the Salem Point Rental Properties Corp. to amend its original Homeownership Project on 50 Palmer Street to allow rentals. Yo me opongo a la peticion de Salem Point Rental Properties a cambiar so proyecto en la 50 Palmer St. de ventas a propiedad de renta. Name/Nombre Address/Direccion 1. 2. d 3. � �/o L//C2 0 �&96� �f T 4. I a � 5. C D l 6. 7. / ll/ Cil r/ e '301 �sTn� 9. 10 11. 12. / ��r� �d c E�'� �j L r✓��c� S j Z 13. �� Q % e 7/t�' �� I Z�7 �"✓ S71 j� 14. w�ell" 3 ��iycc�✓SZ 16. �z9 I!'C��r 5 ��vrrF✓ Sl� I` 17. 18. 19. 20. PETITION I hereby oppose the petition of the Salem Point Rental Properties Corp. to amend its original Homeownership Project on 50 Palmer Street to allow rentals. Yo me opongo a la peticion de Salem Point Rental Properties a cambiar so proyecto en la 50 Palmer St. de ventas a propiedad de renta. Name/Nombre A�dldress/Direccion 1. '' ,/b� 1�� /3 N A f<5 4L2 2. 3 i 3. a lJIAA <;et I cwt 4. 5. 6 38 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. PETITION I hereby oppose the petition of the Salem Point Rental Properties Corp. to amend its original Homeownership Project on 50 Palmer Street to allow rentals. Yo me opongo a la peticion de Salem Point Rental Properties a cambiar su proyecto en la 50 Palmer St. de ventas a propiedad de renta. Name/Nombre Address/Direction 2. ✓ r_� 2. pP k 2 5 1 v 4. Nle"Q]�7� 5. to6. ,��' .g 705 ' "111w1,*W1 � 8. .. Aa 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. PETITION I hereby oppose the petition of the Salem Point Rental Properties Corp. to amend its original Homeownership Project on 50 Palmer Street to allow rentals. Yo me opongo a la peticion de Salem Point Rental Properties a cambiar su proyecto en la 50 Palmer St. de ventas a propiedad de renta. Name/Nombre Address/Direecion I. 2. 4. oA-.C'i aue-Z �� RPx6Sov-, Five 5. IY1 d ��JLG. ra�el ca tion Nue 6. r Z IIAC Le? t) — Z _,Za 7. j -1-- o 7ri,� 3 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 1 1 � 3Et3li.lt I hereby oppose the petition of the Salem Point Rental Properties C i:onteownership Project on 50 Painter Street to a low rentals. Yo n Salem Point Rental Properries a camhiar su provecto en la 50 1 ;trupiedad tIe renta. �ll;y;i i\iRi;t I V\ .lem - --- - - - -- - -may - ��,��----- - S'785a;?G5J 1 1 � �Et � 11J I hereby oppose the petition of the Salem Point Rental Properties C Homeownership Project on 50 Palmer Street to aiiow rentals. Vo a Salem Point Rental Properties a cambiar sit proyecto en la 50 F rapiedad de rents. ;N ILNNIHitE i PETITION 1 I hereby uppuse the petition of the Salem Point Rental Properties Corp. to amend its original Homeownership Project on 50 Palmer Street to allow rentals. Yo me opongo a la peticion de Salem Point Rental Properties a cambiar su provecto en la 50 Palmer St. de ventas a propiedad de renta. NAhILNONIBRI_ ADDRESS/DIRECCIO>J 2. 4. � Cr' AGI 0070 i 10. 11. - --- 12. 2-� -- - _ id. _I�-.orb_.. �z - - - - �ti✓�v2---�(— 15. - --- 16. — --- — - -- --- 17. --- — - % RECEIVED HANDMADE CHOCOLATES - AUG 2 2 2008 DEPT. OF PLANNNG& I Phyllis B. LeBlanc COB EUKITY 6EVEL.OPPEENT President & CEO ' r r 4 August 20, 2008 ,. o Ms. Robin Stein, Chair Zoning Board of Appeals City of Salem 120 Washington St. Salem, MA 01970 Dear Ms. Stein, I am writing to express my support for the petition to amend the Decision of the Zoning Board of Appeals which granted variances to the property at 50 Palmer Street on July 14 2004 that will allow this property to be used as affordable rental housing. I am the owner of Harbor Sweets which is a business that has operated at 85 Leavitt St for more than thirty years. I was excited by the prospect that 50 Palmer Street would create affordable homeownership opportunities in the neighborhood. I am also excited by the fact that now that this beautiful building is complete, the entire block on Congress St. has been transformed. This is just one of the many valuable contributions that Salem Harbor CDC has made over its many years of service in the neighborhood. Many of my employees live in the neighborhood. Most of them live in rental housing. Although this project was intended to serve the need for working families to own their own home, we understand that there have been changes in the market place which has made this infeasible. This is unfortunate. However,this does not mean that the need for affordable rental housing has disappeared. There are many families who work hard and deserve the opportunity to live in beautiful homes like these whether they are rental or condominiums. The proposed change to make these units available to these households as rental housing is a wonderful solution. I ask that you act favorably on the request of Salem Harbor CDC so that they can move forward and make this building a home for working families. Sincerely /��. Palmer Cove 85 Leavitt Street Salem, MA 01970 tel 978.745.7648 (ax 978 74, 7811 phylln@harborsweets.com www.harb orswe ets.com CITY OF SALEM, MASSACHUSETTS Kimberley Driscoll Mayor June 10, 2008 Ms. Tina Brooks, Chairperson Community Economic Development Assistance Corp. One Center Plaza Suite 350 Boston, MA 02108 Dear Ms. Brooks, I am writing to express my support for the application to the Pre-Development Loan Program by Salem Harbor CDC for the 50 Palmer St project. I am very disappointed that the original intent of this project to create home ownership opportunities for first time homebuyers will not be realized. I understand,however,that converting this project to affordable rental housing is the only viable option within current market conditions. Since construction is complete, it is important that this beautiful building achieve occupancy as soon as possible. Favorable action on this request will enable Salem Harbor CDC to move forward to implement the conversion of this project to affordable rental housing with the use of Low Income Housing Tax Credits. Though I am disappointed, I am consoled by the fact that this approach will secure a sound financial structure for this project so that it will stand as an ongoing asset to the neighborhood. In order to achieve this end, I will provide my full support including the approval of modifications to current loan documents and permits to which the City of Salem is a party. I look forward to the favorable action of the CEDAC Board of Directors on this request. Sincerely, e,J.ZA_G 115 . W Kimberley Driscoll Mayor Salem City Hall—93 Washington Street—Salem,MA 01970-3592 Ph.978-745-9595 Fax 978-7449327 CITY OF SALEM, MASSACHUSETTS DEPARTMENT OF PLANNING AND #NVII COMMUNITY DEVELOPMENT M KIMBERLEY DRI50OLL 120 WASHNGTON STREET♦ SALEM,MASSACHLISET75 01970 MAYOR TFL:978-745-9595 ♦ FAx:978-740-0404 LYNN GOONIN DUNCAN,AICP DIRECTOR MEMORANDUM To: Board of Appeals From: Lynn Duncan, Director Cc: Kimberley Driscoll, Mayor Re: 50 Palmer Street request for amendment Date: July 16, 2008 I write this letter in support of the request for am amendment to the prior decision of July 14, 2004 for the 50 Palmer Street project. Specifically, I support the request to eliminate any requirement that the units at 50 Palmer street be owner-occupied and to allow use of all units as either rental or ownership. While I support the goal of increased ownership in The Point neighborhood, the state of the housing market is such that this project cannot be successful as an ownership development today. It can, however,be a very successful rental development and the Salem Harbor CDC has been able to secure funding from the Department of Housing and Community Development (DHCD) toward this end. Previous requests to DHCD for financial assistance to keep the project viable as an ownership development were denied. The housing units are an asset to the neighborhood and to the city, but we need to ensure that the building does not remain vacant for much longer. There still exists a strong need for quality, affordable rental housing both in the Point and in the City as a whole. In addition, the Salem Harbor CDC is a presence in the neighborhood; often issues with rental property may be attributable to absentee landlords who do not live in the City. A favorable decision by the Board of Appeals will enable this high quality development to serve residents' needs. I look forward to seeing 50 Palmer Street occupied and vibrant. Date July 16, 2008 Ms. Robin Stein, Chair Zoning Board of Appeals City of Salem 120 Washington St. Salem, MA 01970 RE: Palmer Cove Condominiums Dear Ms. Stein, I am writing to support the amendment to the Decision of the Salem Zoning Board of Appeals granted for the development at 50 Palmer St. on July 14, 2004. As I understand it, this amendment will permit Salem Harbor CDC to proceed with a contingency plan to convert the Palmer Cove Condominium Development to 100%affordable rental housing. I can certainly understand that the conversion from homeownership to rental housing may come as a surprise to the community. As a resident of Salem, I very much appreciated the opportunity for affordable homeownership in this neighborhood. However, as the Executive Director of the Beverly Affordable Housing Coalition, Inc., I am also very familiar with the current intricacies of housing finance. Due to a variety of factors,not the least of which is the current economic downtown affecting the credit markets, homeownership financing has become particularly difficult. Many projects around Massachusetts are facing similarly difficult decisions at this time. Additionally, the supply of quality, affordable rental housing is always an issue. In Beverly,we have a constant stream of families looking for quality housing that is all too often out of reach. The Palmer Cove apartments are still beautiful housing, and the opportunity to have new housing in downtown Salem is still quite remarkable and positive for the area. I feel confident that occupancy will no longer be an issue if converted into rental housing. The Coalition will also be committed to making referrals for these apartments should you approve this change. I ask you to act favorably on the request before you. Sincerely Mickey Northcutt 51 Lafayette Street#301 Salem, MA 01970 617-501-8357 4 North Shore Community Action Programs, Inc. 4 98 Main Street 75 Central Street l71. Peabody,Ma. 01960 Peabody, Ma.01960 L, (978) 531 —0767 (978)532-8620 (978)_531 — 1012 fax (978)531-8618 fax Date July 16, 2008 Ms. Robin Stein, Chair Zoning Board of Appeals City of Salem 120 Washington St. Salem,MA 01970 RE: Palmer Cove Condominiums Dear Ms. Stein, I am writing to support the amendment to the Decision of the Salem Zoning Board of Appeals granted for the development at 50 Palmer St. on July 14, 2004. As I understand it, this amendment will permit Salem Harbor CDC to proceed with a contingency plan to convert the Palmer Cove Condominium Development to 100%affordable rental housing for working families. I understand that many are disappointed with the outcome of this five year effort to create affordable homeownership opportunities for low income families. However I believe that we must consider the result which is a beautiful building that is an asset to the neighborhood. Unfortunately, this project was completed at a time when a national credit crisis, declining housing values and an oversupply of condominiums has stymied the intention to find eligible fust time homebuyers to purchase these homes. I don't believe this is in anyone's current control. I do believe that we can, look forward to an alternative which will provide high quality rental housing to working families. As the Executive Director of NSCAP, I can attest to the unmet need of affordable housing in Salem and on the North Shore. This rental alternative will reach an income mix that is in great need of quality affordable housing. It will offer housing opportunities to working families with annual incomes between$18,000 and $56,000. From my perspective this is reaching much further into the needs of the population that I work with on a daily basis. NSCAP will actively engage in making referrals for these apartments should you approve this change. I ask you to act favorably on the request before you. Sincerely, Elizabeth Hogan Executive Director NSCAP (978) 531-0767 XIOI City of Peabody North Shore HOME Consortium City Hall,24 Lowell Street Peabody,Massachusetts 01960 Telephone(978) 538-5774 FAX# (978) 538-5987 E-Mail: kevin.hurley@peabody-ma.gov 22 August 2008 Ms. Robin Stein, Chair Zoning Board of Appeals 120 Washington Street Salem, Massachusetts 01970 Re: 50 Palmer Street—SHCDC Dear Ms. Stein: Please accept this letter as an indication of our strong support for the new development at 50 Palmer Street in Salem and for the work of the Salem Harbor Community Development Corporation(SHCDC). The North Shore HOME Consortium—an organization made up of thirty cities and towns- maintains as its primary mission the development of affordable housing for low-and moderate-income households in this region. The Consortium was.one of the earliest financial supporters of the development at 50 Palmer Street having committed funds to this project in the spring of 2003. This decision from the Consortium's Allocation Committee was made only after a thorough review of the financial pro-forma for this project and only after considering the solid support—financial and political—from the City of Salem. We believe that our early support enabled the SHCDC to utilize that financial commitment to leverage other funding that allowed this development to be created. The members of the Consortium have followed this development from its initial concept of a site containing affordable units both for owner-occupants and for renters. We have reviewed each re-configuration of this development and had supported the conversion of the development to a total owner-occupant development—not only because this was creating new opportunities in the Point Neighborhood,but because it was also shown that it was financially viable. Now we are forced to acknowledge changes in the real estate market that have changed the marketability of these units as condominiums and see what could be described as "a saturation" of affordable condominiums in this current market. This factor has been combined with a general slump in sales that has been triggered(in part) by the foreclosure crisis that has been widely commented upon over the past several months. After numerous conversations with SHCDC Executive Director Michael Whalen concerning the marketing of these condominiums since the fall of last year,we acknowledge that a conversion to a rental use appears to be the only course to save this development from foreclosure and-most important to our mission-to preserve the long-term affordability of these units fulfilling the public purpose that our funding requires. We see the need to serve local residents in housing units that they can afford as being more important than the preservation of the ownership component. Zoniu BoardofA Appeals PP s 22 August,2008 Page 2. In the event that the Zoning Board of Appeals decides to refuse this current appeal for conversion to a rental use, it is not clear how that decision will guarantee the successful marketing of these units as owner-occupied units. We urge your thoughtful consideration of how the investment of$750,000 in public funds from the HOME Program will be addressed. Our financial commitment and our programmatic requirements are intended to serve income-eligible households over an extended period of time-enforced by our legal agreements-for a thirty-year period of affordability. We respectfully ask that your vote will preserve that affordability for the residents of 50 Palmer Street. Respectfully, evin J. H y North Shore HOME Consortium CC: Michael Whalen,Executive Director—SHCDC James T. Haskell 10 Putnam Road Ipswich, Massachusetts 01938 August 27, 2008 Ms. Robin Stein Chairperson Salem Zoning Board of Appeals 120 Washington Street Salem, Massachusetts 01970 Dear Ms. Stein: I am writing this letter in regard to Salem Harbor Community Development Corporation's application to convert its development at 50 Palmer Street from condominiums to rental units. I regret that I am not able to be at this hearing, but I have a previous family obligation that I need to attend to. I was the Executive Director of the CDC for twelve years(1994-2006),and was very much involved in the early stages of the development of this project. However,I have no current professional affiliation with the CDC. Although this project was certainly conceived as being on"ownership"development from its outset,and while it greatly saddens me that this goal can not be achieved, I ask that the Zoning Board of Appeals approve the CDC's application to make this conversion to a rental project. My reasons for making this request are three-fold: • An affordable ownership development is only"marketable"when the price differential between an affordable unit is substantially below that of a market unit. The reason this is necessary is because the buyers of an affordable unit must be willing to accept a deed restriction on the resale value of their unit,and those buyers will only be willing to do that when the cost of the unit is considerably below that of a market unit. When this project was conceived,the value of condominium units in Salem was considerably more than the anticipated cost of one of the unit_! at Palmer Cove. During the past couple of years the value of condominiums in Salem has decreased,and now the purchase price for the Palmer Cove units is certainly no less than the cost of a comparable unit on the open market. The real estate market is fundamentally dictated by the laws of supply and demand—this is true for affordable units as it is for market units. The demand for this project has changed dramatically since it was initially conceived. • This situation is not unique to this project or even Salem in general. The slump in the real estate market is a nationwide phenomenon, and as a result affordable ownership developments such as Palmer Cove are being forced to convert from ownership to rental. This is not a case where The breakdown of the market is so widespread that this project would have had extreme difficulty in selling off its units regardless of the CDC's efforts. • This situation is unprecedented. I have been involved with the development of affordable ownership projects on the North Shore since 1986. While I have lived through both real estate booms and busts,there never was a time when there was such a drastic reduction in the marketability of these projects. Even during the real estate slump of the late-1980's/early-1990's, it was possible to find enough qualified buyers to make a project viable. However,the recent drop in condominium prices has been unprecedented. For example while in general the value of real estate in this region decreased about 35%between 1987 and 1993 (a six year period), I have heard reports that the market value of these condominiums decreased by about 30% in less than a year. When this project was conceived,we certainly were aware that the surging real estate market of that time would not last forever. However,we were being told that the market would level off or dip slightly. What no one predicted was that the bottom would be taken out of the real estate market almost overnight. - - As a result this project,along with a host of other affordable and market projects across the country, are faced with dire consequences.. I urge the ZBA to take the reasonable step of enabling the CDC to convert this project to rental so that it can be"saved",and so that some real benefit(affordable rental housing)can be realized as a result. ' Sincerely,"—" Zes T., aske I r/Executive Director(1994-2006) Salem Harbor CDC HANDMADE CHOCOLATES Phyllis B. LeBlanc President & CEO August 20, 2008 Ms. Robin Stein, Chair Zoning Board of Appeals City of Salem 120 Washington St. Salem, MA 01970 Dear Ms. Stein, I am writing to express my support for the petition to amend the Decision of the Zoning Board of Appeals which granted variances to the property at 50 Palmer St on July 14 2004 that will allow this property to be used as affordable rental housing. I am the owner of Harbor Sweets which is a business that has operated at 85 Leavitt St for more than thirty years.I was excited by the prospect that 50 Palmer St. would create affordable homeownership opportunities in the neighborhood. I am also excited by the fact that now that this beautiful building is complete, the entire block on Congress St. has been transformed. This is just one of the many valuable contributions_ that Salem Harbor CDC has made over its many years of service in the neighborhood. Many of my employees live in the neighborhood. Most of them live in rental housing. Although this project was intended to serve the need for working families to own their own home, we understand that there have been changes in the market place which has made this infeasible. This is unfortunate. However,this does not mean that the need for affordable rental housing has disappeared. There are many families who work hard and deserve the opportunity to live in beautiful homes like these whether they are rental or condominiums. The proposed change to make these units available to these households as rental housing is a wonderful solution. I ask that you act favorably on the request of Salem Harbor CDC so that they can move forward and make this building a home for working families. Sincerely .Palmer Cove 85 Leavitt Street Salem, MA 01970 tel 978 745-760 fax 978.741 7811 phyllis@harborsweets.com www.harborsweets.aom August 22, 2008 Ms. Robin Stein, Chair Zoning Board of Appeals City of Salem 120 Washington St. Salem, MA 01970 Dear Ms. Stein, My name is Eugenia Johnson. I am a home aid with the Department of Mental Retardation. I am sorry that I cannot attend the meeting on August 27 to support the Salem Harbor CDC but I have to work that night. I was very interested in buying a two bed room unit at the Palmer Cove Condominiums. Salem Harbor Community Development Corporation helped me fill out all of the applications to get things started. Although I had a pre-approval from one bank, they referred me to another lender so that I was sure that I was getting a loan that was best for me. That lender gave me very honest feedback about my credit score and steps that I might take to improve it. They also spoke with the Bank which gave me a pre-approval, to make sure that they understood all of the requirements of this affordable homeownership program. The further we went along, the more I understood the financial commitment that I would have to make. Although I wanted-to purchase this home, I am relieved that the project might turn to rental housing. What I really want is nice place to live for my family that I can afford. I hope that I will be able to rent one of these units when they become available. Sincerely Eugenia Johnson 2 '/z Mason St. Salem, MA 01970 KATRINA L. SEALEY 86 Congress Street#6 Salem, MA 01970-5543 978-590-2450 klsealevCc�,hotmail.com Robin Stein, Chair August 20, 2008 Zoning Board of Appeals 93 Washington Street Salem, MA 01970 Dear Ms. Stein, This letter is to inform you that I stand in opposition to the property known as Palmer Cove Condominiums at the corner of Palmer and Congress Streets becoming rental units. As a condo owner in "The Point' neighborhood, it is my opinion that expansion of rentals will bring with it the promise of further instability. The condominiums at 50 Palmer Street were slated from the onset to be properties for private ownership, which would secure all home ownership for "The Point'. If the proprietors of those condominiums are having difficulty selling them, transforming them into rentals cannot not be an option. Palmer Cove Condominiums should be marketed more thoroughly in Salem, and they should also be marketed outside of Salem—in Boston and beyond. As a last resort, the price of each unit should be dropped to meet current market standards. Very;truly yours, "o�- Katrina L. Sealey Peter Hackmeister 55 Perkins Street Salem Massachusetts 01970 978-745-0044 CCgull(cDaol com August 27, 2008 Salem Harbor Community Development Corporation Palmer Cove Condominium Project /I-9 1AS II I�IIIIIIIII = 07 .f ( , I �IIIIIIII ® � II ° 7lI MI v Recommendation: It is my sincere hope that the 15 condos will be sold to individual buyers either directly or through auction, bringing to fruition the promise of owner occupied housing as opposed to rental units. Concept Affordable housing is important, especially in The Point neighborhood. One of the basic premises of individual home ownership is the ability to make—or loose—money. The idea that a prospective owner cannot sell the unit at a profit for 50 years removes any incentive for ownership. Renting becomes a better option. It is my opinion that this is the reason these units have not sold. Marketing The idea of marketing condos on a lottery basis is at best unusual. Often I have wondered if there are case studies indicating that this is the best way to approach marketing real estate to this particular target market. In a"Gold Rush" mentality this might work. People will line up for the opportunity to make a profit. But by removing this important concept, motivation becomes lost. I would hope that there was a viable"Plan B"for marketing the condos in place long before any ground was broken. If the lofty ideal of the lottery system did not work, what marketing plan would be immediately implemented? Apparently there was no Plan B. Competition During roughly the same timeframe for building and marketing these condos, the Latitude Condo project at 281 Essex Street was happening concurrently. This is the old Tomkins Furniture store. M � As of today, all 20 condos have been sold, indicating that the market itself is not totally to blame Rentals There is no shortage of rental stock in this neighborhood. Directly across Congress Street is a large complex with big signs boldly proclaiming"2, 3, U BR Apartments for rent". There is a shortage of Owner-Occupied units, however. e �a> •1 It is ONLY after people have a vested interest in their housing that the neighborhood will improve. Vested Interest 1 personally have a vested interest in the stabilization of The Point neighborhood. 5 years ago in the summer of 2003 1 purchased a derelict old brick building at 55 Perkins Street, a short distance what was Keefe's Restaurant. With my own money and lots of my own labor, I purchased it, renovated it, and turned it into an owner-occupied single family home. When the concept of 15 brand new owner occupied condos appeared, I was certainly encouraged to redouble my efforts to improve this comer of the neighborhood. The idea of those 15 units being turned into yet more rentals is abhorrent to me. PLEASE create an environment that assures individual ownership of those 15 condos. 55 Perkins Street a Before p 9 _y IF- Today Petitions to Support Change of 50 Palmer St. To Affordable Rental Housing Count As of 8/27/08 Cherry St. 3 Congress St. 15 Dow St. 13 Harbor St. 23 Harrison Ave. 3 Lafayette St. 7 Leach St. 1 Leavitt St. 11 Palmer St. 17 Park St. 13 Peabody St. 13 Pingree, Lynch&.Naumkeg 25 Perkins St. 25 Porter St. 9 Ropes St. 10 Prince St. 28 Salem St. 43 Ward St. 42 Other 32 TOTAL 332 SUPPORT SALEM HARBOR CDC Qe"� LI Founded in 1979,the Salem Harbor Community Development Corporation(SHCDC)is a nonprofit, community-based organization which develops housing, improves neighborhoods and promotes educational efforts to advance the economic self sufficiency of families and individuals. Our goals are: develop,manage and preserve affordable housing;enable people to obtain skills to earn a living wage,and increase access to knowledge and capital in order to grow neighborhood businesses. After five years of hard work,we have completed construction of the building at 50 Palmer St. located on the comer of Palmer and Congress St. in the Point Neighborhood. We intended to provide 15 affordable two and three bedroom units to first time homebuyers. We are very sad to say that the recent housing crisis has prevented us from finding income eligible first time home buyers. We plan to make these units available to low and moderate income families as affordable rental housing.We ask for your support for a request to the Salem Zoning Board of Appeals to approve this change to affordable rental housing. Petition I hereby support the request of Salem Harbor Community Development Corporation to amend the Decision granted by the Zoning Board of Appeals for 50 Palmer St.to allow 100%affordable rental housing for low and moderate income families.By signing this petition, I certify that I am at least eighteen years of age and have not received any benefits in exchange for my support of this petition. me AMASS Phone# _ 1. — 2. �� 3 - 591-s� 3. SGA �� —� a. deb 6. � �w� ML a�o� 9. 12. 13. 14. 15. 16. 17. 18. 19. 20. Join us on Wednesday August 27 at 6:30 PM at 120 Washington St. Room 313 to support affordable homes for working families. SUPPORT SALEM HARBOR CDC —�� 0-5), Founded in 1979,the Salem Harbor Community Development Corporation(SHCDC)is a nonprofit, community-based organization which develops housing, improves neighborhoods and promotes educational efforts to advance the economic self sufficiency of families and individuals. Our goals are: develop,manage and preserve affordable housing;enable people to obtain skills to earn a living wage,and increase access to knowledge and capital in order to grow neighborhood businesses. After five years of hard work,we have completed construction of the building at 50 Palmer St. located on the comer of Palmer and Congress St. in the Point Neighborhood. We intended to provide 15 affordable two and three bedroom units to first time homebuyers. We are very sad to say that the recent housing crisis has prevented us from finding income eligible first time home buyers.We plan to make these units available to low and moderate income families as affordable rental housing.We ask for your support for a request to the Salem Zoning Board of Appeals to approve this change to affordable rental housing. Petition I hereby support the request of Salem Harbor Community Development Corporation to amend the Decision granted by the Zoning Bo eal d of Apps for 50 Palmer St.to allow 100%affordable rental housing for low and moderate income li s.By signing this petition,I certify that I am at least eighteen years of age and have not received'any e e s in exc ange for my support of this petition. Na e l Add s 1 Phone# I. l> (. 3. 4. S. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Join us on Wednesday August 27 at 6:30 PM at 120 Washington St. Room 313 to support affordable homes for working families. SUPPORT SALEM HARBOR CDC9� t Z Founded in 1979,the Salem Harbor Community Development Corporation(SHCDC)is a nonprofit, community-based organization which develops housing, improves neighborhoods and promotes educational efforts to advance the economic self sufficiency of families and individuals. Our goals are: develop,manage and preserve affordable housing;enable people to obtain skills to earn a living wage,and increase access to knowledge and capital in order to grow neighborhood businesses. After five years of hard work,we have completed construction of the building at 50 Palmer St. located on the comer of Palmer and Congress St. in the Point Neighborhood. We intended to provide 15 affordable two and three bedroom units to fust time homebuyers. We are very sad to say that the recent housing crisis has prevented us from finding income eligible first time home buyers. We plan to make these units available to low and moderate income families as affordable rental housing. We ask for your support for a request to the Salem Zoning Board of Appeals to approve this change to affordable rental housing. Petition I hereby support the request of Salem Harbor Community Development Corporation to amend the Decision granted by the Zoning Board of Appeals for 50 Palmer St.to allow 100%affordable rental housing for low and moderate income families.By signing this petition,l certify that 1 am at least eighteen years of age and have not received any benefits in exchange for my support of this petition. Narne Address Phone# 1. - Esc /ig 6 Z UffSqOW 3. 11g 4. �lZ (?>2- 5. / / _ rG. 7 n 6. 7. �J i 8. 9. A vrn� , 4 *5 q -F-7 q-Taos 10. 1V11 Q/f. � L PUj�� --�n rA'\AAk✓, r& cn 11. der✓`/ d''lo� >°a�l�e✓ Sf 2k 12. - c s 13. �C r ta. . d 6 p 6lrZl 15. - 16. 17. fat 18. 19. 20. Join us on Wednesday August 27 at 6:30 PM at 120 Washington St. Room 313 to support affordable homes for working families. SUPPORT SALEM HARBOR CDC U- —1 _ �0 Founded in 1979,the Salem Harbor Community Development Corporation(SHCDC)is a nonprofit,((( community-based organization which develops housing, improves neighborhoods and promotes educational efforts to advance the economic self sufficiency of families and individuals. Our goals are: develop,manage and preserve affordable housing;enable people to obtain skills to earn a living wage,and increase access to knowledge and capital in order to grow neighborhood businesses. After five years of hard work,we have completed construction of the building at 50 Palmer St. located on the comer of Palmer and Congress St.in the Point Neighborhood. We intended to provide 15 affordable two and three bedroom units to fast time homebuyers. We are very sad to say that the recent housing crisis has prevented us from finding income eligible first time home buyers. We plan to make these units available to low and moderate income families as affordable rental housing.We ask for your support for a request to the Salem Zoning Board of Appeals to approve this change to affordable rental housing. Petition I hereby support the request of Salem Harbor Community Development Corporation to amend the Decision granted by the Zoning Board of Appeals for 50 Palmer St.to allow 100%affordable rental housing for low and moderate income families.By signing this petition,I certify that I am at least eighteen years of age and have not received any benefits in exchange for my support of this petition. Na ddre s Phone# 1: oo S 2. - ovIA t J V- d 3. 06) . 7 632-�-2 � a. LOkK/G S + `1T15S30O/ eo .�.rl��e�a T��e,�y� • 9�8 —� 5. � 6. 7. a� C7 l D 6 L2 8. 9. 10. 11. 12. 13. 14. 15, 16. 17. 18. 19. 20. Join us on Wednesday August 27 at 6:30 PM at 120 Washington St. Room 313 to support affordable homes for working families. SUPPORT SALEM HARBOR CDC S Founded in 1979,the Salem Harbor Community Development Corporation(SHCDC)is a nonprofit, community-based organization which develops housing, improves neighborhoods and promotes educational efforts to advance the economic self sufficiency of families and individuals. Our goals are: develop,manage and preserve affordable housing;enable people to obtain skills to earn a living wage,and increase access to knowledge and capital in order to grow neighborhood businesses. After five years of hard work, we have completed construction of the building at 50 Palmer St. located on the corner of Palmer and Congress St. in the Point Neighborhood. We intended to provide 15 affordable two and three bedroom units to first time homebuyers.We are very sad to say that the recent housing crisis has prevented us from finding income eligible first time home buyers.We plan to make these units available to low and moderate income families as affordable rental housing.We ask for your support for a request to the Salem Zoning Board of Appeals to approve this change to affordable rental housing. Petition I hereby support the request of Salem Harbor Community Development Corporation to amend the Decision granted by the Zoning Board of Appeals for 50 Palmer St.to allow 100%affordable rental housing for low and moderate income families.By signing this petition,I certify that I am at least eighteen years of age and have not received any benefits in exchange for my support of this petition. Name Addres Phone# 1. o 2. 3. 04 ;6. ,I - - 31 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Join us on Wednesday August 27 at 6:30 PM at 120 Washington St. Room 313 to support affordable homes for working families. r SUPPORT SALEM HARBOR CDC B� Founded in 1979,the Salem Harbor Community Development Corporation(SHCDC)is a nonprofit, community-based organization which develops housing,improves neighborhoods and promotes educational efforts to advance the economic self sufficiency of families and individuals.Our goals are: develop,manage and preserve affordable housing;enable people to obtain skills to earn a living wage,and increase access to knowledge and capital in order to grow neighborhood businesses. After five years of hard work,we have completed construction of the building at 50 Palmer St.located on the comer of Palmer and Congress St.in the Point Neighborhood. We intended to provide 15 affordable two and three bedroom units to first time homebuyers. We are very sad to say that the recent housing crisis has prevented us from finding income eligible first time home buyers. We plan to make these units available to low and moderate income families as affordable rental housing. We ask for your support for a request to the Salem Zoning Board of Appeals to approve this change to affordable rental housing. Petition I hereby support the request of Salem Harbor Community Development Corporation to amend the Decision granted by the Zoning Board of Appeals for 50 Palmer St.to allow 100%affordable rental housing for low and moderate income families.By signing this petition,I certify that I am at least eighteen years of age and have not received any benefits in exchange for my support of this petition. e Address Phone# 1. y j z. 3. 4. q725 _'4 6. -r 6. l�c� 7. 3 a s. CP - 9. 10 ter 12. 40 ke,r6 f' G� 13. 14. 15. S4 QW 16. 574- V 17. o"Ilre-n 1 �� 18. Ok &V I rb r sf- _r 2- 19.19. 2 Join us on Wednesday August 27 at 6:30 PM at 120 Washington St. Room 313 to support affordable homes for working families. SUPPORT SALEM HARBOR CDCj Founded in 1979,the Salem Harbor Community Development Corporation(SHCDC)is a nonprofit, community-based organization which develops housing,improves neighborhoods and promotes educational efforts to advance the economic self sufficiency of families and individuals. Our goals are: develop,manage and preserve affordable housing;enable people to obtain skills to earn a living wage,and increase access to knowledge and capital in order to grow neighborhood businesses. After five years of hard work,we have completed construction of the building at 50 Palmer St. located on the comer of Palmer and Congress St. in the Point Neighborhood. We intended to provide 15 affordable two and three bedroom units to fust time homebuyers. We are very sad to say that the recent housing crisis has prevented us from finding income eligible first time home buyers. We plan to make these units available to low and moderate income families as affordable rental housing.We ask for your support for a request to the Salem Zoning Board of Appeals to approve this change to affordable rental housing. Petition I hereby support the request of Salem Harbor Community Development Corporation to amend the Decision granted by the Zoning Board of Appeals for 50 Palmer St.to allow 100%affordable rental housing for low and moderate income families.By signing this petition, I certify that I am at least eighteen years of age and have not received any benefits in exchange for my support of this petition. Na Address Phone# 1. 2. 7,9 '7 � 3.. 3G�6 4. L4A (��/l, ✓�51 �J 5. /oo moo' e /� s. 9. 12. 71 13. ss �Yy Y� 7v-s6 la. 15. 16it r7 qF 7d 77 17. 18. 19. 20. Join us on Wednesday August 27 at 6:30 PM at 120 Washington St. Room 313 to support affordable homes for working families. SUPPORT SALEM HARBOR CDC � z L Founded in 1979,the Salem Harbor Community Development Corporation(SHCDC)is a nonprofit, community-based organization which develops housing,improves neighborhoods and promotes educational efforts to advance the economic self sufficiency of families and individuals.Our goals are: develop,manage and preserve affordable housing;enable people to obtain skills to earn a living wage,and increase access to knowledge and capital in order to grow neighborhood businesses. After five years of hard work,we have completed construction of the building at 50 Palmer St. located on the corner of Palmer and Congress St. in the Point Neighborhood.We intended to provide 15 affordable two and three bedroom units to first time homebuyers. We are very sad to say that the recent housing crisis has prevented us from finding income eligible first time home buyers. We plan to make these units available to low and moderate income families as affordable rental housing.We ask for your support for a request to the Salem Zoning Board of Appeals to approve this change to affordable rental housing. Petition I hereby support the request of Salem Harbor Community Development Corporation to amend the Decision granted by the Zoning Board of Appeals for 50 Palmer St.to allow 100%affordable rental housing for low and moderate income families.By signing this petition,l certify that I am at least eighteen years of age and have not received any benefits in exchange for my support of this petition. �ame A ress hone# 1. u-C a CC c. LS —le 2. gs 11 0� s1 3. P'r, rJ 4. 20 peA VV -5 . 5. zz S . 6. — r 7. ked, S-/ 8. c -e- e.I 3J, Pn S 9. I LL 10. 11. T 12. 13. 14. 15. 16. 17. 18. 19. 20. Join us on Wednesday August 27 at 6:30 PM at 120 Washington St. Room 313 to support affordable homes for working families. SUPPORT SALEM HARBOR CDC Le. fro Founded in 1979,the Salem Harbor Community Development Corporation(SHCDC)is a nonprofit, community-based organization which develops housing,improves neighborhoods and promotes educational efforts to advance the economic self sufficiency of families and individuals.Our goals are: develop,manage and preserve affordable housing;enable people to obtain skills to earn a living wage,and increase access to knowledge and capital in order to grow neighborhood businesses. After five years of hard work,we have completed construction of the building at 50 Palmer St. located on the corner of Palmer and Congress St. in the Point Neighborhood.We intended to provide 15 affordable two and three bedroom units to first time homebuyers. We are very sad to say that the recent housing crisis has prevented us from finding income eligible first time home buyers.We plan to make these units available to low and moderate income families as affordable rental housing.We ask for your support for a request to the Salem Zoning Board of Appeals to approve this change to affordable rental housing. Petition I hereby support the request of Salem Harbor Community Development Corporation to amend the Decision granted by the Zoning Board of Appeals for 50 Palmer St.to allow 100%affordable rental housing for low and moderate income families.By signing this petition,I certify that I am at least eighteen years of age and have not received any benefits in exchange for my support of this petition. NameAd�ress Phone# 1. (J>OL V-�a./ y7 Lea✓ ; es A S'a�Pn�YA 97�7Z1� �GL(� 2. / � Z7Li d tf 57-�i¢� �r�v B/ •'gym/isi 3. (Z � 4. 5. 6. MS Si%M F 7. 9• 3 LA421177 07 10.- 12. 13. 14. 15. 16. 17. 18. 19. 20. Join us on Wednesday August 27 at 6:30 PM at 120 Washington St. Room 313 to support affordable homes for working families. SUPPORT SALEM HARBOR CDC Pr�rJ� Founded in 1979,the Salem Harbor Community Development Corporation(SHCDC)is a nonprofit, community-based organization which develops housing,improves neighborhoods and promotes educational efforts to advance the economic self sufficiency of families and individuals.Our goals are: develop,manage and preserve affordable housing;enable people to obtain skills to earn a living wage,and increase access to knowledge and capital in order to grow neighborhood businesses. After five years of hard work,we have completed construction of the building at 50 Palmer St. located on the corner of Palmer and Congress St.in the Point Neighborhood.We intended to provide 15 affordable two and three bedroom units to first time homebuyers. We are very sad to say that the recent housing crisis has prevented us from finding income eligible first time home buyers. We plan to make these units available to low and moderate income families as affordable rental housing.We ask for your support for a request to the Salem Zoning Board of Appeals to approve this change to affordable rental housing. Petition I hereby support the request of Salem Harbor Community Development Corporation to amend the Decision granted by the Zoning Board of Appeals for 50 Palmer St.to allow 100%affordable rental housing for low and moderate income families.By signing this petition,I certify that I am at least eighteen years of age and have not received any benefits in exchange for my support of this petition. Name Ad ress Pyr _ _ .�� 2 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Join us on Wednesday August 27 at 6:30 PM at 120 Washington St. Room 313 to support affordable homes for working families. SUPPORT SALEM HARBOR CDC �„� 1.• / Founded in 1979,the Salem Harbor Community Development Corporation(SHCDC)is a nonprofit, v community-based organization which develops housing, improves neighborhoods and promotes educational efforts to advance the economic self sufficiency of families and individuals.Our goals are: develop,manage and preserve affordable housing;enable people to obtain skills to earn a living wage,and increase access to knowledge and capital in order to grow neighborhood businesses. After five years of hard work,we have completed construction of the building at 50 Palmer St. located on the corner of Palmer and Congress St. in the Point Neighborhood. We intended to provide 15 affordable two and three bedroom units to first time homebuyers.We are very sad to say that the recent housing crisis has prevented us from finding income eligible fust time home buyers.We plan to make these units available to low and moderate income families as affordable rental housing.We ask for your support for a request to the Salem Zoning Board of Appeals to approve this change to affordable rental housing. Petition I hereby support the request of Salem Harbor Community Development Corporation to amend the Decision granted by the Zoning Board of Appeals for 50 Palmer St.to allow 100%affordable rental housing for low and moderate income families.By signing this petition,I certify that I am at least eighteen years of age and have not received any benefits in exchange for my support of this petition. 2. 3. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Join us on Wednesday August 27 at 6:30 PM at 120 Washington St. Room 313 to support affordable homes for working families. SUPPORT SALEM HARBOR CDC 40�or- Founded in 1979,the Salem Harbor Community Development Corporation(SHCDC)is a nonprofit, community-based organization which develops housing,improves neighborhoods and promotes educational efforts to advance the economic self sufficiency of families and individuals. Our goals are: develop,manage and preserve affordable housing;enable people to obtain skills to eam a living wage,and increase access to knowledge and capital in order to grow neighborhood businesses. After five years of hard work,we have completed construction of the building at 50 Palmer St. located on the comer of Palmer and Congress St. in the Point Neighborhood. We intended to provide 15 affordable two and three bedroom units to first time homebuyers. We are very sad to say that the recent housing crisis has prevented us from finding income eligible first time home buyers. We plan to make these units available to low and moderate income families as affordable rental housing.We ask for your support for a request to the Salem Zoning Board of Appeals to approve this change to affordable rental housing. Petition I hereby support the request of Salem Harbor Community Development Corporation to amend the Decision granted by the Zoning Board of Appeals for 50 Palmer St.to allow 100%affordable rental housing for low and moderate income families.By signing this petition,I certify that I am at least eighteen years of age and have not received any benefits in exchange for my support of this petition. N/aW a Address Phone# 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Join us on Wednesday August 27 at 6:30 PM at 120 Washington St. Room 313 to support affordable homes for working families. SUPPORT SALEM HARBOR CDC ';� Ou' 01 Founded in 1979,the Salem Harbor Community Development Corporation(SHCDC)is a nonprofit, community-based organization which develops housing,improves neighborhoods and promotes educational efforts to advance the economic self sufficiency of families and individuals.Our goals are: develop,manage and preserve affordable housing;enable people to obtain skills to earn a living wage,and increase access to knowledge and capital in order to grow neighborhood businesses. After five years of hard work,we have completed construction of the building at 50 Palmer St.located on the comer of Palmer and Congress St.in the Point Neighborhood.We intended to provide 15 affordable two and three bedroom units to fust time homebuyers,We are very sad to say that the recent housing crisis has prevented us from finding income eligible fust time home buyers.We plan to make these units available to low and moderate income families as affordable rental housing.We ask for your support for a request to the Salem Zoning Board of Appeals to approve this change to affordable rental housing. Petition I hereby support the request of Salem Harbor Community Development Corporation to amend the Decision granted by the Zoning Board of Appeals for 50 Palmer St.to allow 100%affordable rental housing for low and modgmte income families.By signing this petition,I certify that I am at least eighteen years of age and have not received any benefits in exchange for my support of this petition. Name Address Phone# 1. _ Sr 2. 7 F3 a. w s6- 5. G P� Z14 7. — _ f 6s/ - - 3 l o. \a do✓ S 3 3S - F�_ 783 11. _ 7 -Z 3 14. 15. 16. 17. 18. 19. 20. Join us on Wednesday August 27 at 6:30 PM at 120 Washington St.Room 313 to support affordable homes for working families. SUPPORT SALEM HARBOR CDC Founded in 1979,the Salem Harbor Community Development Corporation(SHCDC)is a nonprofit, community-based organization which develops housing,improves neighborhoods and promotes educational efforts to advance the economic self sufficiency of families and individuals. Our goals are: develop,manage and preserve affordable housing;enable people to obtain skills to earn a living wage,and increase access to knowledge and capital in order to grow neighborhood businesses. After five years of hard work,we have completed construction of the building at 50 Palmer St. located on the comer of Palmer and Congress St. in the Point Neighborhood. We intended to provide 15 affordable two and three bedroom units to first time homebuyers. We are very sad to say that the recent housing crisis has prevented us from finding income eligible first time home buyers. We plan to make these units available to low and moderate income families as affordable rental housing.We ask for your support for a request to the Salem Zoning Board of Appeals to approve this change to affordable rental housing. Petition I hereby support the request of Salem Harbor Community Development Corporation to amend the Decision granted by the Zoning Board of Appeals for 50 Palmer St.to allow 100%affordable rental housing for low and moderate income families.By signing this petition,I certify that I am at least eighteen years of age and have not received any benefits in exchange for my support of this petition. Name �� Address � Phone� � l t/ 1. mryrrs�i�,ca '�/�/� Pf-r h.,/ �� 5�- D-�•Z8"( 2. s i 57�18 �r� 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19, 20. Join us on Wednesday August 27 at 6:30 PM at 120 Washington St. Room 313 to support affordable homes for working families. SUPPORT SALEM HARBOR CDC Founded in 1979,the Salem Harbor Community Development Corporation(SHCDC)is a nonprofit, e community-based organization which develops housing,improves neighborhoods and promotes educational efforts to advance the economic self sufficiency of families and individuals. Our goals are: develop,manage and preserve affordable housing;enable people to obtain skills to earn a living wage,and increase access to knowledge and capital in order to grow neighborhood businesses. After five years of hard work,we have completed construction of the building at 50 Palmer St. located on the comer of Palmer and Congress St. in the Point Neighborhood. We intended to provide 15 affordable two and three bedroom units to first time homebuyers.We are very sad to say that the recent housing crisis has prevented us from finding income eligible first time home buyers.We plan to make these units available to low and moderate income families as affordable rental housing.We ask for your support for a request to the Salem Zoning Board of Appeals to approve this change to affordable rental housing. Petition I hereby support the request of Salem Harbor Community Development Corporation to amend the Decision granted by the Zoning Board of Appeals for 50 Palmer St.to allow 100%affordable rental housing for low and moderate income families.By signing this petition, I certify that I am at least eighteen years of age and have not received any benefits in exchange for my support of this petition. v, Name v1 Address Phone# 1. 3. -„ In LV 4. 3 6. 7 8. 9. 10. 11.. 12. 13. 14. 15. 16. 17, 18. 19. 20. Join us on Wednesday August 27 at 6:30 PM at 120 Washington St. Room 313 to support affordable homes for working families. SUPPORT SALEM HARBOR CDC Founded in 1979,the Salem Harbor Community Development Corporation(SHCDC)is a nonprofit, community-based organization which develops housing,improves neighborhoods and promotes educational efforts to advance the economic self sufficiency of families and individuals. Our goals are: develop,manage and preserve affordable housing;enable people to obtain skills to earn a living wage,and increase access to knowledge and capital in order to grow neighborhood businesses. After five years of hard work,we have completed construction of the building at 50 Palmer St. located on the corner of Palmer and Congress St. in the Point Neighborhood. We intended to provide 15 affordable two and three bedroom units to first time homebuyers. We are very sad to say that the recent housing crisis has prevented us from finding income eligible first time home buyers.We plan to make these units available to low and moderate income families as affordable rental housing.We ask for your support for a request to the Salem Zoning Board of Appeals to approve this change to affordable rental housing. Petition I hereby support the request of Salem Harbor Community Development Corporation to amend the Decision granted by the Zoning Board of Appeals for 50 Palmer St.to allow 100%affordable rental housing for low and moderate income families.B signing this petition,I certify that I am at least eighteen ears of age and Y Sn g P $' g Y g have not received any benefits in exchange for my support of this petition. Address Phone# 3. 4. 7N � cN1 Z to o 6. /V 7. y 8. -z rJ ('eoil'-6T5 Io. 511? c/;Z LGAv/' 11. L T Leavilt 5-t ap ZA 12. 2(� 4 �a 13. t ` ` -b 14. 15. '7 16. 17. — 18. Yr e 19. Y r 20. .4lZ Join us on Wednesday August 27 at 6:30 PM at 120 Washington St. Room 313 to support affordable homes for working families. SUPPORT SALEM HARBOR CDC P�� a0 Founded in 1979,the Salem Harbor Community Development Corporation(SHCDC)is a nonprofit, community-based organization which develops housing,improves neighborhoods and promotes educational efforts to advance the economic self sufficiency of families and individuals. Our goals are: develop,manage and preserve affordable housing;enable people to obtain skills to earn a living wage,and increase access to knowledge and capital in order to grow neighborhood businesses. After five years of hard work,we have completed construction of the building at 50 Palmer St. located on the comer of Palmer and Congress St. in the Point Neighborhood. We intended to provide 15 affordable two and three bedroom units to first time homebuyers. We are very sad to say that the recent housing crisis has prevented us from finding income eligible first time home buyers.We plan to make these units available to low and moderate income families as affordable rental housing.We ask for your support for a request to the Salem Zoning Board of Appeals to approve this change to affordable rental housing. Petition I hereby support the request of Salem Harbor Community Development Corporation to amend the Decision granted by the Zoning Board of Appeals for 50 Palmer St.to allow 100%affordable rental housing for low and moderate income families.By signing this petition,I certify that I am at least eighteen years of age and have not received any benefits in exchange for my support of this petition. Name Address Phone# 1 �yQen Put 16 6a_19(k4P7 5 4)k- .xpu- 7q I1 7 :filcwA•r Luc /791 55 7 3. Arrh 5� (�? .r- k�� I g7k 51y ' rWl? 4. Q->mein� duiT S 'x%rK i✓S Y3$-7?4/9-? 5qx) s. � Lot�ez 58 Per k tn'5 T79_ 1S l- 30 .6. c,t i Q 0ki n 9 r)_5 !�y 7. 38` ev ;7Y1 , 6 53,6 8. C ,� `7D 9. Lu /S 70 fya-n 3ZP� A)1'7 C*-f6 &5` - 7i z rz 10. t ye-1- 2 7q�- '.,. U �a 11. n uA Ck 12. &L, Iv [ o c i4t r 47�v- y6 V�'-- -V Sy9 1 1 -20 2 y 2- 6U)6U 1613 115. 1 . So 1� 35DZ6� 19. e , S 191 Join us on Wednesday August 27 at 6:30 PM at 120 Washington St. Room 313 to support affordable homes for working families. SUPPORT SALEM HARBOR CDC Founded in 1979,the Salem Harbor Community Development Corporation(SHCDC)is a nonprofit, community-based organization which develops housing,improves neighborhoods and promotes educational efforts to advance the economic self sufficiency of families and individuals. Our goals are: develop,manage and preserve affordable housing;enable people to obtain skills to earn a living wage,and increase access to knowledge and capital in order to grow neighborhood businesses. After five years of hard work,we have completed construction of the building at 50 Palmer St. located on the corner of Palmer and Congress St. in the Point Neighborhood. We intended to provide 15 affordable two and three bedroom units to fust time homebuyers.We are very sad to say that the recent housing crisis has prevented us from finding income eligible first time home buyers.We plan to make these units available to low and moderate income families as affordable rental housing.We ask for your support for a request to the Salem Zoning Board of Appeals to approve this change to affordable rental housing. Petition I hereby support the request of Salem Harbor Community Development Corporation to amend the Decision granted by the Zoning Board of Appeals for 50 Palmer St.to allow 100%affordable rental housing for low and moderate income families.By signing this petition,I certify that I am at least eighteen years of age and have not received any benefits in exchange for my support of this petition. Name Address � Phone# t• s 01n /! \ s7 P 7 Yo�_ 7V -1,927 3. D / S -.7f 4. 5. lata SSI nri (7) LS PP1 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Join us on Wednesday August 27 at 6:30 PM at 120 Washington St. Room 313 to support affordable homes for working families. SUPPORT SALEM HARBOR CDC Founded in 1979,the Salem Harbor Community Development Corporation(SHCDC)is a nonprofit, community-based organization which develops housing, improves neighborhoods and promotes educational efforts to advance the economic self sufficiency of families and individuals. Our goals are: develop,manage and preserve affordable housing;enable people to obtain skills to earn a living wage,and increase access to knowledge and capital in order to grow neighborhood businesses. After five years of hard work,we have completed construction of the building at 50 Palmer St. located on the comer of Palmer and Congress St. in the Point Neighborhood. We intended to provide 15 affordable two and three bedroom units to first time homebuyers. We are very sad to say that the recent housing crisis has prevented us from finding income eligible first time home buyers. We plan to make these units available to low and moderate income families as affordable rental housing.We ask for your support for a request to the Salem Zoning Board of Appeals to approve this change to affordable rental housing. Petition I hereby support the request of Salem Harbor Community Development Corporation to amend the Decision granted by the Zoning Board of Appeals for 50 Palmer St.to allow 100%affordable rental housing for low and moderate income families.By signing this petition,I certify that I am at least eighteen years of age and have not received any benefits in exchange for my support of this petition. Na a Addressone ZPr 2. io &14erS 8 / 7 s S7/ 3M rl'a's7" 9;11 5. 6. �yyeG pyr - S7� 7. 8. s -� - 9. /7a 10. 11. 12. 13. 14. 15, 16. 17. 18. 19. 20. Join us on Wednesday August 27 at 6:30 PM at 120 Washington St. Room 313 to support affordable homes for working families. SUPPORT SALEM HARBOR CDC !-0 f eA i D Founded in 1979,the Salem Harbor Community Development Corporation(SHCDC)is a nonprofit, community-based organization which develops housing,improves neighborhoods and promotes educational efforts to advance the economic self sufficiency of families and individuals.Our goals are: develop,manage and preserve affordable housing;enable people to obtain skills to earn a living wage,and increase access to knowledge and capital in order to grow neighborhood businesses. After five years of hard work,we have completed construction of the building at 50 Palmer St. located on the comer of Palmer and Congress St.in the Point Neighborhood.We intended to provide 15 affordable two and three bedroom units to fust time homebuyers. We are very sad to say.that the recent housing crisis has prevented us from finding income eligible first time home buyers.We plan to make these units available to low and moderate income families as affordable rental housing.We ask for your support for a request to the Salem Zoning Board of Appeals to approve this change to affordable rental housing. Petition I hereby support the request of Salem Harbor Community Development Corporation to amend the Decision granted by the Zoning Board of Appeals for 50 Palmer St.to allow 100%affordable rental housing for low and moderate income families.By signing this petition,I certify that I am at least eighteen years of age and have not received any benefits in exchange for my support of this petition. Name Address hone I. p ` ° tn/2 2. 3. 4. 4 Ot, cti�— �� Nr- 5. S-5. 92G- ; /lv —5/ 7. 8. aeA 9.• to 120 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Join us on Wednesday August 27 at 6:30 PM at 120 Washington St. Room 313 to support affordable homes for working families. SUPPORT SALEM HARBOR CDC Founded in 1979,the Salem Harbor Community Development Corporation(SHCDC)is a nonprofit, community-based organization which develops housing,improves neighborhoods and promotes educational efforts to advance the economic self sufficiency of families and individuals.Our goals are: develop,manage and preserve affordable housing;enable people to obtain skills to earn a living wage,and increase access to knowledge and capital in order to grow neighborhood businesses. After five years of hard work,we have completed construction of the building at 50 Palmer St. located on the corner of Palmer and Congress St.in the Point Neighborhood. We intended to provide 15 affordable two and three bedroom units to fust time homebuyers. We are very sad to say that the recent housing crisis has prevented us from finding income eligible first time home buyers. We plan to make these units available to low and moderate income families as affordable rental housing. We ask for your support for a request to the Salem Zoning Board of Appeals to approve this change to affordable rental housing. Petition I hereby support the request of Salem Harbor Community Development Corporation to amend the Decision granted by the Zoning Board of Appeals for 50 Palmer St.to allow 100%affordable rental housing for low and moderate income families.By signing this petition,l certify that I am at least eighteen years of age and have not received any benefits in exchange for my support of this petition. 1. Nau nA idr 2. - Pr1 3. i 4. 62 5. 6. nc Q_ 7. I SZ 8. L > Yo 9. Y L -tiS 9 %/0 2 10. iv' �r0 7 12. n/ G �yy /Lt� 13. N - 1vJ� 14. ZZ f3S3� or� t7 15. 0, 1 777Z t1�i�rt �. �/ 16. 3�5` 32�2 I7. 18 #Z ?�0 16732 19. C C_ 670 ! 6 20. Join us on Wednesday August 27 at 6:30 PM at 120 Washington St. Room 313 to support affordable homes for working families. SUPPORT SALEM HARBOR CDC Founded in 1979,the Salem Harbor Community Development Corporation(SHCDC)is a nonprofit, community-based organization which develops housing,improves neighborhoods and promotes educational efforts to advance the economic self sufficiency of families and individuals.Our goals are: develop,manage and preserve affordable housing;enable people to obtain skills to earn a living wage,and increase access to knowledge and capital in order to grow neighborhood businesses. After five years of hard work,we have completed construction of the building at 50 Palmer St. located on the comer of Palmer and Congress St. in the Point Neighborhood.We intended to provide 15 affordable two and three bedroom units to first time homebuyers. We are very sad to say that the recent housing crisis has prevented us from finding income eligible first time home buyers. We plan to make these units available to low and moderate income families as affordable rental housing.We ask for your support for a request to the Salem Zoning Board of Appeals to approve this change to affordable rental housing. Petition I hereby support the request of Salem Harbor Community Development Corporation to amend the Decision granted by the Zoning Board of Appeals for 50 Palmer St.to allow 100%affordable rental housing for low and moderate income families.By signing this petition,I certify that I am at least eighteen years of age and have not received any benefits in exchange for my support of this petition. NameA dress Phone# 1. r0 A t t 2. yi C 3. 4. J n� _A ,z— �iN 5. S- 6. _ lU-3 7. — Ja/ 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Join us on Wednesday August 27 at 6:30 PM at 120 Washington St. Room 313 to support affordable homes for working families. SUPPORT SALEM HARBOR CDC `,� J_e,, Founded in 1979,the Salem Harbor Community Development Corporation(SHCDC)is a nonprofit, community-based organization which develops housing, improves neighborhoods and promotes educational efforts to advance the economic self sufficiency of families and individuals. Our goals are: develop,manage and preserve affordable housing;enable people to obtain skills to earn a living wage,and increase access to knowledge and capital in order to grow neighborhood businesses. After five years of hard work,we have completed construction of the building at 50 Palmer St. located on the corner of Palmer and Congress St.in the Point Neighborhood. We intended to provide 15 affordable two and three bedroom units to first time homebuyers. We are very sad to say that the recent housing crisis has prevented us from finding income eligible first time home buyers. We plan to make these units available to low and moderate income families as affordable rental housing. We ask for your support for a request to the Salem Zoning Board of Appeals to approve this change to affordable rental housing. Petition I hereby support the request of Salem Harbor Community Development Corporation to amend the Decision granted by the Zoning Board of Appeals for 50 Palmer St.to allow 100%affordable rental housing for low and moderate income families.By signing this petition, I certify that I am at least eighteen years of age and have not received any benefits in exchange for my support of this petition. Name Address Phone# 1• 2 :7 enr 5 317`gy0 2 3. "k UP 11712( 4. - � r � ray road 5. �2 2� Fhn p 5rnQ —7,V 6. 7. (✓ 9h 59 - S7 s. _ 3 9. aG . 1 11. 12. SYW a 3 13. 431 14. 13 5 - 7,960 r, 15. 7 /� Cr��- (� �t (Dq L 17. 18. / U � s s � Vf 7• P - 7S/>f- 2Z0� 19. 20. Join us on Wednesday August 27 at 6:30 PM at 120 Washington St. Room 313 to support affordable homes for working families. SUPPORT SALEM HARBOR CDC e.,1 Founded in 1979,the Salem Harbor Community Development Corporation(SHCDC)is a nonprofit, community-based organization which develops housing,improves neighborhoods and promotes educational efforts to advance the economic self sufficiency of families and individuals. Our goals are: develop,manage and preserve affordable housing;enable people to obtain skills to earn a living wage,and increase access to knowledge and capital in order to grow neighborhood businesses. After five years of hard work,we have completed construction of the building at 50 Palmer St. located on the comer of Palmer and Congress St.in the Point Neighborhood. We intended to provide 15 affordable two and three bedroom units to fust time homebuyers. We are very sad to say that the recent housing crisis has prevented us from finding income eligible first time home buyers. We plan to make these units available to low and moderate income families as affordable rental housing. We ask for your support for a request to the Salem Zoning Board of Appeals to approve this change to affordable rental housing. Petition I hereby support the request of Salem Harbor Community Development Corporation to amend the Decision granted by the Zoning Board of Appeals for 50 Palmer St.to allow 100%affordable rental housing for low and moderate income families.By signing this petition,I certify that I am at least eighteen years of age and have not received any benefits in exchange for my support of this petition. Name Address Phone# 1. 70 -Sq le,M '3+ # sOi' 3y'1 0%3 2. Z 4-T q - 687 3. to d 6 OA 11A 5 t fid' 4. C r 5. 7. - S 8. ; _ 9. 10. 38 fit% Z l � Jg76> 11. I �i� 7t_,i(_i 12. 13. 14. r )A(ai 15. 'J r �"6-) ' 16. V QV {.� to 17. sY 18. 19. / 20. lit V (1VI Join us on Wednesday August 27 at 6:30 PM at 120 Washington St. Room 313 to support affordable homes for working families. VU .y SUPPORT SALEM HARBOR CDC <'- At,(, Founded in 1979,the Salem Harbor Community Development Corporation(SHCDC)is a nonprofit, C/ community-based organization which develops housing,improves neighborhoods and promotes educational efforts to advance the economic self sufficiency of families and individuals.Our goals are: develop,manage and preserve affordable housing;enable people to obtain skills to earn a living wage,and increase access to knowledge and capital in order to grow neighborhood businesses. After five years of hard work,we have completed construction of the building at 50 Palmer St. located on the corner of Palmer and Congress St. in the Point Neighborhood.We intended to provide 15 affordable two and three bedroom units to fust time homebuyers,We are very sad to say that the recent housing crisis has prevented us from finding income eligible fust time home buyers.We plan to make these units available to low and moderate income families as affordable rental housing.We ask for your support for a request to the Salem Zoning Board of Appeals to approve this change to affordable rental housing. Petition I hereby support the request of Salem Harbor Community Development Corporation to amend the Decision granted by the Zoning Board of Appeals for 50 Palmer St.to allow 100%affordable rental housing for low and modgrate income families.By signing this petition,I certify that I am at least eighteen years of age and have not received any benefits in exchange for my support of this petition. Name Address Phone# 1. 2. 6�, ` aw Sad s `I _ 7 ava� 3. 7 1� 06 4. 5♦ '6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Join us on Wednesday August 27 at 6:30 PM at 120 Washington St.Room 313 to support affordable homes for working families. SUPPORT SALEM HARBOR CDC Founded in 1979,the Salem Harbor Community Development Corporation(SHCDC)is a nonprofit, community-based organization which develops housing,improves neighborhoods and promotes educational efforts to advance the economic self sufficiency of families and individuals. Our goals are: develop,manage and preserve affordable housing;enable people to obtain skills to earn a living wage,and increase access to knowledge and capital in order to grow neighborhood businesses. After five years of hard work,we have completed construction of the building at 50 Palmer St. located on the comer of Palmer and Congress St. in the Point Neighborhood. We intended to provide 15 affordable two and three bedroom units to first time homebuyers. We are very sad to say that the recent housing crisis has prevented as from fording income eligible first time home buyers.We plan to make these units available to low and moderate income families as affordable rental housing. We ask for your support for a request to the Salem Zoning Board of Appeals to approve this change to affordable rental housing. Petition I hereby support the request of Salem Harbor Community Development Corporation to amend the Decision granted by the Zoning Board of Appeals for 50 Palmer St.to allow 100%affordable rental housing for low and moderate income families.By signing this petition,I certify that I am at least eighteen years of age and have not received any benefits in exchange for my support of this petition. ame Address hone# 1. L" z. ccs c5 - yea 3. YZ 10/2 ' O s. ~ 6Z0 6. fidt 7. 7,q 8. Ff 7 = 7 9. 10. GQ C-7—Zr r 11. cr/ d{4 12. IdA44 4L;� J� - LE 6 `7°7 13. nir�.m. /lam. / 97 A 7�d �G 14. l ✓�a'o �, ,L 6ZI 2Y4, wU?ld �5 ls. A kZ26 cn gh 17. CWfl4j 6a U,C! ,'�"""4" 37- 18. Jwr tv 19. 3,2_ w ��. Aa}#2 ✓- Join us on Wednesday August 27 at 6:30 PM at 120 Washington St. Room 313 to support affordable homes for working families. SUPPORT SALEM HARBOR CDC Founded in 1979,the Salem Harbor Community Development Corporation(SHCDC)is a nonprofit, community-based organization which develops housing, improves neighborhoods and promotes educational efforts to advance the economic self sufficiency of families and individuals. Our goals are: develop,manage and preserve affordable housing;enable people to obtain skills to earn a living wage,and increase access to knowledge and capital in order to grow neighborhood businesses. After five years of hard work,we have completed construction of the building at 50 Palmer St. located on the corner of Palmer and Congress St. in the Point Neighborhood. We intended to provide 15 affordable two and three bedroom units to first time homebuyers. We are very sad to say that the recent housing crisis has prevented us from finding income eligible first time home buyers. We plan to make these units available to low and moderate income families as affordable rental housing.We ask for your support for a request to the Salem Zoning Board of Appeals to approve this change to affordable rental housing. Petition I hereby support the request of Salem Harbor Community Development Corporation to amend the Decision granted by the Zoning Board of Appeals for 50 Palmer St.to allow 100%affordable rental housing for low and moderate income families. By signing this petition, I certify that I am at least eighteen years of age and have not preceived anan iy benefits in exchange for myr support of this petition. �j� 1. Name Address e �fA V� �i7� 6��0' 2. 0 f l y Am�1(� 11"Cl AM �j p)t_� I qlg � + 3. �'7PSYY an crag' let a;� WCW1 I q'F 74D-"6b 4 1 Q t 'dT9 AW-vasa 5. 0. Yq word °I 6 4- COaN Kin q_7A- -CNbq 7. l�� id C�z e S PerkrkiS 'S - f U 8. O Cl a/C b Alb �� _ CUcp 9. C a e-- �Y 10s0 10. 5 y 11. 1NGv s (- - -�3 �(Z 12. (J -�/ 15 16. c1yc/SYy 17 18 c&(- S f Z- V< -7X14 pa- 19. 20.. IDAAd 75fS- Join us on Wednesday August 27 at 6:30 PM at 120 Washington St. Room 313 to support affordable homes for working families. SUPPORT SALEM HARBOR CDC l"- Founded in 1979,the Salem Harbor Community Development Corporation(SHCDC)is a nonprofit, community-based organization which develops housing, improves neighborhoods and promotes educational efforts to advance the economic self sufficiency of families and individuals. Our goals are: develop,manage and preserve affordable housing;enable people to obtain skills to earn a living wage,and increase access to knowledge and capital in order to grow neighborhood businesses. After five years of hard work,we have completed construction of the building at 50 Palmer St. located on the comer of Palmer and Congress St. in the Point Neighborhood. We intended to provide 15 affordable two and three bedroom units to first time homebuyers.We are very sad to say that the recent housing crisis has prevented us from finding income eligible first time home buyers.We plan to make these units available to low and moderate income families as affordable rental housing.We ask for your support for a request to the Salem Zoning Board of Appeals to approve this change to affordable rental housing. Petition I hereby support the request of Salem Harbor Community Development Corporation to amend the Decision granted by the Zoning Board of Appeals for 50 Palmer St.to allow 100%affordable rental housing for low and moderate income families.By signing this petition,l certify that I am at least eighteen years of age and have not received any benefits in exchange for my support of this petition. Na Address Phone# 1. )-ego / 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Join us on Wednesday August 27 at 6:30 PM at 120 Washington St. Room 313 to support affordable homes for working families. SUPPORT SALEM HARBOR CDC 041.4- 0-0 Founded in 1979,the Salem Harbor Community Development Corporation(SHCDC)is a nonprofit, community-based organization which develops housing,improves neighborhoods and promotes educational efforts to advance the economic self sufficiency of families and individuals.Our goals are: develop,manage and preserve affordable housing;enable people to obtain skills to earn a living wage,and increase access to knowledge and capital in order to grow neighborhood businesses. After five years of hard work,we have completed construction of the building at 50 Palmer St. located on the corner of Palmer and Congress St.in the Point Neighborhood. We intended to provide 15 affordable two and three bedroom units to first time homebuyers. We are very.sad to say that the recent housing crisis has prevented us from finding income eligible first time home buyers. We plan to make these units available to low and moderate income families as affordable rental housing.We ask for your support for a request to the Salem Zoning Board of Appeals to approve this change to affordable rental housing. Petition I hereby support the request of Salem Harbor Community Development Corporation to amend the Decision granted by the Zoning Board of Appeals for 50 Palmer St.to allow 100%affordable rental housing for low and moderate income families.By signing this petition,I certify that I am at least eighteen years of age and have not received any benefits in exchange for my support of this petition. Name Address A02- S L 4�cf�lcy/lr� ,L 2.1( - 7T-A3,5-Gg - 3. �- / S s. 'C n S`Q,� e f✓) ' 7. u v,c2 � s. 9. 10. Z 11. 3 P 1 ° 13. 14. 15. 16 Q t SC� - 17. p. ICOe ,. WaAlAIY7,& r- LawvjrIat st Sown ()1070 18. aaSs '4- a 19. e 20. / Join us on Wednesday August 27 at 6:30 PM at 120 Washington St.Room 313 to support affordable homes for working families. SUPPORT SALEM HARBOR CDC 6)&tAR/C( Founded in 1979,the Salem Harbor Community Development Corporation(SHCDC)is a nonprofit, community-based organization which develops housing,improves neighborhoods and promotes educational efforts to advance the economic self sufficiency of families and individuals.Our goals are: develop,manage and preserve affordable housing;enable people to obtain skills to earn a living wage,and increase access to knowledge and capital in order to grow neighborhood businesses. After five years of hard work,we have completed construction of the building at 50 Palmer St.located on the comer of Palmer and Congress St.in the Point Neighborhood.We intended to provide 15 affordable two and three bedroom units to first time homebuyers.We are very sad to say that the recent housing crisis has prevented us from finding income eligible first time home buyers.We plan to make these units available to low and moderate income families as affordable rental housing.We ask for your support for a request to the Salem Zoning Board of Appeals to approve this change to affordable rental housing. Petition I hereby support the request of Salem Harbor Community Development Corporation to amend the Decision granted by the Zoning Board of Appeals for 50 Palmer St.to allow 100%affordable rental housing for low and moderate income families.By signing this petition,I certify that I am at least eighteen years of age and have not received any benefits in exchange for my support of this petition. Address ,� r 1. f/1 lA/ US ;s-4 Com - S z. erg C � �2 I,�.l-�t aq�r�j 3. AVL aG/ 7V O 4. 5. V — LAI pp 6 6. 7. ? 4A D J 8. V 9. G 10. : 11. V� 12. =` _ /.- 13. 14. 1 15. AIA t 19Vsi✓ 17 Qtiw/ 1 18. 19. 20. Is Join us on Wednesday August 27 at 6:30 PM at 120 Washington St. Room 313 to support affordable homes for working families.