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AHTF 2007 Meeting Minutes Salem Affordable Housing Trust Fund Minutes of Meeting Thursday, March 29, 2007 A regular meeting of the Salem Affordable Housing Trust Fund was held on Thursday, March 29, 2007 at 6:00 p.m. in the third floor Room 313 at 120 Washington Street. Members present were Mayor Driscoll, Kathleen Burke, Chad Colarusso, Michael Northcutt, Leonette Strout,Jennifer Raitt, Mary Dennesen. Also present were Lynn Goonin Duncan, Director of DPCD and Julie Quinn, Housing Coordinator. Members absent were Councilor Matthew A. Veno, Heather Picard and Mary Lauby. Welcome/Introductions Mayor Driscoll welcomed the Affordable Housing Trust members(the"Trust")and described how the Trust was adopted through a City Ordinance to enact M.G.L.A. c. 44, s. 55C. Discuss role of the Trust The Mayor noted that there is currently$50,000 available to the Trust. She further noted that these funds were contributed through negotiation with developers. She continued that additional funds are slated to come from negotiated contributions from other developers. Lynn Duncan noted that Community Preservation Act(CPA) would be discussed at the next City Council Committee of the Whole. She briefly described the CPA—at least 10%for affordable housing and the State matches 1:1 — and how these funds could help capitalize the Trust. She then noted that the meeting was scheduled for April 3`d at 6:30 pm and stated that it would be great if a Trust member or two could attend. The Trust briefly discussed possibilities for capitalizing the Trust. The Trust discussed the possibility of hiring a consultant to create a strategy to capitalize the fund and decided to take this matter up at another meeting. The Trust then discussed options for Trust activities. Options included: Housing study • Mickey Northcutt noted that noted that small regional Cities CHAPA,advocate for funds to projects and work with partners, match funds. Mickey local leverage is important to the state. CHAPA& others have studies. • Lynn Duncan noted that while the City does not have a housing plan, information in 5-year plan, Housing Needs Analysis and background—whole document online, excerpts handed out to board members. • Lynn Duncan suggested that the Trust could fund an action plan that will include potential ways to capitalize the trust. Page 1 of 3 Housing Development • The Trust was not interested in taking on the role of developer • The Trust was very interested in supporting the local Community Development Corporation and other local non-profits and private developers to develop units and provide services. Awareness and education • The Mayor noted that it would be important for the Trust to educate and public and make them aware of both the need for affordable housing and who that housing serves. Describe current affordable housing initiatives in the City The Mayor noted that the City does not have Inclusionary Zoning or other City wide zoning encouragement for affordable housing. She noted that the City has a lot of hard to develop sites (brownfields, etc.) so it is important not to discourage development of these difficult sites. She noted that the North River Canal Corridor does have a density bonus for affordable units built. Lynn Duncan noted that the City allocates 5 1% of their annual Community Development Block Grant to affordable housing programs and also receives HOME funds as a member of the North Shore HOME Consortium. Julie Quinn described existing City's existing affordable housing programs: • FTHB Programs—FTHB Downpayment Assistance and ADDI • Housing Rehab Programs —Owner-Occupied and Investor Owner(new program being developed) The Mayor then described other projects throughout the city: • New Projects—St.Joseph's(45 units,both rental and homeownership),50 Palmer(15 homeownership —to be complete by end of the year), 1 Harrison(2 units homeownership),28 Goodhue(North River Canal Corridor,affordable housing density bonus—44 units homeownership,4 of those affordable), 18 Crombie Street(1 ownership unit and historic preservation, completed Habitat for Humanity) • Expiring Use Projects—Loring Towers 250 units (in negotiations) and Fairweather Apartments 127 units (being purchased by Preservation of Affordable Housing, owners of Salem Heights) Lynn Duncan noted that units in hand better than cash. Housin need - brainstormin The Trust members spent approx. 20 minutes brainstorming housing needs and ideas. Needs • Diverse housing and fair housing • Accessible/adaptable housing, even beyond ADA requirements • Transitional housing fleeing domestic abuse • Supportive services in housing • Target very low- and low-income households, "affordable"housing often too expensive for many families • Distinguish between senior housing(62+)—between affordable housing and elderly housing and the need for affordable elderly housing Page 2 of 3 Issues • Ownership rates vastly different by neighborhood, neighborhood stabilization and balance is key • Trust should formulate definition of"Local Preference" • Trust should explore options for affordability restriction time periods—at least 15 years to place unit on Subsidized Housing Inventory list. Other thoughts:Permanent not necessarily the best option for homeownership 30-50 years and rental housing in perpetuity. Ideas • Creative homebuyer assistance: "rent to own",multi-family homeownership where owners use rent to help pay mortgage, Section 8 to homeownership (some communities have, but not frequently used) • Tracking foreclosures • Workforce housing: work with large employers on housing issues — for example, North Shore Medical Center, Salem State College—Jenny to send Julie info. • Transfer of Development Rights • Affordable housing density bonus Next Steps Establish regularly scheduled meeting Those members present indicated that morning meetings would work and suggested the second Monday of the month. Establish Trust Documents Julie Quinn noted that she would circulate draft documents before the next meeting. Adiournment The meeting was adjourned at 7:30 p.m. Respectfully submitted by: Julie Quinn, Housing Coordinator Salem Affordable Housing Trust Fund AHT03292007 Page 3of3 Salem Affordable Housing Trust Fund Minutes of Meeting Monday, May 14, 2007 A regular meeting of the Salem Affordable Housing Trust Fund was held on Monday, May 14, 2007 at 9:00 a.m. in the 3rd floor Room 313 at 120 Washington Street. Members present were Kathleen Burke, Councilor Lucy Corchado, Mary Dennesen, Mary Lauby, Michael Northcutt, Leonette Strout, Jennifer Raitt, and Councilor Matthew A. Veno. Also present were Lynn Goonin Duncan,Director of DPCD and Julie Quinn, Housing Coordinator. Members absent were Mayor Driscoll, Councilor Jean Pelletier, Heather Picard and Chad Colarusso. Approval of Minutes The minutes of the Salem Affordable Housing Trust Fund Board meeting held on March 29, 2007 were presented for approval. Jennifer moved to approve the minutes, seconded by Michael and approved, (9-0). Discussion of Housing Needs The Trust discussed the housing need information from the Five-Year Consolidated Plan and the FY07 Action Plan. The needs specified in these plans include: • Rental affordability and preservation • Affordable housing preservation • Housing for extremely low income households • Public Services for low and moderate income residents • Elderly housing Concerns about the data Julie clarified that most of the info was from the 2000 Census. And that documents went through public review process. Leonette expressed concerned that the 2000 figures may be outdated, especially the income data. She was concerned that the extremely-low and low-income population have grown or changed since 2000 based on what she has observed through her involvement with Salem Harbor CDC. She noted that more and more people could not afford the rents in the CDC's rent restricted units. Jennifer noted that the Metro Area Planning Council(MAPC)has projected data and updated data available through their data center, available online at www.datacommon.org. She noted that if the Trust is looking specific information if not available on the datacommon website, she could put in a request. Councilor Veno asked if there was more updated information on the Subsidized Housing Inventory List (state maintained list of the number of affordable units in each municipality) showing the number of affordable units and Salem's affordable unit percentage (40B percentage). Julie explained that the Subsidized Housing Inventory List is updated when new units come on-line. Page 1 of 5 Lynn Duncan explained that the state uses the 2000 Census total households number as the denominator for the 40B percentage. She continued that DPCD staff tracks the 40B percentage by updating the total housing unit number each summer, as requested by City Council,to include new units built. She explained that the purpose of this update is to see where Salem stands so when the 2010 Census comes out,the Cityis prepared for the total unit increase. Councilor Corchado asked if the Trust should be tracking whether or not affordable units (rent restricted units) are being rented at the appropriate levels. She wanted to know how verifies that new tenants qualify for these restricted units. Jennifer noted that the funding source is the monitoring agency(for example,the Department of Housing& Community Development or MassHousing) — on an annual or quarterly basis, all overseen by deed restriction that lay out the tenant income and rent restrictions that the owner must follow. Lynn added that there is no central location to monitor this,nor could the City or Trust act in this monitoring role. She noted that the role of Trust is more related to setting policy and deciding how to expend funds. Additional Potential Areas of Need Jennifer noted that the elderly population deserves a closer look. Otherwise, she felt the data was sufficient to assess need. Mary Dennison then pointed out that there are different levels of affordability and that some people do not make enough money to afford some"affordable"units. She noted that this points to a need for more diverse affordable housing opportunities —including those for lower-income people. The Trust agreed that additional areas of need may be identified once the MAPC data was examined or upon finding more updated sources of information. Landlord Program Leonette asked if the City had many responses to the Landlord Housing Rehabilitation Loan Program RFP. Julie replied that there had been no responses. She discussed the Landlord Program and the RFP process, including advertising in the newspaper, targeted mailing and on website. She expressed concern that the application process might be too cumbersome and that the Housing Coordinator will look at how to do it better then try again. She noted that this was to be a pilot program with enough funds for only one or two projects. She noted that the Housing Coordinator could bring the revised program before the Trust to get their input. Leonette suggested making the RFP available in Spanish. Lucy suggested doing some outreach to the Point Neighborhood Improvement Association, a group of landlords. Mary Lauby suggested holding a public forum to explain the application process to interested parties. Page 2of5 Discussion of Next Stens PreliminM Plannin The general consensus of the Trust was that they needed to establish long-term goals and short-term objectives. Additionally,the Trust discussed the need to carefully allocate the existing funds in the Trust and establish a plan to build its balance as well as to find other methods to further the Trust goals without spending money. The Trust discussed Habitat for Humanity's project at 1 Harrison Ave. Councilor Corchado noted that Habitat had a request before Council to waive the building fees. Some Trust members liked the idea of offering to pay these fees should Council deny this request and others were not sure that funds should be spent before the Trust had seen all the opportunities available. Councilor Veno noted that if Council passed this waiver,it would be the second waiver for and affordable housing project and that was a good pattern to establish. He noted that whether Council would approve the request depended on the cost of those fees. The Trust agreed that Julie would notify them when Habitat submitted the estimated fees and the Trust would take action if necessary upon receiving that info. A number of Trustees were hesitant to commit funds to any project before the Trust had a chance to define its priorities and see all of the opportunities available. Jenny noted that she wanted to see all of the opportunities are out there before committing to one group, noting that the group goals are not yet aligned. Mary Lauby, Kathleen and Marry Dennesen all agreed. Councilor Veno noted that it was reasonable for this group to say that they are in the process of developing a strategy and that the Trust does not want to rush forward without looking at big picture. Councilor Corchado suggested that at other municipal housing trusts would be helpful. Hiring a Consultant The Trust discussed the option of hiring a consultant to develop an action plan and strategy for the Trust Fund. The general consensus of the Trust was that the scope should be very limited and well defined since there is already so much information available. The scope may include some focus groups or discussion with local stakeholders. Jenny noted that the planning phase of the Trust should be short because there is already a lot of planning that has been done and a lot of information available. She further suggested that each Trustee at the next meeting discuss two or three priorities as a starting point for putting together the scope for a consultant. She also wanted to clarify how the consultant's work would be different from the work done to generate the Action Plan and Consolidated Plan. Page 3of5 Lynn noted that DPCD does not have sufficient staff resources to create an action plan and funding strategy for the Trust. She also noted that a consultant would bring expertise on housing similar housing issues. Kathleen noted that sometimes it is helpful to be shown things you already know in a different light. She further noted that the Trust needs to decide what is important and which goals it's going to select. She suggested the development of a one-year plan. Leonette asked if the consultant could fund raise. She also asked if they could help the Trust focus. She further noted that the Trust should meet with organizations to assess their immediate needs. Lynn replied that the consultant would not fund raise, but would provide options to the Trust of how to capitalize the fund and how the Trust could move forward in a more focused manner. She noted that a consultant might suggest options that do not cost money, like the development of an accessory apartment ordinance. Jenny noted that the Trust could start working on short-term and long term-goals. She noted different areas the Trust could focus on—zoning and planning,advocacy and education or creation of affordable units. She noted that the Trust should discuss which way they want to go to help guide the consultant. She suggested that CPA would be a good short-term goal. She also pointed out that even if CPA passes or some other mechanism is enacted to capitalize the trust,it will be a while before the Trust sees and money. She noted that she was not sure that a consultant is the way to go. Mary Lauby noted that she liked the idea of consultant to help focus the Trust and create a work plan and common goals. She further noted that she wants to get more info,talk to people and visit affordable housing sites. She further suggested that the Trust wait until new Housing Coordinator is on board to start the consultant hiring process. Community.Preservation Act(CPA) Trust members expressed a strong desire to get involved with the CPA. The Trust decided that Julie would email a web link for the CPA Coalition for them to learn more about CPA and how other communities have used those funds. Councilor Veno stated that he thought working to support CPA would be a good way for the Trust to get on the map without spending any funds and that advocacy would be a good role for the Trust. He noted that City Council is planning a public hearing and trying to get the CPA Coalition's Executive Director, Stuart Saginor, to come back to speak and answer questions. He continued that he did not have the date of the public hearing yet, but that he thought it would be early in June. Mary Lauby suggested that the Trust put together some pre-hearing publicity. Councilor Veno described Salem's proposed CPA as a 1% property tax surcharge with exemptions (including low-income, senior housing and first$100,000). Lynn noted that the Parks and Recreation Board has been working on CPA. Park and Rec. made the recommendation to City Council,went on record in support of CPA,and hosted the first public hearing. She Page 4 of 5 described the three funding priorities for CPA: Open Space,Historic Preservation,and Affordable Housing. She noted that Salem has strong advocates on all three of these issues whereas other communities do not. She further noted that the state matches city CPA funds (currently at 100%,but that could decrease a bit in the future). Mary Lauby suggested a slogan of"bring your taxes and fees back." Julie agreed to notify Trust members when the public hearing has been set. Review of Draft Trust Documents Deferred to later meeting. Ad'ournment There being no further business a motion was made by Councilor Veno to adjourn the meeting, seconded by Councilor Corchado and approved, (8,0). The meeting was adjourned at 10:30 a.m. Respectfully submitted by: Julie Quinn, Housing Coordinator Salem Affordable Housing Trust Fund AHT05142007 Page 5of5 Salem Affordable Housing Trust Fund Minutes of Meeting Monday, June 11, 2007 A regular meeting of the Salem Affordable Housing Trust Fund was held on Monday, June 11, 2007 at 9:00 a.m. in the 3rd floor Room 313 at 120 Washington Street. Members present were Kathleen Burke, Mary Dennesen, Mary Lauby, Michael Northcutt,Leonette Strout, Jennifer Raitt, and Councilor Matthew A. Veno. Also present were Lynn Goonin Duncan, Director of DPCD, Julie Quinn, Housing Coordinator, and Jennifer Kolodziej, new Housing Coordinator. Members absent were Mayor Driscoll, Councilor Lucy Corchado, Councilor Jean Pelletier, Chad Colarusso, and Heather Picard. Vote on Chair and Vice-Chair Councilor Veno nominated Jennifer Raitt for the position of Chair of the Trust,seconded by Mary Lauby and approved, (7-0). Leonette Strout nominated Michael Northcutt for the position of Vice-Chair, seconded by Councilor Veno and approved, (7-0). Approval of Minutes The minutes of the Salem Affordable Housing Trust Fund Board meeting held on May 14, 2007 were presented for approval. Two edits were noted on pages 1 and 3. Mary Lauby moved to approve the minutes, seconded by Jenny and approved, (7-0). Priority Discussion Trustees discussed their top two to three priorities as a starting point for outlining the long-and short-term goals of the Trust. Mickey Northcutt stated that he envisioned the goals/roles of the Trust to be production of new affordable housing, either through rehabilitation or new construction, supporting CPA, and advocacy/speaking out in support of controversial projects. Mary Lauby added that she saw the Trust's priorities as building community support and educating the community on affordable housing needs. Jenny Raitt agreed that the Trust could use data to help inform the public. She further noted that the Trust could help supplement the First-Time Homebuyer Program and other programs the City in order to take advantage of existing staff resources. Councilor Veno pointed out that the Trust should have a role in keeping affordable units from expiring. He felt that the Trust should advocate for policy changes and be able to call attention to housing issues on the horizon. Page 1 of 3 Additional Potential Areas of Need Jenny noted that the elderly population deserves a closer look. Mary Lauby agreed that the housing needs of the elderly should be a focus of the Trust and suggested that other unique populations, such as battered women, could drive the particular kinds of housing the Trust considers. Leonette Strout expressed desire to develop"workforce"housing or housing for the"working poor". She explained the focus to be on households with an income between 80%and 120%of the area median income. Further noting that this population may include municipal workers, such as teachers. Mary Dennesen then pointed out that there are different levels of affordability and that some people do not make enough money to afford some"affordable"units. She noted that this points to a need for more diverse affordable housing opportunities—including those for lower-income people. Trust Documents Drafts of the Declaration of Trust and Rules and Regulations were reviewed and discussed. Clarification was needed regarding the City Treasurer's role in the administrative procedures of the Trust. Mary Lauby, Councilor Veno, and Jennifer Kolodziej volunteered to act as the sub-committee to seek clarification and edit the documents. Community Preservation Act(CPA) Trust members expressed a strong desire to go on record in support of CPA. Councilor Veno stated that he thought working to support CPA would be a good way for the Trust to get on the map without spending any funds and that advocacy would be a good role for the Trust. He noted that a Public Hearing is to be held at City Council's next meeting on the evening of Monday, July 9, 2007. Mary Lauby motioned that the Trust recommend that City Council adopt CPA at the Public Hearing as recommended by City Council as a whole that is a 1% property tax surcharge with exemptions (including low-income, senior housing, and the first$100,000). Motion was seconded by Kathleen Burke and approved, (7-0). Kathleen Burke motioned to have written testimony to be read at the Public Hearing that supports CPA, seconded by Mary Dennesen and approved (6-0). Councilor Veno abstained from the vote. Mickey volunteered to attend the Public Hearing and deliver the letter supporting CPA on behalf of the Trust. A draft of the statement will be circulated at the next meeting for approval. Jenny Raitt and Mickey Northcutt will work together to draft the letter. Overview and Discussion of Beverly Affordable Housing Development Example Deferred to next meeting. Discussion of Next Steps Deferred to next meeting. Adjournment There being no further business a motion was made by Councilor Veno to adjourn the meeting, seconded by Jenny Raitt and approved, (6,0). (Michael Northcutt needed to leave at 10:30 a.m.) Page 2of3 The meeting was adjourned at 11:00 a.m. Respectfully submitted by: Jennifer Kolodziej, Housing Coordinator Salem Affordable Housing Trust Fund AHT06112007 Page 3 of 3 Salem Affordable Housing Trust Fund Minutes of Meeting Monday, September 17, 2007 A regular meeting of the Salem Affordable Housing Trust Fund was held on Monday, September 17, 2007 at 9:00 a.m. in the 3rd floor Room 313 at 120 Washington Street. Members present were Mayor Driscoll, Kathleen Burke, Mary Dennesen, Michael Northcutt, Jennifer Raitt, Leonette Strout. Also present were Lynn Goonin Duncan, Director of DPCD, and Jennifer Kolodziej, Housing Coordinator. Members absent were Councillor Lucy Corchado, Councillor Jean Pelletier, Councillor Matthew A. Veno Chad Colarusso, and Mary Lauby. Approval of Minutes The minutes of the Salem Affordable Housing Trust Fund Board meeting held on June 11 2007 were presented for approval. Mickey Northcutt moved to approve the minutes, seconded by Kathleen Burke and approved, (6-0). Request for funding for St. ose h's redevelo ment The requested funds would cover taxes, insurance, interest on the current loan and other carrying costs till the end of the year. Mickey Northcutt motioned to move vote on this issue to the next meeting, seconded by Mary Dennesen and approved (6-0). The members asked for the following information to help inform their vote for the next meeting: the rental prices, amount of taxes paid to date, amount of taxes the development would generate once it is completed, and copies of the appeals and decisions from the Planning Board and Zoning Board of Appeals regarding the development. Trust Documents Drafts of the Declaration of Trust and Rules and Regulations were reviewed and discussed. The staggered expiration of membership terms (some 2 years, others 3 years) was pointed out. Kathleen Burke moved to approve the Declaration of Trust and Rules and Regulations, seconded by Mickey Northcutt and approved, (6-0). All members present signed the Declaration of Trust before Frank Taormina, public notary. Update on Community Preservation Act(CPA) Trust members asked if they are allowed to urge voters to vote in favor of CPA. Lynn Goonin Duncan will consult with the assistance city solicitor for the answer. Expiring Use Legislation S-2152 A brief report on the Joint Committee hearing was deferred to the next meeting. Election of Trust Treasurer A vote was deferred to next meeting. Page lof 2 Webnage Content The draft webpage content was reviewed. Jenny Raitt asked that the organization for which each Trustee worked be deleted. She suggested that the Board members' expertise be described in general since the members serve as residents of Salem not as representatives of their organizations. Jennifer Kolodziej agreed to make the aforementioned changes. Jenny Raitt moved to approve the webpage draft, seconded by Mickey Northcutt and approved, (6-0). Trust Goals and Objectives The goals were reviewed briefly. Mickey Northcutt motioned to defer further discussion to the next meeting, seconded by Jenny Raitt. The members agreed to put this item first on their agenda for the next meeting on October 9`h. Jenny requested that all members forward comments on the Trust Goals and Objectives to Jennifer Kolodziej in the interim. Also, members agreed to add a Public Comment period at the beginning of each Affordable Housing Trust Fund meeting. Ad'ournment There being no further business a motion was made by Mayor Driscoll to adjourn the meeting, seconded by Jenny Raitt and approved, (6,0). The meeting was adjourned at 11:00 a.m. Respectfully submitted by: Jennifer Kolodziej, Housing Coordinator Salem Affordable Housing Trust Fund AHTF 09.17.2007 Page 2o£2 Salem Affordable Housing Trust Fund Minutes of Meeting Tuesday, October 9, 2007 A regular meeting of the Salem Affordable Housing Trust Fund was held on Tuesday, October 9, 2007 at 9:00 a.m. in the 3rd floor Room 313 at 120 Washington Street. Members present were Mayor Driscoll, Councillor Lucy Corchado, Councillor Jean Pelletier, Mary Dennesen, Michael Northcutt, Jennifer Raitt, Leonette Strout. Also present were Lynn Goonin Duncan, Director of DPCD, and Jennifer Kolodziej, Housing Coordinator. Members absent were Councillor Matthew A. Veno, Kathleen Burke, Chad Colarusso, and Mary Lauby. Approval of Minutes The minutes of the Salem Affordable Housing Trust Fund Board meeting held on September 17 2007 were presented for approval. Mickey Northcutt moved to approve the minutes, seconded by Mayor Driscoll and approved, (7-0). Trust Goals and Obiectives The goals were reviewed. Mayor Driscoll moved to approve the goals, seconded by Mickey Northcutt and approved,(7-0). Reguest for funding for St. Joseph's redevelopment The requested funds would cover taxes, insurance, interest on the current loan and other carrying costs till the end of the year. Mickey Northcutt motioned to appropriate $25,000 to Salem Lafayette Development LLC as predevelopment funding for the St. Joseph's redevelopment project with the stipulation that if the project's affordability changed, the project did not move forward, or the property was sold or transferred that the money would be recaptured by the Trust. Councillor Corchado seconded the motion and the motion carried with 5 votes in favor and 2 members (Mary Dennesen and Councillor Pelletier) abstaining from voting. Councillor Pelletier noted that he did not disapprove of the motion, but abstained from the vote because he was not present for prior meetings when the issue was discussed. Lisa Alberghini, Executive Director or the Planning Office of Urban Affairs (POUA), provided the following answers to board members' questions from the previous meeting: Total number of housing units: 67 0 45 units in new building along Lafayette of which 30 will be Affordable Units o S Market-Rate units in the former rectory 0 14 Market-Rate units in former school building Rents for households with income below 30% Area Median Income: One-Bedroom $900 Two-Bedroom $1,072 Three-Bedroom $1,234 3 HOME-assisted units are available for these households Minutes Approved 11.19.07 Page 1 of 3 Rents for those below 50% Area Median Income: below 60% Area Median Income: One bedroom $742 One bedroom $900 Two bedroom $883 Two bedroom $1,072 Three bedrooms $1,016 Three bedroom $1,234 16 units are available for these households 11 units are available for these households If Section 8 is available, some rents could begin at $428 for 113R, $509 for 213R, and$584 for 313R. Prices for Affordable Homeownership Units: Market-Rate Homeownership Units: One bedroom $140,000 One bedroom $199,000 Two bedroom $165,000 Two bedroom $238,000 Three bedroom $180,000 Three bedroom $269,000 Amount of taxes Salem Lafayette Development LLC has paid to date: $100,100 Amount of taxes the St. Joseph's redevelopment project would generate: $114,873 Will the Trust be repaid if the development does not proceed? In the event that the project did not proceed, the Trust Fund money would be secured by a lien on the property. If the property was sold or the bank took control of the property, the City's position would be secured by that lien. What is the status of the litigation? The pre-trial hearing will be held on February 5, 2008 and the trial is set for February 25, 2008. POUA is pursuing a settlement agreement with the Plaintiffs. Does the litigation have to be resolved by the end of October? If the litigation is not resolved in the next few weeks, the project could still move forward but POUA would have to compete for funds again in the Commonwealth's spring funding round. POUA still has other funding commitments in hand(FHLB, HOME consortium) and the State is committed to this project. What are the plans for the first floor of the new building? Salem Lafayette Development LLC is exploring several options for use of the first floor, including business or retail space and a Salem State College workforce development office. Will you have to go back to zoning? Depending upon the use, a slight modification may need to be requested. This may add some time, but does not prohibit the project from moving forward. What is the proposed timeline? POUA will work to secured project funding by the spring of 2008 and construction would begin in late summer. FY 2007 Annual Report Jennifer Kolodziej explained that according to Article Seventeenth of the Declaration of Trust, the Trust is required to submit an annual fiscal report that details fund sources and expenditures to City Council. Members reviewed the report which noted that no funds were expended during FY07. Mayor Driscoll moved to approve the FY 2007 Annual Report, seconded by Councillor Pelletier and approved, (7-0). Minutes approved 11.19.07 Page 2 of 3 Expiring Use Legislation 5-2152 Mary Dennesen gave a brief report on the Joint Committee on Housing public hearing held on July 17, 2007 at the Statehouse. The Joint Committee on Housing looked at several bills to permanently preserve affordable housing. The Loring Towers Tenants Association and many others were present to support Senate Bill No. 2152, an act to adopt protections for Salem's Governmentally Involved Housing Stock in the City of Salem. To the best of Mary's knowledge, there has been no vote to date on S-2152. Councillor Pelletier moved to request that Representative John Keenan and Senator Frederick Berry send the Affordable Housing Trust Fund Board updates regarding the status of Senate Bill No. 2152 on a regular basis. Mickey Northcutt added that the request be expanded to reports on related legislation as well. The motion was seconded by Mary Dennesen and approved, (7-0). Election of Trust Treasurer A nomination was made by Mayor Driscoll and seconded by Councillor Pelletier for Councillor Veno to serve as the Trust Treasurer subject to his approval. (Councillor Veno was not present.) A vote was held for the next meeting. New-Business—Saunders Street Affordable Housing Development Proposal George Fallon of Tache Real Estate has asked to make a presentation to the board regarding a proposal to develop 4 units of affordable housing on Saunders Street. Members expressed interest in hearing more about the project. Mr. Fallon will present the development proposal at the next meeting. Next Stern: Begin Review of Inclusionary Zoning Ordinance Discussion was deferred to the next meeting. Adiournment There being no further business a motion was made by Councillor Pelletier to adjourn the meeting, seconded by Mickey Northcutt. The meeting was adjourned at 11:00 a.m. Respectfully submitted by: Jennifer Kolodziej, Housing Coordinator Salem Affordable Housing Trust Fund AHTF 10.9.2007 Minutes Approved 11.19.07 Page 3 of 3 Salem Affordable Housing Trust Fund Minutes of Meeting Monday, November 19, 2007 A regular meeting of the Salem Affordable Housing Trust Fund was held on Monday, November 9, 2007 at 9:00 a.m. in the 3rd floor Room 313 at 120 Washington Street. Members present were Councillor Jean Pelletier, Councillor Matthew A. Veno, Michael Northcutt, Kathleen Burke, and Mary Dennesen. Also present were Lynn Goonin Duncan, Director of the Department of Planning and Community Development, serving as the Mayor's designee, and Jennifer Kolodziej, Housing Coordinator. Members absent were Mayor Driscoll, Councillor Lucy Corchado, Jennifer Raitt, Chad Colarusso, Mary Lauby and Leonette Strout. A oroval of Minutes The minutes of the Salem Affordable Housing Trust Fund Board meeting held on October 9, 2007 were presented for approval. Councillor Pelletier moved to approve the draft minutes as amended (with a correction on page 2 of the pre-trial hearing and trial dates from February 2007 to 2008), seconded by Mickey Northcutt and approved, (6-0). FY 2007 Annual Report Update The FY07 Annual Report was submitted to and accepted by the Salem City Council at its meeting on November 15,2007. Councillor Lovely asked if the St. Joseph's project allocation of$25,000 should be noted in the report. Councillor Veno explained that the Trust awarded those funds in Fiscal Year 2008. Election of Trust Treasurer At the last Trust meeting on October 9, 2008, Mayor Driscoll nominated Councillor Veno to serve as the Trust Treasurer, seconded by Councillor Pelletier. A vote was held for the next meeting when Councillor Veno would be present. On, November 19, 2008, Mickey Northcutt made a motion to nominate Councillor Veno for the position of Treasurer, seconded by Councillor Pelletier, and approved,(6-0). Councillor Veno accepted the post of Trust Treasurer. CPA Votiniz Results On Election Day, November 6, 2008, the Community Preservation Act(CPA) was rejected by a vote of 2,934 to 2,594. The CPA fell by a margin of only 340 votes, however approximately 400 ballots left the CPA question blank. The best chance of getting the CPA back on the ballot next year would be to collect signatures from 5% of Salem's registered voters. With next year being a Presidential election year, an increased voter turn-out is expected. Review and Discussion of Accessory Dwelling and Inclusionary Zoning Ordinances Board members reviewed the Model Bylaw for Accessory Dwelling Units (ADU)from the Massachusetts Smart Growth Toolkit. Jennifer Kolodziej and Lynn Goonin Duncan explained the purpose and advantages of the Ordinance. Whether or not to attach an affordability restriction to the units was identified as an early decision point in considering an Ordinance. Lynn Goonin Duncan TMinutes Approved 2.11.08 Page 1 of 2 pointed out that the more flexible the requirements are, the more desirable the units will be to homeowners. Many homeowners want an ADU to accommodate an in-law or an aging family member, who may not meet the definition of a low- or moderate-income household. In addition, present HUD Fair Market Rents are equal to or slightly higher than the current market rents being charged in Salem for studio, and one and two bedroom apartments. Furthermore, ADUs tend to be very smaller, so the rents are usually low. Members considered setting a cap of the number of ADUs that can be constructed in a year. Many decided that a cap was not necessary,but the board asked Jennifer Kolodziej to find out the number of ADUs developed in cities and towns that have passed an Accessory Dwelling Ordinance. Lynn Goonin Duncan suggested that zero percent, deferred payment loans could be offered to homeowners through the City's Housing Rehabilitation Program to help existing illegal accessory dwelling units meet Housing Quality Standards. The board decided to focus its efforts on drafting an Accessory Dwelling Ordinance and put off consideration of an Inclusionary Zoning Ordinance. Adjournment There being no further business a motion was made by Councillor Pelletier to adjourn the meeting, seconded by Kathleen Burke. The meeting was adjourned at 10:30 a.m. Respectfully submitted by: Jennifer Kolodziej, Housing Coordinator Salem Affordable Housing Trust Fund AHTF 12.10.2007 Minutes.Approved 2.11.08 Page 2 of 2