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What is a Municipal AffordableHousing Trust (MAHT)?
• Public entity• Created by local legislative body • Create & preserve affordable housing• Led by Board of Trustees
16
Subject to public procurement, designerselection, conflict of interest and public meeting laws
Trust Statute – MGL Ch.44, Sec 55c
“…to�provide�for�the�creation�and�preservation�of�affordable�housing�in�municipalities�for�the�benefit�of�low�and�moderate�income�households…”
• Limited scope• Low and moderate income only
PURPOSE
Legal Consideration
Open Meeting Law
MGL Chapter 30A, sections 18‐25
• Within two weeks of appointment, trustees must complete Certificate of Receipt of Open Meeting Law Materials
• Some exceptions – executive session if deliberating purchasing, leasing or valuing of real property
• “Public meeting” includes deliberations that involve a quorum – careful with email
Legal Consideration
Procurement Laws
From MAHT statute:The�trust�is�a�board�of�the�city�or�town�for�purposes�of�chapter�30B�and�section�15a�of�chapter�40;�but�agreements�and�conveyances�between�the�trust�and�agencies,�boards,�commissions,�authorities,�departments�and�public�instrumentalities�of�the�city�or�town�shall�be�exempt�from�said�chapter�30b.
Section 15a of Chapter 40: Requires 2/3 vote of legislative body to transfer land. Exception: Accepted provisions of Section 15a then majority vote for transfer for low and moderate income housing.
Legal Consideration
Procurement Laws
Construction/capital improvement
• Public construction & bidding requirements
• Prevailing wage
Real property disposition, lease or
acquisition
• Chapter 30b, Section 16 –various guidance
• If bought with CPA funds, exempt from 30b
Contracting professional services
• Three Thresholds• Under $10,000• $10‐50,000 – 3 written bids
• $50,000+ ‐‐sealed bids or proposals
What can a Trust do?
• Actively address affordable housing needs
• Support local control of housing initiatives
• Engage in real estate activity•Make timely decisions related to housing
• Accumulate funds from variety of sources
17
Step 8: Determine operating approach
Funding entity
Active initiator Both?
Eligible Activities for Trusts
Affordable Housing
Acquire
Create
Preserve
Support
AcquireCromwell Court Apartments ‐‐ Barnstable
• 124 units of affordable family rental housing• Built in 1973. Acquired and rehabilitated in 2011.• $500,000 CPA funds
Create
Small Scale Production
58
Baker Street ApartmentsFoxboro, MA20 family rental unitsOpened in 2005
Butternut FarmAmherst, MA26 family rental unitsOpened in 2011Developer: HAP Housing
Re‐use
Shoe Shop Place
Middleboro25 rental
(family housing)
Stevens CornerNorth Andover
42 rental(family housing)
Rockport HS ApartmentsRockport31 rental
(age restricted)
Preserve
AmherstRolling Green affordable units preserved
• 204 unit multi‐family development• Refinanced in 1998 under Mass Housing’s 80/20 prepayment program (15 year restrictions)• 41 affordable units/Section 8 vouchers, $1.25m bonded w/CPA
Support
Pre‐develop‐ment
Buy Downs(create)
Down‐Payment Assistance
Rental Assistance
Norfolk MAHTSmall Scale Homeownership
17 homes
$300k range
3/year
All on SHI
Sold for $155k in 2015
Sold for $140k in 2014
Rental AssistanceDukes County Regional Housing Authority
Request funds
Recruit owners
Inspect homes
Screen tenants
Invoice CPC
Martha’s Vineyard FY2014
• 66 rental assistance subsidies• 147 people on waiting list• $543,000 CPC appropriations• Average monthly subsidy = $499• Average income served = 45% AMI
Trust Accomplishments
Grants for new production
Homebuyer down payment & principal buy‐
down
Land acquisition
Rental assistance
Pre‐development assistance
Habitat for Humanity
Housing plans & housing
staff
Five-YearGoalsoftheTrust:Goal1:ActivelyFosterDevelopmentofAffordableHousingGoal2:SupportHomelessnessPreventionInitiativesGoal3:SeekOpportunitiestoPromoteConservation-Based(housingandpreservedopenspace)DevelopmentGoal4:EnhanceLocalandRegionalCollaborationGoal5:ExpandAvailabilityofDirectHousingAssistanceGoal6:PromoteOutreachandEducation
FosteringDevelopmentofAffordableHousingü EastStreetSchoolsiteforaffordablehousingdevelopmentü ValleyCDCStudioApartmentdevelopment(encouragedby
Town&Trust)ü MassHousingGranttosupportconsultanttaskedwith
identifyingaffordablehousingsites&40Rdistrictü GuidelinesforsubmittingfundingapplicationstoAMAHTü DevelopingaTownHousingPolicytosetaffordablehousing
asacommongoalsharedbytheentiretowngovernment.ü SupportednewTownbylawchangefor“Inclusionary
Zoning”thatwillallowmoreaffordableunitsinfuturedevelopmentsorpaymentsinlieutotheHousingTrustwhereaspecialpermitisrequested.
ü AnnualcommentstoCommunityPreservationActCommitteeonfundingprioritiesforcommunityhousingapplications
SupportingEffortstoEndHomelessness
• HomelessnessPreventionprogramprimarilyfocusedonfamiliesthreatenedwitheviction(CDBG-fundedprogramoperatedbyFamilyOutreachofAmherst)
• Outreachprogramtoencouragelocallandlordsacceptapplicationsfromindividualsandfamilieswhoarehomeless(collaborationwithAmherstDepartmentofHealth)
• FirsteverLandlordForumonNov.15thatwillfocusonfinancialandotherresourcesavailabletosupportrentingtopersonswhoareverylowincomeorhomeless.
• CSPECdevelopmentinitiativetoexpandcasemanagementservicestoassistinlocatinghousingforandprovidinghousingsupportsforindividualswhoarehomeless(fundedbyMedicaid)
• AdvocacyforcontinuationoftheAmherstseasonalhomelessshelterandforotherservicesforhomelessindividualsandfamilies
• ParticipatingintheTownHomelessSystemscommittee
PublicEducation§ 2017forum,“WorkingtheAmherstHousingPuzzle:A
communityproblemsolvingforumӤ Website:
https://www.amherstma.gov/2199/Amherst-Affordable-Housing-Trust-Fund
§ 2018forum,“ActLocallytoCreateAffordableHousing”
§ CHAPA(Citizen‘sHousingandPlanningAssociation)Grantreceivedtoprovideconsultationonbuildinglocalcommunitysupportforaffordablehousing
FinancialSupportq CPAfundingforTrustconsultantq CPAfundingtosupportaffordablehousing
developmentprojectsq Anticipatedfundingfromlocalshort-termrentalfeesq PossiblefundingfromInclusionaryZoningbylawthat
allowspaymentsinlieuofdevelopingnewaffordablehousingunits
CreatingAffordableHousing
attheEastStreetSchoolSite
APLAYINFIVEACTS
JohnHornik,ChairoftheAmherstMunicipalAffordableHousingTrust
ACTONE:AFeasibleProject?
ü MovecontrolofthepropertyfromtheschoolstotheTown– NOTTRUST
ü Assesswetlands– 60%NOTBUILDABLEü Sitesurvey-BOUNDARIESü Understandwhatispossibleforsite
development– K-Rü DraftaRequestforProposalswhichspells
out(1) thequalificationsofthedeveloper,(2) minimumrequirementsandhigher
programexpectationsfordevelopmentofaffordablehousing,and
(3) processofselectionofthedeveloper.
ACTTWO:PermissiontoProceed
EnterTownCouncil(centerstage)q DeclareEastStreetSchoolsurpluspropertyq Authorizetownmanagertoexecutelanddispositionagreement– SPELLSOUTCONDITIONS
q Authorizetownmanagertosign99-yearleaseq WHYNOW?
q PROS:LONGPROCESS,YOUCANMOVEON
q CONS:MAYBEBETTERIDEAINNEXTFIVEYEARS
ImplicationsofTownCouncilActions
SiteControl:DeveloperhasalegalcommitmentfromtheTowntoturnoverthepropertyoncecontractualconditionsaremetIFNOT,ONEONEWILLBID
ACTTHREE:MovingForwardEnterTownManagerandstaff(stageright)q ReleaseRequestforProposals-AFTERREVIEW
q Selectadeveloperq Signlegalagreementsq Monitorfulfillmentofcontractualrequirementsq THISISTMROLEBYCHARTER
ACTFOUR:Plan&ActionEnterDeveloper(centerstage)q Undertakeduediligenceq Developaplan–E.G.,SIZE,ARCHDESIGN,PARKINGq Withsitecontrol,acquirezoningapprovalsand
funding,andpossiblyHistoricalCommissionreviewq Execute99-YearLeasewiththeTownq Constructaffordablehousing
Review,Review,Review!!!MANY,MANYREVIEWSAFTERTC
§ DepartmentofHousingandCommunityRenewal– EXTENSIVEREQUIREMENTS
§ AmherstZoningBoard– SPECIALPERMIT
§ AmherstHistoricalCommission(maybe)§ AmherstBuildingCommissioner– PLUMB,ELEC,OTHER
REQ
§ AmherstFireCommissioner
ACTFIVE:WelcomeTenantsEnterManagementCompany(stageright)IDENTIFIEDINPROPOSAL
q Selecteligibletenants– DHCDRULESq Rentunitsq Maintainpropertyq ANDEVERYONELIVEDHAPPILYEVERAFTER!q BUTONLYIFWEGETBEYONDACTTWO!
12,570
16,741
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
IncreasingGapBetweenEnrollment(UndergraduateandGraduate)andCampusResidentialCapacity
1290
2126
1117
611
227
663
0
500
1000
1500
2000
2500
1960-1969 1970-1979 1980-1989 1990-1999 2000-2009 2010-2017
HousingGrowth,1960-2017
$1,074 $1,059 $1,078 $1,094$1,122 $1,117 $1,128
$1,201
$1,275
2009 2010 2011 2012 2013 2014 2015 2016 2017
MedianGrossRent
AmherstAffordableHousingPolicyFundingPriorities• Creationofrentalhousingforfamilies,particularlythoseearning
below50%ofAreaMedianIncome(AMI)andthegrowingnumberofsmallerhouseholdsthatareincreasinglysingleparentswithchildren.
• Creationofrentalhousingforindividualswhorequiresmalleraffordablehousingunits(e.g.,studioapartments),includinghousingforatriskandspecialneedspopulationsthatoftenrequirespecialservicesandhandicappedaccessibility,particularlypersonswhoseincomesarebelow30%AMI.
• Preservationofexistingaffordablerentalhousing,includingsubsidizedunitsandthoseintheprivatehousingmarket,whicharetypicallymorecosteffectivetorehabilitatethantobuildnew.
• Affordablehomeownershipforlowandmoderateincomefamiliesandindividuals.
Projectednumberofunitstobedeveloped
250UnitswithLessthan80%AMI:ThefirstpriorityisthedevelopmentofnewresidentialunitsthatwillqualifyfortheState’sSubsidizedHousingInventory.Thismeansthattheymustallbebelow80%AMI.However,withinthattheremustbearangeofaffordability.Forprojectswithtenormoreaffordableunits,theaverageAMImustbenogreaterthan60%andatleasttenpercentofunitsmustbenogreaterthan30%AMI.Smallerprojectsshouldbereasonablyconsistentwiththesepriorities.Thetotalnumberofunitstobedevelopedfortheselevelsofaffordabilityis250overthenextfivetotenyears,consistentwithgoalssetintheHousingProductionPlan.
100Unitsat80-100%AMI:Additionalunitsshouldbedevelopedthatareabove80%AMI.Thereisaneedtoservebothindividualsandfamilieswithanincomethatqualifiesthematthislevelaswellaspersonsbelow80%AMI.
“Local”SourcesofFundingSubsidiesq CommunityPreservationActq CommunityDevelopmentBlockGrantq TaxIncentiveFinancingq TownSurplusProperty
Delegating TasksWho does what?
Chairperson• Provides leadership
• Sets agenda• Keeps trustees on‐task & moving forward
Trustees• Attend meetings, provide input & vote
• Complete assigned tasks
• Participate in subcommittees
• Be local AH advocate
• Board packet
Staff• Provides TA (perhaps feasibility studies, RFPs)
• Lends continuity to projects
• Completes admin tasks
• Communicates with other town staff/boards
Trusts & Fair Housing
Legal Consideration
Federal Fair Housing ActMA Anti‐Discrimination Law
Protected Class
Disparate impact
Discrimi‐nation
Key Fair Housing LawsProtected Classes
Federal (Fair Housing Act)• Race• Color• National Origin• Religion• Sex• Familial Status• Disability
State (M.G.L. c. 151B) All federal bases plus:• Ancestry• Age • Marital Status• Source of Income/Public Assistance • Sexual Orientation• Gender Identity• Veteran History/ Military Status• Genetic Information
Two Key Fair Housing Concepts
Disparate Impact“Discriminatory Effect”
Affirmatively Further Fair HousingObligated to FH
Discriminatory Effect RuleThree Part Burden Shifting Test
Is it likely that policy or practice will negatively impact members of a protected class?
Is the policy or practice necessary to achieve substantial, legitimate, non‐discriminatory interests?
Is there a less discriminatory alternative that would meet the same interests?
Disparate Impact
• Local plans or zoning bylaws prioritize studio and 1‐bedroom units, restricting the number of bedrooms by unit rather than by development or lot.
• A town is predominantly white and decides to advertise new affordable housing units with flyers at the local library, community center and Town Hall.
• Planning or zoning approval processes mandate or prioritize townhouses.
Obligation toAffirmatively Further Fair Housing
End residential segregation
Promote housing choice
Eradicate discrimination
Address disparities in
housing needs & access to
opportunity
How to Affirmatively Further FH
Affirmative Fair Marketing
• Follow DHCD’s marketing & resident selection plan guidelines
• Market to those least likely to apply
Zoning
• Consider ways that zoning may be creating disparate impact
Diverse Housing Options
• Multi‐family AND single family
• Rental AND homeownership
• Family AND senior
Local Preference
Subject to subsidizing agency approval
Evidence of need
Certain categories 70% limit
Examples of AFHMP Problems
Marketing
• Local preference advertised
• Limiting language, e.g., “empty‐nesters,” “young professionals”
• Advertising/outreach not designed to reach protected classes in the region
• Marketing only in English & not in non‐English media
Application Process/Selection
• Application period is too short
• Language access and reasonable accommodation information not provided
• Selection process not clearly described
• Preferences are misstated as eligibility criteria or defined improperly
Inconsistency
• Criteria inconsistent with AFHMP guidelines
• Criteria inconsistent with applicable subsidy program requirements
• Inconsistent language within the AFMHP or inapplicable language
Wrapping UpCreating a culture of support
• Balance people with places and systems
• Tell “story of us” rather than “story of them”
• Connect housing to other social issues and outcomes
• Where you live affects you
• Consider language that we use (e.g. home vs housing)
MHP Online Resources
On our website: http://www.mhp.net/community/publications‐and‐
materials
Questions?
Massachusetts Housing Partnershipwww.mhp.net
Shelly GoehringProgram [email protected]
Direct line: 857‐317‐8525