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HomeMy WebLinkAbout2021-07-13 Affordable Housing Trust Minutes North Andover Affordable Housing Trust Meeting Minutes July 13, 2021 Present: Laurie Burzlaff, Roger Lawson, Christopher Jee, George Koehler, Richard Vaillancourt and Robert Bernardin, Jean Enright Absent: Joan Fitzgibbons Meeting was called to order at 5:02 p.m in the first floor conference room of Town Hall. Continued discussion regarding down payment assistance program Mr. Jee provided the Trustees with an updated policy, which added the language “not to exceed $30,000”. Ms. Burzlaff stated that she spoke with Evelyn Friedman at Greater Lawrence Community Action Council and she indicated they may be able to administer the program. She was going to check with her staff. Ms. Burzlaff was concerned with overwhelming GLCAC since they are very busy with their housing programs. Ms. Burzlaff also has a call scheduled on 7/14 with Mass Housing Partnership to talk about bringing their One Mortgage program to North Andover. With regard to the restriction, Ms. Burzlaff read information from MHP’s guidance, which states, “In order to comply with the law, all trust funded projects or program should include some type of affordability restriction recorded through a deed restriction, mortgage or contract that is commensurate with the assistance provided. For example, if a trust provides $10,000 for down payment assistance to a first time homebuyer the trust could reasonable place a deed restriction on the property of five to seven years with a requirement that a portion of those funds be repaid if the property is sold before the term of the restriction”. The Trustees discussed the draft application and the highlighted changes to the terms. The Trustees agreed the loan should be paid back in full if the borrower refinances or sells within the first five years. After that, the loan would be forgiven in an amount equal to 20% of the assistance provided for each of the years remaining on the loan. The Trustees also agreed not to make the amount based on need but strictly 10% of the purchase price up to $30,000. Once the administrator of the program is decided, they will review the application and then the Trustees can vote on a final document. Update on Fountain Drive Ms. Burzlaff met with Maggie Cleary, Director of North Andover Housing Authority and Tracy Watson, a commissioner on the North Andover Housing Authority Board. The HA is on board with moving forward with the project and mentioned forming a non-profit. Next steps are to meet with DHCD and other stakeholders to determine the best way to begin. Representative Christina Minicucci offered to set up a meeting. Ms. Burzlaff will let the Trustees know when that will take place. Mr. Bernardin indicated Chelmsford has been successful with the non-profit model and they would be a good resource. He also indicated there are tax credits for funding such developments. The Trustees talked about earmarking $500,000 for the project. Jean Enright, Planning Director, stated she is proposing to the Planning Board an inclusionary zoning bylaw, which would have a payment to the Affordable Housing Trust in lieu of building affordable units in any proposed subdivision of more than eight units, which could help replenish the Trust account. Approval of Minutes from June 1, 2021 Motion made by George Koehler, seconded by Laurie Burzlaff to approve the meeting minutes of June 1, 2021, as presented. Motion approved 4-0-2. Mr. Vaillancourt and Mr. Bernardin abstained due to not being present at the June 1, 2021 meeting. ADJOURNMENT Robert Bernardin made a motion seconded by Laurie Burzlaff to adjourn the meeting at 6:00PM. Motion approved 6-0. MEETING MATERIALS: Minutes of June 1, 2021 Down payment assistance program policy Down payment assistance program application