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HomeMy WebLinkAboutEligibility Letter for Meetinghouse Commons - Correspondence - 0000 Meetinghouse Road 8/30/2001 Corporate Headquarters.210 Essex Street Salem, MA 07970 August 30, 2001 Meetin ghouse Commons, LLC Attn: Thomas D. Zahoruiko, Manager 185 Hickory Hill Road North Andover, MA 01845 Re: Determination of Project Eligibility Meetinghouse Commons at Smolak Farms Off Dale Street North Andover, Massachusetts Gentlemen: As per your request dated July 30, 2001 and received July 31, 2001, the Salem Five Cents Savings Bank has reviewed your plans to construct 93 detached and attached residential condominium units to be offered for sale to households where at least one member is over the age of 55, The subject development site is comprised of 30.2 +/- acres located along South Bradford Street off of Dale Street, North Andover, Massachusetts, and is proposed for development under a comprehensive permit to be issued pursuant to M.G.L. Chapter 40B and the regulations promulgated thereunder. The Bank understands that you have notified the Department of Housing and Community Development as required under revised guidelines for the M.G.L. Chapter 40B program detailed in 760CMR Section 31.01. As such, the requirement of a 30 day period from the date of your request has been satisfied. On behalf of the Salem Five Cents Savings Bank I have visited the site and reviewed plans for your project in conjunction with reported acquisition costs. The project calls for 93 residential units to be completed in three phases. Two phases will contain 53 detached homes. A third phase calls for 14 townhouse style condominium units to be contained in a single building, and 26 "garden style" units to be contained in a second building. The architectural elevations for each structure have been designed in a g manner consistent with and which should preserve the area's rural surrounding character, which is dominated by Smolak Farms. You have submitted sample floor plans for typical units, and have indicated that they will generally range in size from approximately 1,100 to 2,000 square feet of living area. Salem Five Cents Savings Bank Salem Five Sales and Service Center Salem Five Mortgage Corporation 978 745-5555 800 322-2265 978 720-5958•888 246-2265 978 745-5555 800 322-2265 Member FDIUDIF .-a Meetinghouse Commons, LLC August 30, 2001 Page Two Units will include two bedrooms and two bathrooms, which is typically desired by the target market of individuals over age 55. Satisfactory covered parking will be provided. Buildings will be serviced by public water and sewer utilities available to the site. It is your stated intention to sell the units as part of a governing condominium association. You have provided to the Bank for review a purchase and sales agreement executed by Meetinghouse Commons, LLC and the landowner, Smolak Farm Nominee Trust, H. Michael Smolak, Jr., who you have indicated are current owners of the site. Based upon this agreement it appears that you have secured the site for development. Salem Five Cents Savings Bank has also reviewed our pro forma statement of g y anticipated income and development costs for the project. Based upon this documentation with respect to profit margins and dividend limitations, the Bank has concluded that the project is financially feasible and in compliance with the requirements of the Comprehensive Permit program. In so doing,Salem Five Cents Savings Bank also considered your credentials as a developer and history of successful projects in the area. Salem Five Cents Savings Bank has conducted a preliminary review of the proposed site and architectural design of the project and is of the opinion that the project will meet or exceed basic health, safety and design requirements. Salem Five Cents Savings Bank finances residential development projects in Eastern New England and is knowledgeable regarding new construction prices in North Andover, MA. We are aware of the escalating housing prices and shortage of housing for area residents. The demand for reasonably sized, maintenance free living units, such as those proposed, is particularly acute in the area. The Bank has reviewed the proposed unit plans, and finds that they are generally appropriate for the site based upon similar developments with like units in the community. The Bank is of the opinion that the housing proposed under this project is both suitable for the site and desirable in the marketplace. Further, we believe that the proposed sales prices for market rate and subsidized units as detailed in the submitted pro forma financial statement will be generally accepted in the marketplace given the relative price levels of new housing in the community and in the area. Salem Five Cents Savings Bank is pleased to inform you that the project you have asked the Bank to review is considered as Comprehensive Permit eligible for financing under the New England Fund ("NEF") of the Federal Horne Loan Bank of Boston ("FHLBB"). l > 4 II ' I j if - I Meetinghouse Commons, LLC August 30, 2001 Page Three Please be advised that this letter does n I by the Bank with respect to this ro' of constitute a commitment to you for financin P yect. Finalized municipal approvals, plans, budgets, g appraisals, current real estate market analysis, and more in-depth and comprehensive underwriting must be completed before the Bank's Boa issuance of a commitment on a proposed loan. rd of Investment may formally consider However, this letter does constitut e o a project eligibility letter as required under the General Laws.- Salem Five Cents Savings Bank is a member of permits under Chapter 40B of the Massachusetts Of Boston, and has approval to utilize funds Provided fund was established to fund affordable funds vided by FHLBB's Now England Fund�n Bank Should your project housing and other c This , p lect receive final a community investment initiatives. paragraph above, the Bank would agree to applyand subject to a loan commitment as described in the j construction loan for the proposed developmen and mays seek monie or funding under s program to fund the loans for the purchasers of the affordable units. s for favorable mortgage I �Projects approved under the NEF program require the 25% affordable housing set aside noted above to which you have committed for this project. Moreover,affordable units will be restricted for the appropriate to those earning not more than ° purchasers of these 80 census area. Projects also must adhere to the8 limited/0 of the area median income program, under which the development entit dividend aspect of the carry a deed restriction f ` Units within the project must also ca Y, Meetinghouse at Commons I , LLC will comply. the income restrictions and commensurate limitations on resale Price. In oer or at least fifteen years incorporating � project will fully comply with N.E.F. Provisions will be enforced by regulatorogram requirements applicable stat ao to ensure that the I ' r}' greements and deed riders. �' and regulatory III Should you have an y questions, please do not hesitate to contact me. Sincerel _I Mark H. Lef Senior Vice President Sri II I�I i I