Community Preservation Committee

CITY OF BEVERLY PUBLIC MEETING MINUTES BOARD: Community Preservation Committee LOCATION: Beverly City Hall, 191 Cabot Street, 3rd Floor Conference Room “A” DATE: November 16, 2023 BOARD MEMBERS PRESENT: Chair Derek Beckwith, Vice Chair Robert Buchsbaum, Suzanne LaMont, Nancy Marino, Heather Richter, Danielle Spang (late), Christy Edwards BOARD MEMBERS ABSENT: OTHERS PRESENT: Director of Planning and Development Darlene Wynne, Bryant Ayles, AHT Treasurer, Susan Gabriel AHT Clerk, Mayor Michael Cahill, Richard Dinkin member of the Affordable Housing Trust RECORDER: Naomi Moca 1. Call to order Chair Beckwith opens the meeting at 7:01 p.m. 2. Consultation and Q& A with the CPC There is no one present. 3. CPA Funding Round 11 – Review of CPC FY24 Pre-Applications a. Girdler House Generator – Old Ladies Home Society, Inc. d/b/a Girdler House – pre- application approved at October meeting Girdler House Board member Andrea Beaudry is present and states that the project has received a quote for the generator. The Committee discusses that the pre-application was found eligible under the Community Housing category at the previous meeting. b. Girdler House window and kitchen updates – Old Ladies Home Society, Inc. d/b/a Girdler House Materials added to the record: • Email to Director Wynne from Girdler House Director Donna Sorrento, dated November 2, 2023 • Determination of Historic Significance, by the Beverly Historic Districts Commission, date stamped October 4, 2023 Beaudry states that the windows are located in first-floor areas used communally and by the residents. The kitchen updates are due to a Board of Health inspection, which requires upgrading all appliances. Specifically, a new commercial refrigerator and freezer, a three-basin sink, a commercial ice maker, and a new stove are needed, which all take up more space than previous  Beverly Community Preservation Committee November 16, 2023 Meeting Minutes Page 2 of 6 appliances. This reduced space will result in displaced storage for dry goods and backstock and for food prep. These two requests are on the pre-application under the Historical Preservation category, Rehabilitation and Restoration purpose. Beaudry asks if the pre-application is in an appropriate category. Beckwith states that the Committee was discussing this question at previous meetings. Beckwith asks whether the storage application is for permitting purposes as a requirement imposed by the Board of Health. Beaudry explains that the displacement of the food storage is a direct result of the Board of Health policy that the food cannot be stored in the basement, and an additional handwashing sink must be installed, so yes. The Committee discusses whether the category of Community Housing is appropriate for this pre-application. Beaudry clarifies that the residents pay one monthly fee for meals, residence, laundry, and cleaning services, thus proper kitchen function is a requirement for this Support (purpose) of Community Housing (category). Richter asks if the affordability is based on area median income (AMI), and Beaudry states that all of the residents qualify as low- and moderate- income under those standards. Edwards asks whether a resident of a higher income could qualify for residency, and Beaudry says all the units are affordable community housing. City Clerk Susan Gabriel states that when Girdler House was founded that was the purpose of the residence. Richter asks how the kitchen qualifies as being under the Historic Preservation category. Beaudry states that on one side of the kitchen, the cupboards may not need replacement, and those that need replacing are an old- fashioned style and will be replaced or restored in kind. LaMont asks whether the kitchen is a public space or an employee space. Beaudry states that while residents are not prohibited from entering, the kitchen is not a public space. LaMont asks how many windows need work and Beaudry states that eight windows need to be replaced and five need to be repaired. The quote that was obtained for the work is for $30,000, which includes removing the glass and re-glazing. Marino asks how many applications the Girdler House should submit and how the items should be distributed among the applications. The Committee discusses whether Support is an appropriate purpose for the kitchen cabinets and storage. The members discuss whether the window work qualifies for the category of Historic Resources or Community Housing for the purpose of Preservation. Beckwith proposes that the application be filed under both the Historic Resources and Community Housing categories to broaden the opportunity to distribute the funds. 7:37 p.m.: Spang arrives. The Committee agrees that three applications would be most appropriate: one for the windows, one for the generator, and one for the kitchen. The Committee guides Beaudry to the City website to obtain the full application. Edwards: Motion to find the window portion of the application eligible under the categories of Historic Preservation and Community Housing for the purpose of Preservation. LaMont seconds. The motion carries (6-0-1). Spang abstains. 2  Beverly Community Preservation Committee November 16, 2023 Meeting Minutes Page 3 of 6 Edwards: Motion to find the kitchen portion of the application eligible under the category of Community Housing for the purpose of Preservation. Richter seconds. The motion carries (4-2-1). LaMont and Buchsbaum vote against. Spang abstains. c. Critical Home Repair Program - Essex County Habitat for Humanity Executive Director Meegan O’Neill and Board member Don Preston of Habitat for Humanity are present. Richter asks how Habitat for Humanity’s application process works. O’Neill states that the process is flexible, depending on what the homeowner’s municipality dictates. The organization will receive an application from a homeowner via phone call or website application, the staff will discuss the application with the homeowner, and the homeowner will complete a fuller application. The second application helps the organization to obtain income information, which must be 60% or less of the AMI to qualify. The staff then visits the homeowner at the site to determine what the actual situation is, as it can be more complex than represented by the homeowner in some instances. The organization then obtains sources of funds, which vary depending on the situation, such as whether the applicant is a veteran, for example. Then the organization pursues the application depending on how it works with the municipality. A lien is placed on the property so that if the homeowner moves within seven years the City is protected. Richter confirms with O’Neill that Habitat for Humanity recipients must have an income below 60% of the AMI and be a homeowner to qualify. If CPA funds were available, a third requirement would also be to be a resident of Beverly. Richter asks if Habitat for Humanity has used CPA funds from any other municipalities, and O’Neill says no. Richter asks how the applicant would manage CPA law in terms of how funds are used. O’Neill states that the anti-aid amendment states that it cannot benefit a specific individual via deed restriction or lien. Beckwith states that clawbacks have been used in previous projects where appropriate, which offers similar protection. O’Neill states that while the category is Community Housing, she is unsure how to determine the purpose since both Preservation and Support are appropriate. For example, heating system failures and water damage to homes are typical repairs. Spang asks whether in working with other funding sources, the applicant has to give a proposal, be deemed eligible, and then move forward. O’Neill says yes. The Committee discusses that CPA funds are designated to protect the structures that house people. Marino asks if the applicant is requesting a pool of money, and how it will be accessed and disbursed. Marino states that there was a temporary process under COVID that allowed for that but it is not in place now. Richter states that the applicant could be the management entity for the fund and report back to the Committee. The applicant would need funding up front and would manage the funds per the guidelines and categories that the Committee provided funds for. Spang suggests that the project applies under the categories of Support and Preservation. 8:02 p.m. Mayor Cahill arrives. 3  Beverly Community Preservation Committee November 16, 2023 Meeting Minutes Page 4 of 6 O’Neill observes that in many of the situations, the homeowners are elderly. Spang: Motion to find the Critical Home Repair Program - Essex County Habitat for Humanity eligible under the category of Community Housing for the purposes of Preservation and Support. Marino seconds. The motion carries (7-0). d. Beverly Affordable Housing Trust (AHT) Allocation – Mayor’s Office All members of the AHT are present: Richard Dinkin, City Finance Director and AHT Treasurer Bryant Ayles, Director of Planning and Development and AHT Chair Darlene Wynne, AHT Clerk Susan Gabriel, and Mayor Michael Cahill. Cahill summarizes that there are limited opportunities for funds to come into the AHT. This may start to interfere with the AHT having funding when needs come up. The biggest challenge is that the money is running out. Cahill explains that in some cases, loans are not based on the amount of funding but on the number of governmental agencies supporting a project. Marino asks if the AHT sometimes funds projects that the Committee is already funding and Cahill says yes. Marino asks if the City budget is used to fund the AHT and Cahill says no. Ayles states that the AHT has used City budget funds in some instances. Marino points out that today’s application is not for a high amount of money and compares it to the Committee’s higher funding of the Briscoe and Harborlight projects. Cahill states that the Briscoe project passed on a higher purchase price because elderly housing was more important, so in that case, the City budget contributed indirectly to the project. Buchsbaum observes that the Committee may effectively give up some of its discretionary authority if turns funds over to the AHT. Dinkin notes that the AHT has a more streamlined approval process than the Committee. When trying to meet a specific need, bureaucratic interference can be problematic. Nationally, 50% of households in the U.S. are housing insecure (defined as paying more than 1/3 of the household’s gross income for housing), and 10% are extremely housing insecure (defined as paying more than 50% of the household’s gross income for housing). Dinkin states that 37% of Beverly households are housing insecure and 17% are extremely housing insecure. Thus, the AHT is asking for funding to have the funding distributed quickly and effectively. Beckwith observes that in every situation where the Committee has voted to distribute funds for Community Housing such as the Beverly Housing Authority, the Cabot YMCA housing renovation, the Briscoe project, and Anchor Point I and II there has never been any pushback from the City Council nor delays in disbursing funds. Beckwith confirms that this application qualifies for CPA funds. Wynne states that statistically AHTs in other municipalities are primarily funded by CPA funds. Wynne cites the ways that the streamlined process of the AHT allows for funds to feasibly be disbursed within two weeks of receiving an application. Richter asks how the funds are used. Wynne states that the AHT’s sole purpose is the creation of affordable housing units and notes that funds have been used on projects such as Hardy Street, the Cabot Street YMCA, Briscoe, and Anchor Point I and II. Richter asks why the AHT is applying for CPA funds now. Ayles 4  Beverly Community Preservation Committee November 16, 2023 Meeting Minutes Page 5 of 6 states that its account is getting low. Cahill expresses gratitude to the Committee for accepting out-of-cycle applications when necessary. Spang: Motion to find the Beverly Affordable Housing Trust (AHT) Allocation eligible under the category of Community Housing for the purposes of Creation and Preservation. Marino seconds. The motion carries (7-0). 4. Project Close Out a. Beverly Golf & Tennis architectural and systems analysis – Final report and budget shared for CPC review and approval Ayles states that the project has been closed out. Funds totaling $385,000 were transferred from the CPC account to the project account to correct a deficit, which preempts a fine from the Department of Revenue. He adds that the remaining $15,000 that was not spent on the project remained in the CPC account. The Committee discusses whether there is a mechanism to avoid deficits in the future. Ayles explains that the account is in a deficit until the process and due diligence allow for the project to be closed out, resulting in a conundrum on the accounting side. Ayles points out that when projects are delayed or extended it can cause accounting complications. Wynne observes that the most frequently extended projects are under the Department of Public Services (DPS) and the Recreation Department because it relies on DPS to carry out many projects, such as the Carriage House. Beckwith states that the Committee has set aside funds to support an administrative staff person to track MOUs and follow up with City departments, among other duties. The Committee is required to be the last to pay on most projects. Ayles explains that when a project is authorized, a percentage of the match is transferred into the account, and when a greater percentage is spent, it creates a deficit. Edwards: Motion to accept the Beverly Golf & Tennis architectural and systems analysis final report and place it on file. Richter seconds. The motion carries (7-0). 5. Administrative Matters a. CPC staffing discussion continued from the prior meeting – discussion of anticipated responsibilities Beckwith states that he and Wynne will collaborate on a list of duties for discussion at the next meeting. 6. Approval of minutes (if available) a. October 19, 2023 The members review and offer edits to the October 19, 2023 draft meeting minutes. LaMont: Motion to accept the October 19, 2023 meeting minutes as amended. Marino seconds. Motion carries (7-0). a. November 1, 2023 The members review and offer edits to the November 1, 2023 draft meeting minutes. 5  Beverly Community Preservation Committee November 16, 2023 Meeting Minutes Page 6 of 6 LaMont: Motion to accept the November 1, 2023 meeting minutes as amended. Richter seconds. Motion carries (7-0). 7. Other items not known in advance of the posting of this agenda Edwards asks whether the MOU for the HVAC for the Historic Beverly needs to be extended. Wynne states no and that the final report is due at the end of November, thus no motion is needed. Marino suggests that the holiday gathering in December be held at A&B Burger. The Committee discusses that the December 14, 2023 meeting is a workshop format for applicants to receive guidance. Wynne reviews an email correspondence from Stuart Saginor Executive Director of the Community Preservation Coalition regarding the state budget allocation to CPA communities and that no additional funding will be allocated this year. Spang states that she has resigned, as expected due to her City Council election, and her term officially ends November 17, 2023. She expresses gratitude to the Committee. The Committee discusses that the Anchor Point II application has been received by the City Council and will be presented at a public hearing on December 4, 2023, 8. Adjourn Beckwith: Motion to adjourn. Marino seconds. The motion carries unopposed. Meeting adjourns at 9:16 p.m. Next regular CPC meeting: Thursday, December 14, 2023, 7 p.m. – CPA applicant workshop 6