Affordable Housing Trust Fund

Affordable Housing Trust Fund Board Approved Minutes Meeting September 10, 2018 A meeting of the Salem Affordable Housing Trust Fund Board was held on Monday, September 10, 2018 in the first floor public meeting room at 98 Washington Street, Salem, Massachusetts at 6:00 p.m. Members present: City Council President Beth Gerard, City Councillor Christine Madore, City Councillor Bob McCarthy, Ben Anderson, Rebecca Curran, Grace Harrington Napolitano, Mickey Northcutt. Members absent: Mayor Kim Driscoll Other present: Amanda Chiancola, Senior Planner; Tom Daniel, Planning and Community Development Director; and John Borris City Council President Beth Gerard called the meeting to order at 6:00 PM. Roll call was taken. Approval of the Minutes Motion and Vote: Councillor McCarthy makes a motion to approve the May 3, 2018 meeting minutes. Seconded by Councillor Madore. The vote was unanimous with seven (7) in favor and none (0) opposed. Affordable Housing Strategies Amanda Chiancola provided the Board a list of affordable housing strategies that were discussed at the May 3, 2018 meeting. It is noted that inclusionary housing and zoning barriers are already being worked on. In addition to those strategies being worked on, the top three strategies identified by the Board are 1. accessory dwelling units (ADUs), 2. transportation enhancements and initiatives, and 3. City owned buildings and land opportunities; followed by infill Opportunities and Micro-Units. Becky Curran commented that her only hesitation with ADUs is the city just adopted an ordinance and she wants to see how it goes for a year to see if it works at the level it is (seniors and family members). It is an interesting strategy but she can see how it could get out of control. Councillor McCarthy noted that his number one strategy is ADUs; however, he echoes Ms. Currans comments. He sees a lot of opportunities with ADUs but wants to see if it works how we want it too. Councillor Madore picked ADUs as number one because she sees issues with the ordinance itself, particularly that it is too restrictive. There may be legal issues with the language of the ordinance, so we should focus on it sooner rather than later. Councillor Gerard commented that she had a conversation with business owners about the shortage of restaurant workers due to a lack of affordable housing. A recommendation she heard was turning city owned buildings such as 5 Broad Street into workforce housing. Councillor Madore comments that the feedback she received from developers is that the acquisition price is too high for affordable units, so they need to go full luxury condominium. In her experience working on proformas in the past, the acquisition cost is a deal breaker for affordable housing. As we move forward with city owned buildings and land we need to be sensitive about what kind of projects we want to see Page 1 of 3 rather than just trying to get the most money for the land. She asks whether there is flexibility to change that with 5 Broad and hopes that the City will consideration taking a lower bid to support affordable production. Tom Daniel responds that the disposition ordinance requires setting the price to the appraised file, there is a process is there is primary affordable housing for veterans or seniors, for the council to award it at a lower price. The RFP for 5 Broad Street supports most highly advantageous as providing affordable housing, the RFP is reflective of the language of the ordinance. Production Goal Amanda asks the Board to consider a reasonable number of affordable housing units to work towards. The MAPC status quo scenario versus stronger region scenario is discussed. Mickey suggests that the actual need is quantified to inform what the production goal should be. He notes that the concept of 10% is a minimum to avoid 40B zoning penalties, not reflective of the actual need. If we are designing strategies to meet the need of families in Salem, it might be worth looking at other indicators such as percentage of kids in public schools who receive reduced lunch since they by definition qualify for affordable housing. What does the housing production actually look like, e.g. how much public housings, affordable family housing, how do those units align with number of low income families that we have? The Board requests a breakdown of residential units from the past few years of units that have been permitted, constructed and how many were affordable. Amanda will provide this information to the Board for the next meeting. The level of affordability should also be quantified. Councillor Madore concurs with Mickey that rather determining an arbitrary number based on projections, need to look at local demand since the projections do not consider market considers at the local level. How many calls are we getting, how long is the waiting list, how many applications are in the pipeline. Becky Curran asks how the 80% need is determined? She notes that the waiting lists at family housing and school lunches are indicators for the low income needs but how do you determine the need for the moderate income? Meeting Schedule The Board suggests early morning meetings, preferably 7:30am on a Tuesday. A specific date is not set, but staff is aiming for October or November. NEW BUSINESS Officer Elections • Councillor McCarthy nominates Mayor Kim Driscoll for Chair, seconded by Ben Anderson, matter carried unanimously. • Grace Harrington Napolitano nominates Mickey Northcutt for Vice Chair, seconded by Councillor Gerard, matter carried unanimously. • Becky Curran nominates Grace Harrington Napolitano as Treasurer, seconded by Mickey Northcutt. Matter carried unanimously. Page 2 of 3 Update on Housing Production Grant Amanda provides an update on MassHousing Production Grant. The grant has four major components: 1. Bridge Street Neck Rezoning. 2. Public Education Campaign for Affordable Housing. a. Councillor Madore suggests a subcommittee to assist with the engagement campaign. Mickey Northcutt, Councilors Madore and John Borris are appointed to the Engagement Campaign subcomittee. 3. Development of a Salem specific Inclusionary Housing Ordinance, this includes looking at: a. looking at rental product versus ownership; b. onsite versus offsite or payment in lieu; and c. appropriate percentage of area median income based on the community need. 4. Review of Zoning Barriers to Affordable Housing. Lori Stewart, 7 Barns Road: Lore noted that she is here tonight with a few members from the League of Women Voters (LWV). Lori said that the LWV is rolling out an affordable housing working group with a set of activities. The LWV made the meeting tonight an event. They have met with Amanda Chiancola, working on a social media campaign, hosting a zoning 101 forum on October 1st with a goal of building up the education level of the LWV so they can become the YIMBYs at public meetings. Lori notes that the percentage of affordability is critical, people do not realize what 80% of area median income is, but it is a lot for a senior on a fixed income and anything we can do to lower that would be better. ADJOURNMENT Motion and Vote: Councilor McCarthy makes a motion to adjourn, seconded by Ben Anderson. The vote was unanimous with seven (7) in favor and none (0) opposed. Meeting adjourned at 7:10 PM. Approved by the Affordable Housing Trust Fund Board on 8/16/2018 Know your rights under the Open Meeting Law M.G.L. c. 30A § 18-25 and City Ordinance § 2-2028 through § 2-2033. Page 3 of 3