Sharon Housing Partnership

June 10, 2008 Meeting Minutes-Approved July 8, 2008

 

In attendance: Jane Desberg, Mary Tobin, Susan Saunders, Alan Lury, Warren Kirshenbaum and Lou Modestino

 

Voted to Approve SHP Meeting Minutes of May 7, 2008.

 

Chapter 40B Project Updates -Wilber School

Mary Tobin reported on the ZBA hearing (May 14) regarding the Wilber School. There was a larger than expected turn out. The ZBA commented on the fact that until this evening there had been very low turn out to the hearings on this project. The majority of the neighbors who spoke expressed support for the project. There was some concern about the height of the new addition. The proponents indicated that they had reduced the height of the addition by six feet. Two members of the Sharon Board of Health spoke as individuals expressing their interest in having the BOH involved in the oversight of the Operation and Maintenance agreement regarding the proposed waste water treatment facility. They commented on the proximity of the system to the Town’s municipal well. Mary Tobin expressed the SHP’s support for the Wilber School project.

The ZBA hearing was continued to June 25th at 8PM.

 

Tax Credit Financing-Wilber School Project

Warren Kirshenbaum presented information to the group regarding how Tax Credit financing works. Basically the Wilber LLC makes application to various different entities- both federal and state. These sources include the National Park Services for the Historic Property tax credits; the IRS for Low Income Housing tax credits; and the state. The tax credits are then sold to investors. The market typically pays about $.80 for each $1.00 of tax credit.

 

For the Wilber School project to move forward the Sharon Affordable Housing Corporation (SAHC) which was formed ~10 years ago needs to be reactivated. The reason for this is that the tax credits must be awarded to a 501(C)3 (a nonprofit). The SAHC will serve in this capacity. The board of directors includes Jane Desberg and various others. Both Susan Saunders and Warren Kirshenbaum expressed willingness to serve as directors on the SAHC if there are openings. There was some discussion as to whether all the tax credits or only the Historic Tax credits will need to be funneled through the SAHC.

 

Tax credit investors would own 99.9% of the Wilber LLC. The Sharon Affordable Housing Corporation will then “lend” the money received from the sale of the tax credits to the developer through a no-interest loan due in 52 years. Other financing will also be secured by the developer.

 

Beacon Properties will receive a developer’s fee at the closing. (This can be deferred.) Beacon Properties will also be the recipient of property management fees going forward. After 75 years the land and the building goes back to the Town.

Housing and Marketing Plan for 9 Glenview

Jane Desberg distributed a draft plan. It was decided that the home should sell as affordable at 80% AMI ~ $195,000. (This is based on using 80% AMI for a family of four.)

 

The group discussed the need to prepare the property for sale. The Sharon DPW is responsible for town building maintenance. As this home is town owned the DPW will be asked to power wash stained siding and cut the grass if needed. There will be one or two open houses.

 

Susan Saunders suggested that requiring prospective buyers to attend First Time Home Buyer sessions was not necessary. Susan Saunders also suggested that it is most important that prospective buyers be “pre-approved” and not merely “pre-qualified” for a mortgage. She also suggested that it would be useful to contact a couple of local banks to request that they work with prospective buyers. The buyer will need to provide at minimum a 5% downpayment.

 

After some discussion the group agreed that it was probably best to have an open lottery and not use the Local Preference Criteria for this sale. The reason for this is that there would need to be another affordable home in the pipeline to use the Local Preference Criteria. Jane Desberg explained that DHCD requires that 17.5% of the applicant pool be minority for this property to count toward the Town’s affordable quota.

Jane Desberg will obtain a copy of the existing lease.

 

New Business

Jane Desberg and Warren Kirshenbaum attended the Sacred Heart Reuse Committee Meeting and presented information to this committee about the SHP and the town’s need for affordable housing. The committee asked for a written summary of the information presented.

 

Arnold Kublin is stepping down from the Community Preservation Committee. He serves as a representative to this committee for affordable housing. Jane asked the group if anyone was interested in applying for this opening.

 

Susan Saunders will be attending the 2nd Annual Housing Institute at Babson College  June12-13th.

 

Meeting ended at 9PM.