Sharon Housing Partnership

November 4, 2008 Meeting Minutes- (Approved December 9, 2008)

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

Voted to Approve SHP Meeting Minutes of October 14, 2008.

Eli Hauser Discussion

Mr. Hauser attended the meeting to discuss the work that has been done toward reaching the Town’s 10% affordable housing quota and his ideas for future affordable housing initiatives. He discussed the Town’s Housing Production Plan (HPP) prepared in 2005 and emphasized the need to reach the 10% quota to prevent undesirable 40B developments. He reviewed the sites that had been identified in the HPP and updated the group as to which sites had been determined to be unsuitable or unavailable for development.

Mr. Hauser identified 4 sites that he felt may still be viable: 156 Mountain Street at the back of the landfill, 45 Sandy Ridge Circle, 235R Wolomolopoag, and an unspecified 9 acre strip on Old Post Road.

Mr. Hauser discussed the progress the Town has made in moving toward its 10% quota. This has been accomplished by focusing on the development of rental units under 40B LIP projects- specifically Avalon Bay and the Wilber School. He distributed a spreadsheet showing how existing and proposed developments affect the Town’s housing inventory.

Mr. Hauser asked the SHP to consider using approximately $1.2 million of the $1.8 million that the Brickstone Corporation is scheduled to contribute to the Town’s Affordable Housing Trust for the construction of a waste water treatment system in Post Office Square. This system would cost between $2.5 and $3.5 million and would serve the businesses and the rental units in the Town Center. If the septic system were in place the existing 55 rental units on Pond Street owned by Mr. Delapa could be redeveloped and an addition 20 units constructed there. All of these 77 units would be counted as affordable and would bring the Town much closer to its 10% quota. These units would be developed under a 40B LIP and 25% of the units would be priced as affordable.  Delapa’s plan would include a new apartment building on Pond Street where there is presently a parking lot. The new building would have retail on the first floor. Mr. Hauser asked that the SHP strongly consider the use of the $1.2 million toward the revitalization of the Town Center. He indicated that though business owners would pay a betterment and fees for the new septic facility there would be no reimbursement of the $1.2 million to the Sharon Affordable Housing Trust.

Susan Saunders stated that the main focus of the SHP is to create affordable home ownership opportunities for the Town and that while progress has been made toward reaching the Town’s 10% quota, to date only rental units have been created.

Mr. Hauser briefly discussed meeting with the owner of the Shaw’s Plaza on South Main Street to discuss the possibility of developing a rental complex on this property across from the Sharon Commons site.

Sharon Commons- Bob Shelmerdine

Mr. Shelmerdine met with the SHP to continue our discussions regarding the rents of the 25 affordable rental units at Sharon Commons. He will be meeting with the Sharon Board of Selectmen on Monday, November 10th to finalize the LIP application. The economic review completed by Mark Jacobs suggested that the staggered rents the SHP had requested would be “uneconomical”. Mr. Jacobs indicated in his October 31, 2008 memo that having approximately half the affordable rentals priced at 70% AMI and half at 80% AMI might be feasible. Mr. Shelmerdine stated that at this time the best he could offer would be 5 of the 25 affordable units below 80% AMI. perhaps 3 at 70% and 2 at 60%. He also asked the SHP if they would be interested in receiving money and mentioned $1000/unit.   

The question was asked of Mr. Shelmerdine if he was assuming that the agreement the SHP reaches with the developer concerning the 40B LIP would carry over into the 40R if the Bylaw passes at TM.  In answer to this question Mr. Shelmerdine stated that the wording of the Draft 40R Bylaw states that 25 rental units would be affordable and that 20% of these (5 units) would be priced at 50% AMI. Mary Tobin disagreed with him on his interpretation of this section of the Draft Bylaw. She stated that Mr. Costa had explained when asked at the BOS meeting, that the 40R Draft required that either 25% of the rental units be affordable at 80% AMI or 20% affordable at 50% AMI. Mary Tobin will contact Adam Costa to get clarification on this point so that the SHP can proceed with its discussions concerning the 40R.

Mr. Shelmerdine discussed how the project is currently a 40B LIP and that a second 40B LIP will be submitted for the proposed additional 44 units. He also explained that the 40R Bylaw will be presented in two separate warrant articles at the November TM. The first will be for the 168 units. The second will be for the additional 44 units.

SHP Discussion

After speaking with Mr. Shelmerdine the group considered his proposal in regard to the affordable rental units. Alan Lury pointed out that Mr. Costa indicated that approximately half (50%) of the 25 rental units could be priced at 70% AMI and still be economical for the developer. Mr. Shelmerdine’s offer priced only 20% (5 units) below the 80%.

Mary Tobin made a motion that the SHP would support the Sharon Commons 40B LIP application presently being considered if 3 affordable units are priced at 60%AMI; 3 at 70% AMI; and 19 at 80% AMI.

Alan Lury seconded the motion.

The motion was approved unanimously.

Alan Lury made a motion to amend the above by including that in addition to the agreed upon rental prices the developer would contribute $25,000 to the SHP.

Mary Tobin seconded.

The amended motion was approved unanimously.

Warren Kirshenbaum volunteered to contact Mr. Shelmerdine with our decision.

Old Business

CPA- Jane Desberg reported that there is only approximately $33,000 presently allocated for affordable housing. Her discussions with other towns indicated that down payment assistance programs have generally not been successful.

Horizons for Youth- Jane Desberg reported that the HFY Committee requested that land suitable for housing be identified. It appears that this land would be on Lakeview Street. She is working with Peter O’Cain on this.

Potential Sites for Development - The group discussed the suitability of the 4 sites proposed: 156 Mountain Street at the back of the landfill, 45 Sandy Ridge Circle, 235R Wolomolopoag, and an unspecified 9 acre strip on Old Post Road.

The site next to the landfill and the site at Sandy Ridge were ruled out as being uneconomical due to potential contamination at the landfill; and the costs of building on the steep slope located at Sandy Ridge site. The group decided to schedule a future field

trip to view the other two sites.

Affordable Rents in Perpetuity Jane Desberg explained that Avalon‘s affordable apartments presently at 75% AMI will revert to rents based on 80% AMI when units become vacant. This is an issue we must guard against in the future by inserting language in future MOA and Development Agreements that states that the lower rents we have secured will be kept in perpetuity.

Meeting adjourned at 9:35 PM

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