ACTION PLAN FY

Transcription

1 Easton Affordable Housing Trust ACTION PLAN FY Adopted: 16 December 2009 Prepared for: Easton Affordable Housing Trust Board of Trustees, Town of Easton, Massachusetts Prepared by: Jennifer Goldson, JM Goldson Beth Rust, ECR Enterprises

2 OUR MISSION Expand housing opportunities in Easton for people in need by facilitating the creation of affordable units and connecting residents to housing assistance.

3 TABLE OF CONTENTS Executive Summary Introduction What is the Easton Affordable Housing Trust? What does the Board of Trustees do? How was this Action Plan developed? Easton s Affordable Housing Needs Low-Income Households Moderate-Income Households Families Elderly Special Needs Populations Our Goals & Initiatives Our Four Goals Addressing Our Goals through Initiatives One-Year Action Matrix Budget FY11-FY Additional Information Information & Application for Easton Homebuyer Assistance Program. 26 Outreach & Awareness Initiative Community Housing Specialist General Framework for Trust s Role in Development Process.. 42 Appendices Q & A of Easton s Unmet Housing Needs Case Studies for July Workshop List of Project Ideas Results of Workshop on 1 July Warrant Article

4 EXECUTIVE SUMMARY We, the Board of Trustees of the Easton Affordable Housing Trust, adopt this Action Plan to guide our initiatives over the next five years (fiscal years ). Our mission is to expand housing opportunities in Easton for people in need by facilitating the creation of affordable units and connecting residents to housing assistance. Through our mission, we aim to increase housing diversity in our community while responding to the Massachusetts housing mandate. We derived our goals to respond strategically to Easton s housing needs and the direction provided through our planning workshop. Our Goals Convert existing homes to permanently affordable units Match residents to housing assistance Give relief to homeowners to help them stay in their home Facilitate redevelopment and new construction of affordable housing We intend to implement six initiatives over the next five years to address our goals. Our Initiatives Establish a local homebuyer assistance program Connect residents with housing assistance programs Establish an Easton Housing Office Promote adoption of an Inclusionary Zoning Bylaw Establish a Small Grants Program to allow low-income homeowners to stay in their homes Develop affordable units through reuse of existing buildings and/or new construction This Action Plan describes Easton s affordable housing needs, explains our goals and priority initiatives, and includes a one-year action matrix, five-year budget, as well as additional information to support the achievement of our initiatives. 1 Easton Affordable Housing Trust Action Plan FY

5 INTRODUCTION What is the Easton Affordable Housing Trust? The Town of Easton created the Affordable Housing Trust, per Massachusetts General Laws Chapter 44 Section 55C (MGL c.44 s.55c), in May 2008 with a unanimous vote of Town Meeting. The purpose of the Housing Trust, as stated in Warrant Article 23 is to provide for the creation and preservation of affordable housing in Easton for the benefit of low and moderate income households. 1 The warrant article is included in the Appendix. A housing trust allows municipalities to collect funds for affordable housing, segregate them out of the general municipal budget into a trust fund, and use the funds for local initiatives to create and preserve affordable housing. What does the Board of Trustees do? The Town created our seven-member Board of Trustees to oversee the Easton Affordable Housing Trust funds. The Board of Trustees must include one member of the Board of Selectmen (BOS). The BOS has the authority to appoint the other six members, one of which can be the Town Administrator. Our powers and authority are set forth in accordance with MGL c.44 s.55c. BOS approval is required to purchase, sell, lease, exchange, transfer, or convey any interest in real property. A two-thirds majority vote of Town Meeting is required to incur any debt, borrow any money, grant any mortgage, or pledge trust assets. It is our fiduciary responsibility, bestowed upon us by the Town of Easton, to ensure that the Housing Trust funds are used in a responsible manner. In fact, our impetus for initiating this Action Plan is our desire to establish a deliberate focus to our work and the use of the Housing Trust s resources. 1 Note: The intention established through the warrant article explanation was for the Housing Trust to serve households at or below 80% of the area median income (AMI). Different programs and entities define the terms low and moderate income in various ways. For the purpose of this document, we refer to low-income as at or below 80% AMI. We refer to moderate-income per the Community Preservation Act definition of less than 100% AMI. Easton Affordable Housing Trust Action Plan FY

6 Furthermore, we recognize that our work is but one facet of the Town s work to maintain a high quality of life for its current and future residents. It is our responsibility to establish and maintain open dialogues and coordinate our work with other town officials, boards, and commissions. Easton Affordable Housing Trust Board of Trustees David Colton, Town Administrator & Chair of Board Ellen Barlow, Selectperson Tom Caron Chris Dunlea Susan Horner, Executive Director of the Easton Housing Authority Steve Merlin Amy Rodrigues Staff Support Alice Savage, Acting Director of Planning & Community Development 3 Easton Affordable Housing Trust Action Plan FY

7 How was this Action Plan developed? In June 2009, the Town of Easton contracted with planning consultants Jennifer Goldson of JM Goldson and Beth Rust of ECR Enterprises to develop an Action Plan, budget, program descriptions, and supporting documents for the Easton Affordable Housing Trust. Working with the planning consultants, the Board of Trustees studied the existing documents and plans, particularly the 2005 Easton Housing Production Plan, to identify and assess Easton s housing needs. The planning consultants updated and supplemented the information provided through this review to create materials for a planning workshop. The workshop materials are found in the appendices and include Q & A of Easton s Unmet Housing Needs, Case Studies for July Workshop, and a List of Project Ideas, which lists 21 ideas for possible housing assistance programs, development projects, and outreach initiatives. On July 1, 2009, the planning consultants facilitated a workshop with members of various Town boards and committees in addition to the Board of Trustees to identify goals, priorities, and preliminary project concepts for the Trust (a summary of the workshop results can be found in the appendices). Easton Affordable Housing Trust Action Plan FY

8 Workshop participants included members of the Board of Selectmen, Planning and Zoning Board, Community Preservation Committee, Council on Aging, Board of Assessors, Finance Committee, Historical Commission, and the Fair and Affordable Housing Committee. At the planning workshop, participants worked in focus groups to respond to a series of questions. Each group then shared its collective responses to the questions. At the conclusion of the workshop, participants prioritized potential Trust initiatives using a group decision-making technique, referred to as dot-voting. The goals and priorities laid out in this Action Plan are based on a combination of ideas and feedback from Town board and commission members, recommendations by the planning consultants regarding best practices and strategies, and the Board of Trustee s analysis of needs and consideration of priorities. 5 Easton Affordable Housing Trust Action Plan FY

9 Easton s Affordable Housing Needs This brief description of Easton s affordable housing needs is based on the detailed housing needs analysis completed in 2005 through the Housing Production Plan, with updated 2009 figures provided by the Trust s planning consultant. In our analysis, we considered the needs of low-income 2 and moderate-income 3 households, families, elderly, and special needs populations, in addition to availability of affordable rental and homeownership units and programs. Low-Income Households Low-income households are households with incomes at or below 80% of the area median income. Households with this level of income often include young professional singles and couples just entering the workforce, families, single-parents, elderly individuals, disabled individuals, as well as teachers and municipal employees. For example, a four-person household making at or below to $64,000 annually is considered a low-income household. 4 For housing to be counted on the state s Subsidized Housing Inventory, it is restricted to low-income households through a property restriction or deed rider. Individual units within housing programs often have income limits for the residents. In this way, the governmental agencies that provide the required subsidy and grant amounts ensure that the housing developed benefits its intended resident. The Easton specific limits for 2009 are listed on the following page. These limits are published by the federal Housing and Urban Development agency (HUD) annually for each area in the country. 2 Low income = household income at or below 80% of the area median income (AMI). In Easton, which is part of the Easton-Raynham, MA HUD Metro FMR Area, a four-person household with low-income has an income at or below $64,000. This Metro FMR Area includes the towns of Easton and Raynham. 3 Moderate income = household income of up to 100% of the area median. In Easton, a four-person household with moderate-income has an income of up to $100, Note: The mathematical discrepancy between 80% of AMI (AMI=$100,000) with the figure of $64,000 that is actually considered 80% AMI for Easton is attributable to a federal cap related to the U.S. median income. Easton Affordable Housing Trust Action Plan FY

10 Household Size Income Limits 2009, Easton-Raynham area % Very Low Income 35,000 40,000 45,000 50,000 54,000 58,000 80% - Low Income 44,800 51,200 57,600 64,000 69,100 74,250 Homebuyers: Homeownership is out of reach for most low-income households. Based on our analysis of Easton s housing market from Jan-Apr 2009, the median sales price of a single-family home ($329,000) is approximately $129,000 more than what a four-person household with low-income could afford. From Jan-June 2009, ten homes (2.3% of all units sold) sold at prices that would be affordable to a four-person household with lowincome. The median sales price of a condominium in Easton in the same period is about $20,000 more than what a two-person household with low-income could afford. From Jan-June 2009, 13 units sold at prices affordable to two-person households. The median condominium price was about $100,000 more than a low-income single-person could afford. The Greater Attleboro/Taunton HOME Consortium offers homeownership assistance to first-time homebuyers, including in Easton; However, the program provides an average of only $5,200 per household and has only assisted two first-time homebuyers in Easton in the past five years (out of a total of 76 households the program assisted across its region). Further inquiry would be needed to determine if program use in Easton is low due to level of financial assistance, program terms, awareness/outreach, or other factors. 7 Easton Affordable Housing Trust Action Plan FY

11 Renters: Based on our internet search conducted in June, there is a minimal amount of units listed for rent in Easton. Although the median rental prices are within a range that would be considered affordable to a low-income household (based on FY09 Fair Market Rents established by the US Department of Housing and Urban Development), there are a very limited number of rental units on the market at the time of our snapshot data. Conclusion This analysis indicates a significant need for homebuying assistance as well as increased affordable rental opportunities for low-income households. Moderate-Income Households Moderate-income households are those with incomes between % of the area median. For example, a four-person household with an income between $65,000 and $100,000 is a moderate-income household in Easton s metropolitan area. Homebuyers: Homeownership is currently more possible in Easton for moderate-income households than in past years. The median sales price of a single-family home, based on an analysis of Easton s housing market from Jan-Apr 2009, is within the range that a fourperson household with moderate income in Easton s metropolitan area could afford. This analysis did not include an evaluation of affordability to populations outside Easton s metropolitan area, but such analysis may indicate greater need to create moderateincome housing. Renters: Based on an internet search in June, there is a minimal amount of units listed for rent in Easton. However, of those that were listed, they were within a range that would be affordable to a moderate-income household. Conclusion This analysis indicates less need for housing assistance for moderate-income households and is inconclusive on the need for additional rental units at prices affordable to moderate-income households. Easton Affordable Housing Trust Action Plan FY

12 Families Easton s families have critical housing needs, particularly low-income families. 5 Eightythree percent of low-income families who rent a home in Easton pay more than 30% of their gross income for housing costs. 6 According to standards used by the US Department of Housing and Urban Development, households are considered cost burdened when housing costs are more than 30% of gross income. 7 Easton has the highest percentage of cost burdened renter families in the region. Likewise, Easton s share of cost-burdened low-income homeowner families (81%) is second only to Sharon in the region. 8 In comparing the high level of need among both low-income renter and homeowner families with the current amount of affordable units available to families (10 rental units; 19 homeownership units), the need for assistance is significant. Currently, 616 families are on the waiting list for the Housing Authority s 10 family apartments. Conclusion Families in Easton have a significant need for affordable homes both to rent and to own. 5 Note: According to US Census Bureau, A family is a group of two people or more (one of whom is the householder) related by birth, marriage, or adoption and residing together; all such people (including related subfamily members) are considered as members of one family. See Current Population Survey Definitions and Explanations at 6 This figure refers to families of 2 to 4 people. 7 See HUD definition of moderate rent or cost burden : 8 This figure refers to families of 2 to 4 persons. 9 Easton Affordable Housing Trust Action Plan FY

13 Elderly Easton s elderly residents (age 62 years and older) 9 are also in need of affordable homes, particularly among the low-income homeowner population. The Easton Housing Authority has 203 affordable rental units available to low-income elderly and persons with disabilities with a current waiting list of 118 people. Among low-income elderly renters in Easton, 292 (42%) are cost burdened. For every affordable rental unit available to the elderly, there are less than two low-income elderly persons in need. Whereas, among Easton s low-income elderly homeowners, almost half (47%) are cost burdened. For every affordable homeowner unit, there are 25 low-income elderly in need. The Greater Attleboro/Taunton HOME Consortium provides loans to low-income property owners for housing renovations, including improvements to address health and safety issues and energy upgrades, with an average loan of $23,680. However, over the past five years no renovation loans have been awarded to Easton property owners (out of a total 46 awards in the region). 10 Conclusion There is less need for additional elderly rental housing and more need for housing assistance and/or greater housing choice within Easton for low-income elderly homeowners. 9 For the purposes of this report, the definition of Elderly is based on Easton s Chapter 40B Affordable Housing Production Plan, Tables 18 and 19, which source HUD, CHAS 2000 Data. 10 Additional research would be needed to determine the amount of Easton residents, if any, that have applied for funding. Easton Affordable Housing Trust Action Plan FY

14 Special Needs Population The term special needs is a general term used to refer to people with physical, mental health, or developmental disabilities. These special needs populations often require specially designed housing and/or professional services. In addition, some communities have identified other special needs populations and developed housing to accommodate those needs, for example: parenting grandparents, HIV/AIDS population, people in recovery for substance abuse, victims of domestic violence, etc... According to the US Census, an estimated 2,433 Easton residents have a disability, which equates to approximately 11% of Easton s total population (22,299). Easton s population with a disability is lower than the Bristol County and state population with disabilities in all age groups, as shown in the table below. Population, By Age, with a Disability Easton Bristol County Massachusetts 5-20 Years 354 (6.5%) 9,629 (8.2%) 116,151 (8.6%) Years 1,528 (11.6%) 60,051 (19.7%) 663,354 (17.9%) 65+ Years 551 (27.6%) 30,009 (42.3%) 305,241 (37.8%) Total 2,433 (11%) 99,689 (19%) 1, (17%) Source: Bureau of the Census, Census 2000, Summary File 3, Table DP-2, via American Fact Finder at Easton s current inventory of special needs housing includes 29 units of barrier-free housing (10 of which are owned by the Easton Housing Authority and 19 units constructed under MGL C.40B). 11 Easton also has six 24-hour supervised homes (formerly called group homes ) and in the Greater Brockton region there are hour supervised homes Source: Easton 2005 Affordable Housing Production Plan with updates by Susan Horner, Executive Director of Easton Housing Authority. 12 Source: Judith Berry Williams, Area Director, Brockton Department of Developmental Services (via to JM Goldson, October 2009). 11 Easton Affordable Housing Trust Action Plan FY

15 According to Judith Berry Williams, Area Director, Brockton Department of Developmental Services (DDS), there are 250 DDS consumers in the Greater Brockton region, 24 in Easton. Conclusion A comprehensive analysis of the need for special needs housing may be warranted since the 2005 Housing Production Plan did not address special needs housing in depth. The Town may consider conducting a more thorough study to determine level of need for various the types of special needs housing as part of the next update of the Housing Production Plan. Note: Easton s housing needs are described in detail in Easton s 2005 Affordable Housing Production Plan and summarized with updated figures in the Appendices (Easton s Unmet Housing Needs). Easton Affordable Housing Trust Action Plan FY

16 OUR GOALS & INITIATIVES Our goals respond strategically to Easton s housing needs and the direction provided through the planning workshop. As indicated in the housing needs analysis, there is particular need to provide affordable rental and homeownership housing for low-income households, including families and young professionals, and to assist low-income elderly homeowners. Through the planning workshop, there was a clear call to execute a proactive and intentional housing agenda to create affordable units and to help people, to promote and fund affordable housing as a centralized municipal service, and to use the Housing Trust as a repository for CPA housing funds. Workshop participants urged the Board of Trustees to address the problems of struggling families and the elderly, increase the number of housing units that count on the state s Subsidized Housing Inventory, increase public understanding of affordable housing needs, and connect residents to housing assistance. Participants encouraged the creation of new affordable units both through development projects, including adaptive reuse of historic properties, and housing assistance programs. In addition, participants stressed the importance of public education and advocacy for creation of affordable housing, particularly advocacy for Easton s adoption of an Inclusionary Zoning bylaw. The feedback from the workshop clearly articulated the four goals listed on the next page. 13 Easton Affordable Housing Trust Action Plan FY

17 Our Four Goals A. CONVERT EXISTING HOMES: Create homes that are affordable to low-income homebuyers by converting existing market-rate homes to affordable homes, through deed restrictions and mortgage assistance to first-time homebuyers. B. MATCH RESIDENTS TO ASSISTANCE: Assist low-income residents in need of housing assistance by providing current and accessible information on available assistance, including the Trust s own programs as well as other federal, state, and private financial assistance. C. GIVE HOMEOWNERS RELIEF: Provide direct financial assistance to homeowners, particularly those not served by existing programs, to allow residents to stay in their homes. D. FACILITATE REDEVELOPMENT AND NEW CONSTRUCTION: Create and promote construction of affordable units as well as homes for special needs populations. Do this through new development, or redevelopment of existing and/or historic buildings. Easton Affordable Housing Trust Action Plan FY

18 Addressing Our Goals through Initiatives The six initiatives, described below, detail how the Housing Trust funds will be used to address each of our four goals over the next five years. The immediate initiatives will be the focus of our first year efforts and will build a strong foundation of accomplishment. This will expand our capacity before we focus on the intermediate and long-range initiatives. IMMEDIATE INITIATIVES To initiate within the first year Our objective is to launch the three immediate initiatives, listed below, within the first year after adopting this Action Plan. These three initiatives will respond in some ways to all four of our goals, but most particularly to our goals to convert existing homes to affordable housing (Goal A), connect residents to housing programs (Goal B), and help existing homeowners stay in their homes (Goal C). INITIATIVE 1: Establish a local homebuyer assistance program that provides mortgage assistance subsidies. Easton can realize many benefits from a Homebuyer Assistance Program. Unlike affordable housing units that are part of specific Initiative 1 Responds to Goal A Convert existing market-rate homes to affordable homes new developments, a Homebuyer Assistance Program typically targets converting existing housing that is for sale and converts it to affordable housing. The affordable units created through this program would count on the state s Subsidized Housing Inventory. The program s subsidy takes the form of direct payments to purchasers after they have been determined eligible to participate in the program, completed a homebuyer course, and have located a property to purchase that meets program requirements. In this type of program, the prospective purchaser finds the property in the private housing market and the maximum loan/grant amounts are set by size/type of dwelling unit. 15 Easton Affordable Housing Trust Action Plan FY

19 The Board of Trustees may also suggest potential properties to the buyer, including historical homes, as candidates to consider. The program requires each subject property to be bound by a permanent affordable housing deed restriction upon closing. A detailed program description and sample application is included in the Additional Materials section of this Plan. Measurable Objective: Create an average of four affordable units every two years through the homebuyer assistance program with an average of $100,000 per unit subsidy given in exchange for a permanent property restriction. Evaluate program success and identify challenges each year to confirm or improve structure of program. INITIATIVE 2: Connect qualifying residents with housing assistance programs. As part of our role in outreaching for the Trust s housing assistance programs, we can also provide residents in need with information about various other state, federal, and private Initiative 2 Responds to Goals B and C Match residents to assistance Give homeowners relief programs. Housing assistance can take a variety of forms: homebuyer assistance, rental assistance, support for rehabilitation or repairs, reverse mortgages, etc. Some existing programs include the Greater Attleboro/Taunton HOME Consortium Home Renovation and Homeownership programs and Massachusetts Housing Partnership s Soft Second Mortgage program. More information and recommendations for this outreach initiative is included in the Additional Materials section of this Plan. Measurable Objective: By June 2010, create (1) an official town repository for housing assistance information, (2) informative web-presence about housing assistance opportunities, (3) technical assistance contact, as well as (4) annual schedule for ongoing outreach to low-income households. Easton Affordable Housing Trust Action Plan FY

20 INITIATIVE 3: Create an Easton Housing Office to implement the town s affordable housing goals and programs and to support the work of the Housing Trust and the Community Preservation Committee. Housing creation will be greatly facilitated by the creation of a housing office. The office would provide a single-focused area within the Town of Easton for housing related matters. The office would maintain a central list of persons interested in housing opportunities, periodically review the inventory of affordable units, and move forward on housing projects Initiative 3 Responds to All Our Goals Convert existing homes Match residents to assistance Give homeowners relief Facilitate redevelopment and new construction and programs. In particular, the housing office would administer the homebuyer assistance program and connection initiative as well as promote and foster all our initiatives. Having a centralized office is critical to the effectiveness of the Housing Trust and to coordinate housing activities among various Town housing groups. In addition, the housing office will be critical to maintain strong communications with the community, increase public awareness, and garner public support for local housing initiatives. Only through strong and consistent public communications can we maintain transparency and strong public relations, which is critical to ensure adequate and ongoing funding for the Trust. Measurable Objective: Establish the Easton Housing Office by April Easton Affordable Housing Trust Action Plan FY

21 INTERMEDIATE INITIATIVES To initiate within the first two years Within the first two years, we will undertake a fourth initiative (in addition to advancing our immediate initiatives), as described below. INITIATIVE 4: Promote adoption of an Inclusionary Zoning Bylaw to create affordable units in private residential developments. Through adoption of an Inclusionary Zoning Bylaw, the Town of Easton could require that residential developers include affordable dwelling Initiative 4 Responds to Goal D Facilitate redevelopment and new construction units in their developments. Some inclusionary zoning bylaws allow a developer to provide cash payments to the municipality in lieu of producing affordable housing units. A payment of this sort should be earmarked for affordable housing and could be allocated to the Housing Trust to provide additional revenue. Easton could create overlay districts where density bonuses are granted in exchange for units of affordable housing or cash-inlieu payments. Based on the state s Commonwealth Capital database (2009), more than 110 communities in Massachusetts have inclusionary zoning or similar provisions in their bylaws/ordinances. Newton, the first community in the state to adopt inclusionary zoning (during the 1960s, formalized in 1977), has created over 200 units of affordable housing through inclusionary zoning. 13 More information about Inclusionary Zoning is in the Commonwealth s Smart Growth/Smart Energy Toolkit: In addition, Massachusetts Housing Partnership offers free resources on Inclusionary Zoning, go to: Measurable Objective: Present draft bylaw to the Planning Board/Board of Selectmen for consideration at May 2011 Town Meeting, or earlier. 13 National Housing Conference Affordable Housing Policy Review: Inclusionary Zoning: Lessons Learned in Massachusetts, January ( lessons_learned.pdf) Easton Affordable Housing Trust Action Plan FY

22 LONG-TERM INITIATIVES To initiate within the first five years The two items listed below are long-term initiatives. We want to emphasize, however, that these initiatives are as important as our immediate goals, and in some cases even ranked higher by workshop participants. These initiatives are long-term for purely practical reasons. The first initiative (#5) may require additional time to initiate due to the need for a non- CPA funding source (for eligibility reasons). 14 Whereas, the second initiative (#6) may require more priming due to the complexities involved with development projects and may require greater effort to generate public support than the immediate and intermediate initiatives. INITIATIVE 5: Establish a Small Grants Program to allow low-income homeowners to stay in their homes. Low-income homeowners in Easton currently have access to rehabilitation funds from the Greater Attleboro/Taunton HOME Consortium. However, the program, which loans an average Initiative 5 Responds to Goal C Give homeowners relief of approximately $24,000 per project, requires an affordable housing restriction of 15 years, and exempts condominiums and mobile homes. In the past five years, the program has provided loans to 46 properties in the region, but none in Easton. Establishing a small grant program with more flexible requirements could address a need for low-income homeowners to make small health and safety repairs (e.g., $3,000 or less per project) without restrictions to property type or requirements for an affordable housing restriction, and with a streamlined application and award process. 14 Section 12 of the CPA statute requires that if a property interest is acquired with CPA funds then a permanent deed restriction is required. The applicability of this section depends on whether the program would use CPA funds to acquire a property interest or not. The other question is whether the program is actually creating community housing as defined by the CPA (note, the statute allows creation, preservation, and support of community housing as opposed to assistance for income-qualified households assistance to households is usually a byproduct of creating, preserving, or supporting affordable units). Municipal counsels have varying interpretations of what programs/activities are CPA eligible. 19 Easton Affordable Housing Trust Action Plan FY

23 This program could be modeled after Sudbury s Small Grants Program. For more information, download Sudbury s program description and application at: and click on Sudbury Housing Trust. Measurable Objective: Generate non-cpa revenue, such as inclusionary zoning payments or negotiated developer mitigation payments, for the Housing Trust that would enable the Trust to establish this flexible program in FY2014 (unless counsel deems the program eligible for CPA funds) INITIATIVE 6: Develop affordable rental, homeownership, and/or special needs housing through reuse of existing buildings (possibly historic buildings) and/or new construction on infill properties. Through the Affordable Housing Trust s powers to undertake a variety of real estate activities, with Board of Selectman approval, the Trust can facilitate development of affordable units. The type of development we envision is small-scale Initiative 6 Responds to Goal D Facilitate redevelopment and new construction new construction on infill properties and conversion of historic or other buildings to affordable housing. In this endeavor, the Easton Historical Commission will be an important resource to support the identification and evaluation of historic properties with conversion potential. The Trust, with staffing support from the Housing Office, can determine feasible and appropriate location, design, type, and program of development as well as control developer selection. A general framework for this development initiative is included in the Additional Materials section of this Plan. Easton Affordable Housing Trust Action Plan FY

24 The Massachusetts Housing Partnership s Developing Affordable Housing on Public Land: A Guide for Massachusetts Communities provides instruction for assessing sites, setting goals, preparing an RFP, and other information. Download a free copy at: then click on MHP Guidebooks. Measurable Objective: Begin work to actively identify a development site in FY2012 with intent to create 2-4 units of affordable housing by FY2014. Projected budget estimates $550,000 over five-years for this initiative. 21 Easton Affordable Housing Trust Action Plan FY

25 ONE-YEAR ACTION MATRIX January 2010 February 2010 March 2010 April 2010 May 2010 June 2010 General - Present final - Send press - Hold public Action Plan to release about meeting to town boards final Plan to present final - Create Trust local papers Action Plan webpage & post final Plan Init. 1: - Meet with - Secure CPC - Ensure - Secure - Finalize Homebuy CPC to review recommenda warrant Town program er Assist. project tion for article Meeting details and Program proposal funding to submitted approval of marketing TM for CPA year 1 plan, and funding funding submit LIP application to DHCD for state approval Init. 2: - Collect - Update - Create Connect info on webpage press to programs with links release to Programs to create and announce official informatio repository, repository n about web info, programs and tech assistance Init. 3: - Finalize - Continue to - Conducts - HS Completed Completed Create Housing advertize interviews begins Housing Specialist position and offer work Office (HS) job position to description & top advertize candidate - Secure admin funding from CPC Easton Affordable Housing Trust Action Plan FY

26 July 2010 August 2010 September 2010 October 2010 November 2010 December 2010 Gen. Init. 1 Init. 2 Init. 3 - Secure DHCD approval of program - Begin marketing and application period (60 days) - Hold info sessions - Evaluate properties on market (and Hist. Commission list) for units to suggest to applicants - Hold lottery to rank the ready-buyer list - Buyers start to find property - Buyers select property, negotiate price, sign offer to purchase - Buyers complete home inspections & execute purchase & sale - Prepare for - Hold public - Continue to public information keep web information meeting links and meeting (possibly resources/lite - Create combine/coor rature annual dinate with current schedule for Initiative 1 regular and info sessions) active outreach - Buyers - Buyers submit for obtain financing financing commitment Completed Completed Completed Completed Completed Completed 23 Easton Affordable Housing Trust Action Plan FY

27 BUDGET FY11-FY15 FY11 FY12 FY13 FY14 FY15 Description Prior Year Carry Forward $0 $12,845 $7,925 $17,275 $19,975 5 Year Total Notes Revenue/Financing $425,000 $160,000 $425,000 $260,000 $525,000 $1,795,000 CPA Project Appropriation $425,000 $160,000 $425,000 $160,000 $425,000 $1,595,000 Other Revenue/income $0 $0 $0 $100,000 $100,000 $200,000 Alternate large/smaller requests. Total allocation requested does not exceed currently available CH reserve plus 10% CPA projected revenue (including projected declining state trust fund distributions.) Initiative #4: $100k received in FY14 and FY15 from Inclusionary Zoning passed in FY12 Interest $4,250 $1,600 $4,250 $2,600 $5,250 $17,950 1% of revenue annually Expense -$401,000 -$151,000 -$401,000 -$241,000 -$526,000 -$1,720,000 Administrative -$1,000 -$1,000 -$1,000 -$1,000 -$1,000 -$1,000 Trust admin expenses. Expenses for Initiative #3 can draw from admin funds. Homebuyer Assistance Program -$300,000 -$100,000 -$300,000 -$100,000 -$300,000 -$1,100,000 Initiative #1: Fund 4 units every other year at an average cost of $100k. Small Repair/Loan Program -$40,000 -$25,000 -$65,000 Initiative #5: Requires non-cpa funds. Timing dependent on inclusionary zoning funds Small (Re)Development -$100,000 -$50,000 -$100,000 -$100,000 -$200,000 -$550,000 Initiative #6: Development initiatives, includes predevelopment feasibility on Town owned, tax title, or other property Salaries -$15,405 -$15,520 -$18,900 -$18,900 -$18,900 -$87,625 $26/hr, start at 20 hr/week, then 25 hr in FY13, with $3770 annually for benefits. Reflects 50% as funded by Trust. Note: Benefits levels may need annual adjustment. Total $12,845 $7,925 $17,275 $19,975 $5,325 $5,325 Note: This budget assumes that preparatory work for Initiative #4 (inclusionary zoning) would be conducted jointly by the Community Housing Specialist working with Town Counsel, however, the Trust may instead consider contracting a consultant or attorney

28 ADDITIONAL INFORMATION FOR SELECTED INITIATIVES Information and Application for the Easton Homebuyer Assistance Program Outreach & Awareness Initiative Community Housing Specialist Job Description General Framework for Trust s Role in Development Process 25 Easton Affordable Housing Trust Action Plan FY

29 INFORMATION & APPLICATION FOR EASTON HOMEBUYER ASSISTANCE PROGRAM The Homebuyer Assistance Program is a great opportunity for First-Time Home Buyers to purchase a home in Easton, Massachusetts. This packet contains specific information about the Easton Homebuyer Assistance Program, including eligibility requirements, the selection process, and an application. We invite you to read this information and submit an application. Our office is available to assist you in this process. The key milestones for these housing opportunities: Application Period opens Day, Month Day, Year Information Session Day, Month Day, Year, Time, Place Application Deadline Day, Month Day, Year, Time Lottery Day, Month Day, Year, Time, Place Submitting an application is the first step. The application can be downloaded from the website at: using keyword Program Name, and is available at the [list place include one that is open the evening, perhaps library], or by calling the Lottery Agent. Please contact the Lottery Agent below for any questions. Name, Organization Address, own, MA ZIP Phone @address Easton Affordable Housing Trust Action Plan FY

30 Program description The Easton Homebuyer Assistance Program provides grants to eligible buyers to assist them in purchasing homes in Easton. The grants are awarded to eligible applicants selected by lottery. The grant amounts are intended to reduce the purchase price of the home to an affordable level. In exchange, the deed will maintain the future affordability of the home. The grant amounts are enough to give people a reasonable choice of houses and enough to offset the effect of this deed rider. The maximum grant amounts vary by type of home (condominium or single family) and size (# of bedrooms). The Easton Affordable Housing Trust has appropriated $xxx,xxx for this program from CPA funds at the 2xxx Annual Town Meeting. These funds may be used to provide housing opportunities for low income households. This Program is for First-Time Homebuyers who earn at or below 80% of the Area Median Income, who meet all the requirements under the Local Initiative Program (LIP) administered by the Massachusetts Department of Housing and Community Development (DHCD). This is so these units can be counted as part of the Subsidized Housing Inventory. We can help you determine your eligibility. Here is a summary of the process: 1. Interested applicants submit the completed application with required documents, including a mortgage pre-approval. 2. Eligible applicants are entered in the lottery which is held to create a ranked Ready-Buyer List. The grants are then offered to buyers in this ranking. 3. The top three buyers select a property to purchase. The Easton Affordable Housing Trust may offer available properties, or suggest possible historical homes. Historic homes may have a historic preservation component to them and additional funds may be available for renovations if needed. 4. After acceptable property inspections are performed, the grant is awarded (up to the maximum amount) and the home is purchased. The property is then added to the Subsidized Housing Inventory after the deed restriction is recorded. 27 Easton Affordable Housing Trust Action Plan FY

31 The grant amounts are based on (1) the number of bedrooms in the dwelling, or (2) maximum grant amount, or (3) other [to be determined by the Trust]. Housing Type # BR Median Sale Price Affordable Sale Price* Estimated Repairs Maximum Trust Subsidy Detached Single Family 3 $329,000 $185,000 $6,000 $138,000 Condominium 2 $180,000 $122,000 $3,000 $55,000 *Assuming tax rate of $12 per $1,000, 6% interest rate, $350 condo fee. Condominium owners will be assessed a monthly fee the same as market rate units; owners of single family homes will be assessed market rate property taxes for a period until the assessment cycle reduces the value of the dwelling, which may be up to 18 months. In accordance with State Guidelines, the initial purchase prices are established so that a household is not required to spend more than 30% of the 70% of the Boston Area Median Income (AMI) monthly for housing costs. These purchase prices vary depending on the unit style and size. Property inspections by qualified Massachusetts-licensed inspectors are required for units in this program and are paid for by the Easton Affordable Housing Trust. The inspection covers all the items normally covered in a property inspection and includes a pest inspection, air testing for radon, smoke/co2 detection, and lead paint. Any additional testing is performed if any hazards are detected. This additional testing will also be reimbursed by the Trust up to $1,000 and the buyer paying any remaining balances. The Trust may elect not pay for repairs, as it expects that any such repairs are either inconsequential or will be completed by the seller prior to closing. All inspections are required to be completed within three weeks after the acceptance by the seller of an Offer to Purchase. Easton Affordable Housing Trust Action Plan FY

32 Lottery description: 1. Once the application period is open, the marketing and outreach starts. Flyers are distributed to real estate agencies, area non-profits, school and other municipal entities, Boston-area outlets. Paid advertisements are placed in local and regional papers, as well as minority periodicals. Notices are posted on websites at the state and Town level, and additional notifications are placed throughout the marketing period to ensure sufficient interest is reached. 2. Applications will be available on-line and sent to anyone interested in the lottery. Notice of the lottery and applications are also available in hardcopy at a site that has evening hours. 3. Applications received are dated, and checked for completion of all required components. An application will be considered complete when all required items on the checklist have been provided. Applicants are encouraged to complete the checklist as an aide to the process. 4. The applicant s household size will be determined from the application, and required number of bedrooms as indicated on the application. Within the lottery, priority shall be given to households requiring at least the total number of bedrooms in the unit. 5. The applicant s income will be verified and compared to the income limits. The applicant household is required to be at or less than the 80% Area Median Income limits for the Easton Statistical Area as published by HUD. This includes all income prior to any deductions from all adult household members. Income and assets are determined using the method as in the HUD Section 8 program, defined at 24 CFR Household income limits are: Household of 1 - $ 44,800, Household of 2 - $ 51,200, Household of 3 - $ 57,600 Household of 4 - $ 64,000, Household of 5 - $ 69,100, Household of 6 - $ 74, Household assets shall not exceed $ 75,000 in net cash value. Assets include but are not limited to all cash, cash in savings accounts, checking accounts, certificates of deposit, bonds, stocks, retirement accounts, value of real estate holdings and other capital investments. Include the value of the asset, with a deduction for the reasonable cost of selling the asset. The value of necessary personal property (furniture, vehicles) is excluded from asset values. 7. Eligible applicants shall not have owned a home within three years preceding the application, with the exception of displaced homemaker, single parents and senior households (where at least one household member is 55 or over). A displaced homemaker is an individual who is an adult, who has owned a home only with a spouse, who is legally separated from a spouse, and who does not currently own the home previously owned with a spouse. Single parents, are individuals who owned a home with his or her partner or resided in a home owned by the partner and is a single parent (is unmarried or legally separated from a spouse 29 Easton Affordable Housing Trust Action Plan FY

33 and either has 1 or more children of whom the individual has custody or joint custody, or is pregnant); Additional exceptions are made for households that owned a principal residence not permanently affixed to a permanent foundation, and households that owned a property that was not in compliance with State, local or model building codes and which cannot be brought into compliance for less than the cost of constructing a permanent structure. 8. Applicants will be notified for incomplete application packages by first and letter if no response has been received after 5 days. 9. Persons must submit all the necessary information by the application deadline. No faxed applications will be accepted. Late applications (applications mailed and/or received after the above date) and applications that are incomplete will not be accepted. 10. Applicants who have been deemed ineligible will be notified in writing of the decision and given time to contact the lottery agent in writing to disagree with the determination. Failure to contact the lottery agent in writing will result in the waiving of your rights for further review. 11. The State allows 70% of affordable units to be offered to those with Local Preference with the approval and review of documented need. If Easton has documented such need, the units offered in the Easton Homebuyer Assistance Program might be offered alternately as local, general, local in a pattern of three. Local applicants have a connection to Easton and include: current Easton residents families with children enrolled in school in Easton employees of the Town of Easton, including the schools systems employees of a business located in Easton. Former residents and family members of current residents are not permissible within the Local Preference definition. 12. There will be two lottery pools maintained for the Ready-Buyer List: 1) General Pool All eligible applicants 2) Local Pool - All eligible applicants with verified local preference 13. The local pool will be adjusted with increased opportunities for minorities if the representation of the local pools is less than xxx% (per DHCD). This is done by selecting as many minority applicants from the general pool as needed to augment the local pool. 14. Once the Lottery Agent has verified the information contained in the application and confirmed eligibility, eligible applicants will be given lottery numbers and told the date, time and place of the lottery. 15. At the lottery, the lottery numbers will be pulled for each pool by an independent third party and witnessed by representatives of the Town in a public setting. The lottery numbers will be assigned a number in the sequence in which they are drawn and recorded in the order of Easton Affordable Housing Trust Action Plan FY

34 selection on the Lottery Drawing List. The list of numbers drawn will be posted and all applicants will be informed of their ranking. 16. The drawing will create one Ready-Buyer List from the two lottery pools. This is done by pulling one ticket from the Local, then General, then Local pool. This pattern is repeated until all tickets are drawn. 17. The grants are awarded based on bedroom size. The household needing at least three bedrooms will be offered the opportunity to purchase first, then the household needing two bedrooms, followed by the households needing one bedroom. 18. The lottery coordinator shall maintain the Ready-Buyer List for two-years. 19. The top three household are given the grant opportunity and able to search for an eligible property. They are given 120 days to complete the transaction. In the event that any of the applicants are unable to obtain financing, withdraw for any other reason, or do not comply with guidelines within that time, the next qualified applicant will be offered that particular unit. In general, the 120 days allows for: 20 Days Select property, negotiate price, sign Offer to Purchase 20 Days Complete Home Inspections, execute Purchase and Sale 10 Days Submit Financing 20 Days Obtain Financing Commitment 30 Days - Close 20 Days - Contingency 20. The buyer may engage a real estate agent to show potential properties, and the Trust may recommend agents familiar with the Program. 21. The Easton Affordable Housing Trust may also suggest potential properties to the buyer, including historical homes. The Trust offers these as merely candidates to the buyer, who is responsible for selecting their home The property selected must be deemed eligible: Not already be on the Subsidized Housing Inventory Qualified Home Inspection Report with no substantial issues 16 Title V Certificate Review of Condominium documents with no substantial issues 15 Note: Qualified historic homes may be eligible for additional grant money, up to $xx,000, through the Easton Community Preservation Program for historic restoration. As a condition of this historic preservation grant, the Town would secure an historic preservation restriction on the property, which would require future changes to the exterior of the building to be approved by the Easton Historical Commission. 16 Or, for eligible historic properties, securing additional funding from the Community Preservation Act to restore the property. 31 Easton Affordable Housing Trust Action Plan FY

35 23. Buyers are required to obtain legal representation for the transaction starting with Purchase and Sale. 24. The State programs and bank products have specific closing and financing requirements which have been adopted by the Program. The loan must have a fixed interest rate through the full term of the mortgage. The loan must have a current fair market interest rate, no more than 2 percentage points above the current MassHousing rate. The loan can have no more than 2 points. The buyer must provide a down payment of at least 3%; half must come from the buyer s own funds. The buyer cannot provide more than 50% of the purchase price in cash The buyer may not pay more than 38% of their monthly income for the mortgage Non-household members shall not be permitted as co-signers of the mortgage. 25. The Easton Affordable Housing Trust requires that first-time homebuyers attend and obtain a completion certificate from an accepted First Time Homebuyer Class prior to closing. 26. Final qualification against all requirements will be verified before the execution of Purchase and Sale, and again before closing (if closing is longer than six months from the Purchase and Sale) as determined by the Lottery Agent. 27. The Fair Housing Act prohibits discrimination in housing because of Race or color, National origin, Religion, Sex, Familial status (including children under the age of 18 living with parents or legal custodians; pregnant women and people securing custody of children under 18. An applicant who believes that they have been discriminated against in the buyer selection and sales process may contact: the Massachusetts Commission Against Discrimination (617) ; and/or the United States Department of Housing and Urban Development (617) Easton Affordable Housing Trust Action Plan FY

36 (DRAFT) AFFORDABLE HOUSING APPLICATION Must Be Completed and Returned By Month, Day, Year, Time Applicant Legal Name Phone Number Address City State/Zip Co-Applicant Legal Name Phone Number Address City State/Zip I learned of this lottery from (check all that applies): Website: Letter: Advertisement: Other: THIS APPLICATION IS NOT COMPLETE IF NOT SUBMITTED WITH: Completed application signed by all individuals over the age of 18 Copy of 2007 and 2008 Federal tax returns, as filed, with s, W-2 s and schedules, for every current or future person living in the household over the age of 18 Copy of last consecutive three months of pay stubs, for all salaried employed household members over 18. Six months of income for hourly and seasonal workers. Copy of last consecutive three months statements and documents that indicate the payment amounts from all other sources of income of all members listed on the application, such as alimony and/or child support, Social Security benefits, all types of pensions, employment, Unemployment Compensation, Workman's Compensation, alimony, disability or death benefits and any other form of income on organization letterhead Current statements of all assets showing current value including all bank accounts, investment accounts, cash life insurance policies, retirement accounts. Include copy of last three months of each asset statement - on organization letterhead. Mortgage pre-approval and proof of adequate assets to cover down payment and closing costs Documentation regarding current interest in real estate, if applicable No Income Statement, signed and notarized, for any household member over 18 with no source of income, if applicable 33 Easton Affordable Housing Trust Action Plan FY

37 Household Information - List all members of your household including yourself Number of Bedrooms Needed: Social Minority Names of all Persons to Reside in Dwelling (First Name, Middle Initial, Last Name) Relation to Head Age Date of Birth Security Number Category * (Optional) HEAD *Minority preference categories include only Native American or Alaskan Native, Black or African American, Asian, Native Hawaiian or Pacific Islander; or other (non-white); and the ethnic classification Hispanic or Latino. Requires a separate self-declaration document. Local Preference Check all that apply, and attach documentation showing this preference: 1) current Easton resident, address: 2) family of children currently enrolled a Easton school, school/grade: 3) employee of the Town of Easton, title: 4) employee of the Easton school system, title: 5) employee of a business located in Easton, business name: Property - Do you own or have an interest in any real estate, land and/or mobile home? Yes ( ) No ( ) Address: Current Value: Have you sold real estate or other property in the past three years? Yes ( ) No ( ) If yes, attach settlement statement When: Address: Sales Price: Easton Affordable Housing Trust Action Plan FY

38 Income - List all income of all members over the age of 18 listed on application to reside in the unit, such as wages, child support, Social Security benefits, all types of pensions, employment, Unemployment Compensation, Workman's Compensation, alimony, disability or death benefits and any other form of income; including rental income from property. Adults with no income are required to submit a notarized statement. If you need additional space, please attach another sheet. # Source of Income Address/Phone# of Source Amount per Year TOTAL Assets - List all checking, savings accounts, CD s, stocks, bonds, retirement accounts, savings bonds and any other investments below. If additional space is needed, please attach another sheet. Household assets do not include necessary personal property. # Type of Asset Account No Value, Balance 1 Checking account 2 Savings account 3 Retirement account 4 Other: 5 Other: 6 Other: TOTAL 35 Easton Affordable Housing Trust Action Plan FY

39 APPLICANT(S) CERTIFICATION I/We certify that our household size is persons, as documented herein. I/We certify that our total household income equals $, as documented herein. I/We certify that our household has assets totaling $, as documented herein. I/We certify that the information in this application and in support of this application is true and correct to the best of my/our knowledge and belief under full penalty of perjury. I/We understand that false or incomplete information may result in disqualification from further consideration. I/We certify that I am/we are not related to the Lottery Agent, or any party of this project. I/we understand that it is my/our obligation to secure the necessary mortgage for the purchase of the home and all expenses, including closing costs and down payments, are my/our responsibility. I/We understand that if I/we do not obtain a mortgage commitment and sign a purchase and sale agreement within sixty days after the lottery the unit will be offered to the next eligible applicant on the waiting list. I/We understand the provisions regarding resale restrictions and agree to the restriction. The unit can't be refinanced without prior approval of DHCD, no capital improvements can be made without DHCD pre-approval; the unit must be owner's primary residence; the resale price is calculated according to the deed rider; and an increase in equity is very minimal to ensure affordability over time; the deed rider remains in effect in perpetuity. All prospective buyers are advised to review the deed rider with their own attorney to fully understand its provisions. I/We have been advised that a copy of the LIP Universal Deed Rider is available with the Lottery Agent and on the DHCD website. I/We understand that if I/we are selected to purchase a home, I/we must continue to meet all eligibility requirements of the Lottery Agent and any participating lender(s) until the completion of such purchase. I/We understand that I/we must be qualified and eligible under any and all applicable laws, regulations, guidelines, and any other rules and requirements. Your signature(s) below gives consent to the Lottery Agent or its designee to verify information provided in this application. The applicant agrees to provide additional information on request to verify the accuracy of all statements in this application. No application will be considered complete unless signed and dated by the Applicant/Co-Applicant. Applicant Signature Date Co-Applicant Signature THIS IS APPLICATION IS ONLY FOR THIS SPECIFIC PROGRAM Date Easton Affordable Housing Trust Action Plan FY

40 OUTREACH & AWARENESS INITIATIVE The Board of Trustees can empower residents in need with knowledge and resources to obtain housing assistance through various state, federal, and private programs in addition to any programs offered by the Trust. Housing assistance can take a variety of forms: homebuyer assistance, rental assistance, support for rehabilitation or repairs, reverse mortgages, etc. Some existing programs include the Taunton HOME program rehabilitation and first-time homebuyer assistance programs and Massachusetts Housing Partnership s Soft Second Mortgage program. The Trust can perform this service through a variety of ongoing actions: maintain an up-to-date and informative website with information on programs, eligibility requirements, deadlines, and links provide a central repository of current program literature and information at the library and/or town offices provide a hotline and a knowledgeable contact person at the town s Housing Office to answer questions and provide information advertize and promote the Housing Office as new municipal service through local newspaper (including ads, press releases, and interviews with reporters), local access television, posted flyers, public informational forums, and/or announcements in tax bills or other widely distributed mailings, etc. distribute housing program literature at various town venues and events on a regular basis, including at the Natural Resources Trust of Easton s annual harvest fair and other events hold public information sessions at library or other locations 37 Easton Affordable Housing Trust Action Plan FY

41 COMMUNITY HOUSING SPECIALIST Housing creation will be greatly facilitated by a part-time Community Housing Specialist position which staff the Community Housing Office. This advertised position will enhance the ability to move forward on housing projects. Having dedicated staff is critical to this program and will further programs, goals and priorities of the Trust and the housing components of the Community Preservation Committee. The Trust has been created to be able to react quickly and having a dedicated staff person to oversee the programs will facilitate that. Our plan proposes staffing this function as a new position for Town personnel with no impact to the Town operational budget. This model is thought to be the most cost efficient coverage of the job functions as described. Staffing through consultant would be cost prohibitive for the all the job functions. Job Description Under the direction of the Director of Planning and Community Development, the Community Housing Specialist provides technical support relating to general affordable housing concerns and administers the programs of the Easton Affordable Housing Trust. Distinguishing Characteristics Works under the direction of the Planning and Community Development Director and coordinates affordable housing initiatives and activities within the Town, including those of the Fair and Affordable Housing Partnership and other boards and committees as needed. Requires the exercise of sound judgment, objective and rational analysis of the needs of the community and the requirements of the Commonwealth of Massachusetts with respect to affordable housing, and the exercise of strategic planning to identify and pursue resources and programs appropriate to meet substantiated housing needs. Frequent contact with various Town departments, frequent interaction with various boards and committees and elected and appointed officials, frequent contact with state and/or federal agencies and officials. Easton Affordable Housing Trust Action Plan FY

42 Essential Functions Serve as staff resource to the Community Preservation Committee, including the following activities: review CPA applications for affordable housing projects, provide oversight for CPA-funded housing projects, provide regular reports on status of housing initiatives, and assist with shaping and implementing CPA housing goals and priorities. Serve as staff resource to the Easton Affordable Housing Trust, including the following activities: meeting scheduling, agenda, minutes, preparation of Trust financial reports for Board review and approval, preparation and review of Request For Proposals (RFP s) and management of the procurement process; development of financial structuring including appropriate uses, cost, affordability, public subsidy and public benefits; preparation and implementation of funding proposals and coordination of efforts to fulfill program requirements. Implement and promote town housing initiatives: o Foster dialogue through direct communications and presentations to related town boards and commissions, especially the Board of Selectmen as well as the Planning Board, Fair and Affordable Housing Partnership, Community Preservation Committee, Finance Committee, etc... o Submit regular press releases and/or letters to the editor of the local newspapers to announce achievements and milestones, including launching programs and how to apply, funding awards, project groundbreakings and ribbon-cuttings, etc... o Create annual reports to submit to town meeting and distribute through website, town listserve, etc. Staff the Community Housing Office as a housing service for the Town of Easton. This involves maintaining housing interest lists, updating the website with relevant housing information and reports, and reviewing the housing inventory for the Town. Implement and administer housing programs throughout the required community application process, including public approvals and permitting, and through closing, construction, and sales. Initiate and pursue collaborative efforts among local, state, federal, and private agencies and parties to connect Easton residents to housing assistance programs. 39 Easton Affordable Housing Trust Action Plan FY

43 Monitor the Easton Housing Production Plan and lead any updates thereto, or any future housing-related plans or studies. Maintain up to date and accurate financial accounts and other records as necessary. May coordinate and/or conduct planning and feasibility studies for new affordable housing development. May prepare and coordinate applications for state and federal resources, including housing grants and loans, assistance and public services. May perform other related duties as required. Knowledge, Abilities and Skills Thorough knowledge of M.G.L. Chapter 40B and related housing and planning statutes. Thorough knowledge of state and federal programs and resources available for creation of affordable housing. Expertise in the development of affordable housing from the initial application process, project management, through closing and sales. Ability to read, analyze and interpret scientific data, demographics, technical reports and legal documents. Ability to perform detailed research, collect and analyze data and prepare written and oral reports and presentations for municipal boards and committees and the public. Strong communication and interpersonal skills to effectively interact with Town staff, local elected and appointed officials, state and federal officials and agencies, private developers and commercial interests, and the public. Minimum Education and Experience Bachelor s degree in planning, public administration or related field, plus three (3) years related training and/or experience; or an equivalent combination of education and experience. Easton Affordable Housing Trust Action Plan FY

44 FUNDING To start in FY10, the community housing specialist is proposed to be funded from CPA administrative funds. Assuming a position of 20 hours per week, funded at $26 per hour, with annual benefits estimated at $3,770 per year, starting April 1, 2010 this would be an expense of $7,705 (plus pro-rated benefits) for the remaining 13 weeks in FY10. Possible Funding Scenarios for FY11 and Beyond For FY11 and beyond, the Trust considered a number of funding scenarios as detailed on the following page. The Trust recommends scenario four, to fund between both the Trust assets and the CPA administrative funds. This reflects the two dimensions of the position, and aligns the funding accordingly. 1. CPA administrative funds: For fy10, Easton has appropriated 5% of the annual CPA revenue for administrative funds, or $53,500. This enables the CPC to closely monitor the position to ensure that its goals are being achieved. 2. CPA program funds: This approach requires annual appropriation at town meeting. While this provides an opportunity for additional housing outreach and education, it also provides an opportunity to decline support for the position. 3. Housing Trust funds: This model also uses CPA funds, though indirectly through the trust. It constrains the position to work on trust agenda items solely, though the position and the trust agenda are widely aligned. The position becomes more of trust support, than town perspective. 4. Housing Trust funds and CPA administrative funds (recommended): This model shares the funding of the position 50/50 between the trust and the direct CPA funds. It recognizes that the position is dedicated to both the trust-specific agenda, CPA-specific needs, and that of the larger town perspective. 5. Program funds: This model funds the position from the programs. It recognizes the administrative cost for each program and ties funding to the initiatives. While more complex to manage with multiple programs, it clearly ties the position to implementation. This model may work well for a consultant staffing approach initially. 41 Easton Affordable Housing Trust Action Plan FY

45 GENERAL FRAMEWORK FOR TRUST S ROLE IN DEVELOPMENT PROCESS Before searching for a property Identifying a development site and facilitating its development will require the Board of Trustees to be both strategic and flexible. The board can begin by making some preliminary determinations to give some direction to the size, type, and location of property the board is seeking: budget for land acquisition costs geographic preferences preferences for land with historic buildings/vacant land/land to be cleared of improvements general size and type of project (single-family, duplex, multi-family, townhouses) Searching for a property Once you have made these preliminary determinations, it is time to begin actively searching for property with development or redevelopment potential by working with a real estate broker to research land on the market, land about to come on the market, and underutilized sites. Before acquisition When you have located a potential property, evaluate if it would be a good investment. At this point, you may need to contract professionals to perform 21E phase 1 Environmental Report, soil testing, and building inspections (if applicable; for example, to make preliminary determinations of reusability). In addition, you may undertake a zoning analysis to determine whether the property can be developed by-right or if 40B is needed. You might also create a project proforma (a financial projection of project costs and revenue) based on a preliminary determination of how many units the site could accommodate. The proforma would estimate how much the development would cost, projected revenue, and potential subsidy needs and sources. Easton Affordable Housing Trust Action Plan FY

46 If the property is determined to be a good investment, the Trust can proceed with acquisition. Board of Selectmen approval is required before the Trust purchases property. After acquisition Through RFPs, the Trust can proceed with feasibility work for various aspects including survey, topographical delineation, engineering, demolition work of existing structures (if needed to prepare the site), and architectural concepts site plans and elevations to provide a visual to include in RFP. Determine development program including: rental/ownership building type unit number and size target income levels and populations expectation of sustainability achievements energy efficiency, renewable energy sources, green building materials, etc. The next step would be to select a development team through an RFP. 43 Easton Affordable Housing Trust Action Plan FY

47 APPENDICES Q & A of Easton s Unmet Housing Needs Case Studies for July Workshop List of Project Ideas July 2009 Workshop Results Warrant Article Easton Affordable Housing Trust Action Plan FY

48 Q & A: EASTON S UNMET HOUSING NEEDS Prepared for the Easton Affordable Housing Trust, Board of Trustees By Jennifer Goldson, JM Goldson, & Beth Rust, ECR Enterprises, June 2009 Q.1. What is a low- or moderate-income household? A. This may seem like a straightforward question, but it s not. There are multiple definitions in use depending on the funding source and program (federal, state, Community Preservation Act (CPA), etc). For our purposes, we will focus on definitions that apply to CPA, the state s subsidized housing inventory, and public housing. Moderate-income household: As defined by the CPA, a moderate-income household has a total household income that is equal to or less than the area median income (AMI) for a household of the same size. (See definition of AMI above.) Moderate-income in Easton: 1 person HH - up to $70,000 2 person HH up to $80,000 3 person HH up to $90,000 4 person HH - up to $100,000 What does Area Median Income (AMI) mean? The estimated median income, adjusted for family size, by metropolitan area (or county, in non-metropolitan areas). AMI is updated annually by HUD and used as the basis of eligibility for most housing assistance programs. Source: Massachusetts Housing Partnership & Citizens Housing and Planning Association CPA and Affordable Housing Guidebook, page 44 Low-income household: To be counted on the state s Subsidized Housing Inventory (SHI) units need to be affordable to low-income households these are households with a total income at or below 80% of the area median (capped by US Median in Easton-Raynham, MA HUD Metro FMR Area). Households also need to be low-income to be eligible for Easton Housing Authority units. Low-income in Easton: 1 person HH - up to $44,800 2 person HH up to $51,200 3 person HH up to $57,600 4 person HH - up to $64,000 Very low-income household: To be eligible for federal Section 8 Housing Choice Vouchers a household s income may not exceed 50% AMI, however 75% of the vouchers go to households with incomes are extremely low (not exceeding 30% AMI). The Massachusetts Rental Voucher Program caps household income at 200% of Federally Established Poverty Level Standard for Massachusetts. Very low-income in Easton: 1 person HH - up to $35,000 2 person HH up to $40,000 3 person HH up to $45,000 4 person HH - up to $50,000 (Source: For low- and very low-incomes: for Easton-Raynham, MA HUD Metro FMR Area; For moderate-incomes: go to 2009 CPA Low and Moderate Income Guidelines.) 45 Easton Affordable Housing Trust Action Plan FY

49 Q.2. How many low/mod income households live in Easton? A. About 23% (1,730 HH) of all Easton s households have low/mod income. (Source: Easton 2005 Affordable Housing Production Plan) Q.3. In thinking about the adult children of town residents, what do people just entering the workforce earn in Massachusetts? A. The median salary in Massachusetts for a person with less than one-year experience is $44,477, and for 1-4 years experience is $48,413. These entry-level salaries are comparable to the low-income limits for a 1-person household (listed on the previous page). (Source: Median Salary by Years Experience State: Massachusetts ) Q.4. How many income-restricted homeownership units exist in Easton? A. 19 homeownership units have been produced under c.40b (note: 11 additional units are approved and expected to begin construction soon). (Source: Easton 2005 Affordable Housing Production Plan, updated by Easton Department of Planning and Community Development) Q.5. How much could a low-income household afford to purchase a home in Easton? A. That depends on multiple factors including household size, housing costs, structure of financing, amount of down payment, level of debt, etc. However, making a number of assumptions and using Massachusetts Housing Partnership s affordability calculator, here are a few benchmarks: A 1-person HH with 80% AMI could afford a home that costs no more than $83,000. A 2-person HH with 80% AMI could afford a home that costs no more than about $160,000. A 4-person HH with 80% AMI could afford to purchase a home for no more than $200,000. (Source: go to Soft Second Calculator. Note: The calculations here are based on an assumed 30-year fixed with no soft-second loan and a downpayment of $2,500 for 1 person HH (with condo fees of $200 per month), $5,000 for 2 person HH, and $10,000 for 4 person HH). Q.6. What have homes been selling for lately in Easton? A. The sales price of a home varies depending on the unit type, location, condition, amenities, and other factors; however, we use the median sales price as the standard indicator of sales price trends. Sales of single family homes in Easton peaked at a median of about $415,000 in So far this year (Jan-Apr 2009) the median is about $329,000. The median sales price of single family homes is approximately $129,000 more than what a 4-person HH at 80% AMI could afford. The median sales price of single family homes is slightly less that the maximum that a 4-person HH at 100% AMI could afford ($333,000). The median sales price of a condominium in Easton in 2009 (Jan-Apr) was approximately $180,000. Easton Affordable Housing Trust Action Plan FY

50 The median sales price of a condo is about $20,000 more than what a 2-person HH at 80% AMI).... and is about $100,000 more than what a 1-person HH at 80% AMI could afford. Note: According to the 2005 Affordable Housing Production Plan, Easton has approximately 1,180 condominium units. (Source: go to townstats, select town, data set, and time period. Data set/time period used here for Easton is median sales prices / calendar year.) Q.7. But, can a low/mod income household find a home on the open market that is affordable in Easton? A. Sometimes % (10 units out of 428 total) of 3+ bedroom homes in Easton sold at prices affordable to 4 person HH at 80% AMI in past 6 months (Jan-June 2009) In the same period, 13 units sold for less than or equal to $160,000, which would be affordable to a 2 person HH at 80% AMI (these 13 units ranged from 1 bedroom to 3 bedrooms). BUT, the chances are good that low-mod income households did not purchase the homes that happened to sell at affordable prices. (According to Table 22 of the Housing Production Plan, approx. 66% of units that would be affordable to low/mod income households were occupied by households with higher incomes.) (Source: and Easton 2005 Affordable Housing Production Plan) Q.8. What type of homeowner is most burdened by housing costs in Easton? A. Families and elderly 17 Low & moderate income families that own their own home are significantly cost burdened in Easton: 42% of all low/mod homeowner HH are housing cost burdened families. Low/mod income elderly homeowners are also significantly cost burdened in Easton: 44% of all low/mod income homeowner households in Easton are housing cost burdened elderly. (Source: Easton 2005 Affordable Housing Production Plan) What does Housing Cost Burdened mean? To a housing policy analyst, a home is unaffordable to low- and moderate-income people if their monthly outlay for housing... exceeds 30% of their monthly gross income. (Source: Community Opportunities Group, Inc Affordable Housing Production Plan, page 31) Housing costs include: For homeowners - mortgage payment, property taxes, and home insurance (and condominium fees, if applicable) For renters - rent and utilities 17 Elderly = over 62 years of age 47 Easton Affordable Housing Trust Action Plan FY

51 Q.9. How many total units are for rent in Easton? A. 18% (or about 1350 units) of all households in Easton are rental. (Source: Easton 2005 Affordable Housing Production Plan) Q.10. How many income-restricted rental units does Easton have? A. Existing Affordable (Income-Restricted) Rental Units: 194 The Easton Housing Authority has a total of 194 public housing units for households with incomes at or below 80% AMI: 184 apartments for elderly 10 apartments for families 118 elderly people are on the waiting list for the elderly apartments with a typical wait of 6 months to 3 years. 616 families are on the waiting list for the family apartments with a typical wait of 2 to 7 years. (Source: Easton 2005 Affordable Housing Production Plan and the Executive Director of the Easton Housing Authority) Q.11. How much rent can a low-income household afford? A. Based on FY09 Fair Market Rents established by the US Department of Housing and Urban Development for the Easton-Raynham, MA HUD Metro FMR Area, a low-income household (at 80% AMI) could spend up to the following on rent: Unit Size FY09 Fair Market Rent Efficiency $842 1-bed $1,116 2-bed $1,298 3-bed $1,552 4-bed $2,244 Q.12. What are market rate rents currently? A. Based on an internet search in June, there is a minimal amount of units listed for rent in Easton: Unit Size # Units Listed Rental Price Range Median Rental Price 1-bed/studio 4 $625-$1500 $750 2-bed 3 $950-$1500 $990 3-bed 2 $1350-$1750 $1550 (note: most listing prices did not include utilities; no listings were available for 4-bed units) (Source: and June 23, 2009) Q.13. Can a low-income renter find an affordably-priced unit to rent? A. Possibly. Although the median rental prices are within a range that would be affordable to a low-income household, there are a very limited number of rental units on the market, at the time of this snapshot data (see Q.12, above). Easton Affordable Housing Trust Action Plan FY

52 Q.14. What type of renters in Easton are most burdened by housing costs? A: Families and elderly Low/mod income renter families are significantly cost burdened in Easton: 25% of all low/mod renter households are cost burdened families. Low/mod income elderly renters are significantly cost burdened, too.: 50% of all low/mod renter households are cost burdened elderly. (Source: Easton 2005 Affordable Housing Production Plan) What the facts tell us about Easton s affordable housing needs... FAMILIES Families have a significant need in Easton for affordable homes both to rent and to own. The greatest need compared to the amount of existing affordable units is among families who already own their home. Comparatively, Easton has a larger percentage of cost-burdened small families than any other community in the region. (Source: Easton 2005 Affordable Housing Production Plan) For every one affordable rental unit in Easton, there are 15 low/mod income renter families who are cost burdened: Cost Burdened Renter Families Affordable (Restricted) Rental Units (either for families or not age restricted) Ratio (cost burdened renter families to affordable rental units) :1 For every one affordable homeowner unit in Easton, there are 25 low/moderate income homeowner families who are cost burdened: Cost Burdened Homeowner Families Affordable (Restricted) Homeownership Units (not age restricted) Ratio (cost burdened homeowner families to affordable homeownership units) :1 49 Easton Affordable Housing Trust Action Plan FY

53 ELDERLY Elderly households are also in need of affordable homes in Easton. The greatest need for lowincome elderly compared to affordable units is among homeowners. For every one affordable rental unit in Easton, there are 1.4 low/mod income elderly renter HH who are cost burdened: Cost Burdened Renter Elderly HH Affordable (Restricted) Rental Units (both age-restricted and not Ratio (cost burdened renter elderly HH to affordable rental units) age restricted, including for persons w/ disabilities) :1 For every one affordable homeowner unit in Easton, there are 25 low/moderate income homeowner elderly HH who are cost burdened: Cost Burdened Homeowner Elderly HH Affordable (Restricted) Homeownership Units (not age restricted) Ratio (cost burdened homeowner elderly HH to affordable homeownership units) :1 ALL LOW/MOD INCOME HOMEOWNERS The homeownership tables, above, compare the same 19 affordable homeowner units to two different populations sets: elderly HH and families. Therefore, below we include data that shows all low/mod income homeowners (elderly, families, + others) compared to the same 19 affordable homeowner units. For every one affordable homeowner unit in Easton, there are 60 low/mod income homeowner HH who are cost burdened: AND, for every one unit that sold on the market at an affordable price in past 6 months, there are 88 low/mod income homeowners who are housing cost burdened: Cost Burdened Homeowner HH Affordable Homeownership Units Ratio (cost burdened homeowner families to affordable homeownership units) 1, (income-restricted) 60:1 1, (sold at market-rate past six months)* 88:1 * Note: The 13 units that sold in past six months were a variety of sizes and sold at prices less than or equal to $160,000 (which would be affordable to a 2-person HH at 80% AMI). (Source: Easton 2005 Affordable Housing Production Plan, calculations by JM Goldson; Sales data: Note 1: This analysis does not include vacancy rates, rates of unit turnover, and size of waiting lists. However, this information could further clarify degree of housing need. Note 2: This analysis of housing needs does not reflect a regional perspective. Detailed comparative regional analysis can be found in Easton s 2005 Affordable Housing Production Plan. The conclusions drawn from the Housing Production Plan correlate with the conclusions drawn here. Easton Affordable Housing Trust Action Plan FY

54 CASE STUDIES FOR JULY WORKSHOP What have other Affordable Housing Trusts in MA accomplished? Prepared for the Easton Affordable Housing Trust, Board of Trustees By Jennifer Goldson, JM Goldson, & Beth Rust, ECR Enterprises June 2009 Andover Population: 29,151 Density: 940 per sq. mile 2009 Median Single Family Sales Price: $480, Median Condo Sales Price: $180, Median S-F Sales Price: $583, Median Condo Sales Price: $291,950 Subsidized Housing Inventory: 8.9% Year Trust Established: 2005 Trust-Funded Projects: 1. Home for Autistic Adults: development of a new home by CMARC (of Woburn) for autistic adults 2. Homebuyer Unit: development of a new single-family home by Andover Community Trust (a non-profit developer) - the home was sold to an incomeeligible household with permanent affordability restrictions. 3. Home for Mentally Disabled: in process of developing a home for mentally disabled individuals by American Training (of Lawrence) 4. Homebuyer Unit: in process of developing a second single-family home by Andover Community Trust for sale to an income-eligible household What was one thing the Trust did to get off to a strong start? Created our own set of criteria of what s important. What do we want to fund? What is our purpose? What are our goals and objectives? Lisa Schwarz, Andover Planning Director 51 Easton Affordable Housing Trust Action Plan FY

55 Southborough Population: 6,628 Density: 468 per sq. mile 2009 Median Single Family Sales Price: $346, Median Condo Sales Price: na 2005 Median S-F Sales Price: $567, Median Condo Sales Price: $662,000 Subsidized Housing Inventory: 3.5% Year Trust Established: 2005 Trust-Funded Projects: 1. Housing Authority Purchase: a grant to the Southborough Housing Authority to purchase a 3-bedroom single family home that the HA now rents as family housing. 2. New Home on Town Land: through a partnership with a developer, developed a single-family home on town-owned land and sold it to a family as a permanent affordable ownership unit. 3. Home Rehab: purchase of a single family home, working with a local technical high school to do rehab work, then will sell it as an affordable ownership unit. What was one thing the Trust did to get off to a strong start? Once we got through the legal aspects of setting up, the first thing we did is meet and we already had an idea for a project. It was a tax title property. We already had money and within one year of creating the trust we already had a project going. There is nothing better than having a visible project to get going... Then the community sees that the Trust is a good thing and that nobody is wasting tax payer money. Vera Kolias, Southborough Planning Director Easton Affordable Housing Trust Action Plan FY

56 Sudbury Population: 14,358 Density: 589 per sq. mile 2009 Median Single Family Sales Price: $600, Median Condo Sales Price: 499, Median S-F Sales Price: $737, Median Condo Sales Price: $182,000 Subsidized Housing Inventory: 4.8% Year Trust Established: 2006 Trust-Funded Projects: 1. Habitat Project: Trust purchased vacant land and constructed a duplex by Habitat for Humanity for low-income first-time homebuyers. Habitat was selected through a request for proposals (RFP) for development on the one-acre parcel. 2. Home Preservation Program: purchase and sell existing homes with a permanent deed restriction to eligible first-time homebuyers. Two units add to the affordable housing inventory so far through this program. A third home is in progress. 3. Purchase Parcel: Trust purchased a second vacant parcel recently and is undergoing conceptual architectural design for a small development project of potentially six town houses. 4. Lottery & Monitoring Agent: Trust performs lottery and monitoring agent services for 40B projects in Sudbury and neighboring towns. This allows Sudbury to customize outreach to the local community and be a local presence during the application process. It also generates income for the Trust Fund. 5. Small Grants Program: The Trust operates a program to help seniors and other low-income homeowners fund health and safety repairs in their homes. What was one thing the Trust did to get off to a strong start? The first big think we did was a Habitat project. It was our first big successful project. And it brought wide-reaching positive impact to the community. We recruited some strong supporters to run local outreach and fundraising so the project was well supported. Beth Rust, Sudbury Housing Coordinator 53 Easton Affordable Housing Trust Action Plan FY

57 LIST OF PROJECT IDEAS Prepared for the Easton Affordable Housing Trust, Board of Trustees By Jennifer Goldson, JM Goldson, & Beth Rust, ECR Enterprises June 2009 (Updated June 30, 2009) The following project ideas are intended to provide food for thought at our workshop on July 2. The ideas are based primarily on the Housing Partnerships Action Items (which was, in turn, based on the Easton 2005 Affordable Housing Production Plan). The list also includes a few other ideas gleaned from the work of other Trust communities. They are listed in no particular order. We have included blanks at the end of the list for you to jot down your own ideas, if not already listed. 1 Home Preservation Preserve existing below-market homes as permanently affordable housing through buy down assistance program where trust funds are used to compensate existing homeownesr in return for deed restrictions. 2 Revolving Loan for Rehab of Rental Housing & Condominiums 3 Top of Shop Development Establish a revolving loan to offer low or no-interest loans to finance housing quality improvements in small, privately owned rental units and condominiums in exchange for an affordable housing deed restriction. Partner with a developer to identify private property with existing one-story commercial, acquire, and develop small studio/one bedroom affordable rental units as second story. Commission a market study to gauge demand for affordable housing unit types most needed. Assist first time homebuyers with down payment and/or closing costs to purchase a home. 4 Market Study for Unit Types 5 First Time Homebuyer Assistance 6 Duplex Subsidy Develop a subsidized mortgage program for existing duplexes that require one unit to be income-restricted. 7 Housing Coordinator Hire a part-time housing coordinator to administer housing programs and assist with project implementation. 8 Rental Assistance Establish a local rental assistance program modeled after local section 8 programs in Chatham and Harwich. Program can assist with rental housing costs as well as provide vehicle to save for homeownership. 9 Study Demand for Rental Assistance Commission a study to determine the demand for a local rental assistance program. 10 Purchase & Resale Establish a program to purchase existing units, rehab if required, and resell to low-income homebuyer with long-term affordable housing restriction. 11 Redevelop Sites Identify and prioritize older buildings with redevelopment potential to acquire, issue RFP, select developer, and sell/ lease to developer for conversion to affordable housing. Develop list of prime redevelopment sites. Easton Affordable Housing Trust Action Plan FY

58 12 Property Tax Incentive 13 Develop Surplus Town Land 14 Build Relationships with Developers 15 Develop Home for Special Needs 16 Housing Authority Family Housing 17 Lottery/Monitoring Agent 18 Homeowner Grants for Small Repairs 19 Increase Affordability of New Developments 20 Foreclosure Prevention Assistance 21 Connect Easton Residents to Existing Programs 22 Other Develop program to reduce or waive property taxes for landlords who rent units to low-income tenants who grant Town/Trust right of first refusal to purchase home at a reduced price. Identify town property that could support affordable housing development. Transfer property to Trust for master planning and RFP/developer selection process. Establish working relationships with developers working in the region. Work with Housing Partnership to generate list of local CDS and developers, invite representatives in to meeting(s) and/or hold a summit of local CDC s to discuss local housing issues and goals. Work with developer and appropriate service agency/organization to develop group home(s) for autistic adults, mentally disabled, or other special needs groups. Fund Housing Authority purchase of property for new rental unit(s) for families. Trust performs lottery and monitoring agent services for 40B projects in Easton and neighboring towns. (Income generating). Establish a program to help seniors and other low-income homeowners fund health and safety repairs in their homes. Use Trust funds to subsidize new housing developments (including those under c.40b) to increase percentage of affordable units. Study need for foreclosure prevention assistance in Easton and analyze applicability of existing federal, state, and private programs. If study determines there is a significant need that is not met by existing programs, create a local program to assist low-income homeowners at risk for foreclosure. Link Easton s residents to existing state, federal, and private housing assistance programs by providing a central local repository for program descriptions and applications with staff assistance. Keep information up to date and locally publicize availability of funding and deadlines. 23 Other 55 Easton Affordable Housing Trust Action Plan FY

59 RESULTS OF WORKSHOP ON 1 JULY 2009 Prepared for the Easton Affordable Housing Trust, Board of Trustees By Jennifer Goldson, JM Goldson, & Beth Rust, ECR Enterprises, July 2009 On July 1 st, the Board of Trustees held a workshop with participation from representatives of the Board of Selectmen, Planning and Zoning Board, Community Preservation Act Committee, Council on Aging, Board of Assessors, Finance Committee, Historical Commission, Fair and Affordable Housing Committee, and residents in addition to Board of Trustee members. The workshop s intent was to help inform the Board of Trustee s initiative to establish goals and priorities for the Trust. In a focus group format, facilitated by the consultants, the participants answered the following questions. A summary of the group s responses to each question, as recorded by the consultants, are included below. Question 1 A. Why did Easton create the Affordable Housing Trust? address Easton s lack of affordable housing stabilize housing and economic markets develop and formalize procedures on planning and spending affordable housing funds provide a vehicle to spend CPA affordable housing money find creative ways to increase affordable housing help manage state and federal assistance help determine direction that 40B planning would take be proactive in getting to state s 10% affordable housing mandate promote and develop affordable housing dedicate revenue to create affordable housing create family, elderly, veterans, and handicap housing implement the housing production plan separate funds from the revenue stream for housing create an action plan to make progress on addressing problems associated with affordable housing preserve lower cost housing for younger and senior residents create more centralized responsibility for creating affordable housing enable new acquisitions and/or repairs for low income households make more units available to those in need assist CPA in spending allotted funds plan housing and be proactive (rather than reactive) assist qualified residents Main Themes of Responses: establish and execute proactive housing agenda creating units and helping people promote and fund affordable housing as a centralized municipal service use Trust as a repository for CPA housing funds Easton Affordable Housing Trust Action Plan FY

60 B. What problems do you believe the Easton Affordable Housing Trust should help address? Lack of affordable housing for larger families (in need of 3 or more bedrooms) and seniors Assist community with preservation of local assets Small repair needs of community Addressing NIMBY ( not in my back yard ) complaints Disburse affordable housing throughout community Implement plans for future growth of trust and be proactive rather than reactive Ability of families to com up with a down payment 10% goal per 40B Seniors having to sell homes because they can t afford to stay in them Public relations educate about affordable housing, community needs, and 40B Encourage diversity Maximize tax revenue from existing structures (e.g., encourage top of shop developments) to lower tax rate Increase quality of current affordable housing stock Assess and prioritize affordable housing options Short-term foreclosure assistance Repair distressed properties Start with less expensive options to create success for the Trust and support for future projects Proactive in developing LIP (local-initiative projects) as opposed to reactive Conversion of existing properties to protect the character of Easton Make more affordable units available (both rental and homeownership) Work with developers and give more input from the town Main Themes of Responses: struggling families and seniors shortfall of units counted on state s Subsidized Housing Inventory lack of public understanding of affordable housing needs 57 Easton Affordable Housing Trust Action Plan FY

61 Question 2 What do you hope the Easton Affordable Housing Trust will accomplish in the next five years? Establish small grant/loan program for home repairs to assist qualified residents Increase stock of both rental units and homes meeting affordable requirements Increase public awareness of local housing needs both for users and vendors (e.g., banks, developers) Develop town owned land with qualified units Work with developers leverage trust funds with other available funding source Develop relationships with local banks Identify funding sources for trust Expand housing options Make progress, even slight, to improve housing Establish programs for first time homebuyers, moderate/low income households, foreclosures, and seniors Reach out to residents needing housing assistance make information available on existing housing programs of the trust and others More options for seniors to stay in their home and to make necessary repairs or provide assisted living options Reach 10% mandate Create out of the box ideas Identify housing needs Buy-down 10 units Educate homebuyers Communicate impact of 40B and affordable housing people don t understand that if you do a little at a time you can get the job done Create affordable rental units Identify where town policy contradicts regional and state policies Identify housing needs for both rental and homeownership Scatter affordable housing throughout existing neighborhoods using existing homes Follow through on town s housing goals Manage the trust effectively Forge relationships with developers Adopt inclusionary zoning Main Themes of Responses: create affordable housing assistance programs and units educate public about affordable housing needs and connect residents to housing assistance leverage funds in Trust with other public/private funds advocate for creation of affordable housing and local policies that promote housing create accountability for management of the Trust Easton Affordable Housing Trust Action Plan FY

62 Question 3 On the Easton Affordable Housing Trust s 5 th anniversary, the Easton Journal runs a cover story about the Trust. What is the headline? Affordable Housing Embraced by Easton Hundreds Helped by Trust Affordable Housing Successes Five-year Miracle Trust Meets Affordable Housing Crisis Head-On Happy Homeowners Thank Trust Residents Celebrate 100 th Home Goal Easton Trust Honored as a National Model Easton Trust Celebrates Success Trust Adds 40 Units of Affordable Housing Trust Helps Maintain Desirability and Character of Town Trust Helps to Slow 40Bs Main Themes of Responses: be proactive & intentional not passive focus on producing units (and helping people, too) 59 Easton Affordable Housing Trust Action Plan FY

63 Question 4 What should be the Trust s top four priority programs or project types? Why? Description Type Dot votes 1 Redevelop Existing Properties (could be Project/Development 12 historic properties) 2 Develop surplus town-owned land and/or Project/Development 10 tax title land 3 Establish local buy-down/home Program 10 preservation program (purchase, rehab, resell with restriction) 4 Promote adoption of Inclusionary Zoning Community Outreach 10 Bylaw 5 Small Repair Program/other loans to Program 7+3=10 allow homeowners to stay in homes* 6 Educate residents (and developers) about Community Outreach 7 existing housing programs and how the Trust can help 7 Firsttime homebuyer loans (with deed Program 3 restriction) 8 5, 10, and 20 year plan for Trust with Planning/Management 3 identification of housing needs 9 Foreclosure prevention assistance grants Program 2 10 Work with banks and developers to provide affordable housing programs and leverage trust funds Community Outreach 1 *This program combines two categories that were voted on into one due to similarity of program intents (small repair program + program to allow homeowners to stay in homes). Main Themes of Responses: create units through development projects as well as assistance programs educate about & advocate for affordable housing Easton Affordable Housing Trust Action Plan FY

64 WARRANT ARTICLE Warrant Article 23, below, lays out the Easton Affordable Housing Trust s bylaws. ARTICLE 23. TO ACCEPT THE PROVISIONS OF M.G.L. CHAPTER 44, SECTION 55C AND TO AMEND THE CODE OF THE TOWN OF EASTON TO ESTABLISH THE EASTON AFFORDABLE HOUSING TRUST FUND To see if the Town will vote to accept the provisions of Massachusetts General Laws Chapter 44 Section 55C establishing a trust to be known as The Easton Affordable Housing Trust Fund whose purpose shall be to provide for the creation and preservation of affordable housing in Easton for the benefit of low and moderate income households, and in implementation thereof will vote to amend the Code of the Town of Easton by adding the following as section CHAPTER 20 THE EASTON AFFORDABLE HOUSING TRUST FUND Composition. There shall be a seven (7) member Board of Trustees (hereinafter the Board ), one of whom shall be a member of the Board of Selectmen. The Board of Selectmen can appoint the Town Administrator as a member or chair of the Board with or without the power to vote. All trustees are to be appointed by the Board of Selectmen. They shall serve for a term of two (2) years, except that four of the initial trustee appointments shall be for a term of one (1) year. In the event of a vacancy, the appointment shall be made in the same manner as the original appointment Organization. The Board shall annually elect one Trustee who shall serve as the Chairperson and a second Trustee who shall serve as a Clerk Meetings of Trustees. Meetings of the Board shall be held on a regular basis. A quorum of the Board shall be the majority of the number of authorized Trustees. A trust is a governmental body for purposes of Section 23A, 23B, and 23C of M.G.L. Chapter 39, the Open Meeting Law Powers. The Board shall have the following powers, all of which shall be carried on in furtherance of the purposes set forth in Massachusetts General Laws c. 44, 55C, except that the purchase, sale, lease, exchange, transfer or conveyance of any interest in real property shall be subject to the approval of the Board of Selectmen, and except that the incurring of any debt, borrowing of any money, granting of mortgage or the pledging of trust assets shall be the subject to the approval of Town Meeting by a two-thirds majority vote: (1) to accept and receive property, whether real or personal, by gift, grant, devise, or transfer from any person, firm, corporation or other public or private entity, including without limitation grants of funds or other property tendered to the trust in connection with provisions of any zoning ordinance or bylaw; (2) to purchase and retain real or personal property, including without restriction investments that yield a high rate of income or no income; (3) to sell, lease, exchange, transfer or convey any personal, mixed, or real property at public auction or by private contract for such consideration and on such terms 61 Easton Affordable Housing Trust Action Plan FY

65 as to credit or otherwise, and to make such contracts and enter into such undertaking relative to the trust property as the board deems advisable notwithstanding the length of any such lease or contract; (4) to execute, acknowledge and deliver deeds, assignments, transfers, pledges, leases, covenants, contracts, promissory notes, releases and other instruments sealed or unsealed, necessary, proper or incident to any transaction in which the board engages for the accomplishment of the purposes of the trust; (5) to employ advisors and agents, such as accountants, appraisers and lawyers as the board deems necessary; (6) to pay reasonable compensation and expenses to all advisors and agents and to apportion such compensation between income and principal as the board deems advisable; (7) to apportion receipts and charges between incomes and principal as the board deems advisable, to amortize premiums and establish sinking funds for such purpose, and to create reserves for depreciation or depletion or otherwise; (8) to participate in any reorganization, recapitalization, merger or similar transactions; and to give proxies or powers of attorney with or without power of substitution to vote any securities or certificates of interest; and to consent to any contract, lease, mortgage, purchase or sale of property, by or between any corporation or person; (9) to deposit any security with any protective reorganization committee, and to delegate to such committee such powers and authority with relation thereto as the board may deem proper and to pay, out of the trust property, such portion of expenses and compensation as the board may deem necessary and appropriate. (10) to carry property for accounting purposes other than acquisition date values; (11) to borrow money on such terms and conditions and from such sources as the board deems advisable, to mortgage and pledge trust assets as collateral; (12) to make distributions or divisions of principal in kind; (13) to comprise, attribute, defend, enforce, release, settle otherwise adjust claims in favor or against the trust, including claims for taxes, and to accept any property, either in total or partial satisfaction of any indebtedness or other obligation, and subject to the provisions of this act, to continue to hold the same for such period of time as the board may deem appropriate. (14) to manage or improve real property; and to abandon any property which the board determined not to be worth retaining; (15) to hold all or part of the trust property uninvested for such purposes and for such time as the board may deem appropriate; (16) to extend the time for payment for any obligations to the trust; and (17) to accept and receive money from Chapter 44B ( Community Preservation Act ) and from the Town of Easton Funds Paid to the Trust Notwithstanding any general or special law to the contrary, all monies paid to the trust in accordance with any zoning by-law, exaction fee, or private contributions shall be paid directly into the trust and need not be appropriated or accepted and approved into the trust. General revenues appropriated into the trust become trust property and to be expended these funds need not be further appropriated. All moneys remaining in the Easton Affordable Housing Trust Action Plan FY

66 trust at the end of the fiscal year, whether or not expended by the Board within 1 year of the date they were appropriated into the trust, remain trust property Liability Neither the Trustees nor any agent or officer of the trust shall have the authority to bind the Town, except in the manner specifically authorized herein. The trust is a public employer and the members of the Board are public employees for the purposes of MGL, Chapter 268A. The trust shall be deemed a municipal agency and the Trustees special municipal employees, for purposes of MGL, Chapter 268A Taxes The trust is exempt from MGL Chapters 59 and 62, and from any other provisions concerning payment of taxes based upon or measured by property or income imposed by the Commonwealth of Massachusetts or any political subdivision thereof Board of the Town The Trust is a board of the Town of Easton for the purposes of Chapter 30B and Section 15A of Chapter 40; but agreements and conveyances between the trust and agencies, boards, commissions, authorities, departments and public instrumentalities of the town shall be exempt from said Chapter 30B Treasurer/Collector as Custodian The Treasurer/Collector shall be the custodian of the Trust Fund s funds and shall maintain separate accounts and records for such funds. Any income or proceeds received from the investment of funds shall be credited to and become part of the Trust Fund. In accordance with M.G.L. Chapter 44, 55C, the books and records of the trust shall be audited annually by an independent auditor in accordance with accepted accounting practices. 63 Easton Affordable Housing Trust Action Plan FY

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68 ECR ENTERPRISES ELIZABETH C. RUST (978) JM Goldson community preservation + planning Jennifer M. Goldson, AICP jennifer@jmgoldson.com