Um, this is the town aair's community preservation committee. I'm going to read the text for remote participation. It's Wednesday, June 4th, 7 p.m. In accordance with chapter 2 of the acts of 2023 suspending certain provisions of the open meeting law, public bodies
otherwise governed by the OML are temporarily relieved from the requirement that meetings be held in public places open and physically accessible to the public so long as measures are taken to ensure the public access to the body's deliberations
through adequate alternative means. This meeting will be live on Zoom. The public may participate remotely by joining Zoom meeting ID number of 8408772826 or by calling 929-2056099. For additional information about the remote participation, please
contact Carly Antanellis, the assistant town manager at atmair.mma. us or 978-772-8220 an extension 100 prior to the meeting during business hours. Again, thank you very much for everybody
for showing up. Um again, call the meeting to order. I'm going to go ahead and look for um an approval of the of the agenda. Can I hear a motion to the approve the agenda unless someone's got any type of All right, Julie makes the
motion. Second. All right, Beth. Yeah, Beth seconds. Let's do a roll call. Um, let's see. I'm trying to see on Hollywood Squares here. Uh, Julie, yes. Jess, hi. Beth, yes. Barry, yes. And
Kevin, hi. And who? Colleen's not here. Okay. Yeah, I'm just looking. Just making sure. All right. And chair says I. So, well, it's been passed. All right. Approval of the minutes. And
these are the minutes of um Oh, uh May 7th. Okay. Hold on. Okay. The date looks like it's January 15th. Oh, I think I caught
that after I send it to you guys. So, I've got it on mine is all right. 7th. Yeah. Okay. The other correction that I have is when you talk about the Devon's Crest Tenants Association. Yep. It's
DCTA, not DTA. What page are you on? Um, any place that you have in parentheses you talk about DTA, it should be DCTA. Okay. Crest Tenants Association.
Got it. Okay. So, I think that there's five. Um, okay, I'll find them. I know you will. Okay. And on the last page when we're talking planning boards, Julie's um comment on for committee comments is
uh the board's focus now is the open space and residential development off of High Street and Graten Harvard Road. It's called Lincoln Hills, not Lincoln Fields. They do that, don't they? That's okay. The developer is the field, right? I I Yeah, I think I did that one other
time. Yeah, which is okay. I mean, it's Strawberry Field forever. Um I um that's that's what I have for for any type of corrections. Did anybody see anything else? Group? Nope. Thank you. Okay. Motion to approve
with the revisions discussed. I Beth made the motion. Julie seconds. Okay. Roll call. Uh, Jeff, hi. Julie, yes. Beth, yes. Barry, uh, I wasn't here at the last meeting,
so you can still vote. Oh, okay. I did read the minutes, so yeah, I'm good. Okay. And Kevin? Yes. Okay. And chair says I. So, as amended. Excellent. Thank
you. Okay. on um correspondence. Can you believe it? No invoices and no additional correspondence other than um what we've got information for our new business uh coming up later on in the in the
program. Um next on the agenda is just old business and I'm just doing an update on our grant agreements. Um I resent them to Robert. Robert has sent them on to town council and um I did make a comment
with regards to Beth. You recommended that we can um put the two uh housing trust ones possibly together. Um he's going to see whether or not that will work because the first request had it broken down that 3,000 was being used
for um the um oh gee whiz um when somebody gets uh you have your books checked. I know when you have your books checked audit an audit. Thank you. I know I'm coming up with the word with
an I. Um the independent auditor. Um, and we had that $3,000 and you know, they had the $3,000 put to the side. Um, they're going to try to figure out how to work that instead of just being it was a blank of 200,000 and 200,000 that was broken up. So, um, but so they've
got um right now town council is looking at three, the 71 Sandy Pond, the Newton Street, as well as the um uh the two housing um trust. So, pretty much that's the update. I wish I
had more, but I don't. We have to do one for the library roof, right? Correct. Okay. Right. And I haven't I haven't generated that yet. Okay. But again, let's get the feedback from town council because again, we we worded it more
legally with the whereas and all that. So, let's make sure that um that looks good. Um all right, now. Okay. Any other questions from the team? Nope. Okay. All right. Then moving on,
we've got the new business, which is um Connie. Um we've got the Devon Crest Tenants Association funding request. Um it is the um the funding the availability request. Um and this way
here we can go ahead and um again review it and see what type of questions that we could you know that we might have as as well as as they move forward. I think that would be good to um go ahead and like I say um get the the paperwork
started. Um I'm going to if there's nothing else I'm going to turn it over to Connie. Great. Thank you Madam Chair. Uh, Connie Sullivan, I I know many of the members um on your committee. For those that that don't know you, don't know me. Um, I'm a longtime resident of
the town of Air. I think it's been 35 or 36 years. Live on uh at 79 East Main Street and am a former uh selectman for the town of Air as well as a current member of the Devon Crust Tenants Association. Tonight I have uh part of
our team and and we have a pretty extensive team that's been working on uh maintaining the Devon Crust neighborhood as an affordable uh housing community. But I have with me tonight a fellow DCTA member, board member Denise Peralt uh
who I think said hello to you earlier, Janet. Uh we also have uh Richard Hanken who's the president of the Shocket Companies. Uh the Shaki Companies is the development partner that has teamed up with DCTA to help us purchase the uh
property uh at Devonscrust from Brady Sullivan. Uh Rick or Richard Hanken has brought with him I believe Albert Ricker who's the vice president of acquisitions and development for the Shocket Companies. And we have uh uh our town
council or not our town council, our DCTA council uh Dan Carlston uh who's an attorney with uh Foley Hogue. Uh Dan will also be helping us with the slide presentation. So, I'd like to give u
Denise Peralta a a moment just to say a few words to the committee and then I would like to uh then pass the meeting over to uh Richard Hanken uh to give a presentation on or project overview uh
of uh the Devon's Crust project. So, if we could uh start with and then then I'll circle back with myself with the request that we're making tonight. Okay. Do um um Dan, do you want me I I think you are you able to share your
Yeah, I can I can share my screen and share the presentation. Okay. So, if we could just have Den Denise, are you still there? Yeah, I'm here. Um I just wanted to acknowledge Bill. I don't know if you mentioned Bill Barlow being there too as well.
Um anyway, um what's what's Bill's last name? Bill Balo. He's also a board member. BA Go ahead, Bill. You can speak. Yeah, Bill Bar DCA uh tenant and board member. And how do you spell your
last name? B A R L O W minutes. So, um actually it's William if you want to get correct. We're not that formal. So, good evening and welcome everyone. Um, I'd like to thank the town and all
the elected officials on behalf of the DCA DC I was going to say DCA DCTA board members and the Devon Press tenants. It has been a very long unknowing journey since June of 2021. So, it's now four years. Many of us could never have
imagined that we could come this far. This has truly been a blind faith walk. We have worked hard and continued our ongoing due diligence to get where we are today. Though there are some things to sort out, we are truly optimistic that we will reach our goals. We
appreciate you taking the time out of your busy day and we look forward to finishing the race. The town's continued support is critical to our chance of success in this project. Again, thank you. Great. Thank you, Denise. Madam Chair,
if I could You're welcome. Thanks. If I if I could have uh Richard Hen lead the uh u an overview of of the project. Hi. Thank you. Thank you, Connie. Um thank you, Madame Chair. Um thank you,
Denise. Uh Denise, you nailed it. Um we have come incredibly far. Um and we really are rounding third and heading home. Um and and I do not want to jinx it. Um but but we've made great progress
and it's been an incredible team effort and it's been such a joy to get to know Denise and Bill and all the folks um on the DCTA and all of the great pro bono lawyers
um who've been giving tons of their time um to to to getting this moving. So thank you for the opportunity. Thank you for making the time for us. Um wii with me tonight um is is Bert Roiger um who is Shocket Company's um head of development and
acquisitions. Um Shockit is a um 50 plus year old company. Um we've been owning, operating, developing affordable housing throughout New England uh for the full 50 years plus. We currently own and/or
operate approximately 5,500 units across New England. Um 95% of which are affordable um in one or another program. Um we've got lots and lots of experience working with and for
nonprofits. Um a couple of local CBCs um in and around Boston. um as well as a national um faith-based nonprofit based in Long Beach, California, with whom we've pres acquired and preserved over 3,000 apartments and kept affordable. Um
we pride ourselves on um being truly missiondriven. Um our business is to take care of folks. Um we take care of lots of lowincome often very frail elderly um as well as
families. Um and and our primary goal is to keep the residents happy and to offer services enriched housing um primarily for for for lower income uh folks. Um so that's kind of who we are. Um we've been doing this for a long time. Um we've
been doing this for a long time especially in Massachusetts. um and they've been able to develop, you know, long and deep and strong relationships um wi-i with with with the state h housing finance agencies and EOHLC, etc. Um next
slide. All right. So, so I I I think you all are are pretty familiar. Um, I I know I I I bored you to death interminably a few weeks ago, so I will try to be more succinct. Um, uh uh but
um initially built in the 40s and uh targeted to military families, the property has for years been an excellent housing option for lower income folks in town um seeking to to to stay in air. uh
at rents approximately 50% of what true market rents were. Um, as so often happens, um, the older generation owners, um,
were looking to sell and as often happens, the property was sold to a so-called value added developer, uh, Brady Sullivan, who acquired it with the intention of renovating the apartments
and more than doubling the rents, which would result in the potential displacement of current residents and almost as important the long-term loss of what up until that point had been what we call naturally occurring affordable housing. So housing that
people can actually afford that doesn't have any kind of subsidy program attached to it. Um a value added developer such as Brady Sullivan, this is this is what they do. um they they they they see hidden value. Uh they
invest in upgrading the properties uh so that they can achieve market rents and they're able to buy the property based on the then current value, the really low rents, hoping to make a uh outsized return.
Um so um Brady Sullivan bought the property in 2021 and it immediately started to um increase rents and you know force tenants to leave who couldn't afford to
stay. Um, at that point, and this was a little before my time, uh, the DCTA organized in order to preserve their tenencies, protect their homes before they were lost to market. Um, that was the Devon Crest Tenants
Association. they began meeting um they got significant state support uh backed largely by our state senator um Jamie Eldridge um that provided for consulting services and some pro bono legal help as
they tried to to fight against the the the uh uh uh not necessarily evictions but the big rent increases that were de facto evictions. Um Dan, next slide,
please. Um so DCTA always had in their mind that they wanted to buy the property back from Brady Sullivan um and tried to get the Brady Sullivan
folks to return their phone calls. And again, before my time, this is what I hear. Um, and because they weren't a an experienced development company with a
balance sheet, um, Brady Sullivan did not want to talk to them because they did not think there was any way that the residents could perform. So, in early 2023, spring of 2023, DCTA put out an
RFP looking for developers who'd be willing to partner with them uh to be able to negotiate with Brady Sullivan to acquire the property and preserve it for the long term. Um, and so they were looking for someone um that that that
had experience, had relationships, had done this before, and had a balance sheet, right? So, they would be comfortable that if we said we were going to buy the property, we could perform, we could borrow money, and we could make up the difference with um our
own uh equity. Um, so we've been working with DCTA to achieve two very important sets of results. um structuring and executing a deal that will preserve the housing for low-income residents, both current and
future. And that's sort of job one is is protecting the folks who are there and being able to pass as many of the apartments as possible on to
future generations um of of folks um at at at lower incomes um with the ultimate goal of providing an opportunity for tenant ownership of the property. So, um, again, we want to get you up to
speed. We want to tell you a little bit more about what we're doing. Um, and then begin a discussion about, um, our ask of you all, uh, of some financial support for the project from the town.
Dan. Okay. So, where are we? Um, it took a long time to get Mr. Brady at Brady Sullivan to engage. Um, but we didn't give up. The tenants association was unbelievable. The community was
unbelievable. And it resulted in Brady Sullivan agreeing to sell us the property. uh and we secured that right by executing a purchase and sale agreement in March of 2025. Um the secretary of housing and li
living communities um Secretary Augustus whom I know some of you met when he visited the property in 2024 has taken a deep personal interest in this project in the residence and in preserving the housing. Um, and frankly,
he's been instrumental in getting us this far. What what got Brady to finally agree to to put this thing under agreement was a Zoom call with Brady and me and the secretary. Um, so we're currently in our due diligence phase.
Um, and um, a lot of what I've said, a lot of what I'm going to say, um, we we we've been under some strict confidentiality until recently. Um and and you know this conversation is permitted as part of the
due diligence process. Um the actual purchase price remains confidential. Um but but can be disclosed following completion of the due diligence period. Um and and Mr. Brady is quite pnikity
about confidentiality. So we're being really careful to share as much as we can with as many as we can um without without crossing a line. Uh, next slide. So, as you may or may not know, the property consists of 37 buildings,
most of which are two units with a few containing up to six, spread across four streets in an attractive rural location with excellent access, as you well know, to intermediate roads and highways. The access to Route Two is great. Um the
neighborhood um is quite attractive um and it's very very different from your typical um uh uh affordable housing transaction, you know, to the extent that it's just 114 units spread on some beautiful
suburban streets. Um, when we initially started talking with Brady Sullivan, they had renovated 30 or 40 units and had we there were a bunch of uh original tenants still in place and we
thought that we could have a mostly uh a mostly affordable at a relatively low income threshold. called property. Um, unfortunately,
while Brady ignored us and while we time passed, he very aggressively uh did his rehab, vacated units, and then released uh 79 of the 114 units are currently uh
ren fully renovated and at full market rent. um he had great success with those units with with with with doing his work and actually filling the units quickly and and getting his asking rents. Today there are approximately 35 original
tenants who are paying the old affordable rents in the unrennovated units. So, the first thing we're going to do um when we acquire the property is to do a
soup to nuts rehab of the 35 unrenovated units. um they will be at least to the standard that Brady has done them which truly is a pretty good standard. He did
a pretty good job um to the extent that there are any deficiencies technical deficiencies um relative to to what he did um compared to what HLC requires. Um we
will we will obviously go up to that the uh uh EOHLC standards. Um and again based on we've inspected a good portion of the units and it appears that the 79 renovated units will comply and so won't
need uh much if any work. So part of the benefit of all of this uh and we expect to spend upwards of a h 100,000 a unit um is that that Denise and Bill will get
beautiful brand spanking new units um without their rent doubling um and and and frankly Bill and I have talked and he has some good design ideas that we want to make sure our contractors uh uh bet with him because I think he knows his way around a building. um certainly
a lot better than I that's not my area of expertise. Um the other thing and I don't think it's in these slides. Um part of part of the transaction will involve creating six
fully 2025 code compliant handicapped accessible. So we think that's a great thing. Um uh and and that is you know that that will be required of us by the state. Um and that is baked into our numbers and our plan.
Um our due diligence is is ongoing. Um and and it really is a soup to nuts evaluation of everything related to the property. um physical condition, uh the state of the units, um tons of environmental
testing. Um uh all of which uh checking his numbers, making sure that people really are paying the rent that he says they're paying. Um and all of that, um has come back, um
really better than our expectations. So when we modeled the transaction in many cases we assume the worst. Um and and and in fact you know we we we've been very pleasantly surprised with what we've seen. Um virtually all of the
environmental studies have come back as clean and pure as anything I've ever seen in my career. Um which is great news. Um we the last sort of big pieces of due diligence that we're working on are a
survey. Um and we waited till sort of later in the game making sure that there was nothing that troubled us in the early stages as we went through all of this, you know, gathered all the rest of this data because a survey is very very expensive especially for a property like
that. um non-ontiguous spread out over multiple streets and multiple acres. Um so we've just hired the surveyor to come in and and and do that. And then the other thing that we're working hard on um is
figuring out what the resident incomes are. And Brady did not want us, and we've done this before, where we communicate with residents and and try to get their information uh before an acquisition. And Brady did not want us talking to his
residents until I told him that environmental is fine, you know, um uh uh title is fine, um and a whole bunch of other things. So, week and a half ago, letters went out to all 114 residents. We're hoping
to get information back. We've discerned a bunch of information from Brady's files um and are just trying to figure out what the income mix will look like going in.
Um when all is said and done um we will 100% of the units will be um capped for new occupancy at 80% of AMI with a subset of 35 units capped at
60 and and this is still sort of open to sort of some final uh uh negotiations. But that's sort of the basic program. Um, no one will be displaced, but on turnover to the extent
anyone is over 80% income, when they leave, they'll be replaced with somebody who is at or below 80%. Um, and you know, we will manage through that as we go. Um but we believe
that with the affordability covenant in place um all 114 units can be added to heir's subsidized housing inventory for the purposes of 40b compliance. Um, and I think at the last meeting I mentioned
we we we did a similar uh project in the town of Franklin where we took 288 units um and without without an without a single new
unit being built because we put an affordability um covenant in place um uh they were able to get credit for all 288 units. Um, so we think that's a real benefit to the town to the extent it gives you more control over future
development and and a little bit more leverage um, you know, with the state and and with developers um, who who may want to build more densely than than than the town wants. Um so as I said um the 35 unrennovated
units will be restricted to households earning no more than 60% of area median income and rents will be capped at 30 or 60% of AMI
um depending upon income eligibility which we expect to be at or close to 100% of those 35 units. It's expected that all of these folks will receive projectbased subsidies.
It's unclear exactly what form that will take, but we've got sort of verbal commitments from the state that whether it's section 8 or projectbased mobile vouchers or MRVPs that some combination
or permutation will provide basically, you know, perpetual uh uh uh subsidy uh for um very low income folks. The remaining 79 years
will be restricted to no more than 80% of AMI for household income and the rents will be set at 30 of 80%. And as I said, no current tenants will be displaced. Um but as units become vacant, they'll be rerented in
accordance with the covenants. Um so we expect and are happy that as a condition of financial support were the town to provide it you guys would be among the parties benefiting from the affordability covenant of course um and
would have the right to enforce its terms and the the the the getting to 30% of 80% you know would be a best efforts um because we can't run on a fowl of fair
housing um to to force people out. But but you know we we we expect that that there's enough natural turnover that we will get the right unit mix. Next slide. Okay. So we agreed that
90% of our due diligence was done um uh uh and we had May 18th to either walk or be satisfied. Um, but we've extended for 60 days with the seller's consent to complete the survey and to get the
resident income information. And once due diligence is done, um, contractually, we've got up to 90 days to close, plus we can extend for an additional 60 days each with two options.
um we are circling October 31st for a closing. We don't want to have to go get extensions. Um we want to make sure that we get the state financing all lined up. And so that that is our plan. Um and so
along those lines are actively actively engaged with uh HLC and um we have a verbal commitment from a private equity source who will
bring the remaining um funds to get the deal closed. Um and just very quickly the the capital will be a combination of debt, private
equity, EOHLC, soft debt, and whatever the town contributes um uh to to the to the capital stack. So again, we're shooting for October 31st. Um, and I know timing is critical and I
know, you know, your process is is is somewhat fixed. Um, and so, you know, to the extent that you're providing funds, um, we don't need them to close. We can
borrow them from another source. Um but um they need to be committed um in order to satisfy so many of our other sources, right? Uh our equity uh
as well as HLC um who before they write a really big check are always looking for um community support. And I always have the conversation and I say, "Gee, will a letter do?" And they kind of laugh at
me. Uh so um uh uh uh that that that sort of underscores the importance um of financial support from from from the town. Next slide. So, as we sit here today, we are
expecting that this property will benefit from 10 to 10 a.5 million in in in grants, if you will, from the state. Um, in addition, um, in a really scarce voucher
world, we've got verbal commitment that they're going to find 35 vouchers for our little deal. Um, so they are stepping up really more than anything I've ever seen. Um, I think partially
due to Bill and Dian's uh uh Denise's uh uh wi wi winning personalities and and and sales skills. Uh so the estimated project budget will be about $40 million. Um all all all in including
acquisition, construction, soft costs, reserves. Um and the state loves that because if we were to go into them and start a new deal
from the drawing board instead of 40 million, right? So, we're, you know, well under 400,000 a unit. Um, it'd be starting at 8 or 900,000 a unit. So, it's really good value for the state.
Um, so given all of that, um, I think, you know, we we we we we are asking for a contribution of 5,000 per unit from the town, which is a total of 570,000 to help fund the deal and to be
a strong show of support um for the state. Um as as you all know um we're also engaged in conversations with the affordable housing trust regarding project funding.
Um finally um we are discussing um entering into some sort of tax agreement with the town um to to to to get some relief there um to help um fund
operations and let us do more and other things on the project. Okay. I I know and and and I am as far from a CPC expert uh as you'll ever get. Um, but from what I do know
and with with Dan's help, um, uh, uh, uh, uh, and the rest of the team's help, um, I think that that that we can say definitively that the project addresses and satisfies many of the general
criteria required for CPA funding. See, what's C, what's CPC? I meant to say CPA. Um so first um it falls under a community housing category that creates and maintains affordable
housing. It prevents displacement of DCTA community members. It is clearly practical and feasible. Um it can be implemented expeditiously and within budget. Um, we
will close hopefully this Halloween and within 12 to 18 months we will be done rehabbing the units. Um, we can provide proof of sight control sort of at any time. Um, I guess technically if I did
it today I'd have to redact the price but but you know we can certainly prove that. Um certainly we will leverage additional public and private funds besides CPA funds. You know, again, including um a a a significant check
from private equity uh and and 10.5 million plus or minus of state funding as well as all the voucher support aboard. Um, we think it'll help the town achieve its 40b
goals as as 100% of the units will will be uh uh treated as affordable for for uh SHI uh uh uh purposes. Um, and we've gotten good support, thank you, thank
you, thank you to all of you, um, from some other town of Air committees, excuse me, and community groups. We've gotten letters of support from the select board, um, and the chair of the affordable housing trust. So, thank you for that.
Um, next slide. Okay, I think I'm to hand it back to Connie. Um, unless folks have questions. Yeah. I I I would suggest, Madam Chair, if you're you or your committee members have uh some questions, now now would be
an appropriate time to to ask them. Um, okay. Um, I I think that that would be good. I mean, again, we definitely want to keep affordability in the town. um as as you well we're we're having a
difficult time um you know with um some of the new houses that are coming on and and whatever. So we want to make sure that the funds are being used wisely. Um one I mean there's there's quite a few questions that I have. Um but one thing
I do want to make mention in your slide presentation you did comment that the uh let's see I'm trying to think what slide that the 79 that have been renovated are currently at market at
full market value. Yes. Okay. Um CPA funds really can't be used for full market value. So that's what I need to find out when you're requesting the $570,000 the 5,000 per unit. What exactly is that money going to be used
for other than leverage? I mean again I can understand that part but yeah to to to to satisfy the um acquisition price and the construction the rehab. Okay.
So see when when CPA funds are used, we we like a like a good again this is part of the grant agreement is like we like a detailed breakdown of how that money is being expended. So with that um if it's
going to be used for acquisition again the market rate um apartments don't fit. If it's going to be used for renovations they've already been renovated. So um I'm, you know, myself, you know, looking
at it, it's like, okay, $5,000 for renovation to the 35 units that still need the renovation. Um, you know, that makes more sense because again, um, the other ones have already been renovated and they are market rate.
So, um, that was that was one of the things that that came to my mind when I was reading the the document a little bit clearer. Um, so am I right of saying those 79 are at full market value? Janet, if if we could on on that issue
and Rick, chime in when you when you wish, but those 79 units upon purchase will be automatically restricted. Thank that's the key piece to go ahead. Yeah. Yeah. Right. But they're still
going to be at market rate today, but they're being basically bought down so that they will not increase over time to higher levels. The point is to restrict their values in the future to maintain a
level of affordability as the market increases over time. I and that that is a value that's being bought from the seller to essentially place these restrictions on them and devalue the units in the future. In the
future, correct? I got that part. All right. And so when they vacate, like the individuals that are living there now, again, you can't go ahead and, you know, ask them to leave if they're over the 80% of the, you know, AMI. Um, so if
they are still paying the market rate, then that doesn't fit the component. You see what I'm talking about? 100%. So, so and and you know, we're still thinking this through. So, the the
the market rent is is below the 30 of 80. Um, there'll be a cap of 30 of 80. Um I think that our intention is that for
the at least for the qualified people so some subset of the 79 are at or below 80%. Um and so qualify um I think at least for the qualified group from the
jump we will limit rent increases to the change in AMI so that it's always tracking relative to 30 of 80. Um I think that's the expectation. Um we're
still sort of working that out. Um, and I don't know if that would make a difference in in your analysis because it what you're saying absolutely makes sense. Okay. Could could you elaborate on that a
little bit, Rick? um for somebody so so for somebody making 30 of 80 and B if I have this wrong um if if somebody lives there and makes $300,000 a year, right?
Um the rent is capped at 30 of 80 because that's what the use agreement's going to say. But theoretically, if if if 30 of 80 is $200 a month more than what that person's
paying, theoretically I can bump them $200, right, on day one. Whereas, if somebody's living there and is qualified, I'm not going to take them all the way up to the full 30 of 80. I'm
just going to increase their rent each year by the change in area median income. And in the steady state, when we've got 79 folks
there at or below 80, I think the whole all 79 get increased at just the change in AMI every year. Do I have that right, Bert? Um, in general, I think you're you're
explaining it. It does involve a little bit of u um working with the state to get the the language and the regulatory agreement uh uh clear. But um again, I think um the important uh aspect here is
that you are buying a a dimmunition in value of the property and that's essentially what's happening here. you're buying a much more significant dimmunition in value on the uh 60% units as well as doing uh rehab work to those
units. So, um but I think it would be worth the town's while to include all of the units rather than focusing purely on the 60% units uh because there is some value to the town and having a restriction on the entire property uh
versus just the the the 60% units. Um, and again, you're you're sort of purchasing protection from the future at a very discounted value. If one waited until those 80% units had in fact uh gone up in value, then you wouldn't be
able to buy the restriction anymore at the dollar amounts we're talking about. It would be significantly more expensive. But but I understand if if if the rule is and I don't know the the the the technicalities of the the regs, but if
the reggg is a hard and fast if somebody's paying market rent then it's not eligible then then we absolutely understand that. Um and so I guess the question is um does the fact that there will be restrictions going forward
um is that a is that a counterpoint to that rag and I just don't know the answer. I yes I I have less more limited experience with CPA than than obviously many of you. But my understanding is that a purchase of a use restriction is
is absolutely something that would be within the realm of of what uh CPA funds could be used for at least based on state statute. The town may have their own rules that they've layered on top of that that uh I'm not aware of. I think
that there's ways to work with this. So, you know, we definitely would want to get all of the units in an affordable restriction. So that would definitely be part of the documentation. But the manner in which the CPA funding is used
on the project could be something that is specifically allocated to the 35 units for example in part of acquisition or just to just to avoid the complexity of the legal argument. But it also would be something town council
could weigh in on, you know, because, you know, I think as long as we're getting the affordability on all of the units, but the funding, for example, could just say it's only going towards renovations of the 35, but we still get the whole deal. You know, the still the whole deal still comes across, but the
CPA funds, you would only be submitting all of your paperwork for the renovation part, for example. Or if you wanted to do it just for the acquisition of the 35 or whatever, you know, that could work, too. your paperwork is easier if you just do it on the acquisition part, I
think. um speaking from experience, but but um you know, just something to consider if it gets too technical in the legal aspects of things, you know, but but you're absolutely right that we do want 100% of the units to be in a um
affordable deed restricted state. And you know, I would certainly encourage the team to the extent that you can to consider increasing the number of units that would be at this 50 or 60% AMI. um you know I think um you know 80% is
still you know a challenge for many people and um you know so the extent to which you consider could potentially consider increasing that would be appreciated. I know you said it was still sort of up for discussion. I don't know how um much the numbers have been
crunched and how tight things are but you know that that would be a request from me is just considering um increasing the affordability Yeah, I I don't have an exact number, but but changing the affordab affordability levels would have a cost
most likely in the millions, not uh in in uh uh the levels of dollars we're discussing here. The the the the So, a couple things. Um, we're not
sure if those 35 will be restricted at 60 or 50. And if they've got projectbased vouchers, we are indifferent. Um, in fact, we would prefer 50s because it's
where the greatest need is. Um, additionally, um, the the the the really complicated long-term strategy is and and and part of our
agreement. So, so I I said the the the the goal was two-prong. Preserve affordability and get the tenants to own the thing. Because Brady Sullivan rehabed so many units, it it really and we tried it
became impossible. And and my original deal, our original deal with the tenants was you're going to own it. We're going to work for you and at closing we're going to hand it off to you and we'll manage it and we'll put up some guarantees, right? And that we just
couldn't make it work. So the goal is and and we're going to we're we're shocket will have to be very smart about how we manage this over 10 years because the goal is and and and
part of our deal with the tenants association is that they will have some sort of right of first offer, right of first refusal to buy it at year We're working on the details of that, but to the extent that we think that
will end up being a tax credit syndication. We will be thinking all the time over 10 years of migrating some 80s into 60s. So that at the end of the day we
will qualify for a 100% tax credit deal where 40% of the units have to be at or below 60 and 35 is not 40%. We need another 10 units
and subject to being able to afford the rent decrease, right? That's what we're thinking. So, we're we're sort of that that's the goal, right? And and we're in the affordable housing business and the more
and deeper the affordability um we can create, the happier we are. Okay. subject to um we've got a um a a CRA investor basically who has skinnied down
their return hurdle to numbers that I've never seen before that they're willing to accept. So, subject to getting them to their return hurdle. Um, you know, um, we're we're I mean, this is what we do is is affordable housing and and so,
you know, for us and our investor, thankfully, a lot of this is about the mission, but but we're taking real money from real people and and and we've got to pay it back with a return. So, really long- winded, and I'm sorry for that. Um but
but we share your goal and all we can promise is that that we will be looking for these opportunities. As we sit here today, as Bert said, I we can't promise anything because we don't know what it's going to cost and where it's going to shake out
except we can promise we'll try. Uh just as a followup, I do really want to express appreciation to everyone who's been working on this and the persistence of those involved because I know it has been a very long road and we're, you know, I'm I'm just incredibly
grateful that, you know, a proposal like this is coming forward. It's a really really important property and the affordability is is hugely important for the community and keeping families and and you know, valuable residents here in town. Um and I think just that that
piece that you just mentioned about um transitioning additional units to um the lower AMI um percentage I think like any kind of you know documentation of that that can be put into like the full proposal I think would be really um
helpful as well um just to we can we can promise I never promise anything that I can't deliver personally we can promise that it is our intention um but but you as we sit here today, um I don't think that equity because I'm
I'm we're just going to be working we're going to be working for DCTA and we're going to be working for our equity partner. Yeah. And and I can get equity because they're like-minded to agree to a lot of things and give up a lot of things, but I I don't know that they
would be comfortable with making those promises. But we can certainly say best efforts because it's true. Yep. Okay. Thank you. Thank you. So Janet, yes. Um here sort of in in a agreeing with
Beth on several points. Um your focus on you know the 79 units that have been renovated and are at market rate. I mean, it seems that this application would need to focus on the semantics and
change some of the wording so that the application doesn't focus on all 114 units. Given that the 570 $570,000 ask is a small percentage of the whole project cost, it shouldn't be a problem to just reward to focus on the
acquisition or renovation of just the 35. Like I agree that I mean that was that was my point you know because again this has got to go to town meeting and in town meeting when you know if individuals do
head here that it's going to be used at market you know rate apartments it may not fly. So I'm I'm trying to find ways that it does. Um well even town meeting I think the focus should be you know the overall
goal of shocket is to is for the whole project. This is you're showing a limited amount of support that would be legally usable on the 35. Yes. I don't think that would be that
hard. Yeah. No I again I I agree. Um and uh and that's why I think with the next application, you know, you you speak about the affordability uh covenant and you said that um Rick, you you said that
you've used these um before in um other other locations. It would be nice to see what that looks like. Um I mean you speak about it in a slide but it would be nice to get that type of document as one of the appendices for the um the
application and um when you talk about you know they say the association I believe the association is a nonprofit association am I right? That's correct. Okay. But it's not a 501c3 I think it's working on that. No. Yeah.
Is it working? I I haven't Yep. Oh, you're working on it being Yes, we are. Okay. Okay. All right. Because I was trying to find it and I wasn't We We have separate legal counsel working on just that
issue, Jennet. Okay. Okay. I think that Bert Bert, if we can sort of track down the specifics in Franklin of uh which issue of the various use restrictions
um and how that allowed the town to count it all in 40b. Yes. No. Um that's a little more complicated because we've got uh different kinds of public subsidy, but but we can we can we can produce something that that will be helpful. the
the town the air use restriction could be just for the 35 units but the other program use restriction coming from HLC might apply to the to the 79 units even though heir's restriction only applies to the 35 units
because the affordability covenant is going to apply to the 114. Yes. Yeah. Okay. So, I just want to make sure I've got that. Um, when you said that the environmental study came back um um you
know with positive signs that everything look good, was it done on just the 79 that got renovated or on all 114? So, um we did um radon everywhere. We did air quality
everywhere. And Bert, correct me if I'm wrong. Um we did um lead in the drinking water everywhere. Yeah. Asbestous in all units I believe. And right
asbestous in all the units. Um and we found that the rehab units are clean. the um non-rehab units uh have some hot
spots. Um and so that remediation and doing it right is built into our budgets and those just to be clear to folks that live there as far as I'm aware the asbestous issues found would
be things that would get disturbed when they do construction not that's floating around in the air today. Yeah. Um especially the wrapping around pipes and everything else. I 100%. You've been you've been there. And then and then the phase one came back clean,
right? No recognized environmental conditions. All right. Okay. Um bear with me. Um, so when when we're looking at the
total cost of the 40 million, um, you've went ahead and said that, um, bear with me that we're going to we're going to need some sort of breakdown, you know, of some of it is acquisition, some of it's for
renovation, some of it's going to be for develop developer fee, some of it's going to be operation soft cost, whatever. If you can give us a somewhat of a breakdown on that other application, I think that would be helpful as well. So, you know, um I
know, you know, depending upon where you stand on the due diligence, um you got to be careful, but um I need to get Brady's consent, and I think he's, you know, I've been softening him up and softening him up. Um and and um I I I
just need to get his written consent to share sources and uses with you. Now um will that become sort of public for town meeting so that it won't just be this committee that has that. It will be the entire town. Well, the town meeting
is October 27th. Okay. Um but before then, like I say, we'll need the the full application. So it would be in that application and our next meeting would be July 2nd. Okay. I mean depending upon
the group and with regards to the um the the time frame it could be again would need to have a public hearing in September and Labor Day is usually
the first second I can pull it up Janet hold on thank you Julie got it right here right in in terms of the the full sort of budget and the application. It would we would want that prior to the
hearing at least. Correct. Yeah. Yeah. Let me run it by Brady. Um and again, he he knows that eventually, you know, he's going to everything's going to be disclosed. Everything's going to be public information. Um he's he's he's just really pnicity. So, um Well, that's
why I'm trying to have a conversation. Yeah, that's why I'm trying to think because if you've got like July, what is it? July 18th, you know, that you know, we we could probably, you know, hold off until an August meeting and then have the public hearing in September. You
know, let me let me let me push him, you know, and see what he says. Again, he he does he wants to he he wanted to disclose as little as possible until such time as he was comfortable that that the deal wasn't going to crater. Um
and you know the the sort of big milestones have passed. Um so um you know he ought to be amenable and and he has become a somewhat motivated seller. Um you know whereas he had been
completely unmotivated. So um I I'll I'll work on it. Okay. But I we got plenty of time and and I I you know I I I I I need to talk to him about some other things. So you know I didn't get to it today. I'll call him tomorrow and I'm glad I didn't call him today because I can put this on my list. All right,
that'd be Yeah, that'd be good. Um the the again I don't want to I want my the rest of the committee to go ahead and ask questions, but there are two things that um I need to just bring up. One is you are also looking for funding from
the affordable housing trust. Um are you looking for the same amount? you know, as are you looking at for 500, you know, 5,000 per unit as well. So, which means in total from the town, you're going to be asking for over a million dollars.
No, no. The total from the town that we're looking for is the 570. And and how that breaks out, you know, really needs to be coordinated between your committee and and the trust. and we we weren't quite sure based on public
record who has what kind of funds available. Mhm. Mhm. Right now the the community housing um category um right now I think it's got a little bit less than uh 200,000 um but we do have money
in the undesated and that can get transferred over to um community housing or we can you know write the warrant article that it comes from undesated. Um as everybody knows I like to have it come out of a category not undesated.
Um, so I'd like to have it transferred over so that it's all nice and clean in the books. Um, but we can we can figure that out when we get there. Um, the Go ahead, Connie. We we do have a meeting coming up with the Affordable
Housing Trust, right? On June 25th. Yeah. Right. That's going to be a joint meeting with the trust and the committee. Yeah. Okay. So, um, yeah. All right. That would be good. The other thing too is in the application when we have worked with other developers for
affordable housing um there's some sort of um I'm going to say a a plan like your site plan um you know so to see exactly where these houses are. You're saying that they're on four separate streets. They're not contiguous. So
which means they're here, there, and there. It would be nice to have that type of layout, you know, so that um again, we know what we're going to be assisting with. Um I think that would be helpful. Um so those are my other two. I'm going to shut up and let my other
committee members Great questions on on the topic of the plan, you know, clarifying which units are of each type, you know, and or color coding or something like that. I I mean whatever you you know we want to um maintain discretion and things too. So whatever
you feel like is best if it's a list of unit addresses or something just just communicating all those kinds of details um you know within the the application packet I think would be good. Okay. Um Janet I just want to point out
that it's already 10 8 and I really respect everybody's time and I'm very glad we're talking about this project. Um, I think we're we're catering or we're getting a good focus on our questions right now as far as what's needed for the application because this
is kind of the pre um pre- discussion before we do the public hearing. So, I just want to just do a group reminder um as we're over an hour now and we still have a little more to cover in our own meeting that we just really stay focused on the needs um to get this application
sharp um in order to have a great discussion next time. So, it's not that I don't want to be open um to the conversation, but I just want to stay focused on what's needed for the application. Correct. Good point. Thank you. You got it. So, being focused. Um
Kevin Barry, any questions? Anything that you see? No, I just, you know, once we get the other application that we definitely have uh town council on our side there to go through with a fine tooth going because um you know they and we can't
make any any promises until the uh town uh town meeting in October. So that's the only commitment we have is the town meeting. Correct. Right, Kevin? Uh no, no questions. I'm still learning a lot
here. So, following your lead. All right. No problem. I We do have a hand raised and that would be uh Pauline. You're on mute. All right. I'm sorry. I I have trouble unmuting sometimes. Just a simple request. when
you have presenters speaking in acronyms like I think I heard CRA and HLA. We don't I have no idea what that means and if somebody could at least
uh speak to it in a full sentence that would be helpful. I have many many more questions but I'll leave them for now but just no acronyms if you don't mind. My my apologies. I try my best to minimize them. So, I am sorry. You are
right. Thank you. I'm going to eat my words, Janet, but I have a little bit of a question. So, we put we CPC, we use CPA funds to go towards the
housing trust. I can't quite get my head around using funds from both places and what kind of communication that needs to be for the people of the town. Like I don't know that we need to discuss that tonight, but um maybe as
board members we could all kind of think about what questions that might bring up for people in town meeting knowing they've voted to bring those funds to the housing trust from here. and now we're talking about um multiple uses for
one project. So um again I don't we need to answer that tonight but yeah and that's why I wanted to make sure that the total asking from both the total be the 570. All right. So, part of it would come from CPA funds, part of it from the
trust. And the trust only has CPA funds, which means it has to meet CPA requirements. Right. So, no matter what, between the two of them, that's what the total is. Does did that help out at all? A little bit. And it's exciting to see it be used for such a project. So, I'm
glad we're talking about it. Exactly. Also, the the funds in the housing trust, any percentage used there does do not are not uh uh susceptible to a town meeting vote. They're already approved. Correct.
It just has a public hearing. Yeah, I hear that. I guess I just know that we're going to if that's on my mind, there's going to be people in town meeting that are like, "Well, wait a minute. I already gave that money there." And so, we just want to make sure we're connecting those dots ourselves. It'll be resolved before town
meeting. We'll know, you know, how much is coming from the funds already allocated to the trust and how much is coming from a new CPA expenditure. It'll be resolved by then. That'll be great. Thank All right. Okay. Um, your question um brought up Pauline's question.
Pauline, go ahead. Thank you. I I believe I understood the appropriation at town meeting in October for the affordable housing trust was for rental assistance. not necessarily for renovation of
Devon's Crest. Um, I could be wrong, Pauline. The total amount was 20 was 200,000 for the past two years and part of it was to help fund money within the trust itself. the
rental assistance was put um again to the side. The rental assistance is only for 12 families and that's $60,000 because it's $500 per family for the for the year. So with that um the
additional funds, so right now the trust has in it approximately um $250,000 that's not part of the rental assistance. Okay. So it's take a look. I that was not clear to me, but I'm I'll accept
what you're saying and I'll take a look and let you know if I have questions. Okay. Yeah, the Warren article No, no problem. The Warren article broke it up into two. We did indeed. Okay. All right. Um, anything else from the group?
No. At this point, I think we probably just need to do a vote to consider the eligibility and then have it move forward to a rewritten funding application in light of our discussion. All right. Um I think that sounds like a
good idea. Can I hear um if there's no other discussion, let me hear a motion um to have this go forward for a full application um at our next meeting. So moved. I Julian makes the motion. Can I have a
second? Second. I Jess makes a second. I want to do roll call. Jess, I Beth, yes. Julie, yes. Barry, hi. Kevin, I. And the chair says I. Okay. So, at our next um
meeting, which again hopefully will be July 2nd, um you'll be able to have a full application with some of the information that we requested um with this and we look forward to to moving ahead and again, I'll be seeing most of
you again on the 25th. Um and um we can then narrow down um you can always ask for less money at a town meeting but you can't ask for more. So with that, um I I again I want to reiterate thank you so
much for your your due diligence of plowing ahead with all this and uh you probably have gone through a lot of um eedrans or Advils or a lot just a comment on the timing.
Um, I mean, I know that I probably won't be here at the July meeting. Um, and I just wanted to check in, I guess, with the applicants if that timing works because we would have an August meeting
or could could shift July meeting if we had an issue with quorum or anything like that. So, I just thought it might be worth checking in. We could, like I said, we could do it, that's why I was bringing up, we could do it in August because that would be August 6th and that'd give Rick a little
more time, you know, to talk with Brady Sullivan. Um, I'm always a believer in making hay while the sun shines. And if we get to August and you don't have a quorum, and this has happened to us before, and now you go to September. So,
um, you know, I I totally defer to you all, but you know, I don't think there's going to unless unless Brady says, um, the your final due diligence runs till July 17th, you can't do it till after that. I don't think there's any
new news that that there's going to be some sort of seminal event that will change his mind about the timing. So, I I think he'll I think I can get him to be fine with it. So in which case you know whatever is best for you all. Um
and and did I hear that the trust can make a commitment without going to town money town meeting? Yes. So, as I think about timing, right, and the fact that when the money arrives is
less important to us than being able to show Kate Racer and the secretary that we've got support, um, if there was a way um, for some
subset to the extent you all voted favorably for some subset of whatever the total is going to be to be actually committed because you've got the ability to do that to be able to show the state
um with the sort of verbal uh you know we've got X we're hoping we will get more at least we can walk into Kate's office with more than just a letter of support
so I don't know if that's possible but I I yeah I I So, you know, I I leave it to all of you all. Yeah. On on June 25th, you know, say, you know, you'll be able to ask the housing trust. Okay. So, with that, that will they they will have to
have a public hearing um to go ahead and say this is where these funds are going to be used. And I I really don't think we can, you know, we can say that we approve your application and move it to town meeting, but town meeting can still
shoot it down. Got it. But I want to be able to I want to be able to say say to Kate Racer before October 27th, right here here's a commitment, you know, even if it's just a fraction of the total ask. Uhhuh. Yeah. And like
I say, that should be able to come from the housing trust. Excellent. Okay. All right. Okay. So, chair, thank you very much and thank you to all your committee members for your time tonight. I got a good group, Connie. You see that? I know I do. I'm very very lucky. So really
grateful to you all. All right. Thank you everybody. Absolutely. Thank you. Thank you very much. Here. Okay. Thank you everybody. All right. Take care. Okay. All right. All right.
Okay. All right. I'm going to move along where it's a possible funding request from parks and wreck. Um Kevin, just thought I'd let you know that I did have a quick meeting with Sarah. I don't know if she mentioned it to you, but um pardon. She did. She did. Go on. Okay.
With regards to um they're looking for funding to help uh restore the playing fields down in Peron Park. I've got I've got to do some research. Um I believe since they're grass, they're not, you
know, um artificial turf that we are able to use um CPA funds to go ahead and restore um those those playing fields because it's used not only by um I'm going to say the the teams, but also to
from what I understand, you know, one of them is filled with rocks. So the kids when they're sliding into first or third or second or whatever um they're sliding into rocks. Yeah. Yep. That's correct.
Is there a ballpark figure of Not yet. She doesn't have that yet. She just wanted to know whether or not it was eligible. She also again, hold on a minute. Um I've been moving things around which I know I shouldn't be doing. Um, she also asked a couple other
questions that I need to to research. I don't think we can fund lighting. Beth, um, I'm just going to, you know, I I I brought up, you know, your concerns when we started talking about the lighting over at the high school. um that you know we had to make sure and
you know the terminology to make sure that it's pointed downward so that you know they're night lighting or whatever it's called dark sky dark okay all right um so I was talking to her a little bit about that and then batting cages and um
I told her we I know that we cannot use the um funding um the the the funds for any type of structure but I know again if a batting cage is considered a structure because it's it it's a fence.
Um there's no I mean I think there's a little bit of a roof but that's about it. So those are questions that I need to ask of the coalition. Um so those like I say those are that sounds about right Kevin um when she spoke with you.
Uh yeah. Yep. It that that follows. Okay. And then again, um I don't know what's going to end up happening with the bath house. Um so those would be there's like four items that may be coming from parks and wreck. Okay. So I
wanted to make you all aware of that and as soon as we get more information, I'll make sure that the public is aware, too. And any uh I just I'd like to reiterate this in public record. any renovation using CPA funds for the bath
house should also make an effort to uh a strong effort to include um canoe kayak access on Sandy Pond. Did not bring that up. Thank you, Jess. Yes, that's that's a sticker. That's a
that's a hard line for me. Understood. Yeah. Okay. Excellent. Thank you. All right. So, um I'm just going to go ahead. I I see that Pauline is still here. Um public participation. Is there
anything that you want to bring up, Pauline? Sorry, I have a mouthful of salmon. Nope, I'm good. Thank you very much. Okay. You're welcome. Salmon's healthy for you. That's good. All right. Seeing that it is 8:25 um unless something massive or
major with a committee report I think. Yep. Just one thing um Heather is is our conservation agent has successfully uh uh filed for the extension of the
open space recreation plan which the extension was due by May 27th I think. So she got it in in time. The state has responded. So, we do have a three-year extension. Yay. Fantastic. Thank you. Tell her thank you so much. Do we need
to send her flowers? No, she'll probably. Okay, that's a deal. I'll get some dove chocolate. All right. If there's nothing Oh, by the way, Barry, your sign looks great on the rail. I was going to bring that up, but um you
you uh enjoyed the uh the display on the kiosk there. Yes. Thank you. Yeah. Um I saw you and Chuck out there a month ago, you know, putting it up and I walked down the rail trail with mosquitoes and all. Um and it's like, okay. All right,
Jess, I'm gonna need to talk with you afterwards if I can. Okay. And um if there's nothing else, I don't see anything. Okay. Um motion to adjourn. Okay. Well, Beth can't make July 2nd. So, how about
anybody else that I can make it? Yeah, I'm I'm not sure at this point. I should know shortly, but for me to commit for the June July July 2nd. Okay. And I'm more of like a maybe at this point, too.
But I just wasn't wasn't sure. All right, no problem. I can be there. All right, Kevin. He's muted. I know. Yeah. Oh, there we go. Hi. Sorry about that. Yeah, I was checking my calendar. Yeah, I should be fine. Yes, I can. All right. And we'll check with Colleen. All right.
So, with that, let's hear a motion. Already moved. I second. Okay. You got it. Moved it. Barry did. Okay. All right, it sounds great. I do appreciate everybody. Everybody, thank
you. Thank you very, very much. Good night. Thank you. Night everybody. All right. All right. Have a good one.