1995-03-22 Board of Selectmen Executive Session Minutes

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Board of Selectmen Meeting Executive Session March 22, 1995 Present were Chairman Dan Ensminger, Secretary Sally Hoyt, Selectmen George Hines, Camille Anthony and Bruce MacDonald, Town Manager Peter Hechenbleikner, Housing Authority members Jean Galvin, Don Allen,Reverend Robert Sweet, Housing Authority Executive Director Peg Plansky, Longwood Management representatives John Lynn, Bill Casper and Ed Levitt. The Town Manager outlined the process of the sale of the Pearl Street School and the negotiation of the contract for the Purchase and Sales agreement. It was noted that there are 18 units of affordable housing and that GAFC is the program that has been used for determining financing feasibility to fund those 18 affordable housing units. GAFC provides for Medicare reimbursement, and provides for shelter and services. The "rent" covers the shelter costs plus three meals a day, attendant care, 24 hour security, and other services. There have been moves in the State legislature to expand the GAFC financial limit, which is currently approximately$6,900. Longwood noted that GAFC is the only program designed specifically for assisted housing. The Housing Authority noted that they feel strongly that one half of the affordable housing units should be made available to residents who meet the typical profile of Reading low income elderly residents- ie. incomes between $7,000 and $17,000 per year. They are concerned that according to their data there are a low number of residents who would be GAFC qualified. The Town Manager reviewed census data that indicates that there are 183 households who meet GAFC income limits. Of them it was agreed that approximately 80 are in nursing homes which leaves an additional 100 households in Reading who would be GAFC qualified. The Housing Authority is willing to dedicate up to nine Section 8 units to be site based and would work to get the 20% additional amount available beyond the regular rent. The facility can also charge up to 45% of income for services. It was agreed that the total net loss to the development would be in the area of$12,000 - $23,000 per year for nine units. Longwood disagreed with the manner in which the Housing Authority figured this but agrees with the number. It was noted that the affordability of the whole project is a concern, and that increasing the market rents to cover the potential losses for site based Section 8 housing was not an option. It was noted that the typical resident profile is between 82 and 84 year old single woman. This is not a straight housing program - there are other elements to it. The consensus of all present was that there may well be nine or more people who are Reading residents who meet GAFC requirements in which case there is no issue. Ed Levitt from Longwood indicated that they have been dealing in good faith and plan on being long-term good neighbors. They are allowed to give Reading residents preference. Bill Casper asked why the Town would be adverse to letting Longwood try it with GAFC and if there is a problem then come back and revisit the issue. The result was that there will be a memorandum of understanding drafted by Bill Casper and reviewed by the Town Manager and Camille Anthony for the Board of Selectmen - once there is agreement in concept, then the draft will go to counsel for Longwood, the Town, and the Housing Authority for review. A draft will be completed by Monday, March 27, 1995.