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HomeMy WebLinkAbout1996-05-06 Reading Housing Authority MinutesREADING HOUSING AUTHORITY Minutes of the Meeting of Executive Session of May 6, 1996 The Executive Session of the Reading Housing Authority was held on Tuesday, May 6, 1996, the Selectmen's Meeting Room, 16 Lowell Street, Town Hall in the Town of Reading, Massachusetts. The Chairman, Reverend Robert K. Sweet, Jr., called the Executive Session to order at 7:10 P.M. Those members present and forming a quorum were: Chairman Sweet, Mr Allen and Mr. Kelley. The Board of Selectmen were also in attendance and those members present were: Chairman Sally Hoyt, Mr. MacDonald, Mr. Hines and Ms. Anthony. Ms. Plansl the Executive Director of the Authority and the Town Manager were also in attendance along with the Chairman of the Reading Housing Partnership, Mr. Paul Kelley. Upon a motion duly made by Mr. Allen and seconded by Mr. Kelley, it was unanimously VOTED: To convene in Executive Session to discuss real estate matters and possible and not to return to public session by the following roll call vote: Mr. Allen - aye Mr. Kelley - aye Mr. Sweet - aye The Chairman then declared said motion carried and said vote in effect. Mr. Sweet reported on the meeting held with Mr. Cavicchi, Boston Gas, Dr. Haratunian, Superintendent of Reading Schools, Mr. Allen, Ms. Plansky and Mr. Sweet. During the discussions, the Boston Gas Company iterated its intention not to place the gas line to the new Parker Middle School if it had to pay for the $15,000.00 appraisal for the diminution of land value. Dr. Haratunian was perplexed and planned to present a motion to the School Committe to authorize payment of $15,000 for the rights to the easement. Mr. Sweet reported that in the public interest, both he and Mr. Allen at their next Board meeting would recommend to the ful Board that the easement be granted for no consideration. The Selectmen were pleased with thi outcome and thanked the Board for their understanding and cooperation. Summit Village -Affordable Units Mr. Sweet then reported on the problems with the negotiations and sales price of the affordab] units as compared to the market rate units, noting that the Deed Restriction requires the affordable purchaser to resell at a 20% discount off market rate. Mr. Dolben had presented to Board that, Arlington units of like kind/quality /amenities would sell at $134,900.00. It becam known to the Authority that the Arlington units were being sold with garages for this price. Gatages were estimated to cost between $8,000 - 12,000.00 if purchased separately. The Boar( reviewed the information before them. Mr. Allen presented an analysis of the offerings made Mr. Dolben and the financial impact that would have on the affordable buyers. Units with the Page 2 Exec. Session Minutes 5/6/96 deed restriction requiring a 20% discount at resale would not be able to sell without a loss until after the fourth year of ownership. Market rate owners would be able to sell within the first year without a loss. If Mr. Dolben had conformed to the pricing as presented, then the affordable buyer would be out of the unit by the end of the second year with a small profit. Mr. Kelley, Chairman of the Reading Housing Partnership, then added that he felt that Mr. Dolben had opened the Authority, the Town and the Partnership to the possibility of a 93A claim lawsuit by the affordable purchasers> This would be based on the failure to disclose that the discount rate, which the affordable purchaser would buy the affordable unit at, was not 20% less than a market rate unit. Mr. Kelley had personally spoken with Mr. Dolben and asked for the unit pricing so that he could present this information in an informational meeting for prospective affordable unit owners to outline the details of the proposed lottery drawing for these units. Mr. Kelley received a fax from Mr. Dolben that gave a completion price of $143,900 for an Arlington unit. Mr. Kelley stated that he felt that Mr. Dolben did not disclose that there was a significant difference, by the addition of a garage, in the market rate vs. the affordable unit prices. In presenting these figures, Mr. Dolben gave information to the Partnership which ultimately was disseminated to prospective affordable unit purchasers and the affordable units were discounted at a rate different than the required "Discount Rate" required in the Deed Rider for resale of these affordable units. Claims made under 93A are subject to treble damages plus attorneys costs. ' Mr. Kelley stated that he felt that the developer should be required to provide a garage with each affordable unit so that no such claim can be levied.up The Selectmen asked the Board to keep them informed of the deliberations between the developer and the Authority and offered their support. The Board expressed their desire that the developer was made to conform to the agreements and the requirements of the by -laws. The Board members of the Authority thanked the Selectmen for their support and promised to report back to them on the outcome of their negotiations. At 8 P.M., upon a motion duly made by Mr. Allen and seconded by Mr. Kelley, it was unanimously voted to adjourn. Respectfully submitted, Marg . Plansky; Secretary and Executive Director READING HOUSING AUTHORITY Minutes of the Meeting of Executive Session of April 1, 1996 The Executive Session of the Reading Housing Authority was held on Monday, April 1, 1996, the office of the Authority, 22 Frank D. Tanner Drive in the Town of Reading, Massachusetts. The Chairman, Reverend Robert K. Sweet, Jr., called the Executive Session to order at 9:20 P. Those members present and forming a quorum were: Chairman Sweet, Mr. Reynolds, Ms. Galvin and Mr. Allen. Ms. Plansky was also in attendance and Mr. McIsaac was asked to joi the Board to consider and comment on the issue before them. Excess Building - Lot at Pleasant and Wilson Streets The Executive Director reported on the proposed purchase by the Post Office of a building on Sanborn Avenue just behind the Post Office building for use as additional parking and added buffer. The building located on this lot is a 10 room house- that has just undergone extensive renovation. Ms. Plansky spoke with the Postmaster, Mr. Driscoll, and he was willing to donat the building to the Authority for their use as long as the building was moved at their cost. Th, location for the building could be on the parcel of land at Pleasant and Wilson Streets, which I been promised to the Board during prior negotiations. Upon a motion duly made by Mr. Allen and seconded by Ms. Galvin, it was unanimously VOTED: To request that the Executive Director send a letter to the Board of Selectmen requesting the lot at Pleasant and Wilson Streets, as promised in prior negotiations with the Board, and in principle to convey the following: The Board of the Reading Housing Authority is currently pursuing acquisition of an excess building, which must be relocated to a new location. As you may recall, the Board of Select in prior negotiations with the Authority, agreed to convey the parcel of land at Pleasant and Wilson Streets. The Board would appreciate it if you could expedite this prior commitment your Board and could convey this lot to us so that we can move expeditiously on this propo: We ask that this matter be kept confidential as the Board is currently in negotiations regarding this matter. We are available to meet with your Board at the earliest possible convenience. Please call the office so that a mutually acceptable date and time can be arranged for this meeting. Summit Village - Affordable Units The Chairman reported that the Executive Director had contacted him regarding a complaint brought by a lottery buyer of an affordable unit. It appears that the market rate units are sellin, for'less than represented to the Board (pre- construction for like kind/quality unit at $134,900); that the 20% discount for the affordable units from the market rate units is not being complied with; and that the market rate units are selling for the $134,900 price with a garage. at Page 2 Minutes -Exec. Session 4/1/96 The Executive Director and our attorney spoke with the Town Manager in this regard. The problem must be resolved as the Special Permit was granted by the CPDC on the assurances that the Authority gave to them in regard to the required affordable units. The collective memory of this Board in this regard is that the unit pricing by Mr. Dolben was stated and specific and Mr. Dolben represented that Arlington units would not contain garages and would sell at the deepest discount price of $134,900.00. The cost estimate for a garage as quoted by Mr. Dolben to Ms. Plansky during the lottery selection process was $8,000 - 10,000 per unit. There were also two other problems noted with the affordable units. First, the Authority was to have received prior notice of any change from the submitted unit selection plan. One Arlington - style unit was substituted for another and the Authority was not notified. The second problem concerns the unit for the Authority. The Authority agreed to accept their unit in the second building built because Mr. Dolben represented that the first building built would not contain an affordable unit. The current construction schedule proposes affordable units in each of the first 4 buildings being constructed. The donated unit to the Authority is now proposed to be delivered to the Authority with the third building, one month later than the completion of the first 2 building. This is in violation of the stated agreement and the representations made to the Authority by Mr. Dolben. Upon a motion duly made by Ms. Galvin and seconded by Mr. Reynolds, it was voted by a 3 -0 -1 vote (Mr. Allen abstaining): VOTED: To request that the Executive Director obtain from the Dolben Company a list of how many Arlington and Hereford style units have been sold to date; the price for each; and if the sale included a garage in the purchase price. After confirmation that the units are being sold with garages at or below $134,900.00 for an Arlington style unit, then the Executive Director was requested to have our attorney, Mr. Greco, contact their attorney, Mr. Ley regarding the discrepancy in the agreement. If matters cannot be resolved, then the Board of the Authority will ask to meet with the Board of Selectmen in this regard. As Town Counsel has ruled on another issue that representations on record made in pursuit of a Special Permit are binding whether stated in the agreement or not. In this matter, Mr. Dolben had presented to this Board that the lowest discounted rate for a like kind and quality Arlington style unit would be $134,900 pre - construction. As the affordable units do not contain a garage and are purchased pre - construction as well, then the market rate units should sell for no less than $134,900 pre - construction without a garage. The price of $134,900 given to the Authority was the basis for the "discount rate" contained in the Deed Rider, and this discount is the amount off market value that an owner will have to sell their unit for upon resale. Minutes -Exec. /96 The Chairman then declared said motion carried and said vote in effect. The Board would be willing to meet with Mr. Dolben to resolve these issues, if necessary, the next scheduled meeting of the Authority on May 12, 1996. There being no further business before the Board, it was unanimously voted to adjourn at 10:20 P.M. Respectfully submitted, Mar aet �Plansky, eY and Executive Director