HomeMy WebLinkAbout1990-06-05 Reading Housing Authority MinutesUPDATE ON LINKAGE HOUSING
From: Peg Plansky
To: Board Members
Date: June 5, 1990
As of Tuesday, June 5, 1990, the following is a brief synopsis
of what is transpiring with the Fafard linkage requirements for
both Greenhouse /Schoolhouse properties:
Proposal by Fafard to develop ten (10) units of family housing
off -site in lieu of 10% (9 units) as required on -site for Greenhouse
Acres development. Accepted by Board vote.
Proposal by Fafard to rehab one 4- family dwelling at Pleasant /P$rker
Streets. Accepted by Board; completed and occupied;
Proposal by Fafard to develop eight more family units and four
elderly units off -site on a site proposed on Franklin Street
(Sailor Tom's). The additional units would be a mix of 2 and
3 BR family units; and four 2 -BR elderly units. Accepted by
Board vote.
Letter from Fafard requesting a certificate for May 1, 1990 for
rental assistance at Schoolhouse.properties (Sanborn Street).
Inquiry from Executive Director /Attorney John Greco regarding
the purchase of four elderly units at Schoolhouse. Proposed
all 2 BR units. Fafard took under advisement.
Fafard proposed that the Authority purchase two 1 BR units at
$95,000; two 2 BR units for $125,000 each. Board rejected as
EOCD guidelines are $65,000 for 1 BR elderly units; $85,000 for'
2 BR units.
i
Fafard proposes that the Authority consider some units for family
housing (Greenhouse Acres) be purchased at Schoolhouse.
ANALYSIS: Written agreements with Fafard are non - existent.
By ZBA decision and /or zoning, Fafard is required to provide
ten units off -site for Greenhouse Acres; four 1 -BR elderly rental
assistance units at Schoolhouse for up to 72 months with option''
to purchase these units at the end of this period at the then
current Commonwealth of Massachusetts price guidelines. Current
EOCD guidelines are 1 BR elderly - $65,000 w /10% factor;
2 BR units - $85,000 w /10% factor; 3 BR units - $95,000 w /10%
factor.
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Update
6/5/90
John Greco, our attorney, feels that we can probably purchase
the units at Schoolhouse for that linkage 1 BR -$72- 74,000;
2 BR- $93- 95,000. He also feels that we probably will not be
able to hold them to anything but written agreements. To press
further than this with a company in financial difficulty would
probably kill the entire deal.
A proposal for your consideration is if Fafard would like to
propose the additional units at Schoolhouse, then the Board coup
think of using these units as first time homebuyers properties.
The Authority would not own them, but the buyer would purchase
them at a reduced rate with a deed restriction requiring that
these units be kept at the reduced rate plus inflation factor
for resale. As Bear Hill Development is not currently viable,
this could be an interesting alternative for this population
segment.