HomeMy WebLinkAbout2018-05-29 Select Board Minutes - Executive Session Town of Reading
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Board - Committee - Commission - Council:
Select Board
Date: 2018-05-29 Time: 8:00 PM
Building: Reading Town Hall Location: Lower Level Conference Room
Address: 16 Lowell Street Session: Executive Session
Purpose: Version:
Attendees: Members - Present:
Barry Berman, Dan Ensminger, John Halsey, Andrew Friedmann, Vanessa
Alvarado
Members - Not Present:
Others Present:
Town Manager Bob LeLacheur, Executiv sCai in Saunders
Minutes Respectfully Submitted By: `
Topics of Discussion: 4'�4
The board needed to discuss the resale of 1004 Gazebo Circle. Today the unit is affordable
but does not qualify for the official Town's list of affordable units. Discussion would focus on
the path forward to add this unit to the official list.
The board received a letter about a week ago from the Reading Housing Authority that
noted they received an appraisal dated May 3`d which started the 30 day clock on a decision.
This somewhat sudden time frame was the reason for tonight's meeting.
Mr. Berman noted that a few days ago he spoke with a member of the Housing Authority
board and the Real Estate attorney for the resale. They noted the original deed rider is
cloudy on interpretation but Mr. Berman believes that is not true. He feels the RHA does not
always share the towns mission of preserving affordable housing. Given the impacts on
neighborhoods when 40B projects are brought to a community in the name of adding
affordable units, Mr. Berman thought that both parties should work together to make
existing affordable units ones that count on the official list, and in the past the Selectmen
had expressed this desire clearly to the RHA.
There are a couple of options on what to do. The property needs to sell at about $190,000
to be considered officially affordable, but the RHA appraisal was closer to $300,000 meant
the town would need to use about $100,000 from the Affordable Housing Trust Fund to
create that one unit of official affordable housing. If such a subsidy does not happen, then
the seller must give 20% to the RHA, and they keep 80%.
The board discussed the 20% that the Housing Authority would get if they did not decide to
subsidize it for an affordable unit. It was clarified that the 20% would not automatically go
into our Housing Trust Fund, it would go directly to the Housing Authority for them to use.
Mr. Berman noted he did asked if the Housing Authority would share that money and put
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some or all into the Housing Trust Fund the town has, and he reported that the RHA were
not interested in doing that.
Mr. Halsey agreed with Mr .Berman and noted that the Housing Authority's affordable
housing mission is simply not exactly aligned with the Town's, and brought up similar past
situations as examples for the benefit of the newer Select Board members. Mr. Halsey said
that we need to think about spending $100,000 for one unit, and that he believes it is too
much.
Ms. Alvarado noted she originally was in favor of using the money to create another
affordable unit when we thought the subsidy total was a lot less, but she agreed that
$100,000 is too much. If other units go up for sale they will not be able to do the same as
the balance of the current Trust Fund is just over $200,000. Mr. Ensminger said he was
leaning that way as well.
The Select Board discussed creating a new trust fund under different legislation for the
future. The Town Manager said that the current fund was established before affordable
housing trust fund state laws were created and that Reading was out ahead of the curve
with their approach.
Mr. LeLacheur noted that a previous Board of Selectmen were not interested in making a
change but he again would advocate for it. Town Meeting would need to adopt a provision of
state law, and a new independent board of directors would be created to oversee the new
fund. Such a new board should probably include at least one member of the Select Board
and one member of the RHA board. The new board could give more focus to the topic of
affordable housing, and think about creative ways to generate revenue for the fund. This
would eliminate the mismatch in missions between the Town and the RHA. Once created,
Town Meeting would no longer need to approve the current fund annually, and a joint
SB/RHA meeting - which usually happens in a 'reactive rush' - would no longer be needed.
Several attendees present criticized the RHA and questioned where public monies have gone
and whether the RHA was serving the best interests of affordable housing in Reading. They
also questioned the competence of the past RHA director. Mr. Friedmann stated he did not
want to be present while the RHA was being criticized. Mr. Halsey disagreed and a heated
discussion ensued.
There was agreement from the Select Board to discuss that approach for November 2018 or
April 2019 Town Meeting and that they favored a more proactive planning approach to the
topic.
Each board member was informally polled and the board ultimately unanimously agreed
that $100,000 for one unit is too much to spend and they would go back into open session
with the Housing Authority and let them know, so the sale can move forward.
Mr. Ensminger moved that the board adjourn Executive session and reconvene in
open session at 8:38 PM. The motion was seconded by Alvarado and approved
with a roll call vote as follows:
Ensminger - Yes
Berman - Yes
Halsey - Yes
Friedmann - Yes
Alvarado - Yes
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