HomeMy WebLinkAbout1994-01-19 Board of Selectmen Executive Session Minutes Board of Selectmen Meeting
Executive Session
January 19, 1994
- The meeting was convened at 5:33 p.m. in the Selectmen's Meeting
Room, 16 Lowell Street, Reading, MA. Present were Chairman
George Hines, Vice Chairman Eugene Nigro, Selectman Bill Burditt,
Town Manager Peter Hechenbleikner, Selectmen Sally Hoyt and Dan
Ensminger joined the meeting later.
On motion by Burditt seconded by Nigro the Board voted to go into
Executive Session for purpose of discussion of sale of real es-
tate, not to come back into open session. All three members
present voted in the affirmative and the motion was carried.
The Town Manager reviewed the status of the purchase and sales
agreement and the Reading Housing Authority concerns regarding
the Pearl Street School site. At 5: 45 p.m. Housing Authority
members Don Allen, Bob Sweet, Jean Galvin and Arthur Reynolds and
Housing Authority..Executive Director Peg Plansky joined the Board
of Selectmen. On-motion by Reynolds seconded by Galvin the Board
voted to go into Executive Session for the purpose of discussion
of sale of real estate. All four members of the Housing
Authority present voted in the affirmative. The Town Manager
reviewed the proposal by the Authority to designate seven units
of Section 8 housing for the Pearl Street School site. In their
analysis they showed a $75.00/month difference between the GAFC
proposal and the Section 8 proposal. The Town Manager noted that
Longwood Management's review showed a significantly larger dif-
ference because they showed the GAFC clients generating
$1, 600/month in income versus the $1, 200 that is noted in the
Housing Authority.
Bob Sweet indicated that the Housing Authority Board fully sup-
ports the project. Their primary concern is the need to
eliminate the gap from a $6, 600/year income eligibility to a
$10,800/year income eligibility in order to qualify more Reading
residents. Only three current residents of housing authority
developments meet the $6,600/year income guidelines, whereas 64%
meet the higher $10,800 guideline. If the cap is lifted on the
GAFC program, then the Authority has no concerns. The Section 8
proposal is an alternative if the income levels on the GAFC
program are not lifted. Peg Plansky noted that her sources indi-
cate that the GAFC guidelines are unlikely to be lifted. The
Housing Authority Board is concerned about precedent vis-a-vis
the Bear Hill site. Sally Hoyt noted that she would like to give
as much preference to Reading residents as possible. Peg Plansky
asked if we were not able to secure seven units at a higher in-
come level, what number might the Board of Selectmen be looking
for. They noted that there would be no vacancy rate at all for
the Section 8 units. George Hines noted for the Board that they
recognize and agree with the Housing Authority's concerns about
affordability to Town residents, but in the end it might come
down to having a project that is manageable without fully meeting
the needs that the Authority has noted.
Board of Selectmen Meeting - January 19, 1994 - page 2
On motion by Galvin seconded by Reynolds the Housing Authority
voted to adjourn their meeting at 6: 20 p.m. All four members
present voted in the affirmative and the motion was carried.
Bill Casper from Longwood Management joined the Selectmen at 6:25
p.m. The Town Manager outlined the difference between the Hous-
ing Authority and Longwood's analysis. The Town Manager asked if
Longwood would be amenable to language in the purchase and sales
agreement that committed Longwood to use their best efforts in
securing housing that it "affordable to the majority of Reading's
affordable housing population" as part of their 20% affordable
housing component. He indicated that depending on language, he
thought they would. He noted that the MHFA does not understand
why there is a big concern. There are a lot of people being sup-
ported in Reading nursing homes who would be income eligible. He
also noted that Longwood is bound by Fair Housing laws in terms
of Reading resident preference.
The MHFA application was submitted on November 10 and the Board
of Selectmen reviewed a copy of it. They hope to make the
February MHFA Board meeting which would determine that this is a
qualified site, a qualified team, the financial projections are
accurate, and there is a market. He noted that 80% of the "non-
affordable" housing units would rent for between $2 , 400 and
$2, 600/month including services. The financial projections shows
a vacancy rate and the market rate units of 7%, and a 3% vacancy
rate in the affordable units. There is a turnover of 1/3 units
per year and the average longevity is 2 .5 years. The market in-
dicates that there are over 1,000 people within six miles of the
building that are likely prospects in terms of age, income and
demographics. They will be asking the MHFA to reserve bond
capacity authority for this project.
Town Manager reviewed the purchase and sales agreement. There
don't appear to be any large issues, and it is likely that the
purchase and sales agreement can be signed in early February.
The Town Manager asked what the Town can do to expedite the
process in terms of local permitting and other things.
On motion by Burditt seconded by Hoyt the Board voted to adjourn.
Burditt, Hoyt and Hines voted in the affirmative and the meeting
was adjourned at 7: 00 p.m.
Respectfully submitted,
Secre ary