At times our attention is caught by a particular topic. Right now, housing is that topic. Affordable Housing Trusts created as one way to address the problem are of equal interest. Above the Fold is a new feature that takes allows SU to take an in-depth look.

Twelve questions and answers about AHT’s

9. What controls the limits of the Trust’s authority?
   Although the concept of local housing trusts is not new, the Massachusetts legislature concluded that – due to increased availability of local funding through the inclusionary zoning bylaw, negotiated development fees, and state and federal funding – there was a need to provide specific legislation to allow communities to form their own municipal affordable housing trust funds. In 2005, the Massachusetts legislature passed the Municipal Affordable Housing Trust Fund Law (MGL c.44 s.55C), which effectively simplified the process of establishing a local housing trust and allowed it to be created through the town meeting process.

The new law also set guidelines on what local housing trusts can do. The guidelines specify who can serve on a local housing trust board. The guidelines establish the powers a community can grant the board. Since the new law passed, approximately 120 communities in Massachusetts have established municipal affordable housing trusts. A housing trust can advance the Town’s local housing goals and help to ensure that we continue to have a minimum of 10% of our housing stock certified as affordable. By establishing designated funds and creating a board to oversee their use, there is an advocate for affordable housing to facilitate production. AHT is an alternative to developers using Mass Comprehensive Permit statute, Chapter 40B.
We all know many cannot afford to buy in Stockbridge though they work here and would like to live here.

1. What financial oversight of the Trust is required?
   The books and records of the trust are required to be audited annually by an independent auditor in accordance with accepted accounting practices and are available to the public. Separate from a Town audit. Secondly any grant applied for and received for AHT must follow the rules and meet the requirements therein. An AHT generally is expected to have one member overseeing income and expenditures.
2. Are meetings of the trust subject to the open meeting law?
   Yes, all meetings are posted and open to the public.
3. What controls the limits of the Trust’s authority?
   Although the concept of local housing trusts is not new, the state legislature concluded that – due to increased availability of local funding through inclusionary zoning, negotiated development fees, and state and federal funding – there was a need to provide specific legislation to allow communities to form their own municipal affordable housing trust funds. In 2005, the Massachusetts legislature passed the Municipal Affordable Housing Trust Fund Law (MGL c.44 s.55C), which effectively simplified the process of establishing a local housing trust and allowed it to be created through the town meeting process.
4. What is the term of office for the trustees of the Housing Trust?
   Trustees serve for a term of two years except that three of the initial trustee appointments were appointed for one year in order to stagger terms. They may be re-appointed at the discretion of the Board of Selectmen.
5. Who would appoint members to the Trust?
   The Board of Selectmen would be the appointing body and at least one Selectman would be a member of the trust.
6. Who could be members of the Trust?
   The trust consists of seven voting trustees. The Board’s membership would always include one member of the Board of Selectmen and one representative from the Housing Authority. The Town Administrator, or his designee, would serve as a non-voting member. Remaining trustees must be residents with expertise and experience relative to housing management and development, to include attorneys, contractors, realtors, and financial professionals.
7. What can the Trust do that Town employees, elected or appointed officials cannot?
   By establishing a housing trust the trust is able to buy and sell property without waiting for a Town Meeting to be scheduled – or the approval of a Town Meeting. They can do these things if the majority of the seven members vote yes. Some municipalities put limits on that ability. For example, to allow the AHT to negotiate and acquire property as long as…Stockbridge has yet to determine whether they wish to put limitations. The sources vary among housing trusts. Under MGL c.44 s.55C sources of funding for trusts include: Community Preservation Act funds, inclusionary zoning payments, negotiated developer fees, the town’s general fund, grants, gifts, and private donations. However, any funding from the Town’s general fund or from CPC would require approval at a Town Meeting.
8. What funds can be used in the Trust?
   The sources vary among housing trusts. Under MGL c.44 s.55C sources of funding for trusts include Community Preservation Act funds, inclusionary zoning payments, negotiated developer fees, the town’s general fund, grants, gifts, and private donations.
9. Will the Trust’s activities (including potential borrowing or property purchase) negatively affect the Town, the Town’s financial stability, bond rating or borrowing capacity?
   “In a legal sense, an Affordable Housing Trust, created by a Municipality under C. 44, section 55C of the Mass. General Laws is a separate legal entity from the town or city, which chooses to create it.” Therefore, the Trust is a separate financial entity, audited annually, and whose financial actions would not impact the Town’s financial standing.
10. What is the advantage to creating a local Trust when we already have the Stockbridge Housing Authority?
    The mission of the Housing Authority is different. It is not part of its mandate to buy and sell real estate. It can hold property, it can purchase real property but cannot sell property.
    A local housing trust can, for example, acquire property, partner with Habitat for Humanity, and eventually sell the completed units to income-qualified individuals to expand home ownership opportunities.
    Payment-in-lieu of units directed to the trust can be used in a variety of ways – for example, funds could be used to “buy down” market-rate housing and, with a deed restriction, keep the unit permanently affordable to all subsequent owners. Again, such a process would be outside the scope of the Housing Authority.
    The housing trust does work cooperatively with a housing authority.
11. What can a local Housing Trust do?
    A local housing trust allows municipalities to designate certain funds for affordable housing, segregate them out of the general municipal budget into a trust fund, and use the funds for local initiatives to create and preserve affordable housing. Examples of what a local affordable housing trust fund can do include:

i. Provide financial support for the construction of affordable homes by private developers (non-profit or for-profit)
ii. Rehabilitate existing homes to convert to affordable housing
iii. Increase affordability in new housing development projects
iv. Develop surplus municipal land or buildings
v. Preserve properties faced with expiring affordability restrictions
vi. Create programs to assist low and moderate income homebuyers
vii. Create programs to help low and moderate income families make health and safety repairs
viii. Educate and advocate to further affordable housing initiatives.
Looking around the County…

In a meeting with Steve Bannon, Chair of the Great Barrington Select Board, SU learned that the AHT in Great Barrington has met the state requirement of 10% of housing stock being affordable. He pointed out that meeting the requirement and meeting the need can be different. GB AHT continues to work to provide more housing. It has worked with Habitat for Humanity and developed affordable housing units on Bridge Street. Bannon is pleased with their work and continued efforts. His top line concern in GB today is infrastructure

Looking back…

At the December AHT meeting, Patrick White introduced Hal Kobrin. The enthusiasm once expressed for building affordable housing on the Glendale Middle Road property gifted to the Town by Kate and Hans Morris seemed to have shifted to developing affordable housing in the 10,000 square foot building on Pine and Shamrock Streets owned by Kobrin. The pluses were warmly enumerated: it has water, sewer, and off-street parking. It is walking distance to Town. AHT voted $12,500 to be paid to Kobrin’s architect to do the design and reconfiguration of the space to determine the number of units possible in the building. A per unit cost could be estimated when the information is gathered.

A follow-up meeting took place last week with Stockbridge Housing Authority’s Executive Director Andrea Lindsey, AHT Vice Chair Jan Ackerman (by phone), AHT member Patrick White, and Kobrin. The meeting was not open to the public, however, matters discussed apparently included that the architect had completed step one at a cost of $200, and according to Kobrin, is continuing his work. Options were discussed including buying the property. The asking price is $2.2million dollars, and in Kobrin’s opinion, is a bargain because he estimates new construction cost at $600 per square foot.

Dave Carter Weighs In

Editor’s note: Carver has been building and renovating buildings for housing in Berkshire County for 40 years. Carver will contribute articles on both workforce and affordable housing. As AHT interest in creating affordable housing on Glendale Middle Road appeared to shift from Glendale Middle Road to Pine Street, SU asked Carver his initial thoughts.