3. Lumber Yard_CPA Narrative.pdf 1
Community Preservation Project Proposal
Project: Redevelopment of former Northampton Lumber Yard
Applicant: Valley Community Development Corporation (Valley CDC)
Project Location: 256 Pleasant Street, Northampton MA
Map 32C, Block 171, Lot 1
Map 32C, Block 337, Lot 1
The property is located along the lower Pleasant Street corridor between
Holyoke Street and Short Street, a private road. The property is located
within the Central Business District and subject to Central Business
zoning and Central Business Architecture Committee approval.
Community
Preservation
Criteria: Program Area – Community Housing
The redevelopment of the former Northampton Lumber Yard will meet the
following Community Preservation Plan criteria:
• Contributes to the preservation of Northampton’s unique character,
boosts the vitality of the community, and enhances the quality of life
for its residents – the project provides affordable rental housing for
very low-to-moderate income households earning between 30 and
60 percent Area Median Income (AMI) and adds to the social and
economic diversity of the City.
• Addresses recommendations contained in the Sustainable
Northampton Comprehensive Plan and is consistent with other city-
wide planning efforts that have received broad-based scrutiny and
input and can demonstrate wide community support – the Sustainable
Northampton Strategic Plan and the City’s Master and Strategic
Housing Plans support the preservation and development of
affordable housing and housing specifically along a range of
income levels.
• Saves resources that would otherwise be threatened – one- and two-
bedroom apartments are in high demand in Northampton and as
the downtown area becomes more developed and vibrant and as
young professionals move into the City, affordable rental housing
located downtown will be in higher demand.
• Serves under-served populations – our project provides affordable
rental housing to very low-to-moderate income households earning
between 30 and 60 percent AMI.
• Places high value on sustainable, ecologically responsible, energy-
conserving structures, locations, and materials – this project will be
new construction with buildings that at a minimum will meet
Energy Star standards and green materials will be used to the
fullest extent possible.
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• Received endorsement by community groups, municipal boards and/or
departments, and City residents – the project has the support of local
social service agencies, the Northampton Housing Partnership,
and Mayor David Narkewicz. See attached support letters from
the Center for Human Development, Friends of the Hampshire
County Homeless, City Councilor At-Large Bill Dwight, and
Northampton residents.
• Leverages additional public and/or private funds, or demonstrates that
other funding sources are not readily available or sufficient – Valley
CDC will seek funding from a variety of sources from the
Department of Housing and Community Development. We expect
to seek the maximum allowed from these State programs. We will
also be requesting funds from the Smith College Affordable
Housing Fund in addition to the funding from CPC. Valley CDC
will also be submitting an application for $150,000 from the City's
Community Development Block Grant allocation.
• Demonstrates a high benefit/cost value – the project will ensure long
term affordability and decent, safe affordable housing for either
99 years or in perpetuity due to the affordable housing restriction
required by Department of Housing and Community Development
funding.
• Can be implemented expeditiously and within budget – Valley CDC
needs the written commitment of the CPC to be competitive in the
State’s rental funding round. Valley CDC has developed two
affordable housing projects during the past five years and both
projects were completed on time and within budget.
Community Housing Project Evaluation Criteria
Additionally, this proposal meets 10 of the 14 Project Evaluation Criteria
for community housing projects as outlined below:
• Create or preserve community housing with a focus that matches
community needs for households – Valley CDC is creating
approximately 60 units of affordable rental housing that meets the
City's high demand for one and two bedroom apartments.
• Promote and encourage use by diverse populations – One hundred
percent of the proposed units will serve very low to moderate
income individuals earning between 30 and 60 percent AMI in an
otherwise higher-income neighborhood.
• Provide housing that is harmonious in design and scale with the
surrounding community – This will be a new construction project
that will adhere to current Central Business zoning. The architects
have reviewed the surrounding buildings and streetscape so that
the new building(s) will complement the surrounding
neighborhood.
• Ensure long-term affordability – Valley CDC agrees to an affordable
housing restriction which maintains the housing as affordable for
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at least 99 years; from experience, the State will also approve of
this length of restriction.
• Construction on a previously developed site – The proposed project
will make use of the former Northampton Lumber Yard site.
• Provide the City credit for units under M.G.L. Chapter 40B – These
units can be added to the City's inventory of affordable housing.
• Is LEED or Energy Star certified – At a minimum, the building(s)
will be Energy Star certified. Green building products will be used
to the greatest extent possible.
• Provide mixed-use development opportunities – In addition to the
approximately 60 units, this project will include approximately
3,500 square feet of commercial space.
• Provide housing in location that promotes walking, biking, and use of
public transportation – The existing site is located in downtown
Northampton close to shopping and all modes of transportation.
• Provide housing for households below 80% AMI including households
with incomes below 50% or 30% AMI – One hundred percent of the
units will provide housing to those with incomes between 30% and
60% of AMI.
Community Needs
Served: This project serves under-served populations by creating approximately 60
apartments affordable to households earning at or below 60% of AMI.
According to the City of Northampton Housing Needs Assessment and
Strategic Housing Plan (2011), there is a "significant need to house
families, particularly those earning within the poverty level, as well as
growing numbers of smaller households that are increasingly including
single parents with children as well as unrelated individuals." The plan
also states that "there are substantial numbers of two-person households
with unmet housing needs" and that these households comprise about one-
third of the City's households, yet smaller units are in short supply. The
Housing Authority has substantial numbers of families on their wait list
for larger units, indicating a further need for larger subsidized rental units.
The proposed project will have one, two, and three-bedroom apartments
for families.
The neighborhood where the project is located is in one of the lesser-
developed sections of downtown Northampton. Since this section is along
one of the major gateways leading into the City, lower Pleasant Street is
considered a priority area for the City’s future development. The former
Northampton Lumber Yard property has a prime location along the
Pleasant Street corridor that is close to public transportation and nearby
amenities downtown. The project would guarantee the availability of
affordable housing in this up-and-coming area.
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The development's on-site facilities will include a laundry room, a
community space where residents can host meetings or events, and a
management office. There will be on-site green space available for
residents and we expect to be able to accommodate between 0.7 to 1
parking space per unit for the convenience of residents as well as to
minimize pressure on street parking and parking for the surrounding
residential and commercial areas.
The City of Northampton has submitted a grant application to the
MassWorks Infrastructure Program for $1,028,365 with a local match of
$46,246 for infrastructure improvements to lower Pleasant Street. These
improvements include crosswalk and sidewalk repairs and improvements
and the addition of trees and assessing the feasibility of moving power
lines underground. The project will benefit greatly from these
infrastructure improvements but they will also serve the greater
community.
Long-term
Preservation: In order to leverage public funds including allocations of LIHTCs (from
Federal and State LIHTCs) and State affordable housing soft debt, the
Department of Housing and Community Development will require a
recorded Affordable Housing Restriction (AHR). It is expected that the
AHR will require either for a minimum of 99 years or in perpetuity that
the 60 apartments are restricted to households earning between 30% and
60% of AMI.
Community
Support: Valley CDC has met with the following individuals and entities to discuss
the redevelopment of the former Northampton Lumber Yard:
• Mayor David Narkewicz
• Northampton Housing Partnership
• City of Northampton Housing/Community Development Planner Peg
Keller
• City of Northampton Director of Planning and Sustainability Wayne
Feiden
• City of Northampton Senior Land Use Planner and Permits Manager
Carolyn Misch
• City of Northampton Economic Development Director Terry
Masterson
• Undersecretary for Housing and Community Development Aaron
Gornstein
The project has been met with positive response from these parties.
Additionally, Valley CDC has also received several letters of support for
the project from Northampton residents (see attached).
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Success
Measurement: Successful completion of construction of the project, with the above
mentioned affordability restriction, will ultimately be how success is
measured. Due to the long lead time for the creation of affordable units,
success is often broken down into steps which can include site control,
zoning/planning approvals, funding applications, awarding of funds,
construction, and ultimately the rent-up of affordable units. Furthermore,
the future success will be measured by the ongoing financial viability of
the project as projected in the attached 20-year operating budget.
Ongoing
Maintenance: Once completed, the project will be managed by a qualified Property
Management company chosen by Valley CDC. Valley CDC’s current
units in Northampton and Florence are managed by Home City Housing
based in Springfield and the Amherst units are managed by the Amherst
Housing Authority. Valley CDC’s project in Easthampton that is currently
under construction will be managed by HAP, Inc. The selected Property
Management Company will oversee project operations such as tenant
marketing and selection as well as ongoing maintenance and janitorial
work and overall financial management and oversight.
Project Budget: See: Attachment A
• Development Project Budget (contains sources and uses of funds for
$19.9 million development project and 20-year operating budget for
apartments and commercial space)
Multi-Year
Funding: Not requested
Project Timeline: Planning Board review October 2014
Central Business Architecture Committee October 2014
All permits obtained February 2015
First pre-application to DHCD February 2015
First OneStop+ application to DHCD March 2015
If not funded in June 2015:
Second pre-application to DHCD September 2015
Second OneStop+ application to DHCD October 2015
Funding awarded December 2015
Closing/Demolition/Construction May 2016
Construction 100% complete May 2017
100% occupancy August 2017
Feasibility: Valley CDC has a signed Option Agreement to purchase the property for
$1,000,000 for which Valley CDC has obtained an acquisition loan
commitment from the Community Economic Development Assistance
Corporation (CEDAC).
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Site plan review by the City's Planning Board and design review by the
Central Business Architecture Committee are projected to commence in
October 2014. A Project Notification Form will be filed with the
Massachusetts Historic Commission.
There is an underground stormwater management drainage conduit that
dates back to the mid 19th century that runs diagonally across the property.
It presents a design challenge since the drainage system will have to be
replaced and relocated. Valley CDC has already researched initial
feasibility of moving the conduit and though it is feasible, it will add to the
cost of the project.
Additionally, there are requirements regarding properties that were
previously owned by the railroad company as well as requirements
regarding properties abutting railroad properties. These requirements
include getting approval on site improvements by the owners of the
railroad. The railroad will be owned by the Commonwealth but Pan Am
Railways, the current owner, will still be operating the freight line.
Approval for a building permit will be needed from both parties. Valley
CDC will share its initial site plans at the appropriate time.
Once all due diligence responsibilities have been completed, a One Stop
application will be submitted to DHCD in March 2015. An application for
additional funding will be submitted to the Smith College Affordable
Housing Fund and Valley CDC will also submit an application to the City
of Northampton requesting $150,000 from its Community Development
Block Grant allocation. Valley CDC expects a funding commitment from
DHCD by December 2015 at latest.
After receiving all funding commitments, the selected architects, Davis
Square Architects, will produce a complete set of drawing and
construction specifications based on their preliminary design. Once
completed, plans and specs will be reviewed and approved by local
building and fire department officials. Valley CDC will invite three-five
responsible and responsive regional general contractors to bid. General
contractors must be experienced in affordable housing development. Bids
will be obtained in early 2016 from the invited general contractors. Once
bids have been reviewed, general contractors with the lowest responsible
bids will be interviewed. References will be obtained and checked and a
contractor will be selected by early March 2016. The closing for project
funding will take approximately six months. In that time, all closing
documents including a "Mass Docs" Affordable Housing Restriction
Agreement (AHR) will be drawn up by closing attorneys with all funding
sources including the Northampton CPA. Under M.G.L. 40 Section 54A,
Valley CDC will need to obtain permission from the Massachusetts
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Department of Transportation (Mass DOT) prior to obtaining a local
building permit. Once approval is obtained from Mass DOT, a building
permit, along with performance and lien bonds will be obtained by the
contractor. The owner will contract with a lender-approved construction
term inspecting engineer and clerk of works overseeing all construction
work and requisitions for funding. The owner will also obtain builders risk
and general liability insurance for construction. Once completed and
approved by attorneys, all closing documents will be executed and
recorded at the Hampshire Registry of Deeds. Typically the AHR is in
first position. Construction will begin in May 2016 and be completed in 12
months – May 2017. All work will be overseen by an owner's
representative, inspecting engineer, clerk of works, and Davis Square
Architects. The project will be Energy Star rated and compliant. Design
and construction will utilize green building products to the fullest extent
possible.
Certificates of Occupancy for each unit are obtained from the building
department. Any marketing and tenant selection for these units will
commence approximately six months prior to construction completion.
Maps & Visual
Materials: See:
- Attachment B: Survey
- Attachment C - Assessors Map
Attachments: - Attachment D: Zoning map
- Attachment E: 21E Phase 1 & 2 Reports (provides evidence that the site
is free of hazardous materials)
- Attachment F: Names and addresses of project architects and consultants
- Attachment G: Option agreement
- Attachment H: Letters of support