Smith Affordable Housing ResolutionAffordable Housing Replacement
Resolution of the Board of Trustees of Smith College
Whereas the College anticipates the demolition of housing in the Green Street area as it expands
and develops its science and engineering curriculum and related facilities;
Whereas the College is concerned about maintaining affordable housing in the city of Northampton;
Whereas
the College has been participating in the Smith-Northampton Affordability Partnership (SNAP);
Whereas the College and the City of Northampton are committed to developing an advisory
committee with members appointed by each to study and review all proposals for affordable housing subsidy requests to ensure that the overall goals of providing affordable housing are
met.
Therefore be it resolved that:
The Board of Trustees supports the work the College has done in cooperation with the city of Northampton and others to develop a structure for a
fund to subsidize affordable housing in Northampton. That structure is further described in Schedule 1 and is hereby endorsed by the Trustees.
While no authorization to commit a specific
sum is made at this time, the Trustees are committed to establishing an Affordable Housing Replacement Fund to subsidize affordable housing development. The size of the fund and allocations
from the fund will be determined following further study and analysis, consistent with the structure described in Schedule 1, and in the context of the college’s financial plan. Allocations
from the fund will take into account the advice of an advisory committee appointed by the College and the city of Northampton.
Approved October 25, 2003
Affordable Housing
Resolution of the Board of Trustees of Smith College
Schedule 1
STRUCTURE
The College will create an Affordable Housing Development Fund. This fund will exist on
paper only, for purposes of keeping track of the amount of the College’s commitment of funds to housing replacement and of spending from those funds.
The College’s contributions to
the Fund will recognize the number of housing units of various sizes that the college displaces in the Green/West/Belmont area. The College will determine the amount to be contributed
per unit of housing at the time of displacement by considering a combination of factors, including (a) standards set by the Massachusetts Department of Housing and Community Development
(DHCD) for unit costs for affordable housing; (b) estimated total development costs for affordable housing as reported in applications submitted to DHCD, to the extent they are available;
(c) total development costs for new affordable rental housing in Northampton; (d) the amount of debt the replacement project can reasonably bear while maintaining rents in an affordable
range; and (e) the affordability of the displaced housing. The figures in (a) and (b) will be appropriately adjusted for the Northampton housing market. When necessary, the College
will develop estimated figures in advance when it believes replacement housing may be constructed before the displacement of existing housing occurs.
Contributions by the College of
land or other properties for affordable housing will be charged against the Fund at market rates.
Any non-profit or for-profit developer may apply to the Fund for project support.
In
disbursing amounts from the Fund, the College will be advised by a three to five member committee consisting of members appointed by the President and the Mayor. The committee will
include members who are actively involved in affordable housing matters in the city.
In its advisory role, the committee will assist in developing criteria for the evaluation of proposals.
The criteria will include specific matters to be addressed by applicants, such as:
a. Displaced tenants: Applicants will address the extent to which the proposed project accommodates
tenants who may be displaced from current housing in the Green/West/Belmont area.
b. Permanence: Applicants will address the permanence of affordable rent levels, since the College and the community wish to maximize the length of time the units will remain affordable.
Method
of monitoring: Applicants will detail how compliance with the affordability requirement will be monitored.
Outside funding: Applicants will address their ability to obtain state,
federal or private funds to leverage funds from the College, and will indicate the extent of leveraging available.
Range of rents: Applicants will address the extent to which their
project includes rental units aimed at addressing various levels of affordability.
f. Range of sizes: Applicants will identify the extent to which their project includes
units
of the sizes most needed in the city, as specified in the most recent needs
assessment available.
Tax base: Applicants will estimate the incremental annual amount of property
tax revenue the project will produce for the city.
Within the criteria selected, there will be maximum flexibility in how the funds may be used, so the advisory committee may respond
rapidly to opportunities as they arise. All reasonable development expenses, including purchase of land or buildings, initial development costs, and costs of consultants will be eligible
as long as a sufficient draft or final project plan is available for review.
8. The College will keep records of progress in the replacement of units and the degree to which leveraging
results in the development of additional units beyond those displaced by the College. That information will be available to the advisory committee.
Schedule 1
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