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affordable housing fund applicationAffordable Housing Fund 1 COMMUNITY PRESERVATION PROJECT APPLICATION COVER SHEET I: Project Information Project Title: Affordable Housing Fund Project Summary: CPA Funding is sought for soft costs and purchase costs for the purposes of creating new affordable housing. Estimated start date: Immediately upon receipt of funds CPA Program Area (check all that apply): � Open Space � Historic Preservation  Community Housing � Recreation II: Applicant/Developer Information Contact Person and or/primary applicant: Wayne Feiden Property Owner (if applicable): Parcels owned by the City of Northampton Organization (if applicable): Northampton Office of Planning and Sustainability Mailing Address: 210 Main Street, Room 11 Daytime phone #: 413-587-1265 Fax #: 413-587-1264 E-mail address: wfeiden@northamptonma.gov III: Budget Summary Total budget for project: $50,000 CPA funding request: $50,000 CPA request as percentage of total budget: 100% Applicant’s Signature: Date Submitted: September 18, 2020_______________________ Affordable Housing Fund 2 Narrative: In the last month, the city has sold or donated six parcels for affordable housing. The city is looking to advance this work and seeks funding for due diligence and soft costs for new affordable housing opportunities that the City creates. We have identified the first three sites, and will bring in additional sites as opportunities arise: • Laurel Street, former Northampton State Hospital--estimate 20 rental affordable housing units, acquired from 2020 Acts of the legislature. • 278 Burts Pit Road, former Northampton State Hospital- estimate two homeownership affordable housing units, acquired from 2020 Acts of the legislature. • Woodland Drive, former tax title parcel donated to the city in 2020- estimate one market rate and one or two homeownership affordable housing units. The City will surplus all parcels to add to the City’s affordable housing stock, and will place permanent affordable housing restrictions to make sure they remain affordable moving forward, but will need to complete the pre-development due diligence and soft costs. This could include Environmental Site Assessments, surveys, lead paint assessments, legal work, and permitting to make the sites available to affordable housing developers. The Massachusetts Housing Partnership recognizes the importance of predevelopment activities and the use of CPA funds for predevelopment work: CPA funding is an important resource to help jump start a development project. A board, committee of the municipality, or the project sponsor may apply for CPA funds to finance predevelopment activities. These activities may be needed to determine project feasibility, plan for the number of housing units to be built or preserved, and/or create preliminary site plans for the best use of a parcel. These preliminary investigations can set up realistic expectations regarding a wide range of site development issues and enable the community to assess what housing can be accommodated on a particular parcel. Predevelopment analysis promotes better project planning and helps municipalities set realistic expectations regarding the number of units it can develop and the financial feasibility. Predevelopment analysis can also provide valuable supportive documentation for RFPs. Having experienced professionals undertake the analysis adds credibility and can help the developer gain additional local approvals and funding necessary for the development to proceed. Preliminary environmental or financial feasibility studies CPA funds can pay for tests to ensure that the site is suitable for housing development and to determine where the development should be placed. Environmental tests can include: Phase I environmental reports, test borings, and wetlands delineations Site planning Affordable Housing Fund 3 CPA funds can be appropriated to pay consultants to prepare conceptual site plans that can be used to inform the public. This information may be included in an RFP to solicit interest from developers for affordable housing developments on public property. The project meets several Community Preservation general 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 Providing a wide variety of quality affordable housing types to meet the community’s needs is critical to the character and vitality of Northampton. Addresses recommendations contained in the Sustainable Northampton comprehensive plan and/or the Open Space, Recreation, and Mixed Use Trail Plan 2011-2017 or is consistent with other city-wide planning efforts that have received broad-based scrutiny and input and can demonstrate wide community support This project will result in new affordable housing opportunities in Northampton, meets the goals of the Housing Needs Assessment and Strategic Plan, and will help to address impediments to fair housing identified in the Fair Housing Assessment. It also meets the Sustainable Northampton goal of supporting a wide variety of housing types that increase rental and homeownership units to create and preserve a range of affordability and choice in housing options Receives endorsement by community groups, municipal boards and/or departments The application is presented by the Office of Planning and Sustainability in its capacity as the lead office in promoting and planning for affordable housing opportunities in Northampton, and is supported by the Housing Partnership. Leverages additional public and/or private funds, or demonstrates that other funding sources are not readily available or sufficient Funding opportunities for the predevelopment work necessary to develop affordable housing are extremely limited; there are no other funding sources readily available for this type of work. CPA funding for predevelopment will allow additional funds to be leveraged for the housing development itself from other sources. Can be implemented expeditiously and within budget We will begin predevelopment work as soon as funding is available. The Project Meets Many of the Community Housing Criteria Create or preserve community housing – both rental and home ownership, with a focus that matches community needs for households Promote and encourage use by diverse populations Provide housing that is harmonious in design and scale with the surrounding community Intermingle affordable and market rate housing Affordable Housing Fund 4 Provide the City credit for units under M.G.L. Chapter 40B Provide housing in locations that promote walking, biking, and use of public transportation, and discourage single-occupancy vehicle trips Provide housing for households with incomes below 80% of area median, and based on community need give special consideration for funding to projects which restrict at least some units to even lower income households including households with incomes below 50% or 30% of area median. Project Budget: 100% of the grant will go to soft-costs and due diligence, and with the city donating staff time, legal time, in-direct, and overhead. Costs per project can vary dramatically, but typically costs and budgets might include environmental site assessment for $5,000, lead paint assessment if there is a building for $4,000, survey costs for $4,000, and permitting for $10,000. The costs are higher for large projects and projects requiring comprehensive permits (where architectural elevations are required) and less for desirable lots where the affordable housing developer can pick-up some of these costs. ATTACHMENTS: Support Letter from Pioneer Valley Habitat for Humanity Laurel Street and Burts Pit Road City Council Order City of Northampton MASSACHUSETTS _________ In City Council, April 2, 2020 Upon the recommendation of Mayor David J. Narkewicz and Planning & Sustainability 20.111 An Order to Accept Land and Surplus it for Affordable Housing at Laurel Street and Burts Pit Road WHEREAS, Successive legislation (Chapter 86 of the Acts of 1994, Chapter 241 of the Acts of 2016, and House 4123, 2020, awaiting the Governor’s signature Chapter 169 of the Acts of 2020) has set aside lots on Laurel Street and Burts Pit Road for affordable housing, to transfer the land to the City of Northampton, and to waive consideration (respectively); WHEREAS, Consistent with the City’s Sustainable Northampton Comprehensive Plan, Housing Needs Assessment, and Fair Housing plans, the city has planned since 1994 for this land to be used for affordable housing; WHEREAS, City Council has consistently endorsed this use of the land, petitioning the state legislature for these pieces of legislation and most recently zoning Laurel Street parcels as part of the Smart Growth overlay on April 2, 2020. Ordered, that The Mayor is authorized to accept said deed to the above referenced land, approximately 3.4 acres in aggregate, at 23 Laurel Street and 278 Burts Pit Road; Further that City Council declares the parcels surplus to City needs; Further that the Mayor is authorized to transfer deeds for the land subject to the city retaining affordable housing restriction; Further, to the extent consistent with the authorizing legislation, the Mayor is authorized to adjust parcel boundaries with neighboring properties such that the final land dedicated to affordable housing is no less than the current lot configurations. Building strength, stability and self- reliance through affordable homeownership in Franklin and Hampshire Counties Board of Directors Stacy Metzger, President Benjamin Barnes, Vice President Christine Speek, Treasurer Jane Andresen, Clerk Keith Woodruff, Assistant Clerk Christine Aubrey Samantha Brazeau Anna Cook Steve Harrington Tom Jones Clara Lopez Matthew Ramon Matthew Sherwood Rob Steinberg Executive Director Megan McDonough 140 Pine Street, Rooms 3 & 4 PO Box 60642 Florence, MA 01062-0642 (413) 586-5430 info@pvhabitat.org www.pvhabitat.org September 7, 2020 Community Preservation Act Committee City of Northampton 210 Main St, City Hall, Northampton, MA 01060 Re: City fund request for soft costs and due diligence Dear Committee, The city of Northampton is a place of opportunity with great schools, jobs and quality of life. These very things that make it a desirable place to live also make it an expensive place to live and many can not afford housing in the city without support. We are humbled to have been able to make the dream of homeownership a possibility for 22 families (and we are in the process of building a home with the 23rd family) in the city over the last 30+ years. But Habitat didn’t do it alone. One common theme throughout all our projects in the city was the support of the city itself – from land acquisition to construction funding – the city has supported an inclusive vision for its future where people of many backgrounds and incomes can live here. Good planning has resulted in land conservation and affordable housing side by side, mixed income neighborhoods, just big enough lots, and more – but it becomes more difficult to do this as time goes on and all the easy land is built on. We support the planning department’s request for funding for softs costs and due diligence so that the best parcels can be identified and ear marked for development and/or conservation. This will lay the groundwork for future collaborations and set us up for success. In gratitude, Megan McDonough, Executive Director Pioneer Valley Habitat for Humanity