CPC-Prospect Place affordable housing funding-WF3-8-22.pdf
TO: Community Preservation Committee
FROM: Wayne Feiden, FAICP, Director of Planning & Sustainability
RE: VCDC Funding Request for Prospect Avenue
DATE: March 10, 2022
As you know, Valley Community Development Corporation requested $1 million in CPA funding for the
Prospect Place affordable rental housing at Prospect/Bridge/Hatfield. In addressing CPC questions,
VCDC noted that they are neutral as to what funding sources the city uses to get to $1 million.
FUNDING: If the CPC decides to fund VCDC’s request, we ask that you fund this project at $664,068.
This is the maximum that you can fund it using cash, and thereby avoiding the significant borrowing
costs, if you decide that you want to fully fund Historic Northampton’s request.
The Mayor has agreed to support funding the remaining $335,932 balance from other sources ($50,450
from short term rental fees and $285,482 from CDBG).
At their March 7, 2022, the Housing Partnership, which supports VCDC’s request, likewise indicated that
they support the city’s approach to look at all of our affordable housing financial support (four major
and two minor funding programs) holistically and split the funding consistent with the above.
Affordability Conditions: The city, with Housing Partnership and CPC support and consistent with our
zoning definition of affordable housing, has been requiring that affordable housing we fund has 99‐year
affordability agreements. For this project, we recommend:
1. Affordable units (those available to households earning less than 80% of area median income, AMI)
presented have a 99‐year affordability agreement, held jointly by the city and other funders.
2. The affordability level (e.g., units affordable at 30% and 50% AMI) presented in VCDC’s application
can increase after 50 years so long as the units are still affordable to those at or below 80% of AMI.
3. The affordability level of workforce units (above 80% AMI) presented in the application remain at
that level for at least 50 years and then can increase.
Energy Performance Conditions: Consistent with our zoning for affordable units and Energy and
Sustainability Commission recommendations, we request that the building be fossil‐fuel free for heating
and appliances and meet the city’s policy for affordable housing energy performance.