2005.03.25 Letter to Spear Management
Diane Andes, Vice President March 25, 2005
Spear Management Group, Inc.
Auburn Professional Building
319 Southbridge Street Suite #3
Auburn, MA 01501
Dear Diane;
A Northampton Affordable Housing Trust Fund trustees meeting was convened on February 23, 2005. Discussion was held on issues you raised in your letter of October 25, 2004. Here is
a summary of those issues and the salient points arrived at by the Trustees.
Efforts to Increase the Number of Trust Fund Recipients
Members understood and agreed that after 5 years of program operation, parameters needed to be revisited and were grateful for your suggestions. With 24 Trust recipient households out
of the 73 anticipated (over time), members are supportive of efforts to increase the accessibility of the Trust Fund and increase the number of beneficiaries. Members agreed that the
soft rental market had impacted marketability and that increased subsidy amounts might increase the numbers utilizing the program.
HUD 2004 Income Limits: Impact of and Implementation Date
With the implementation of updated HUD Income limits, the amount of the Trust subsidy will decrease. Members agreed that this would not only negatively impact the number of future households
that utilize the Fund, but could cause the current number to decrease. This provided support for the adoption of #3.
An adoption date was also discussed. A concern was raised by a member that this is a difficult time of the year in which to receive a rent increase (due to winter utility expenses).
The Trustees agreed to the date however, to help reduce Spear’s administrative burden, as this is when the market rate rent calculations are made. Therefore, the January 1st date was
unanimously agreed to by the Trustees. Adjustments have been made to the January and February invoices as a result.
3.) Utility Allowance Concept/ Establishment
Members agreed that increasing the level of assistance could increase the utilization of the program. Implementing a utility allowance deduction and thus decreasing the tenant rent portion,
was discussed. Members were appreciative
of the charts you had assembled to depict the impact that could be made on tenant rents and trust subsidies.
Trust members voted unanimously to accept the inclusion of a utility allowance deduction, based on the Northampton Housing Authority annual calculations, effective immediately to current
leaseholders as well as new applicants.
Aware that you felt the Housing Authority’s utility allowance figures may be on the high side, Gerard said that you do not normally do utility allowance calculations on a regular basis.
Because the Housing Authority does, all agreed that the Housing Authority numbers would be used in the future.
Unit Size Accommodations
Members understand your viewpoint on this matter. As a result, the following was agreed to:
…that Spear Management would administer whatever occupancy standards they feel are permissible according to fair housing laws, but the Northampton Affordable Housing Trust Fund would
only provide tenant subsidy amounts based on HUD Section 8 Occupancy Standards, related to household composition and the number of bedrooms allowed.
This would allow, for example, you to rent a two bedroom apartment to a one person household who may want the second bedroom for guests, or an office. This would assist you with marketing
units and utilizing the Trust, but the Trust would only subsidize the resident for the value of a one bedroom unit, not a two bedroom one. It is theorized that with the inclusion of
the utility allowance deduction, that the tenant should be able to pay the difference.
Your final issue related to the processing and turn-around time for invoices. Please keep me apprised of this situation, if necessary. Thank you for your cooperation in this endeavor
and please accept my apology for the time delay in getting these valid issues resolved. If you require any additional information, please call me at 413-587-1288.
Respectfully,
Margaret Keller
Housing and Community Development Planner