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affordable housing fund application 3.pdfAffordable 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: Carolyn Misch, Director 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: cmisch@northamptonma.gov III: Budget Summary Total budget for project: $550,000 CPA funding request: $50,000 CPA request as percentage of total budget: 9% Applicant’s Signature: Date Submitted: September 12, 2022_______________________ Affordable Housing Fund 2 Narrative: In Fall 2020 and again in Spring 2021, $50,000 was awarded to the Affordable Housing Fund project to facilitate due diligence and soft costs for new affordable housing opportunities. Thank you! The City has already begun to utilize those funds for survey work and environmental due diligence. We are requesting a third round of CPA funding to allow predevelopment to continue and facilitate affordable housing creation over the coming year. These funds have been absolutely critical to allow the City to work with our affordable housing development partners and proactively work to create housing in the places it is needed the most. Projects Status and Work Completed: Project Anticipated Units Items Funded Amount Expended Through September 2022 Project Status Woodland Drive 1 affordable plus 1 market Survey, Site Plan, Permitting $8,600 Community outreach completed. Affordable lot donated to Habitat for Humanity. Market rate lot sold and proceeds used to purchase land at 196 Cooke Avenue that will provide for more affordable housing Laurel Street 22 Stormwater Assessment, Infrastructure Engineering $7,000 Community outreach completed. Leveraged $200,000 in state funds and $100,000 in city sewer funds to develop the infrastructure needed to make the site work. Property Option signed with Valley CDC, who obtained all of the necessary permits, and will take title once they get state funding. 278 Burts Pit 3 Environmental Site Assessment, Preliminary Site Design, $5,900 Community outreach conmpleted. Building demolished, Property Transferred to Pioneer Affordable Housing Fund 3 Permitting, Building Demo Bid Valley Habitat for Humanity Downtown 24 Geotechnical Borings and Engineering, Preliminary Site Design, Environmental Site Assessment $23,000 $921,300 State Grant Received to Advance Construction Design. Dedicated outreach to those with lived experience planned. Separate CPA application submitted Cooke Avenue 3 Wetland Delineation, Building Remediation $2,800 Community outreach conducted. Land purchased with proceeds from Woodland Drive market rate lot. Building to be demolished with CDBG funding (2022), site design continuing Evergreen Road 1 Survey and Site Plan, Environmental Site Assessment $6,400 Community outreach completed. Separate CPA application submitted Oak Street 4 Environmental Site Assessmemt, Preliminary Site Design $10,300 Survey complete, ready for site design and community outreach (initial community outreach done decades ago but needs to be redone once we have site information). Junk cars on site cleaned up. Completing these sites for transfer to non-profit housing agencies will expend the entirety of the $100,000 awarded so far. We are requesting more funds so that we can move forward to additional sites and make them ready for affordable housing developers. These CPA funds have already leveraged more than one million dollars in funds from other sources that would have difficult or impossible to receive otherwise. Affordable Housing Fund 4 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, asbestos and lead paint assessments, legal work, wetlands and environmental assessments, 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 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 or is consistent with Affordable Housing Fund 5 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 be able to continue contracting for additional 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 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: Affordable Housing Fund 6 100% of the grant will go to soft-costs and due diligence, and with the city donating staff time, legal time, in-direct, overhead, and the land to be used for affordable housing (estimated $500,000 in land value, staff, and legal). 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 $15,000. 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 Letters to be provided as received