5/4/2010 AFFORDABLE HOUSING Minutes

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I 100% affordable i.e. recent 56 unit senior housing project located on 6 acres). Another method to qualify for a subsidy is through the Local Initiative Program(LIP). A developer may approach the Board of Selectmen with a plan to create affordable housing, with no subsidy, and the BS may support the project as a local initiative to the State. The Department of Housing and Community Development DCI will then allow the subsidy as part of the"Ll " process in order to qualify for B. Following Affordable Housing Committee review or Board of Selectmen review, site approval is required by the DCI . Mr. Fudala noted that not all project sites are approved, such as a recent proposal on Echo Road. It was also noted that 40B projects are exempt from Cape Cod Commission review. Project sites that are approved thea move on to be considered at the ZBA. The ZB can waive local regulations or place conditions on projects. The ZBA can not make a request that would makeroFect economically infeasible or the developer could appeal to a special court within the project DCD that would likely overturn a denial or added conditions. Among issues that have developed over the gears, 40B has restricted the developer to a 20% profit margin. As a result, some developers have manipulated transactions to create a lamer profit, but the State has become more proactive about enforcing the 20 profit margin. Ms. Eglof `questioned the current inventory of legally designated affordable housing in Mashpee and Mr. F'udala responded that the D CD provides an annual listing which includes housing such as group homes or subsidized rentals, not previously known to the Torn. The Town has been tasked with notifying the DHCD following the issuance of an occupancy permit for any affordable units in order to be added to the list. fir. Abbott questioned the availability*of affordable rentals. fir. F'udala responded that private developers were reluctant to pursue rentals because of up front expenses and different profit calculation, adding that it was more profitable to develop single family developments. Mr. Fudala ,noted that the Housing Authofity projects are generally rentals. At one time rentals were readily available, but as retirees settle in to their rental properties, fewer have been available in Mashpee. Should a developer pursue a rental project, %would need to be affordable but all units would count toward the f1/o goal. ' The Committee afso discussed riders attached to affordable homes and homeowners renting the homes instead of selling then. Mr. Fudala stated that 40B homes originally had a 30 year deed restriction, but upon expiration. would allow homeowners to sell the property a -the current market value. As a result, many affordable hones were lost during the 1980s and 1990s from houses built in the 1970s. The Mate has since allowed permanent deed restriction to be placed on affordable homes. Projects completed in Mashpee over the last 7 gears have a permanent deed restriction that allows the home to be sold for no more than 0 at or under the median Cape Cod income and based on 3 0% of the income covering housing costs. Land donated by the Town will have a permanent deed. Ms. Egloff questioned the process as it relates to foreclosures. Mfr-. F'udala responded that there has been ars issue its Mashpee where a bank has re-sold an affordable home at market value. Mr. Johnson described the process on Martha's Vineyard where the Domes are affordable in perpetuity. lir. Abbott stated that changes to the rider are being considered that after 10 gears, a property could be sold at a higher rate i the owner is unable to sell it as affordable housing. Assistant Town Planner Bill Newton distributed an affordable housing fact sheet, a copy of which is attached, and noted that Masbpee currently has 266 affordable housing units which represent a rate of 4.77%. Among the approved or proposed affordable projects are Mashpee Commons, Mashpee 2