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Affordable Housing Committee Page 2 <br /> Minutes of August 10,2021 <br /> Consortium, and they hope for a favorable decision from the Advisory Council in the near future. <br /> The current application to the state included a new construction estimate, as costs construction costs on this <br /> project have significantly increased. This is no surprise since the costs on virtually all projects statewide <br /> have increased significantly in this pandemic economy. Over the past 2 years since the original pricing <br /> estimates were obtained,there has been a 35%increase in construction costs. <br /> They are working hard with an architect and financing team to reduce costs. They also increased their <br /> request to the state for tax credit funding and other sources. They are now waiting to see what the states <br /> reaction to application will be. Fortunately,DHCD will not be surprised since constructions cost increases <br /> have become a statewide issue. However,efforts to reduce costs and perhaps find additional funding <br /> sources are probably necessary. Once funding from DHCD is known,the POAH-HAC development team <br /> has some ideas for supplementary funding. In the past the MassWorks Project is one way to address the <br /> increased cost issue,but the Town has to submit this application. Preliminary conversations have started to <br /> see if there was an appetite for that. <br /> Mr.Willard asked if the new application included the increase of 35%. Mr. Quinn stated there are several <br /> sources for state funding they could ask for,including state low income tax credits, federal low income tax <br /> credits, and state subordinate debt. <br /> Ms.Baker asked when the mini round will be determined. Mr. Quinn stated the full application is due for <br /> September then it will take a few months.He believes DHCD will announce awards before year-end. <br /> Bud Abbott asked if they ever go to the legislature in advance to get backing. A Mashpee representative <br /> could help in getting what is needed.Mr. Quinn is not aware of this being an avenue,his organization is <br /> always advocating for additional funds for affordable housing,which is ongoing. If they find themselves in <br /> that situation, it can't hurt to talk to representatives,but we are not at that point yet. Chairman Isbitz <br /> suggested the Committee consider inviting State Representative David Vieira to the October meeting. If <br /> DHCD had to go to the state legislature for additional funding to cover the increases in construction costs <br /> statewide,his input and show of support would be helpful. <br /> Also,Mr. Isbitz would like to know what is that status of the HOME grant. He understood that the <br /> Advisory Council is considering increasing the maximum HOME award per project from $250,000 to <br /> $300,000. Has this decision been made? Mr. Quinn replied their project request is currently being <br /> reviewed in underwriting,but he is confident it meets their underwriting standards. As far as a decision on <br /> increasing the maximum HOME grant,the Council is on hold pending state funding decisions. <br /> Chairman Isbitz advised Mr. Quinn to ask the Committee if he needs any help from the Committee. He <br /> asked what are the next steps in securing state funding. Mr. Quinn said now that the pre-application is <br /> submitted,DHCD will decide next month which projects to invite to submit a full application. DHCD will <br /> announce the mini-round funding decisions by the end of the year. If not funded in the mini-round,the <br /> next funding opportunity would be the normal round for next year. The deadline for pre-applications in the <br /> next normal round will be sometime before the end of this year. DHCD will then decide who will be <br /> invited to submit full applications to be due in January with funding awards announced in the spring. <br /> 2.Mashpee Commons-No report <br /> 3.Habitat for Humanity <br /> Beth Wade,Director of Land Acquisition and Project Development for Habitat, gave the Committee an <br /> update. The project is nearing completion of the two homes on Mendes Way. There was a procurement <br /> delay on the kitchen countertops.Bob Riley, Director of Construction,told her that both homes are at the <br /> same stage.The exterior carpentry,painting,road and driveways have been completed. Drainage is cleared <br /> and vegetated as needed. Landscaping is completed. Grass has germinated. Interior cabinetry, carpentry, <br />