01/08/2007 SELECT BOARD Minutes - Laserfiche WebLink

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January 5, 2007 Wayne E. Taylor, Chairman Mashpee Board of Selectmen 16 Great Neck Road,North Mashpee, MA 02649 RE: Asher's Path Senior Housing Development Dear Mr.Taylor: The Mashpee Housing Authority has made great progress in developing the senior apartment complex to be located at Asher's Path. The development budget for this project is approximately $9.4M and we have tried to maximize the public and private resources that are available to build a quality development that is still affordable to senior citizens. We have submitted an application.for our building permit and hope to start construction very soon. However, the cost of the Building Permit presents a hardship that will delay our ability to start construction. This Project will provide affordable rental housing for seniors with incomes that are below 30% and 50% of the area's median income with six of the units to be rented at $403 /month and the remaining 50 units to be rented at $672/month. At these low rents, the rental revenue leaves very little operating income after expenses to pay debt service. Accordingly, the financial structure that has been developed for the project will have only one loan totaling $1M from MassHousing. The remaining $8.4M of development costs will be funded from equity and soft debt or grant money. In December the Project secured an allocation of tax credits that will provide,all of the equity for the development. With this allocation and pending approval of the project's construction lender, which is expected this month, the development could have sufficient funding to start construction. The development proforma does not currently have funds to pay the building permit fee of$33,164. The Mashpee Housing Authority does not have the resources to bridge this gap and securing additional grant proceeds will delay the project. We are very excited that the project has progressed to this point and are appreciative of the support the Selectman and the Town of Mashpee have offered on this endeavor. The Mashpee Housing Authority respectfully hopes that the Board will vote to waive the Building Permit Fee so that this development can proceed. Sincerely, Leila Botsford, P.H.M. Executive Director Cc: Board of Commissioners file