What is a Municipal Affordable Trust (MAHT)?

What is a Municipal AffordableHousing Trust (MAHT)?

• Public entity• Created by local legislative body • Create & preserve affordable housing• Led by Board of Trustees

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Subject to public procurement, designerselection, conflict of interest and public meeting laws

Trust Statute – MGL Ch.44, Sec 55c

“…to�provide�for�the�creation�and�preservation�of�affordable�housing�in�municipalities�for�the�benefit�of�low�and�moderate�income�households…”

• Limited scope• Low and moderate income only

PURPOSE

Legal Consideration

Open Meeting Law

MGL Chapter 30A, sections 18‐25

• Within two weeks of appointment, trustees must complete Certificate of Receipt of Open Meeting Law Materials

• Some exceptions – executive session if deliberating purchasing, leasing or valuing of real property

• “Public meeting” includes deliberations that involve a quorum – careful with email

Legal Consideration

Procurement Laws

From MAHT statute:The�trust�is�a�board�of�the�city�or�town�for�purposes�of�chapter�30B�and�section�15a�of�chapter�40;�but�agreements�and�conveyances�between�the�trust�and�agencies,�boards,�commissions,�authorities,�departments�and�public�instrumentalities�of�the�city�or�town�shall�be�exempt�from�said�chapter�30b.

Section 15a of Chapter 40: Requires 2/3 vote of legislative body to transfer land. Exception: Accepted provisions of Section 15a then majority vote for transfer for low and moderate income housing.

Legal Consideration

Procurement Laws

Construction/capital improvement

• Public construction & bidding requirements

• Prevailing wage

Real property disposition, lease or 

acquisition

• Chapter 30b, Section 16 –various guidance

• If bought with CPA funds, exempt from 30b

Contracting professional services

• Three Thresholds• Under $10,000• $10‐50,000 – 3 written bids

• $50,000+ ‐‐sealed bids or proposals

What can a Trust do?

• Actively address affordable housing needs

• Support local control of housing initiatives

• Engage in real estate activity•Make timely decisions related to housing

• Accumulate funds from variety of sources

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Step 8: Determine operating approach

Funding entity

Active initiator Both?

Eligible Activities for Trusts

Affordable Housing

Acquire

Create

Preserve

Support

AcquireCromwell Court Apartments ‐‐ Barnstable

• 124 units of affordable family rental housing• Built in 1973. Acquired and rehabilitated in 2011.• $500,000 CPA funds

Create

Small Scale Production 

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Baker Street ApartmentsFoxboro, MA20 family rental unitsOpened in 2005

Butternut FarmAmherst, MA26 family rental unitsOpened in 2011Developer: HAP Housing

Re‐use

Shoe Shop Place

Middleboro25 rental

(family housing)

Stevens CornerNorth Andover

42 rental(family housing)

Rockport HS ApartmentsRockport31 rental

(age restricted)

Preserve

AmherstRolling Green affordable units preserved

• 204 unit multi‐family development• Refinanced in 1998 under Mass Housing’s 80/20 prepayment program (15 year restrictions)• 41 affordable units/Section 8 vouchers, $1.25m bonded w/CPA

Support

Pre‐develop‐ment

Buy Downs(create)

Down‐Payment Assistance

Rental Assistance

Norfolk MAHTSmall Scale Homeownership

17 homes

$300k range

3/year

All on SHI

Sold for $155k in 2015 

Sold for $140k in 2014 

Rental AssistanceDukes County Regional Housing Authority

Request funds

Recruit owners

Inspect homes

Screen tenants

Invoice CPC

Martha’s Vineyard FY2014

• 66 rental assistance subsidies• 147 people on waiting list• $543,000 CPC appropriations• Average monthly subsidy = $499• Average income served = 45% AMI

Trust Accomplishments

Grants for new production

Homebuyer down payment & principal buy‐

down

Land acquisition

Rental assistance

Pre‐development assistance

Habitat for Humanity

Housing plans & housing 

staff

Five-YearGoalsoftheTrust:Goal1:ActivelyFosterDevelopmentofAffordableHousingGoal2:SupportHomelessnessPreventionInitiativesGoal3:SeekOpportunitiestoPromoteConservation-Based(housingandpreservedopenspace)DevelopmentGoal4:EnhanceLocalandRegionalCollaborationGoal5:ExpandAvailabilityofDirectHousingAssistanceGoal6:PromoteOutreachandEducation

FosteringDevelopmentofAffordableHousingü  EastStreetSchoolsiteforaffordablehousingdevelopmentü  ValleyCDCStudioApartmentdevelopment(encouragedby

Town&Trust)ü  MassHousingGranttosupportconsultanttaskedwith

identifyingaffordablehousingsites&40Rdistrictü  GuidelinesforsubmittingfundingapplicationstoAMAHTü  DevelopingaTownHousingPolicytosetaffordablehousing

asacommongoalsharedbytheentiretowngovernment.ü  SupportednewTownbylawchangefor“Inclusionary

Zoning”thatwillallowmoreaffordableunitsinfuturedevelopmentsorpaymentsinlieutotheHousingTrustwhereaspecialpermitisrequested.

ü  AnnualcommentstoCommunityPreservationActCommitteeonfundingprioritiesforcommunityhousingapplications

SupportingEffortstoEndHomelessness

•  HomelessnessPreventionprogramprimarilyfocusedonfamiliesthreatenedwitheviction(CDBG-fundedprogramoperatedbyFamilyOutreachofAmherst)

•  Outreachprogramtoencouragelocallandlordsacceptapplicationsfromindividualsandfamilieswhoarehomeless(collaborationwithAmherstDepartmentofHealth)

•  FirsteverLandlordForumonNov.15thatwillfocusonfinancialandotherresourcesavailabletosupportrentingtopersonswhoareverylowincomeorhomeless.

•  CSPECdevelopmentinitiativetoexpandcasemanagementservicestoassistinlocatinghousingforandprovidinghousingsupportsforindividualswhoarehomeless(fundedbyMedicaid)

•  AdvocacyforcontinuationoftheAmherstseasonalhomelessshelterandforotherservicesforhomelessindividualsandfamilies

•  ParticipatingintheTownHomelessSystemscommittee

PublicEducation§  2017forum,“WorkingtheAmherstHousingPuzzle:A

communityproblemsolvingforum”§  Website:

https://www.amherstma.gov/2199/Amherst-Affordable-Housing-Trust-Fund

§  2018forum,“ActLocallytoCreateAffordableHousing”

§  CHAPA(Citizen‘sHousingandPlanningAssociation)Grantreceivedtoprovideconsultationonbuildinglocalcommunitysupportforaffordablehousing

FinancialSupportq CPAfundingforTrustconsultantq CPAfundingtosupportaffordablehousing

developmentprojectsq Anticipatedfundingfromlocalshort-termrentalfeesq PossiblefundingfromInclusionaryZoningbylawthat

allowspaymentsinlieuofdevelopingnewaffordablehousingunits

CreatingAffordableHousing

attheEastStreetSchoolSite

APLAYINFIVEACTS

JohnHornik,ChairoftheAmherstMunicipalAffordableHousingTrust

ACTONE:AFeasibleProject?

ü MovecontrolofthepropertyfromtheschoolstotheTown– NOTTRUST

ü  Assesswetlands– 60%NOTBUILDABLEü  Sitesurvey-BOUNDARIESü  Understandwhatispossibleforsite

development– K-Rü  DraftaRequestforProposalswhichspells

out(1)  thequalificationsofthedeveloper,(2)  minimumrequirementsandhigher

programexpectationsfordevelopmentofaffordablehousing,and

(3)  processofselectionofthedeveloper.

ACTTWO:PermissiontoProceed

EnterTownCouncil(centerstage)q DeclareEastStreetSchoolsurpluspropertyq Authorizetownmanagertoexecutelanddispositionagreement– SPELLSOUTCONDITIONS

q Authorizetownmanagertosign99-yearleaseq WHYNOW?

q PROS:LONGPROCESS,YOUCANMOVEON

q CONS:MAYBEBETTERIDEAINNEXTFIVEYEARS

ImplicationsofTownCouncilActions

SiteControl:DeveloperhasalegalcommitmentfromtheTowntoturnoverthepropertyoncecontractualconditionsaremetIFNOT,ONEONEWILLBID

ACTTHREE:MovingForwardEnterTownManagerandstaff(stageright)q ReleaseRequestforProposals-AFTERREVIEW

q Selectadeveloperq Signlegalagreementsq Monitorfulfillmentofcontractualrequirementsq THISISTMROLEBYCHARTER

ACTFOUR:Plan&ActionEnterDeveloper(centerstage)q Undertakeduediligenceq Developaplan–E.G.,SIZE,ARCHDESIGN,PARKINGq Withsitecontrol,acquirezoningapprovalsand

funding,andpossiblyHistoricalCommissionreviewq Execute99-YearLeasewiththeTownq Constructaffordablehousing

Review,Review,Review!!!MANY,MANYREVIEWSAFTERTC

§  DepartmentofHousingandCommunityRenewal– EXTENSIVEREQUIREMENTS

§  AmherstZoningBoard– SPECIALPERMIT

§  AmherstHistoricalCommission(maybe)§  AmherstBuildingCommissioner– PLUMB,ELEC,OTHER

REQ

§  AmherstFireCommissioner

ACTFIVE:WelcomeTenantsEnterManagementCompany(stageright)IDENTIFIEDINPROPOSAL

q Selecteligibletenants– DHCDRULESq Rentunitsq Maintainpropertyq ANDEVERYONELIVEDHAPPILYEVERAFTER!q BUTONLYIFWEGETBEYONDACTTWO!

12,570

16,741

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

IncreasingGapBetweenEnrollment(UndergraduateandGraduate)andCampusResidentialCapacity

1290

2126

1117

611

227

663

0

500

1000

1500

2000

2500

1960-1969 1970-1979 1980-1989 1990-1999 2000-2009 2010-2017

HousingGrowth,1960-2017

$1,074 $1,059 $1,078 $1,094$1,122 $1,117 $1,128

$1,201

$1,275

2009 2010 2011 2012 2013 2014 2015 2016 2017

MedianGrossRent

AmherstAffordableHousingPolicyFundingPriorities•  Creationofrentalhousingforfamilies,particularlythoseearning

below50%ofAreaMedianIncome(AMI)andthegrowingnumberofsmallerhouseholdsthatareincreasinglysingleparentswithchildren.

•  Creationofrentalhousingforindividualswhorequiresmalleraffordablehousingunits(e.g.,studioapartments),includinghousingforatriskandspecialneedspopulationsthatoftenrequirespecialservicesandhandicappedaccessibility,particularlypersonswhoseincomesarebelow30%AMI.

•  Preservationofexistingaffordablerentalhousing,includingsubsidizedunitsandthoseintheprivatehousingmarket,whicharetypicallymorecosteffectivetorehabilitatethantobuildnew.

•  Affordablehomeownershipforlowandmoderateincomefamiliesandindividuals.

Projectednumberofunitstobedeveloped

250UnitswithLessthan80%AMI:ThefirstpriorityisthedevelopmentofnewresidentialunitsthatwillqualifyfortheState’sSubsidizedHousingInventory.Thismeansthattheymustallbebelow80%AMI.However,withinthattheremustbearangeofaffordability.Forprojectswithtenormoreaffordableunits,theaverageAMImustbenogreaterthan60%andatleasttenpercentofunitsmustbenogreaterthan30%AMI.Smallerprojectsshouldbereasonablyconsistentwiththesepriorities.Thetotalnumberofunitstobedevelopedfortheselevelsofaffordabilityis250overthenextfivetotenyears,consistentwithgoalssetintheHousingProductionPlan.

100Unitsat80-100%AMI:Additionalunitsshouldbedevelopedthatareabove80%AMI.Thereisaneedtoservebothindividualsandfamilieswithanincomethatqualifiesthematthislevelaswellaspersonsbelow80%AMI.

“Local”SourcesofFundingSubsidiesq CommunityPreservationActq CommunityDevelopmentBlockGrantq TaxIncentiveFinancingq TownSurplusProperty

Delegating TasksWho does what?

Chairperson• Provides leadership

• Sets agenda• Keeps trustees on‐task & moving forward

Trustees• Attend meetings, provide input & vote

• Complete assigned tasks

• Participate in subcommittees

• Be local AH advocate

• Board packet

Staff• Provides TA (perhaps feasibility studies, RFPs)

• Lends continuity to projects

• Completes admin tasks

• Communicates with other town staff/boards

Trusts & Fair Housing

Legal Consideration

Federal Fair Housing ActMA Anti‐Discrimination Law

Protected Class

Disparate impact

Discrimi‐nation

Key Fair Housing LawsProtected Classes

Federal (Fair Housing Act)• Race• Color• National Origin• Religion• Sex• Familial Status• Disability

State (M.G.L. c. 151B) All federal bases plus:• Ancestry• Age • Marital Status• Source of Income/Public Assistance • Sexual Orientation• Gender Identity• Veteran History/ Military Status• Genetic Information

Two Key Fair Housing Concepts

Disparate Impact“Discriminatory Effect”

Affirmatively Further Fair HousingObligated to FH

Discriminatory Effect RuleThree Part Burden Shifting Test

Is it likely that policy or practice will negatively impact members of a protected class?

Is the policy or practice necessary to achieve substantial, legitimate, non‐discriminatory interests?

Is there a less discriminatory alternative that would meet the same interests?

Disparate Impact

• Local plans or zoning bylaws prioritize studio and 1‐bedroom units, restricting the number of bedrooms by unit rather than by development or lot.

• A town is predominantly white and decides to advertise new affordable housing units with flyers at the local library, community center and Town Hall.

• Planning or zoning approval processes mandate or prioritize townhouses.

Obligation toAffirmatively Further Fair Housing

End residential segregation

Promote housing choice

Eradicate discrimination

Address disparities in 

housing needs & access to 

opportunity

How to Affirmatively Further FH

Affirmative Fair Marketing

• Follow DHCD’s marketing & resident selection plan guidelines

• Market to those least likely to apply

Zoning

• Consider ways that zoning may be creating disparate impact

Diverse Housing Options

• Multi‐family AND single family

• Rental AND homeownership

• Family AND senior

Local Preference

Subject to subsidizing agency approval

Evidence of need

Certain categories 70% limit

Examples of AFHMP Problems

Marketing

• Local preference advertised

• Limiting language, e.g., “empty‐nesters,” “young professionals”

• Advertising/outreach not designed to reach protected classes in the region

• Marketing only in English & not in non‐English media

Application Process/Selection

• Application period is too short

• Language access and reasonable accommodation information not provided

• Selection process not clearly described

• Preferences are misstated as eligibility criteria or defined improperly

Inconsistency

• Criteria inconsistent with AFHMP guidelines

• Criteria inconsistent with applicable subsidy program requirements

• Inconsistent language within the AFMHP or inapplicable language

Wrapping UpCreating a culture of support

• Balance people with places and systems

• Tell “story of us” rather than “story of them”

• Connect housing to other social issues and outcomes

• Where you live affects you

• Consider language that we use (e.g. home vs housing)

MHP Online Resources

On our website: http://www.mhp.net/community/publications‐and‐

materials

Questions?

Massachusetts Housing Partnershipwww.mhp.net

Shelly GoehringProgram Managersgoehring@mhp.net

Direct line: 857‐317‐8525