North Adams Reviewing Affordable Housing Trust Ordinance
NORTH ADAMS, Mass. — The city is feeling its way toward an affordable housing trust.
The General Government Committee on Tuesday reviewed a proposed ordinance to create such a structure and continued discussion until the next meeting to allow for some language changes and more research.
"When we end this, I think we will have a proposed ordinance that we can forward to the solicitor with a list of some specific questions," said Chair Keith Bona. "That's how I would like that."
The trust was proposed by Councilor Andrew Fitch, who first raised the issue back in March as chair of the Community Development Committee.
Fitch told General Government that he was worried that North Adams will become unaffordable to residents.
"I'd like to try to get ahead of this problem," he said.
Trusts have been established in Great Barrington, Pittsfield and Williamstown and have the ability to create and run programs, pursue grants and dispense funds. Their boards are made up of representatives of local government and includes people experienced in housing, financing and construction.
The three existing trusts have programs ranging from mortgage and rent assistance, down payment help, home rehabilitation, first-time homebuyers assistance, preservation of low and moderate-income housing, promotion of new housing, and collaboration with housing groups such as Habitat for Humanity.
Great Barrington is piloting a zero-percent loan program for accessory dwelling units; Williamstown's trust has purchased land for housing and supported the Highland Woods development, and Pittsfield has aided in funding affordable housing projects.
"The common thread through all these communities and every other community that I've looked through, a lot of the first-time home buyer or mortgage assistance programs, some rental assistance programs — that doesn't seem to be everywhere — and financial support for housing projects, or housing fix-up programs, that kind of thing," he said.
"That's what I'd love for us to have here ... I put in the letter that I wrote to you folks of 'why now?' Now that goes back a little bit to what I was saying about us trying to get ahead of this problem and to do something to solve this problem now, at least lay the groundwork for it."
Fitch said he's had several conversations with Mayor Jennifer Macksey, who told him she was "150 percent in favor" of the idea.
The city already has a housing needs survey in hand but it would still require some community input.
"My fantasy is, over the next six months or so, we hold community information sessions. I gladly help with that. The administration, I imagine, would be involved in that, too, get people's perspective and recruit members," he said. "Then they can brainstorm over the next six months, starting early next year, about what's the first program that they're going to launch based on that community input that they already received, and then to figure out funding streams as well."
Finding a funding stream for the trust could be a major obstacle. All three trusts rely on monies from the Community Preservation Act, a surtax of up to 3 percent that can only be used for housing, recreation, preservation and open space. The trusts can also apply for public and private grants and Pittsfield was awarded $500,000 in American Rescue Plan Act funding.
"Two things that concern me or just have my attention are the funding streams," said Community Development Director Marya Kozik. "We are not a community that has a CPA, which often is a funding stream for a lot of these and other communities. We are struggling ourselves with our tax base, and we had to move money this year from stabilization to fund our budget. ... Is that a realistic stream for our city budget, or are there some other avenues taking certain taxes that are collected and dedicating it?
"And finally, I think that our community does struggle with having people on boards who are willing to serve and put in the kind of time that is needed for some of these commissions. This seems to be one that could be heavy on that need, and if it's not, then it certainly would be something that would fall to Office of Community Development."
Community Development is adding a city planner but would still be pressed to take on administrative support for a trust, she said. She suggested a "mini task force" to look more deeply into issues around a trust rather than moving quickly to an ordinance.
Jennifer Barbeau, a former councilor, asked if this would be duplicating what is happening at the North Adams Housing Authority with the Rental Assistance Demonstration program.
"I know I've spoken to some other housing people in the city, but this seems to be maybe a big duplication, and it could be something that was popped in together," she said.
RAD is a U.S. Department of Housing and Urban Development that supports conversion of public housing to other federal subsidies, like Section 8, to allow for access to financing.
Committee member Ashley Shade said a city trust "could be eligible for state grants and state funding directly, without having to go through the federal and HUD and bureaucracy process of all that. So those open up different opportunities and different lands that wouldn't otherwise be available to a program like RAD."
Fitch said he would speak with the Housing Authority (a federal agency) to garner more information on the RAD program.
Shade said a major concern for her was the language about incurring debt.
"The language needs to explicitly say that the trust cannot import debt on behalf of the city. It is its own financial entity," she said. "It needs to explicitly state funds are from the trust, not from the city to do those things. I think those kinds of things are clarified so that way people know how money is being spent, where it's coming from."
Resident and housing advocate Virginia Riehl pointed to language in the beginning of the ordinance spelling that out but Shade said she would like it to be more explicit throughout. Fitch said he could make those changes before the next meeting.
"Otherwise, I completely agree that this is a wonderful idea. It's a great way to get new grants and new funding and start fixing up housing and be a part of that solution down the line," Shade said. "It's going to take a lot for this to happen, but what I don't want to see happen is the trust put the city into more debt without the city having a recourse of saying, 'No, we're not paying for that.'"
Bona said it could be compared to the Redevelopment Authority, which holds it's money separately. The authority had fallen into debt in the past and the City Council had refused to help it, he said.
The city has had housing programs in the past, funded through the state and federal government, and administered through the Housing Authority and Office of Community Development.
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