By Journal Staff
The Board of Trustees of the Revere Affordable Housing Trust Fund (AHTF) held its regular monthly meeting on Wednesday evening, April 9, in the City Council Chambers. Vice-chair Claire Inzerillo adroitly chaired the session and was joined by Treasurer Anayo Osueke and fellow board members Deborah Frank, Dean Harris, Matthew Wolfer, and Laila Pietri.
Osueke presented the treasurer’s report. He said the AHTF has a balance in its account of $680,180.67, which is an increase from last month’s balance of $677,721.71.
Inzerillo then noted that the City Council recently revised the pertinent ordinance to reduce from 10% to 5% the AHTF’s share of the free cash allocation from real estate development fees. She noted that the reduction was a result of additional demands from other programs in the city for the allocation of these funds.
“The new percentage will mean that we will receive about $220,000, which will be a little less than what we’ve had in the past,” Inzerillo said.
The AHTF’s two subcommittees made reports to the full board. Osueke discussed the most recent meeting of the Fundraising Committee, noting that the committee discussed possible sources of funding, focusing on banks. He said there were 40 banks in the area, but after narrowing the scope to the AHTF’s mission, he said there are seven banks that might offer the opportunity for providing funds.
However, he noted that a hurdle that presently exists is that the AHTF is not a 501(c)(3) charitable organization, which generally is a requirement for these banks to make a donation.
“We started a process of reaching out to 501(c)(3) organizations with whom we could partner,” Osueke said. He also pointed out that some applications to banks for funds are due as soon as May 19, while other banks accept rolling applications.
Frank suggested reaching out to local realtor charitable organizations with whom the AHTF could partner.
Wolfer briefly spoke about the recent meeting of the Home Ownership Committee at which the committee discussed the downpayment assistance program, Residential Dwelling Unit (RDU) conversions, and the feasibility of the AHTF undertaking a condo conversion program.
As to that last item, Wolfer said the idea would be for the AHTF to purchase a three-family rental home and convert it into three condos. However, he noted that the typical cost of purchasing a three-family property would exceed $1 million, which would make it beyond the ability of the AHTF to do so on its own. Rather, the AHTF most likely would have to create a grant program to incentivize private developers to be part of the condo conversions.
The board then discussed the First Time Homebuyer Assistance Program which provides $10,000 grants to first-time homebuyers to assist them with their down payments, the high cost of which is the biggest barrier to first-time homebuyers.
Inzerillo said that the city has received 25 applications for the program, but thus far only one grant has been awarded to a buyer who has a signed purchase and sale (P&S) agreement. Five more applicants have received conditional approval pending their completion of a P&S, two applicants are in the final stages of the application process, and 12 applicants appear to be potentially eligible. One withdrew their application and four were deemed not eligible. She said that with $125,000 in available funds (of which $100,000 came from the state), 12 grants will be awarded. She alerted her fellow members that they soon may be asked to appropriate an additional $5000 to the program (to make a total of $130,000) in order to award a 13th $10,000 grant.
As regards the tax title program, Inzerillo said the City Council voted to convey five tax title properties to the AHTF, though one of those (located on Hichborn St.) is not a buildable lot and likely will be sold to an abutter who may want to enlarge their property. The AHTF then would keep the proceeds from the sale.
Inzerillo added that the city’s Planning Department soon will be drafting a Request for Proposals (RFP), in consultation with the AHTF, for the other four properties on which it is hoped that affordable housing will be constructed.
She also said that the city still is in the process of adopting a zoning ordinance that will bring the city in compliance with the new state law that allows for Accessory Dwelling Units (ADU) to be constructed in single-family zoning districts.
The next meeting of the AHTF is set for May 14.
