Two affordable senior housing projects vie for same funding sources

October 31, 2008

In a 3-to-2 vote at the Oct. 21 meeting of the Board of Selectmen, the board agreed to sign a letter supporting Harvard developer Lou Russo’s plan to build 42 affordable rental units designated for use as senior housing. Chairman Leo Blair and selectmen Ron Ricci and Peter Warren voted to support Russo’s request for a letter of endorsement; selectmen Tim Clark and Lucy Wallace voted against it.

Russo, who owns land at 196, 198, and 200 Ayer Road, including the building that houses Dunkin Donuts in Harvard’s commercial district, had proposed his project to the selectmen on Oct. 7.

Russo is making an application for tax credits to Massachusetts Department of Housing and Community Development (DHCD) and wanted the selectmen’s letter of support to accompany his application. He said that such a letter is “not a requirement, but is helpful when approaching the state.” He said that he needed the letter by Oct. 30. In his request, Russo said that he will be filing with the Planning Board for an Ayer Road Village District special permit.

We have competing projects, and I want to find a way to make both work.

—Leo Blair, BOS Chairman

Russo’s request to the selectmen also asserts that “the cost to the town will be minimal. We will be seeking approximately $175,000 from the Municpal Affordable Housing Trust (MAHT), which will demonstrate to DHCD that there is local support for the project.”

Selectman Tim Clark pointed out that the Ayer Village District Bylaw called for “multi-family use to be integrated with commercial use.” Clark then said that “there is another proposal developed by a task force of Harvard Housing Authority and MAHT,” and he asked Russo, “Have you spoken to [them]?” Russo replied that he had not formally spoken to that group.

Clark pointed out that both projects would be requesting funding from the same sources—MAHT and the state. Clark asked Russo whether he thought the projects were complementary or competitive. Russo replied that he didn’t know about the other project.

Selectman Lucy Wallace, a member of the MAHT task force, which presented its Hildreth development proposal later in the meeting, asked Russo whether, in calculating Harvard’s market requirements, he took assets into account referring to the potential net worth of a senior after selling a residence. In some cases, the amount of equity in a senior’s home may disqualify that senior under affordable housing regulations.

Russo replied, “Professional management does asset testing; I don’t know the regulations.”

Wallace commented that she was “concerned that local seniors will be priced out of these units” and asked, “Did you consider family housing in these apartments?”

“No,” Russo replied, “seniors only.”

Also at the Oct. 21 meeting, the MAHT task force chaired by Scott Hayward and comprising members of the Housing Authority, MAHT, Selectman Wallace, and Town Center Sewer Action Group Chairman Chris Ashley presented its plan for senior housing at the Hildreth House site.

In a study that began last spring, this group researched Harvard demographics to determine housing requirements in Harvard for the age group 55 to 75 and older, which they predict will grow by 18.1 percent between 2007 and 2012. They determined that there is a substantial unmet need for both affordable and market-rate senior rental housing.

Based on satisfying preferences voiced by Harvard seniors for a mix of affordable and market-rate units serving seniors of various income levels, the task force recommended a plan calling for a mix of 60 market-rate and affordable units aimed at seniors. Forty-seven of these would count toward Chapter 40B requirements.

The Hildreth project also calls for an addition to the Hildreth House itself, including a large community space for 100 to 200 people for exercise, social events, and meals. An elevator is also planned to provide access to the second and third floors.

The task force also researched funding from state and local sources, including the Affordable Housing Trust Fund (AHTF), Historic Tax Credits, and Harvard Community Preservation Act (CPA) funds.

Town Meeting votes are required for the Hildreth project in order to approve a sewer extension to Hildreth House, authorize use of surplus town land around Hildreth House and the fire station for housing, and approve use of CPA funds for housing and historic renovation of Hildreth House.

Noting that Russo’s project and the Hildreth project could be competing for funds and approvals, Clark commented that it’s “important to work with Mr. Russo.” He said he would hate to see these projects come into conflict, but added that he “would support the town project if there was conflict.”

Clark also pointed out that the state “has many demands and can only do so many projects,” and said he believes the state “would not fund two projects like this in a short period of time.”

Clark explained that one of the risks in the Ayer Road project is that “we attract people who never lived in Harvard” rather than serving our current senior residents. “Let’s be smart on this and get it right,” he said. “Our goal should not be to get the 40B units but to service needs of the town,” he said.

Blair commented that “we have competing projects and I want to find a way to make both work.” He said that he’d like to “come at this from a big-picture point of view.” In voting for the letter of support for Russo’s project, he said he “would love to have the luxury of more time,” but added that he doesn’t want to discourage affordable senior housing in town.

Warren pointed out that Russo’s plan “is a residential development in a commercial zone,” and recommended that the Planning Board review the bylaw, referring to the Ayer Road Village District Bylaw, “and perhaps abolish it.”

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