Committee Report CR-1
The purpose of the meeting was to discuss the expiring use agreement for University Park and to receive an update from Boston Properties on their commitment to build affordable housing in Kendall Square.
Present at the meeting were Councillor Marjorie C. Decker, Chair of the Committee, Councillor Craig Kelley, Councillor Minka vanBeuzekom, Councillor Kenneth E. Reeves, Mayor Henrietta Davis, Brian Murphy, Assistant City Manager for Community Development (CDD), Susan Glazer, Deputy Director of CDD, Chris Cotter, Housing Director, CDD, Cassandra A. Arnaud, Housing Project Planner, CDD, Peter Daly, Executive Director, HRI, Elaine DeRosa, CEOC, and Interim City Clerk Donna P. Lopez.
Also present were Frank Wuest, President of Forest City, Boston, Kathryn Brown, Vice President of Legal Affairs, Forest city, James Rafferty, Attorney for Forest City, Jay Kiely, Property Manager, University Park at MIT, Mike Cantalupa, Senior Vice President for Development, Boston Properties, 800 Boylston Street, Suite 1900, Boston, MA 02199-8103, Barry Zevin, Kathleen Born and D. Margaret Drury, Cambridge Redevelopment Authority Board members, Cheryl Ann Pizza-Zeoli, ACT, Susan Hegel, Cambridge and Somerville Legal Services, Esther Leibowitz, 100 Landsdowne Street, Apt. 410, Bennie Brampton, 100 Landsdowne Street, Holland Hinman, BU student, Mary Platt, 77 Bishop Allen Drive, Kathy Watkins, 129 Franklin Street, Apt. 315, Sherri Tucker, 854 Mass. Avenue # 2, Bill Cunningham, 6 Newtowne Court, Fred Lewis, 249 Hurley Street and James Williamson, 1000 Jackson Place.
Councillor Decker convened the meeting and explained the purpose. The purpose of the meeting is to clarify information. She outlined the format of the meeting. She asked city staff to explain where the city is on expiring use.
Chris Cotter, Housing Director, CDD, outlined the affordable housing units at University Park. The City does not consider these units expiring use. The City has preserved 275 affordable units at various properties in recent months. There are 820 units with affordability restrictions which are set to expire before 2020. Affordable housing units in the CRDD zoning district are located in the Kennedy Biscuit Lofts and 100 Landsdowne, which are controlled by Forest City, and in both phase of Auburn Court, which is controlled by Homeowner's Rehab, Inc. He distributed information on the CRDD zoning affordability requirements
The Zoning Ordinance requires that there be 150 affordable units in the CRDD district: 100 units that are low-income units and 50 are moderate-income units. This is based on zoning requirements.
He stated that currently Forest City buildings have 77 low-income units; Auburn Court has 69 low-income units and 22 moderate- income units. Through the zoning requirements, Forest City is obligated to seek governmental subsides to keep the units affordable for the full time that Forest City controls the CRDD property which is for 75 years.
Mr. Cotter outlined the existing University Park Affordable Housing requirements for the Kennedy Biscuit Lofts and 100 Landsdowne Street, which in addition to the zoning requirements include requirements of funding used for each building
The University Park zoning-based affordability restrictions require that Kennedy Biscuit Loft units be affordable at least until 2021, and for up to 75 years subject to Forest City's obtaining additional subsidies. Funding restrictions there require Forest City to keep the units affordable until 2029. At 100 Landsdowne Street the zoning-based restrictions runs until 2036 and for up to 75 years subject to Forest City's obtaining additional subsidies. Funding restrictions there also require Forest City to keep the units affordable until 2036. Mr. Cotter stated that in
for Auburn Court I the zoning-based affordability restrictions remain in place until 2025 with financing restrictions until 2035. At Auburn Court II the zoning-based affordability restrictions remain in place until 2030; and financing restriction until 2059. Under the Cambridgeport Revitalization Development District (CRDD) there are 150 low and moderate units required by zoning. There are an additional 18 affordable units currently being provided because of financing restrictions. Because of the funding requirements for their buildings, Forest City is currently providing an additional 18 units of affordable housing beyond what the zoning requires.
Esther Leibowitz, 100 Landsdowne Street, stated that she only recently heard about the zoning issue. She asked why, as a tenant, she did not know about the zoning based affordable units. She stated that she does not want to be thrown out of her housing because the zoning changes. She asked if she will be thrown out of her apartment. Councillor Decker informed Ms. Leibowitz that she would not be thrown out of her housing. Forest City was seeking zoning relief and this will not affect affordable housing units. Zoning relief has nothing to do with Ms. Liebowitz staying in her home. The zoning commitment may add additional affordable housing units. Ms. Liebowitz asked for clarification of the situation now. Mr. Cotter stated that 100 Landsdowne Street will remain affordable until 2036. Ms. Liebowitz requested a copy of the minutes of this meeting.
Councillor Decker asked Mr. Wuest and Attorney Rafferty what Forest City commitment is to the current affordable units and extending the commitment and the financial issue.
Mr. Wuest stated that Forest City does a lot of 80/20 affordable units. Prior to the affordable units maturing Forest City is exploring ways to keep the units affordable. Their ownership of the property is subject to a ground lease. Forest City's control of the buildings runs through 75 years from the completion of the development. He stated that he is hoping to fulfill all commitments to keep all units affordable. Forest City has met with housing advocates, tenants and the City about this issue. When the affordable units mature all subsidy avenues will be explored.
Councillor Decker asked Ms. Hegel, CSLS, for her input on this issue. Ms. Hegel stated that she has reviewed the Forest City proposal from the housing perspective and feels that it is a great commitment. There will be 168 permanently affordable units and Forest City is willing to have deed restrictions on the property. This has additional City oversight and monitoring which is not a requirement. There was proposed by Forest City higher income bracket for the moderate income units. There will be 20 additional units under the inclusionary zoning. This is a great benefit and the City should take advantage of the proposal. Mr. Wuest stated that this was part of the community benefits that had been filed with 300 Mass. Avenue zoning petition. The 300 Massachusetts Avenue zoning proposal will be refiled.
Councillor Decker asked when the financing expires what type of commitment Forest City is making to seek financing. Mr. Wuest responded that Forest City does not know what is available, but is willing to seek subsidies. If subsidies are not available it will cost millions of dollars to Forest City, but Forest City is willing to make the commitment. Councillor Decker asked if the zoning were refiled would you stop seeking subsidies. Mr. Wuest stated that Forest City would continue to seek subsidies. Councillor Decker asked how many subsidies will be lost and when. Mr. Cotter stated that subsidies include Section 8 vouchers and the City would expect Forest City to seek financing subsidies. Of the 77 Forest City units 68 house tenant with Section 8 vouchers.
Mr. Rafferty informed the committee that the earliest date of the expiring subsidies is 2029. Mr. Wuest stated that Forest City has financing in place. Councillor Decker asked beyond Section 8 how many other units depend on refinancing. Mr. Rafferty stated that currently there are 168 affordable units with 150 affordable units required. The Kennedy Biscuit Lofts have 36 low income units and 100 Landsdowne Street have 41 units. These units are affordable until 2036. Mr. Cotter added that many 100 Landsdowne and the Kennedy Biscuit Loft tenants have received Section 8 vouchers and there are rent restrictions in place through the Housing Authority.
Councillor Decker asked what the definition is today of affordable rent. Ms. Brown, Vice President of Legal Affairs for Forest City explained that the rent charged for affordable units, most of which were subject to Section 8 requirements. As part of community benefits that had been proposed as part of the for 300 Mass. Avenue proposal, the 20 additional units would be based on the inclusionary zoning ordinance. Mr. Cotter stated that the inclusionary formula rents are set at 30% of the income of the tenant per ordinance. The 80% of area median income limit would be similar to what is there now and when income changes the rent may go up. Councillor Decker asked moving forward how many affordable units are paying more than the 30% formula. Ms. Brown stated she did not know. Councillor Decker stated that she would like the loopholes closed that were established 25 years ago. How many more of the people in affordable units are paying more than 30% of their income? Ms. Brown stated that this information would be provided. Councillor Decker stated that she would like Forest City's best practices be in writing that the tenants are not paying more than 30% , if Forest City is will to do this.
Councillor Decker asked about the issue of not being required to take CHA vouchers. Mr. Cotter spoke about tenant-based housing vouchers. There are 68 tenants with vouchers in the Forest City properties. Councillor Decker stated that she would like Forest City to put in writing that Cambridge residents will be given first preference for affordable housing.
Councillor vanBeuzekom asked if utilities are included in the 30% of income for rents. Ms. Brown responded in the negative. Councillor vanBeuzekom requested that the 30% of income include rent and utilities. Mr. Cotter stated that the rent with affordable vouchers received by Forest City will be reduced by the utility cost. Councillor vanBeuzekom asked if regardless of government funding the units will be affordable. Mr. Rafferty stated that under 1988 housing plan commitment Forest City's best effort will be made to obtain subsidies through ground lease.
Elaine DeRosa, CEOC, stated that this secures housing and keeps tenants in units. This is quite an opportunity to preserve housing. CEOC would like to move on this deal.
Councillor Decker spoke about the zoning proposal that will be refiled by Forest City. While she is in general supportive of this project she stated she could not support it without more of a process to provide residents further opportunities to ask questions and understand the project and weigh in on their concerns and potential community benefits. She wanted to make sure that there was long-term security for tenants and a clearer legal understanding on what defined affordable prior to a refiling of the petition.
Sherry Tucker, 854 Mass. Avenue, asked if Forest City is seeing Section 8 vouchers as a subsidy. Ms. Tucker asked how much money Forest City is losing for refinancing due to Section 8.
Cheryl Ann Pizza-Zeoli, Association for Cambridge Tenants, stated her bias. She stated that she hopes that the City Council will listen to tenants in affordable units. These are the people most affected.
Mary Platt, 77 Bishop Allen Drive, stated that the extension of the affordable units is marvelous. She asked if the guarantee to keep units affordable by Forest City is dependent on the zoning petition being refiled for 300 Mass. Avenue.
James Williamson, 1000 Jackson Place, asked when does clock start on ground leases. On the University Park affordable housing is there any chance of Forest City changing the zoning-based affordability or do they remain as dates listed? Clarification is needed for the term permanently affordable. How is it determined that tenants are income eligible for the Forest City units? Section 8 rents fluctuate - is there a cap on the rents determined affordable?
Councillor Reeves spoke about the resolution of expiring use and expiring term of the loan on the Asia block. This should be sent to the Affordable Housing Trust and be resolved because this does not concern the zoning petition.
Councillor Decker asked does Forest City consider Section 8 vouchers a subsidy. She stated that we do not know what Forest City is subsidizing. The government subsidizes Section 8. Councillor Reeves asked what is being refinanced. Councillor Decker added that Section 8 vouchers go with the tenant not with Forest City.
Councillor Decker announced that the answers to the questions asked today will be provided in the report of this meeting. She thanked all who attended meeting.
At 4:47 PM Councillor Decker opened the meeting on the update from Boston Properties on their commitment for affordable housing in Kendall Square. She stated that she is hearing contradictory stories about the commitment to build housing by Boston Properties in Kendall Square.
Mr. Murphy informed the committee that Boston Properties has an obligation to building housing under the Broad Institute zoning passed in 2010. There is an escape-out or penalty that within certain time there is a financial penalty payable to the affordable housing trust to be paid over a period of years. Councillor Decker stated that there are more advantages to having affordable housing rather than receiving money. Mr. Murphy agreed with the need for housing to make Kendall Square more viable. The recent appointments made to the Cambridge Redevelopment Authority board are more involved in the process. The next proposal brought to the CRA board by Boston Properties would be a housing proposal.
Mike Cantalupa, Senior Vice President for Development, Boston Properties, confirmed the agreement made by Boston Properties with the city. The commitment was made to advocate for housing or to pay a penalty to be paid 7 years after the completion of the Broad Institute. It is anticipated that the construction of the Broad will be completed in 2014. The penalty would be due in 2021. Three alternatives for housing were presented. The alternatives were for sites at 3 Cambridge Center, on Broadway between the Marriott Hotel and 4 Cambridge Center and on Ames Street. The most feasible site for housing is across from the Broad on Ames Street. The plan is to build adjacent to garage. Boston Properties has investigated the build ability of the site. The concerns are a zoning change is required and a land disposition of city owned property. He spoke about needed zoning changes for the housing site. An easement is needed to have housing comply with the zoning. Further studies must be done. Boston Properties has met with the East Cambridge Planning Team.
Councillor Decker questioned the granting an easement. Mr. Murphy stated the support for housing for the Kendall Square area. The City Manager would recommend the formal disposition process for Ames Street. He stated that Ames Street is wide and probably better being made narrower.
Councillor Reeves inquired about the square footage of the parcel. Mr. Cantalupa responded 11,000 feet. Councillor Reeves commented that if the parking is reorganized and the sidewalks are changed it will appear that a residential tower will be built on a small site. This also appears to affect the roof-top garden.
Councillor Decker stated that regarding the land disposition the City Council wants to see the rendering, the trade offs and the value. This must be a real public value exchange. She wants to make sure that a public good is not being given up. Mr. Murphy stated that the City Manager and departmental staff are involved in this matter. The backup will be provided to the City Council. Councillor Decker asked what the time frame is. Eighteen months responded Mr. Murphy. Councillor Reeves stated that while Boston Properties is building a new building in Kendall Square the Marriott Plaza is a mess. Councillor Reeves encouraged Boston Properties to make sure it is a quality project.
Councillor Reeves asked about the units to be built and asked for the City's view on micro units. Mr. Cantalupa stated that all housing units are being reviewed. Mr. Murphy stated that the challenge is on inclusionary side. Councillor Decker noted that the City Council is considering changing the inclusionary ordinance to include square footage. She requested Mr. Murphy to come back to City Council with information on what are the ups and downs of looking at square footage. Mr. Murphy stated that Barry Bluestone will be giving an update on affordable housing in the Central Square Advisory Committee on October 25, 2012. Councillor Reeves spoke about press received on micro units. The City is considering middle class housing, but this has not been defined. Where is City in exploration of housing for various incomes or is there housing for various incomes. This needs to be explored. He hopes that Boston Properties develops the property and comes up with something that is innovative.
Councillor vanBeuzekom agrees with Councillor Decker that she too would much rather have the housing than the money. She favored narrowing of Ames Street. This is close to the subway. This is an exciting opportunity. This is also a tricky site. Housing will be a tall building and it makes perfect sense. Mr. Cantalupa stated that Boston Properties really does want to build the housing.
Mr. Zevin, CRA board member, stated that if this is to become reality the City Council has to vote on the zoning proposal and the land disposition.
Kathleen Born, CRA board member, stated that the CRA board is committed to build housing; that it be buildable housing. It could be a fascinating building. CRA is looking to the City Council on the zoning aspect. It is impossible under the current zoning, but the zoning changes and this is a doable zoning change. She added that it must be the best housing for the best place. This is not the best site for large families. This is a good site for micro housing.
Councillor Decker stated that the City Council would like to see housing at this site. There is a lot of interesting building in this area. The City does not give up the public good easily. She is happy to hear that Boston Properties wants to build housing.