Committee Report CR-1

The purpose of the meeting was to discuss the latest challenges to, and changing faces of, affordable housing in Cambridge.

Present at the meeting were Councillor E. Denise Simmons, Chair of the Committee, Vice Mayor Dennis A. Benzan, Councillor Craig Kelley, Councillor Nadeem Mazen, Councillor Marc C. McGovern, Councillor Leland Cheung, Councillor Dennis Carlone, Brian Murphy, Assistant City Manager, Chris Cotter, Housing Director, Linda Prosnitz, Housing Project Planner, Anna Dolmatch, Housing Project Planner, Community Development Department, Ellen Semonoff, Assistant City Manager for Human Services, Mike Connolly, Aide to Councillor Carlone, Neal Alpert, Aide to Councillor Simmons, and Paula M. Crane, Administrative Assistant, City Clerk's Office.

Also present were Elaine DeRosa, Executive Director, CEOC, Cheryl-Ann Pizza-Zeoli, Alliance of Cambridge Tenants and CEOC, Bill Cunningham, Alliance of Cambridge Tenants, Lauren Curry, Housing Development Manager, Craig Nicholson, Just-A-Start Corporation, Greg Russ, Executive Director, Michael Johnston, Deputy Executive Director, Cambridge Housing Authority, Joe Deignan, Resident Services Coordinator, Homeowner's Rehab, Inc. (HRI), J. Bruce LaMoite, John Van Saun, President, 2 Mount Auburn Tenants Association, Nancy Ryan, Barbara Biddle, Kathy Watkins, Torgan Austin, Jerry Harding, Eduardo Maristany, Rebecca MacRae, Akshar Wunnava, Lauren Curry, Beryl Hoffstein, Jean Hannon, Lisa Ward, Andrew Johnson, Rashmi Ramaswar, Richard Krushnick, Robert Winters, John Hawkinson, Sam Seidel and Minka vanBeuzekom.

Councillor Simmons convened the meeting and explained the purpose.  She stated that she wanted to allow members of the committee to hear directly from the people who are most familiar with the housing issues that the city is facing.  She stated that this would not be an exhaustive hearing and while there will not be time to get into the thick of any one particular area, it is important that the committee start the term by beginning with a shared understanding of what is going on in the city.  She stated that the committee will hear from a number of housing advocates and organizations.  She noted that this will be a generalized overview and that the committee will delve more deeply into specific issues at upcoming meetings.

Councillor Simmons noted that Mr. Peter Daly, Executive Director, Homeowner's Rehab, Inc. (HRI) was unable to attend the meeting due to a previous commitment to discuss affordable housing with the congressional representatives in Washington, D.C.  Mr. Daly submitted an update of progress on Chapman Arms and Putnam Square for the record.  (Attachment A)

Joseph Deignan, HRI, stated that HRI has spoken with representatives from an architectural firm known as The Cambridge 7.  He stated that The Cambridge 7 informed HRI that they had no plans to take part in the renovation of 2 Mount Auburn and they approve of HRI's/Davis Square Architects plans.  He stated that HRI holds frequent resident meetings to present information on the rehab project.  He noted that residents' ideas have played and will continue to play a role in the development of 2 Mt. Auburn's rehab plan.  He stated that rehab updates are provided to all building residents on a monthly basis and noted that HRI staff is available to meet with any resident to discuss questions or concerns.  He stated that HRI will be constructing an Activity Room on the building's top floor.  This space is designed to house resident health and wellness programming and other related activities.  He noted that there was a proposal to create a weight room/fitness center but that HRI and WINN management were told by an overwhelming majority of the residents that this is unwanted.  He stated that the scope of unit rehabs include, but is not limited to, new windows and framing, some walk-in showers, new refrigerators and new stove units.  He stated that adaptive equipment is available to any residents who request this equipment through Somerville/Cambridge elder services.

J. Bruce Lamont, 2 Mt. Auburn Street, stated that less is more.  He has been a resident of 2 Mount Auburn for 13 years.  He stated that it used to be a tranquil place to reside but is sorry to say that is no longer the case.  He said the building has turned into a stress factory.  He stated that best time to be a resident in the building was when WINN first took over the property and no one else was involved.  As an example, he stated that the ceiling has come down 6-8 times in twelve years.  He stated that the new water heaters that had recently been installed need to be repaired, and that is being worked on. He had the good fortune of bringing in The Cambridge 7 Associates, an architecture firm, who were trying to assist and be a good corporate citizen.  He said that the reaction from HRI to this group was essentially, "mind your own business."  Mr. Lamont stated that long-term implications are not considered.  He told of a situation in which an HRI employee met with only two residents every Friday.  This employee and these two residents were working to overturn the tenants' association group.  He stated that HRI applied for an eight million dollar loan.  Mr. Lamont claimed that Mr. Daly took 25% as his fee, and he stated that this is larceny.  He stated that most of the 2 million should go into the building.

John Van Saun, 2 Mt. Auburn Street, President, 2 Mt. Auburn Tenants Association, stated that there are seven residents who would like to make remarks.  He stated that the issue at 2 Mt. Auburn is a technical process.  Two things are apparent: complete divergence as to the allocation of funds and what is and is not important.  He stated that HRI is principally concerned with the outside of the building while the tenants are concerned with the inside of the building, meaning the tenants and their quality of life.  He stated that funds should be allocated on how things will evolve over the next thirty years.  This building holds a unique population.  He stated that the 2 Mt. Auburn Tenants Association are asking the City Council to get involved as the project is a ticking clock, and renovations will continue unabated if no action is taken.  He asked the City Council to request a four-month pause from HRI, aside from their work to complete the elevator and window renovations.  During that time, it would best to seek professional, outside assistance and submit alternative visions for renovating the building that would support livability. He stated that there should be a basic version which will reduce debt load and an extended version that will spend as much as HRI is planning to spend.

Barbara Biddle, 2 Mt. Auburn Street, spoke about the residents of 2 Mount Auburn Street.  She noted that the residents are getting older, sicker and weaker.  She spoke in favor of a Health and Wellness system that the tenants association will provide.  She noted that many tenants are in their 60s and 70s.  She spoke about the benefits of strength and conditioning.  She stated that two small stationary bikes in the corner is a bad area.

Gerry Harding, resident of 2 Mt. Auburn Street, stated that he is 72 years old and he expects that he will end his days in this building.  He spoke about his concerns relative to the renovations.  He noted that he has a background in the arts, specifically set and costume design for the theater and book design illustration.  He stated that he has a special interest in the overall esthetics of the building.  He stated that 2 Mt. Auburn should not look like an institution.  He said that the simplest resolution to any problem is usually the best.  He noted that new hallway lighting has been installed without any input from the residents. He said that the lights that have been installed flash on and off as you proceed down the hall and provide a nightmarish effect, especially for a person who suffers from cataracts and/or glaucoma.  Regarding the architectural proposal for placing a coffee making center in the lobby of the building, he stated that this is unnecessary as well as esthetically inappropriate and a waste of space.  He asked that the City Council see fit to intervene for a 4-month hiatus in the renovations and urged that a group be formed to seek advice from the community and other resources with which the city is endowed.

Beryl Hoffstein, 2 Mount Auburn Street, Vice President of 2 Mt. Auburn Tenants Association, stated that she has lived in this building for 4 ½ years.  As it relates to the new lighting, she noted that one tenant has already complained due to the problems with her eyesight.  This tenant has suggested that the lights are blinding and not well-distributed.  She stated that because this project is derived from public funding, there should be accountability and transparency.  The public housing should match the needs of the elderly and disabled that live there.  She stated that some of the plans have not been disclosed to residents.  She stated that collaboration on the project would allow for a very exciting and cutting-edge innovation from some of the best minds locally as well as the residents.  She stated that Mr. Daley would receive great publicity as well as the reputation for a forward-looking vision, and that this would constitute a win-win situation.  This could be new model.

Lisa Ward, 2 Mt. Auburn Street, noted that she has not been a resident of 2 Mt. Auburn for very long.  She stated that one of the reasons that she moved to 2 Mt. Auburn was the great ties to the community.  She stated that politically, we know that we are supposed to make it easier for the middle class in the community.  She stated that she does not believe that HRI should be blocking contract biddings and should instead make it an open process.  There are small businesses in the city that could do the work for less money.  She stated that she does not understand why The Cambridge 7 was told to mind their own business.  She stated that elderly people try to live out their days in peace and tranquility.  Ms. Ward spoke of the problem with work trucks taking up the limited parking spots that are available.  She noted that every building has a tenants association and that you cannot have two tenant associations in the same building. She stated that there are no problems in the building among the tenants other than two people who are running amok.  She stated that projects are being done at 10%.  She asked the committee to look at this issue.

Richard Krushnick, 20 Oak Street, stated that he is a member of the Cambridge Residents Alliance and community development worker in Boston.  He has been looking at development in the city for the past 60 years.  He stated that the percentage of the population under age 40 has dropped while the population over age 40 has risen. He noted that changes are not as dramatic in the higher ages, and that Cambridge is becoming a homogenous culture.  He noted that we are witnessing a transformation in the city.  There have been a large percentage of working class families that have been pushed out of the city.  Middle-class families have been priced out of the city.  He noted that families in the city have been reduced by half.  He stated that the best way to preserve affordable housing is to build more housing.  He stated that the Community Development Department has been forthcoming about preserving and developing middle-income housing.  He stated that the city really has to take the long-term, big picture look and figure out what to do about it.  The city needs to spend more of its own general revenue money to preserve low and middle income housing.  The housing trust sources are going to have to be increased and mechanisms found through taxes or other means that benefit the lower income and middle class families.

Councillor Simmons stated that we need to be proactive.  She noted that the purpose of the committee is to look at the changing face of Cambridge as it relates to housing.  She stated that HRI will be invited to the next meeting.  She stated that she would like to hear from some of the housing providers that were in attendance.

Elaine DeRosa, CEOC, stated that CEOC is a designated anti-poverty agency.  She gave a brief summary of some of the work that is undertaken by CEOC.  She discussed some of the agency's work in areas such as individual tenant advocacy, which includes keeping people in their homes to prevent homelessness.  She noted that with the change in public funding around public housing, the people who were eligible under the existing system may soon not be eligible for tax credits.  She stated that the main goal is to help people stay in their homes, since once people lose their home, they are displaced from the city and the resources that it offers.  She stated that new data reveals that we are in one of the most expensive rent areas in the world.  The conflict of wealth and lack of equality around wealth impacts housing. CEOC also works on public advocacy policy.  She cited, as an example, the Commonwealth's 40T program, which is what allowed HRI to purchase 2 Mt. Auburn, 1221 Cambridge Street, and other expiring use buildings. This 40T program is the legislation that allowed the purchase of the building, and it was heralded by Governor Patrick in the lobby of 2 Mt. Auburn when it was first being announced to the public.  She noted that CEOC has been in every expiring use building in the city as part of its quest to hear from all tenants. In reference to 2 Mt. Auburn Street, she noted that CEOC has heard from other tenants at 2 Mt. Auburn that HRI is trying to do the best they can with an old building.  Returning to the topic of 40T, she again noted that this relates to expiring use properties.  She stated that 921 Mass Avenue was an expiring use building and that there are some deeded units in the building.  This program was the impetus for the right of first refusal, meaning that the Municipality or designees have the right to match a private offer on expiring use buildings, which offers a chance to preserve these buildings for their original intended purposes of serving as affordable housing.  She wished to credit the City Manager and the City Council, along with the support around community preservation and affordable housing, for saving these buildings. She noted that the Fresh Pond Apartments and 362-364 Rindge Avenue and the Close Building will expire in 2020.

Cheryl-Ann Pizza-Zeoli seconded Elaine DeRosa's statement that 40T has been a useful tool.  It did not require legislative approval, it was a regulatory change.  She stated the concern that it will cost more to preserve buildings, which might inhibit the program's effectiveness.  Much of what she does comes from the belief that tenants need to understand what type of buildings they are living in.  She stated that there are big changes coming to the Cambridge Housing Authority, and also noted that change of funding comes along with the change.  She stated that there is work to be done and decisions will need to be made.  She noted that there are a lot of policy issues that the City Council will need to be aware of.  As one example, she spoke of the smoking ban inside all CHA buildings that will be going into effect and the fact that it will be a big change for CHA residents.

Bill Cunningham, Alliance of Cambridge Tenants (ACT), stated that it would be safe to say that the true market rents in Cambridge run $1,000 over fair market rent.  That means that people who have affordable housing vouchers and don't have a building to go to will end up in Everett or Wakefield because, even with their vouchers in hand, they will still be unable to afford rents in Cambridge. On the other end, it is a struggle to preserve affordable housing stock.  With so many people who depend upon affordable housing gradually being pushed out of Cambridge, it means that the local basis of support for public and voucher housing is vanishing.  The cause and effect are sometimes mixed up.  Following the implementation of rent control, many residents were priced out of Cambridge it subsequently became difficult to maintain the political base for it.  Much of what has happened in Cambridge would have happened regardless. Public housing organization is the right to organize and the right to receive money from the CHA.  Certain rights were gained in the tenant movement, and at one time, it was not difficult to get participation for tenant councils.  Nowadays, it is difficult to keep tenants associations from falling apart.  The Alliance of Cambridge Tenants is an organization recognized by the CHA and consists of public housing and voucher residents.  Voucher housing was never included in other, similar organizations.  To encourage owners to take renters with vouchers, they will not give extra rights to tenants.  He stated that the Alliance of Cambridge Tenants does not have a steady stream of funding or a memo of understanding with the CHA.  They only have money from their own pockets, and since everyone in ACT is, by definition, low-income, it means that ACT is a very poorly funded operation.  They are not outsiders.  He noted that he has lived in Cambridge for over fifty years.  When you have such a low level of organizing amongst the tenants, it is not surprising that tenant rights are slipping away.  The City Council is in a position to listen to the residents who have something to say.  He stated the importance of encouraging more people to come forward and get involved in the process.  He stated that when people express distrust of the establishment, they feel something deeper than the will of the non-profit people.  He feels that people are doing the best they can.  This has to do with the continual cutbacks of funding and the restlessness of the financial world.

Brian Murphy stated that there are issues to consider looking into in the future, such as the disconnect of fair and actual market rent that Mr. Cunningham just mentioned.  Over the years there has been a cyclical nature to the development.  Softer development has been more successful with non-profit partners to develop sites.  He noted that expiring use buildings such as Briston Arms, the Fresh Pond Apartments and the Close Building will be very important to the discussion.  He stated that there will be policy questions to consider over the coming term, such as incentive payments and ensuring that these payments are high enough when thinking about the community impact, inclusionary zoning and potential adjustments to the existing formula, if necessary, and the loss of middle income families.  He stated that 30% of voucher holders are leaving the city and this is worthy of discussion.  He stated that he and Ellen Semonoff have discussed how to tie social service programs with housing.  Mr. Murphy stated that another piece of the conversation is the composition of the city. There is an advantage to ensuring that people who work in the city and have children are able to remain in the city, but that can sometimes come at the expense of residents that do not have children.

Councillor Simmons stated that there are some very important topics to be discussed in the future.  She stated that it is important to look at the definition of "residency." Councillor Simmons inquired as to how university housing weighs in on housing stock.  Chris Cotter stated that the city has been challenged and has been focusing on preservation for the past five years.  He noted that there are a significant number of inclusionary units forthcoming.  They are working on the best way to allocate these units as they come on-line.  Mr. Cotter stated that these units are predominantly rental units.

Gregg Russ, CHA, gave an overview of the Cambridge Housing Authority's Capital Program from 2014 - 2020 (Attachment C).  He stated that the CHA feels that there is a close connection and cooperative mindset with the City's administration.  He stated that the market has changed so dramatically and the CHA is trying to preserve as many units possible inside the City of Cambridge.  Hard units are becoming increasingly viewed as the most stable form of affordable housing, whereas vouchers are mobile by requirement and definition.  He stated that vouchers that have been distributed via the CHA have been scattered in neighboring towns.  He stated that in 2006, in order to maintain 2,700 public housing units, the CHA needed to raise large money for capital improvements.  He stated that the CHA has made a series of planned choices and done a number of things to reposition the affordable hard units to remain in place as affordable units for at least 20 years.  State public housing has been migrated into the federal program. The Federal government offered the CHA the opportunity to move units and they took advantage of that. In addition, the CHA has applied for and received a number of stimulus grants for various capital improvements at their properties all around the community.  He stated that they filed a disposition application to trigger tenant protection vouchers.  The United States Department of Housing and Urban Development (HUD) rejected that application.  RAD (Rental Assistance Demonstration) made propositions to change the subsidy platform and release certain restrictions on property.  The RAD application was approved to become a project-based Section 8 subsidy approach, and the first phase of this shift will have to close by the end of the year.  He stated that RAD allows the CHA to move from a formula operated subsidy, which is subject to periodic and deep funding cuts by Congress, to a Section 8 subsidy, which he believes to be more stable. The largest chunk of Section 8 voucher holders is tenant-based and largely held by families.  He said that there are commitments to maintain a certain set of tenant protections in the new Section 8 properties.  They are self-developing and plan to contract back to existing staff, so that the experience of the tenants living in these buildings should remain largely unchanged aside from how the program is being administered. He stated that the CHA is able to raise significant amount of money via the changes being planned for RAD.  He stated that the CHA has also received a grant from the state for Jefferson Park reconstruction, and that the CHA has to use the tax credit.  He noted that 10% of the units in each property are not connected to the tax credit.  This will keep the policy platform and assistance to the families the same.  The second phase application will begin in December and will close the following year.  He noted that construction on the first phase is late spring/early summer of next year.  Once it starts, the CHA intends to provide a level of renovations to all of its properties over the next 3-5 years. Mr. Russ also noted that the new units being constructed by the YWCA on Temple Place consists of new units made possible by tax credits and contributions of the city.

Lauren Curry, Just a Start (JAS), stated that many people are not well acquainted with JAS.  JAS was involved with the Cambridge Redevelopment Authority (CRA) and the creation of new housing in Area 3 and 4. Over the last 40 years, JAS has been actively involved in housing development, both homeownership and rental.  JAS owns close to 600 units of rental housing and developed over 130 home ownership units.  They hope to continue what has been called "workforce housing."  These are units intended for working people trying to stay in Cambridge.  She stated that there is need for very low income housing, whose tenants may have a more significant need for supports to stay in their homes.  She stated that JAS has a portfolio of housing that needs to be refinanced and revitalized so they are available for the community in the future. She stated that they are currently redeveloping property on Bishop Allen Drive which is a tax credit project.  It is the hope to redevelop other tax credit properties that were developed in the 1990s.  Also, JAS provides housing services such as mediation services, homelessness prevention and counseling.  She stated that JAS has a home improvement program which helps lower income homeowners to keep up their housing and to do it in an affordable way.  She stated that the affordable housing provided by agencies like JAS are not well enough understood to be fully appreciated for the roles that they play in keeping the community accessible to a large variety of people.  She stated her hope that the future will hold better receptivity toward development and maintenance to this component of the Cambridge housing scene.  To underscore the great demand for affordable housing, she stated that last year JAS received 130 applications for just fourteen units, and she also stated that the rental waiting list will not be met for years.  She stated that preservation of existing affordable units is essential.

Councillor McGovern stated that this issue ties in with the upcoming Human Services & Veterans Committee meeting he will be chairing, which will focus upon poverty and hunger in the community.  He stated that he is pleased that we are all working together.  He stated that there will need to be a multi-front battle to make headway.  He stated the importance of preserving the affordable housing stock but noted that we need to get in front of plan for the upcoming expiring use buildings, increasing inclusionary zoning, and discussions with developers to ascertain what the city can do to give incentives to build low and middle income housing.  He mentioned that a poverty study from the Community Development Department stated that federal standards of what is considered to be "poverty" on a national level is out of whack in Cambridge.  He stated that it is important to know what is realistic for the City of Cambridge as it relates to poverty.  He stated that the city needs to look into the option of purchasing more land.  He noted that he dislikes the thought of losing parking in Central Square, but that he may be open to the idea if that would translate to more affordable housing and being able to keep more families in place.

Vice Mayor Benzan stated that he appreciates work of all of the agencies present.  He stated that he recently toured CHA buildings and he is impressed with their work.  He stated that he is trying to better understand hard numbers.  He asked Brian Murphy how many units of housing can be built on sites if the City were to build to its absolute capacity. Mr. Murphy said that he did not have those numbers available but he would gather that information for future discussion.  Councillor Simmons suggested that it may be helpful to compile a list of topics to discuss so that the committee could prioritize the goals of the Housing Committee.

Vice Mayor Benzan stated that he had the opportunity to meet with Peter Daly and one of the subjects they discussed was the California Paint site.  He stated that it would be beneficial to work with real numbers so they could begin to look at dollars and cents.

Councillor Mazen stated that he is interested in the expiring use conversation.  He stated that he wants to really understand the up-side and down-side over time.  He stated that it is good to know what the city is getting into and in particular how the city can move forward saving the expiring use buildings.  As it related to inclusionary zoning, he stated that he thinks that 15% almost gets us something but in practice the number is lower. It is very confusing if we have goals but are not addressing them in a specific way.  In relation to the comments earlier in the meeting about the power of having an organized public to rally around affordable housing, he stated that as part of the Neighborhood & Long Term Planning discussion, there is a question about organizing and what the city can do to provide access that may give community groups more leverage.

Councillor Kelley stated that he disagrees with the characterization of the renovation work from HRI. He stated that his experience is that work is substandard and results in more problems.  He asked Mr. Russ about the projects at 78-80 Porter and Temple Place.  He stated that he was not clear on what was being constructed with those costs.  Mr. Russ stated that this figure includes a portion of the acquisition cost plus rehab that will need to be done.  They are in the process of transitioning from market rate to affordable housing.   He stated that for now, the tenancy will be changed to affordable and the rehab will take place at a later time.  Councillor Kelley stated that it seems like a lot of money per unit.  Councillor Kelley asked how rehab money pays for a building that is already owned by the CHA.  Mr. Russ stated that the chart lists construction cost only.  Councillor Kelley inquired if the $250,000 figure cited by Mr. Russ was in addition to the purchase price of the building.  Mr. Russ answered in the affirmative.

Councillor Carlone stated that he is trained as an architect and urban designer.  He appreciates the efforts being made.  He stated that upzonings are being considered and CDD is looking into this. He stated that one of the benefits could be contingent upon an increase in affordable housing or mixture.  He stated that Cambridge is a dense city but if you look at the potential of low density buildings, thousands of units can be built.  He noted that one problem is that you can only build housing, office or biotech in certain areas.  He noted that it makes sense that some of the land between Main and Massachusetts Avenue in the area of Lafayette should be residential.  He stated that in the end, when we do housing, the city and state should be looking at what the new additional part is that will serve as a base.  He stated that it is important to talk about building neighborhoods and community.  He does not want that to be lost.  Councillor Carlone stated that buildings over six stories have little relationship to the ground.  He stated that in order to meet the needs of the city, we need 35% affordable housing, but he questioned whether mandating that figure would impede further development.

Vice Mayor Benzan stated that as it relates to 2 Mt. Auburn, there has been some question about the legitimacy of the tenant association.  He asked how this association was formed, and if so, if it was formed in a democratic process.  John Van Saun stated that in September of 2012 he was entrenched in work and he was shocked when he heard that 2 Mt Auburn was being placed for sale by Harvard University.  He said that there is a clause in 40T that allows for the formation of a tenant council, and that he and Beryl Hoffstein took the initiative to run for tenant council and were elected president and vice president. He said that he was elected 47-2.  He noted that there have been more than 40 meetings of the tenant council since that time. He stated that there are over 12,000 pages of documentation to meet 40T requirements. He stated that the tenant council has taken pains to be inclusive of the building's residents, including utilizing translators. Councilor Simmons then advised that further conversation dealing specifically with 2 Mt. Auburn should be held off until a future meeting with Peter Daly present could be scheduled.

Councillor Simmons stated that the passion around housing is clearly visible.  She stated that diversity is not only about jobs and schools but people that live in our neighborhoods.  She asked her fellow committee members to compile a list of issues that are important to them so that their time on this committee can be used well.  She stated that she is very concerned about learning that 30% of voucher holders are leaving the city.  She noted the importance of people being heard.  She stated that while the City Council is able to make policy, it is imperative to hear from those that you serve.