Committee Report CR-5
The Housing Committee held a public meeting on Thursday, February 28, 2013 beginning at 3:15 PM in the Community Room at 2 Mt. Auburn Street, Cambridge, Massachusetts.
Present at the meeting were: Councillor Marjorie C. Decker, Chair of the Committee, Councillor Minka vanBeuzekom, Brian Murphy, Assistant City Manager for Community Development (CDD), Chris Cotter, Housing Director, CDD, Cassie Arnaud, Project Planner, CDD, John Andreo, Aide to Councillor Decker, John Clifford, Aide to Councillor Reeves, Peter Daly, Executive Director, HRI, Mike Johnston, Cambridge Housing Authority (CHA), Elaine DeRosa, CEOC, Cheryl-Ann Pizza-Zeoli, Co-Chair of Voucher Program, ACT, Ellen Shackter, Greater Boston Legal Service, Tom Lucey, Director of Community Relations, Harvard University and Interim City Clerk Donna P. Lopez.
Also present were: John VanSaun, President, 2 Mt. Auburn Tenants Association, Beryl Hoffstein, Vice President, 2 Mt. Auburn Tenants Association, Robert McCoy, Bob Chamberlin, Louise Phelan, Barbara A. Bland, R. Elinor Kennedy, Myra McCoy, Edwina Callender, William Leonard, Mary Martell, J. Bruce Lamotte, Bowen Robinson, Isabel Tellez, Jerald Harding, Shirley Attanasio, Madeline Best, Barbara Biddle, Karolina Vozbutas, Bharat L. Bhatt, Esther Maxwell, Eurene Lashley, R. Benson, Aldo Tambellini, Helen Brady, Ann Mahler, Beatrice Zagouras, Barbara Bland, Richard C. Wadman, Meta Fontellio, Virginia Jay, Mary Galgay, Cindy Thompson, Gail Johnson, Joyce Margaris, Regina Van De Rydt, Michael Roberts and Oneta Robinson, all residents of 2 Mt. Auburn Street, Hasson Rashid, 806 Mass. Avenue, Robert LaTremouille, 872 Mass. Avenue.
Councillor Decker opened the meeting and stated the purpose. She stated that it was important to have this meeting in the building so that the residents could get accurate information and receive an update. She informed the residents that she will hold an additional meeting on this matter. She will make arrangements that will enable residents to meet with her individually and ask questions. She explained the process of the meeting. A report of this Housing Committee meeting will be forwarded to the full City Council.
Councillor Decker stated that Harvard University and HRI are still in negotiations. Mr. Daly cannot legally discuss the negotiations. HRI is the state designee to buy the property and has the first right of first offer and first refusal to purchase 2 Mt. Auburn Street. This process is lengthy and negotiations continue. Councillor Decker stated that she has been appointed by the House Speaker to serve on the Massachusetts' Legislature's Joint Housing Committee. The 2 Mt. Auburn Tenants Association (40T) rejected legal assistance and representation from Greater Boston Legal Services (GBLS). She suggested that the tenant association reconsider this decision. GBLS was helpful in the successful preservation of the Chapman Arms Apartments. The goal is to secure this building for long-term housing of low-income seniors, and the City of Cambridge will defend this. She has been working closely with the city's Community Development Department as well as being in close consultation with the Association of Cambridge Tenants (ACT), legal services, CEOC and tenants to communicate to Harvard the determination of the City that if the property is sold it is remains subject to the zoning decisions which require it to continue to house low-income seniors. While it is the City's legal opinion that the original agreement is defensible and would be held up in court, it is also our expectation that affordability would be reaffirmed in new restrictions put in place upon the sale of the property. Mr. John VanSaun, President of the 2 Mt. Auburn Tenants Association, stated that there have been attorneys willing to represent the association, but there have been conflicts of interest. He stated that the State Department of Housing and Community Development have no substantive involvement in this contract. There have been nine tenant meetings held. Harvard University has refused to have substantive negotiations with the tenants association. Mike Johnston, CHA, informed the residents that Section 8 housing vouchers are not tied to Harvard University owning the building.
Councillor Decker stated that the negotiations are happening between Harvard University, the owner of the building, and HRI, the state designee under MGL Chapter 40T. She wanted the tenants involved in the sale. When the sale is made the terms can be discussed. She again encouraged the tenants to use GBLS as an entity to represent the tenants.
Bill Leonard asked if the CHA and the City of Cambridge would buy the property. Councillor Decker explained that the City of Cambridge does not buy property. The Affordable Housing Trust was created so that the City could fund housing efforts while leveraging other funds through grants and tax credits. HRI is not a City entity. The state has designated HRI to act on its behalf under MGL 40T. HRI has a long history of working successfully on affordable housing with the City.
Bruce Lamotte commented that negativity is not the best way to solve the problem. He stated that the more meetings that are held there is less interest.
Councillor Decker stated that Harvard University has informed the City that it plans to sell the building. She feels that Harvard University should not be selling a building to make a profit. Harvard was granted to build the building outside of the rules with the provision that the building house low income seniors. People are afraid they will lose their homes.
Bob Chamberlin stated that there are no individual vouchers; it is a development voucher. He spoke about the maintenance cost, the cost to get rid of the bed bugs and the cost to fix the boiler. He expressed his concern about security in the building. He stated that who would want to buy this building and what is the cost for the maintenance is the issue. Councillor Decker responded that HRI has conducted an initial assessment of building needs, but cannot disclose this information at this time.
John VanSaun, President of the 2 Mt. Auburn Tenants Association, stated that invitations were extended to all to come to speak to the tenants. Councillor Reeves has given attention to this building and the tenants. He stated that the tenants need to understand the law. HRI's exclusive rights to the building expired in January 9, 2013. The repair costs for the building are estimated at $7 - 8 million. This has been discussed with the CHA. Harvard has refused to discuss the details. Councillor Decker stated that HRI is the state designee - this is the law.
Peter Daly, HRI, stated that as the state designee, HRI has the first right of refusal to purchase the building. This level out the playing field for affordable housing. If Harvard University rejects HRI's offer HRI can examine any offer and purchase and sale agreement made by another entity and choose to purchase the building under those terms.
Eurene Lashley asked Mr. Daly if HRI is aware of the scope of the repairs that the building needs. She listed needed repairs as the elevators are always out of service, the windows need attention and the heating system needs repair. Mr. Daly stated that he is aware of some necessary repairs. A complete analysis will be done when HRI's offer is accepted. HRI knows what to expect. Mr. Cotter stated that as HRI moves forward a financing plan will be done. Funders want to know that HRI is aware of the condition of the building.
Barbara Biddle stated that under Harvard University's ownership the building is deplorable. If the building was torn down and rebuilt the location is prime. Councillor Decker responded that 2 Mt. Auburn Street is unlikely to be torn down, and further, whoever buys the building must house low income seniors outlined in the variance. The City will enforce this provision.
Tom Lucey, Director of Government & Community Relations, Harvard University, stated that discussions regarding the sale of the building are subject to confidentiality agreements. However, Harvard has already stated that it will condition any sale on a commitment by the new owner to preserve the affordability of all units for a minimum of thirty (30) years. Harvard, The City, and HRI have a long history of working successfully together on the issue of affordable housing. The most recent example was with the Chapman Arms building in Harvard Square where the three entities came together to preserve the affordable units in that building. Harvard has also conditioned any sale on the renewal of the Section 8 contract; this will ensure the manner in which rents are calculated for tenants will not change; the Section 8 contract will be extended for 30 years as well.
Ellen Shachter, Attorney, GBLS, informed the residents that the variance states that housing must be for low income seniors. She stated that going forward the tenants' can make sure that the definition and the legal documents are clearer. The variance is a legal binding document and should be made clearer. Mr.VanSaun stated that fewer documents are available now. Councillor Decker responded that the legal service and the City Solicitor feel that the variance is legally binding. She and the City will be sure that future documents include language to ensure the individuals with disabilities are legally included. CHA will also include this language based on its current practices. Mr. Cotter stated that these details will be included no matter who the buyer is. Mr. Johnson stated that 13.5% of the population in the building will be younger disabled tenants. Harvard University has requested the future buyer to have the building affordable for a minimum of thirty (30) years.
Beryl Hoffstein, Vice President of the 2 Mt. Auburn Tenants Association, asked about the thirty year period and what is the legality of the Section 8 vouchers. Mr. Cotter explained that the affordability will be continued for fifteen years with three - five year renewals option and requirement. There will be other affordability restrictions which will also keep the building affordable. When the cuts come the CHA will work with the City and the funding sources to minimize the impact for the tenants. Mr. Lucey stated that since all the entities involved with this process understand the conditions regarding affordability and the renewal of the Section 8; all parties share the goal of extending the affordability for thirty years. The sale documents will contain language that reflects this commitment.
Julia Jay asked if there is a possibility that Harvard will back out of selling the building and repair it. Mr. Lucey stated that it is unlikely.
Mike Roberts stated that the issue is not just the sale of the building. He stated that 2000 affordable units are facing elimination. He wanted a back-up plan that included advance warning, the CHA responsibility for disabled and senior tenants and tenants of 2 Mt. Auburn who have to move to another building are given priority. He spoke about the limited budgets that people are living on.
Councillor Decker stated that no one feels safe with what is happening with government funding. There are a lot of eyes watching the sale of this building. She asked Mike Johnston to explain the impact of the loss of funding.
Mr. Johnston stated the residents at 2 Mt. Auburn are in better shape financially than those in public housing. Due to sequestration, the voucher program is getting 96 percent of every dollar, while the public housing program is getting funded at a proration of 73 percent to the dollar. There is a $1.2 million deficit in public housing. The CHA board is committed to making the numbers work; the numbers are scary. If HRI buys the building the tenants are in a good situation; HRI is successful in operating and maintaining its property.
Bharat Bhatt commented on the resolution sponsored by Councillor Decker (and passed unanimously), claiming it did not support tenants. Councillor Decker stated that the resolution written by her and passed by all 9 councillors directed Harvard to first sell the building to HRI and, second, donate all profits from the sale to the city's Affordable Housing Trust, among other things
. She restated that she has great concerns that Harvard would make a profit off the sale of a building it agreed to construct and own in exchange for building rights (variances) and a commitment to the community. The original deal did not invite Harvard to revisit the deal years later and profit from its sale.
Councillor Decker stated that she is working hard to ensure that the seniors living at 2 Mt. Auburn today will be secure and that more generations will live here.
Mr. VanSaun stated that Harvard has refused to respond to the tenant association's request for information. He stated that affordability is not funding. The position of the 2 Mt. Auburn Tenants Association is to get the details in writing before the sale.
Bob Chamberlin stated that other housing units have state funding. He suggested the state make up the difference of the HUD subsidies.
Councillor vanBeuzekom asked if there is a time limit for Harvard to respond under 40T. Mr. Cotter stated there is no time limit to respond. HRI has submitted an offer under 40T. Mr. VanSaun stated that the right of first refusal expired on January 9, 2013. The bid was submitted late. Harvard is now free to consider other bids simultaneously with HRI. Harvard is under no obligation to give special consideration to HRI. HRI can match any other bid.
Elaine DeRosa, CEOC, stated that this meeting was intended to be informational, not to create anxiety. People came to this meeting in good faith and are well intentioned. The specifics do not have to be known. The tenants need to help with the specifics of the future documents. This process will in the end support the tenants. We all need to work together.