FINAL CPC Funding Recommendation Additional AHTF Allocation — File 201600

JOSEPH A. CURTATONE MAYOR COMMUNITY PRESERVATION COMMITTEE FY16 FUNDING RECOMMENDATION FOR AFFORDABLE HOUSING TRUST FUND ADDITIONAL APPROPRIATION PROJECT DESCRIPTION The Affordable Housing Trust Fund is requesting additional FY16 CPA funding to be able to provide additional funding to the Somerville Housing Authority for the Mystic Water Works housing development. The Mystic Water Works project, implemented by the Somerville Housing Authority, will create 25 affordable units for Somerville’s elderly population, non-elderly disabled population and formerly homeless households at the historic MWRA Pump Station. The Affordable Housing Trust Fund allocated $257,000 for this project in FY15 and the Board of Aldermen approved the Community Preservation Committee’s recommendation to appropriate $243,000 for the preservation of the historic windows in FY15. Due to the unfavorable environment for public sector construction projects, the Mystic Water Works housing project has an estimated $1.6 million shortfall which needs to be resolved before they close in July. If they cannot assemble the funding in time, they risk losing their tax credits which are necessary for the project to be feasible. The City of Somerville and the Trust Fund will contribute additional funds. SHA is also asking the state for additional funds. ELIGIBILITY The Mystic Water Works project will create community housing while preserving a historic resource. RECOMMENDED FUNDING- PRELIMINARY DISCUSSION On May 25, 2016 by a vote of 5-0 the Community Preservation Committee recommended appropriating $250,000 from the undesignated reserve budget to the control of the Affordable Housing Trust Fund. ALIGNMENT WITH FY16 COMMUNITY PRESERVATION PLAN The Mystic Water Works project will both provide affordable units in perpetuity and provide housing units for formerly homeless households, both FY16 Community Preservation Plan priorities. FUNDING CONDITIONS This funding will be governed by the FY16 grant agreement between the Community Preservation Committee and the Affordable Housing Trust Fund. CITY OF SOMERVILLE, MASSACHUSETTS COMMUNITY PRESERVATION COMMITTEE