The committee examined a detailed proposal outlining the acquisition of Devon’s Crest Village Apartments, which includes converting 35 units for those earning 60% of the Area Median Income (AMI) and 79 units for individuals at 80% AMI. This endeavor is part of a larger financial strategy involving a combination of private equity, conventional mortgages, and state funding. A significant aspect of the proposal is a 99-year deed restriction intended to maintain affordability well into the future.

A representative from Shocket Associates articulated that the project’s financial model is a private equity deal, a necessary approach after previous structuring attempts proved unfeasible. The intention is to provide an option for tenants to purchase the property after ten years, aligning with the dual goals of preserving affordable units and facilitating tenant ownership. This model has attracted state interest due to its potential replicability as a means of preserving naturally occurring affordable housing through public-private partnerships.

Concerns about maintaining affordable rents were addressed by proposing that the 35 units below 60% AMI would receive state-funded rental assistance through the Massachusetts Rental Voucher Program (MRVP), administered by a local housing authority.

Further insights were provided on how the MRVP operates. The program allows tenants to pay 30% of their income towards rent and utilities, reducing their housing costs compared to current market rates, which can exceed $2,200 monthly. The program is project-based, meaning vouchers do not transfer with tenants if they move. Discussions highlighted the potential for rent adjustments based on income changes, a critical aspect for families experiencing fluctuating earnings.

The meeting also explored the broader financial implications of the proposed assistance and the project’s long-term sustainability. A motion was made to authorize $170,000 from the Ayer Affordable Housing Trust for the project, contingent upon several factors, including the specified number of units moving from the 80% AMI category to the 60% AMI category, state approval, and securing necessary housing vouchers. The motion received unanimous support.

Participants expressed concerns about transparency and accountability in the allocation of public funds, seeking assurances that financial support would be used strictly for its intended purpose without being diverted into private profits. Suggestions were made to establish joint control of funds, possibly in escrow, to ensure community benefit and satisfaction.

The conversation also touched on the importance of establishing a sinking fund for maintenance and renovation, a common practice in condo associations, to ensure the long-term viability of the housing units. The proposed project aims to address the challenges of maintaining affordable housing while providing a stable living environment for low-income families.