Article 42 Preserving Affordable Housing

About Echo Village Apartments Located at 30 Gatehouse Rd  Off Old Belchertown Rd 24 units  7 4BRs, 7 3BRs, 10 2BR  Including 2 Handicapped Units Ample parking space Updated safety systems Houses many families through Section 8 program

Current Problem Echo Village recently sold from one private owner to another Current owner plans to increase rent for student housing New rental rates would force families dependent on affordable rates out Student housing plan eliminates what part of what little affordable housing is left in Amherst

Section 8 A family or individual that falls within these income levels qualify for Section 8 voucher payments. Amherst, MA - FY 2013 Section 8 Income Limits Summary Median Income FY 2013 Income Limits 1 Person2 Person3 Person4 Person5 Person $66,100Low (80%) Income Limits $45,100$51,550$58,000$64,400$69,600 Very Low (50%) Income Limits $28,700$32,800$36,900$40,950$44,250 Extremely Low (30%) Income Limits $17,200$19,650$22,100$24,550$26,550

Our Solution and its Benefits Article 42 asks the town to raise funds to purchase Echo Village Apartments or acquire them through eminent domain Echo Village Apartments then managed by AHA or other non-profit housing organization Adds affordable housing to the town Keeps over 30 children (currently enrolled) in Amherst school system Provides revenue to town

Revenue Gained from Purchase Rental Income would be sufficient to finance mortgage payments, operational and management expenses Annual Expected Rental Revenue $343,524 Estimated Operating Expenses-$107,000¹ Unanticipated Expenses-$20,000 Real Estate Taxes-$36,000 $180,524 (1) Figures courtesy of Principal Assessor (2) Based on 2013 Amherst Section 8 Payment Standards and 2011 Western MA Utility Allowances Bedroom SizeEst. Monthly Rent Quantity Of Units Total Est. Monthly Revenue 2 Total Est. Annual Revenue 2 2 BR$100010$10,000$120,000 3 BR$12507$8,750$105,000 4 BR$14117$9,877$118,524 Total24 Units$19,627$343,524

Other Funding Sources Our research shows that this property can be acquired through the following funding sources: Up to $300,000± from CPA funds Up to $400,000 4% Low Income Housing Tax Credit (LIHTC) Up to $750,000 HOME Investment Partnerships Program (CDBG funds provided each year by HUD) Up to $1,000,000 Affordable Housing Trust Fund (AHTF) Up to $1,000,000 Housing Stabilization Fund (HSF) is a state funded bond program

Further Information Article 42 only authorizes the expenditure if 85% of the cost has been raised through funding sources mentioned before Eminent Domain is suggested only as a last resort possibility, finding an amicable settlement is a top priority Unless Amherst increases the availability of affordable housing, the town could lose the ability to approve or deny future housing developments