1. OPERATING ISSUES FOR MUNICIPAL AFFORDABLE HOUSING TRUSTS
Kathleen M. O’Donnell, Esq.

2. Where to Start?
Read the Warrant Article and the By-Laws adopted under the Article
Do you have a Declaration of Trust?
How many Trustees do you have?
What other Town Offices do they hold, if any?
Is there a good reason to have all of the Selectmen serve as Trustees?

3. Trust Documents Declaration of Trust - Why do you need one?
What does it cover?
Name of the Trust
Purposes
Tenure of Trustees
Meetings
Powers of Trustees
Acts of Trustees – how many do you need to sign
Liability – can’t bind the Town
Amendments
Accounts
Duration – indefinite
Trustees Certificates as evidence of authority

4. Trust Documents
Record Declaration of Trust or Trust Certificate at Registry of Deeds
Trustees should be appointed and a Trustees’ Certificate recorded at the Registry of Deeds

5. Internal Operations Elect Chair of Board of Trustees Elect Secretary
Accounting:
Statute does give Trust the authority open your own account but – usually -
Use the Town’s Treasurer and Town accounts
Establish protocols for reports from Treasurer to Trust to include updates on expenditures from Trust funds

6. Internal Operations Minutes Open Meeting Law requirements
warnings
Posting agendas
Approved minutes, accounting, and votes should be maintained where??

7. Working with Other Boards and Commissions
Boards of Selectmen
Community Preservation Committee
Housing Authority
Housing Commission
If the Trustees come from these entities, and they should, be sure that the Trustee remembers which hat he/she is wearing when making a decision

8. Working with Administration
Is Town Administrator/Manager an ex officio member of the Trust?
Town Treasurer – need good working relationship if you expect timely, accurate, reports
Do you have access to Town Counsel? Should you use Town Counsel
Uniform Procurement Act – Requests for Proposals

9. Funding Sources Money from inclusionary zoning 40B payments
Tax lot sales – need cooperation of Treasurer to limit sales to affordable housing purposes
Community Preservation Act
Gifts and donations – in kind or in cash
Form 8283
Gift acknowledgement

10. Working with CPA Funds Proposals to CPC
Grant Agreements – what are they and why you should have one
Terms:
Description of project or general grant?
Amount of grant – how and when are funds delivered to Trust
Reporting requirements?
Restriction required in return for funds?
Compliance with Uniform Procurement Act?

11. Tasks Review existing Housing Plan for opportunities for development
Consider use of funds as leverage for access to other funding sources
Establish guidelines for expenditures
for example - $150k per housing unit
Use of funds for local housing needs, not necessarily for units on the Subsidized Housing Inventory

12. EXAMPLES OF TRUST ACTIVITIES
Purchase land for affordable housing
Acquire town owned parcels through transfer by town meeting vote or purchase at tax title auction
Purchase restrictions on private construction projects
Provide financing to non-profit developers in return for mortgage or additional affordable units

13. EXAMPLES
Downpayment Assistance Program - Provide funds to cover gap between market sale price and affordable price in return for deed rider
Research potential zoning changes to allow development of affordable housing on grandfathered lots

14. EXAMPLES Allow accessory units through special permits
Allow mixed use in commercial districts through special permits
Inclusionary zoning
Foreclosure prevention assistance through short term loans

15. Closing Requirements
Purchase – Uniform Procurement Act (c. 30B Section 16) – can file uniqueness determination with Central Register
Disposition – no exemption for uniqueness – must comply with c. 30B
File Disclosure of Beneficial Interests (c. 7 Section 40J) with DCAM
Don’t forget the IRS – need to file 1099S reporting the sale, obtain affidavit from seller that he/she is not a foreign person subject to backup withholding (FIRPTA)