Hull Establishes Affordable Housing Trust Fund
Select Board Approves Creation to Streamline Development, Access $500,000 in Existing Funds
HULL - December 18 - The Hull Select Board has unanimously approved the creation of a Municipal Affordable Housing Trust Fund, aiming to streamline affordable housing development in the town. The decision, made during a recent board meeting, will allow the trust to access over $500,000 in existing Community Preservation Act funds and act more nimbly than traditional town processes.
Cynthia Koebert, Chair of the Affordable Housing Committee, presented the proposal to the board, emphasizing the trust's potential to enhance the town's capacity for creating affordable housing.
"It's nothing new. 147 cities and towns in Massachusetts have them," Koebert explained. "It is a public entity created under the Commonwealth Statute, Chapter 44, Section 55C."
The trust's purpose is to provide for the creation and preservation of affordable housing for low- and moderate-income households and to fund community housing as defined by the Community Preservation Act.
According to Koebert, the trust will have the ability to act more quickly than most town processes, which often involve lengthy decision-making timelines. "When we have reached out to developers to interest them in developing affordable housing in our town, they immediately assume we are a housing trust with some funds that we could put into a deal. We are not," she said.
The trust will be appointed by the Select Board and will include a member of the Select Board. Its powers, consistent with the state charter, will allow it to buy down the cost of housing for people with low or moderate incomes, assist with housing development and preservation, and raise funds through various means including bonds, developer's fees, and charitable donations.
Select Board member Greg Grey voiced strong support for the initiative. "Jason and I, when CPA first started, we were on that board together. And we did. We parked a lot of money year after year after year waiting for this to happen," he said. "There's close to $500,000. So like you said, it's just sitting there doing nothing. This would allow it to start the process."
The Community Preservation Act requires that 10% of its funds be held for affordable housing purposes. However, as board members noted, developing affordable housing has proven challenging, and these funds have accumulated over time.
Board member Jerry Taverna expressed enthusiasm for the proposal, calling it "an extremely bold move" that he would personally support. However, he raised questions about how the trust would interact with the town's existing budget structure.
Koebert clarified that the trust is not funded by the town budget but is designed to add capacity through its structure. The primary source of funding will be CPC funds, with the ability to do its own fundraising and apply for grants.
The board's approval sets in motion the process of establishing the trust. The next steps will involve drafting bylaws and working with the town's legal counsel to finalize the structure of the trust.
In addition to approving the trust, the board also directed the town to prioritize affordable housing and investigate locations for affordable housing projects. The goal is to present at least one property for consideration at the 2025 town meeting.