Last night, the Newton Affordable Housing Trust (NAHT) received approval for its second application for Community Preservation Committee (CPC) funds (see CPC agenda). When NAHT was established in 2021 for the purpose of creating and preserving affordable housing throughout the City of Newton, the CPC decided not only support the creation of NAHT but also to allocate 35% of the City’s annual CPA funding ($1,948,056 in 2021) to NAHT to use in any affordable housing projects that would also be permitted under the Community Preservation Act.
To date, NAHT has received only one application for the use of those funds. The Newton Community Development Foundation (NCDF) has requested $1.9 million (recently amended to $1.575 million) to permanently restrict 10 units at the Warren House. The proposal would add four units to the number of permanently affordable units and offer them to households earning 80% of Area Median Income (AMI). (See 2023 AMI Table.) Currently, there are 59 apartment units at Warren, of which 21 are affordable. The affordability of six of the 21 currently affordable units is set to expire at the end of this year, and the proposal is to extend that restriction permanently for households earning 50% of AMI.
NCDF is also seeking $2.1 million in Historic Preservation funding from the CPC for its preservation project, to rehabilitate and preserve the original slate roof, the above-roofline masonry, and decorative elements. The Warren House is the site of the former Warren Junior High School, constructed in 1927, and it is listed on the National Register of Historic Places.
This NCDF application was also reviewed last night before both the NAHT and the CPC. There was lively discussion and questions were raised regarding:
- The City’s ground lease and repayment structure (i.e., where those payments would go: General Fund vs. NAHT/CPC)
- The assessment of real estate taxes and how the restricted affordable units are assessed
- The timeline for advisory review by the Mass Historic Commission
- Loan, financing, and leverage opportunities.
Both the NAHT and CPC were very supportive of the project but requested additional information on the questions raised, and the NAHT was particularly interested in setting up a meeting with the Mayor, prior to its regularly scheduled meeting on July 20, where the item will be discussed again. The CPC continued the public hearing until its next meeting, which is scheduled for August 8.
Ed. Note: Tamirirashe Gambiza is a Trustee of the Newton Affordable Housing Trust and a Director and Treasurer of Fig City News.
