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Developer explores CDBG funding for 94 Pleasant Street rehabilitation; staff flags income‑restriction and deed issues
Summary
Matthias Capital asked staff whether CDBG could help rehabilitate 94 Pleasant Street, a 3‑unit rooming house the company purchased; staff said the project might be eligible but must meet HLC per‑unit limits and 51% low/moderate‑income occupancy rules and noted potential deed/subordination restrictions.
City staff told the steering committee Sept. 23 that Matthias Capital approached the city about potential CDBG funding for rehabilitation of 94 Pleasant Street, a 3‑unit rooming house across from City Hall that the company recently purchased.
Assistant Director Amy said staff explained eligibility basics: CDBG may fund housing rehabilitation for developer‑owned properties but projects must meet HLC per‑unit maximums (cited in the meeting as $175,000 per unit) and income‑targeting rules requiring at least 51% of units to serve low‑ and moderate‑income households. Staff sent follow‑up answers to developer questions and will collect more information about deed restrictions and potential subordination agreements.
Committee members said they want more information about precedent for using city‑administered CDBG funds on privately owned developments and cautioned that any use could set a precedent for future requests. No vote was taken; staff will gather additional information and report back.
