Southborough CPC pauses vote on transferring CPA housing funds to new Affordable Housing Trust

The Community Preservation Committee (CPC) discussed on Feb. 13 a request from the Affordable Housing Trust Fund Committee to receive a transfer of the town’s CPA community housing funds but did not vote to approve the transfer, saying they need clearer goals, legal safeguards and updated application materials.

The discussion matters because the CPC would transfer roughly half a million dollars in community housing funds to the trust’s control; members said they want protections such as a sunset clause and a clearer plan for how the money would be used before placing the transfer on a warrant for town meeting.

Ben Smith, Community Preservation Committee member, opened the meeting by listing the affordable housing trust fund application as one of the session’s “most critical items.” Ellen Mariah, the Affordable Housing Trust Fund Committee representative on the CPC, said the trust has met several times and is working to narrow strategic goals: “we spent some time … to put together some still pretty broad goals, and are continuing to think about how we want to define a strategy,” she said.

Several CPC members said they want more detail from the trust before approving a transfer. Grant Farrington asked for “a better sense of what, you know, they’re actually going to use the money for,” noting the committee should explain whether funds would be used for acquisition, rental subsidies, management, or other authorized activities. Brett Peters and Kristen LaValle also asked that the trust narrow its focus and said shorter sunset periods — one to three years was suggested by different members — would be acceptable.

Lisa Braccio, a CPC member who consulted with town counsel, reported that town counsel is “weary of grant agreements” and does not believe a formal grant agreement between two town entities is prudent. She said counsel suggested either placing conditions in a warrant article or drafting “rules for release of the money” and a policy of expectations. Braccio said counsel offered to meet with CPC to help craft the appropriate language.

Freddie (staff member) urged the CPC to finalize required warrant language and the supporting application materials quickly because town meeting deadlines are near. Freddie said the current application request is for “about $500,000,” and recommended the CPC require an updated application from the trust if the committee expects to endorse a transfer.

CPC members outlined several procedural options: (1) require the Affordable Housing Trust to submit a revised application that lists strategy and specific uses to be referenced verbatim in the warrant article; (2) include a sunset clause and extension criteria in the warrant article itself; or (3) condition a transfer vote on the execution of an expectations policy or other written document agreed by both parties before the warrant is finalized. Several members preferred conditioning any transfer on execution of written expectations prior to town meeting.

The committee set follow-up steps instead of voting: members agreed to continue conversation with the trust and to invite town counsel to a CPC meeting. Ellen noted the trust will meet again the morning of the 27th (9 a.m., Zoom) and CPC members proposed meeting the evening of either the 26th or the 27th (6:30 p.m.) to continue the matter and, if appropriate, finalize warrant language before the select board’s article-review meetings on the 4th and 11th.

The CPC did not take formal action on the transfer at this meeting. Members said they will require a revised application from the trust that includes the committee’s mission/strategy and other expectations before voting on a transfer.

What's next: CPC members will seek a meeting with town counsel to clarify what enforceable conditions can be included; they will request a revised application from the Affordable Housing Trust Fund Committee and plan follow-up CPC meetings in late February to finalize warrant language prior to select board review.