Needham presentation: Seabeds project advances; committee presses for CPA roofing detail and PPA terms

Matthew, deputy director for planning at the Cambridge Housing Authority and development consultant to the Needham Housing Authority, told the committee the Seabeds and Cook project will move 46 units from federal public housing into the project-based Section 8 program and combine renovation work with financing to stabilize long-term operations.

"The Seabeds project is both a financial transaction and a construction project," Matthew said, outlining three buckets of CPA-eligible scope: work to make the building watertight, energy-efficiency upgrades, and resident priority items to improve livability. He said design documents are about 90% complete and the team expects to issue an RFP for a general contractor in the coming weeks.

The presentation explained why a full roof replacement is part of the current application instead of deferred patching: the existing asphalt-shingle roofs (installed in 2015) will be roughly 13 years old when work is complete and a 25-year PPA-backed solar installation would require a roof with an expected useful life matching the solar warranty. "All resident relocation needs are 100% paid for and coordinated by NHA, and all residents have a right of return to the property after its renovation," Matthew said when describing relocation planning.

Committee members asked for more detail on costs. Chair David Harris asked, "This application is strictly for the roofing. Is that correct?" Matthew confirmed the current CPA application is limited to the roofing scope and said earlier CPA awards included other eligible items. Matthew and the committee agreed to provide a schedule of values that separates CPA-eligible line items from the rest of the development budget.

On financing, Matthew said the project has secured soft sources and loan letters for the private and construction financing, leaving the CPA award as the remaining capital stack piece. He cited a $12.8 million construction loan in the development budget and said quality-control work on a new cost estimate was expected within two weeks; he did not anticipate a material change to the CPA request.

On solar, Matthew described plans to make the buildings "solar-ready" and to deliver solar via a power purchase agreement rather than the project's direct purchase. He identified program sources under discussion, including a $1,800,000 loan from the Department of Energy Resources and a $1,100,000 LISC climate-ready loan, which helped bring other soft sources to the table.

Committee members pressed procurement and cost-estimate issues. Members noted the absence of GC-provided quotes at this stage and challenged how markups and per-square-foot roof costs were calculated. Matthew explained federal public-housing procurement rules constrain early GC engagement; as a result the team used a professional cost estimator and a limited construction-advisor contract to avoid precluding bidders. He offered to circulate a clear, itemized roofing-cost flow and markup breakdown as a supplement before the next meeting.

The committee also heard how the Seabeds close would free up approximately 41 subsidy (Faircloth) units that are critical to improving the timing and competitiveness of a separate Linden Terrace tax-credit application. Staff described a collaborative arrangement with another housing authority to avoid a timing flaw and keep both projects viable for competitive rounds.

Next steps: the project team will provide an itemized roofing cost breakdown and an updated cost estimate after two weeks of quality control; the committee will review the CPA-specific schedule of values and the draft PPA terms when available.