From Mlongreene2 at aol.com Mon Apr 2 07:43:18 2007 From: Mlongreene2 at aol.com (Mlongreene2 at aol.com) Date: Mon, 2 Apr 2007 07:43:18 EDT Subject: [Year-Round Housing Committee] March 28 YRHC minutes and "homework" assignments Message-ID: Here are draft minutes from the last meeting. Feel free to come up with additional criteria to discuss for qualification for candidates. I thought last meeting was excellent in spite of the difficulty and personal nature of the issues we were working on. Next meeting is Wed. April 11 at Town Hall. MG Town of Long Island Year-Round Housing Committee Minutes March 28, 2007 Present: Mark Greene (chair); Ruth Peterson (selectman); Leah Doughty; Mike Maloney; Jonathan Norton; Katie Wegner; Amy Tierney; Will Tierney; Tammy Hohn; Mary Nanos; John Billings; Lorinda Valls; Chris Papkee; Alden Robinson (island fellow). 1. Meeting called to order 7:05 p.m. Previous meeting's minutes accepted. 2. Old business: Alden Robinson updated the committee on his trip to Camden National Bank's affordable housing conference on the 20th. He talked to Joanne Campbell, of CNB, who said that banks commonly give mortgages on ground-leased property, provided the lease has a long enough term. She said Camden National would be happy to help with Long Island's project, as would any number of similar banks. Mark said that he had sent a description of the YRHC’s grant application concept to the Island Institute's Affordable Coast fund, and had received an encouraging response from Chris Wolff, the fund's administrator. If received, funds from the grant would be used to make preliminary site improvements to leased property such as septic plans and survey work. 3. New business: The committee discussed the list of proposed selection criteria that were submitted by members over the past two weeks. Two categories of criteria were agreed upon: a. eligibility criteria that a candidate must meet to qualify for the program. b. qualitative criteria to be used to make a priority list of candidates who had met the basic eligibility criteria. The committee agreed on the following provisional eligibility criteria: 1. Bank pre-approval for a construction mortgage on the project. 2. Year-round resident of the island for a specified time period (to be determined). 3. Willing and able to build within a specified time period (to be agreed upon). 4. Maximum income and assets below a specified threshold (to be determined); The committee planned to do further research into income and asset limits and look into other islands' methods for a confidential selection process. The committee discussed the following provisional qualitative criteria: 1. First time homeowner (tabled) 2. Not a current property owner; 3. Immediacy of need (more questions needed to determine); 4. Involved in community life – either organization or employment 5. Number in household; 6. Family ties to the island. 7. PLEASE ADD OTHERS. Assignments for the next meeting: 1. Participants will assign proposed point values to prioritize these provisional criteria (1-least significant to 5 – most significant) for each of these items. 2. Participants should also bring an initial list of proposed conditions concerning the house to be built and ideas on buy back conditions should the house need to be sold. 4. Next meeting scheduled for Wednesday, April 11th at 7 p.m. Meeting adjourned 9:01 p.m. ************************************** See what's free at http://www.aol.com. -------------- next part -------------- An HTML attachment was scrubbed... URL: -------------- next part -------------- A non-text attachment was scrubbed... Name: YRHC Minutes March 28, 2007.doc Type: application/octet-stream Size: 25600 bytes Desc: not available URL: From atierney at nortonne.com Tue Apr 3 16:29:42 2007 From: atierney at nortonne.com (Amy Tierney) Date: Tue, 3 Apr 2007 16:29:42 -0400 Subject: [Year-Round Housing Committee] pre approval Message-ID: FYI.. I called the mortgage broker that we have been working with to see if he could pre approve us for the leased land idea and he said he could do it but would need to see a copy of the lease the town would be offering before he could really get us numbers. He also said most banks/ mortgage brokers will require the same thing. Something to think about. Amy Amy Tierney Marketing Representative Norton Insurance Agency 275 US Route 1 Cumberland Foreside, ME 04110 Phone: 829-3450 Toll Free: 1-800-777-5244 Fax: 829-6350 atierney at nortonne.com Please note coverage changes can not be taken nor coverages bound via this email system. thanks! -------------- next part -------------- An HTML attachment was scrubbed... URL: -------------- next part -------------- A non-text attachment was scrubbed... Name: image001.jpg Type: image/jpeg Size: 5675 bytes Desc: image001.jpg URL: From Mlongreene2 at aol.com Tue Apr 3 18:52:36 2007 From: Mlongreene2 at aol.com (Mlongreene2 at aol.com) Date: Tue, 3 Apr 2007 18:52:36 EDT Subject: [Year-Round Housing Committee] Fwd: pre approval Message-ID: ************************************** See what's free at http://www.aol.com. -------------- next part -------------- An HTML attachment was scrubbed... URL: -------------- next part -------------- An embedded message was scrubbed... From: Mlongreene2 at aol.com Subject: Re: [Year-Round Housing Committee] pre approval Date: Tue, 3 Apr 2007 18:51:52 EDT Size: 1931 URL: From Chris at PeanutAllergy.Com Wed Apr 4 12:20:04 2007 From: Chris at PeanutAllergy.Com (Chris at PeanutAllergy.Com) Date: Wed, 4 Apr 2007 12:20:04 -0400 Subject: [Year-Round Housing Committee] Fw: mortgages in future obtainable? Message-ID: <003201c776d5$1e529a30$2e01a8c0@D6T3JG51> NOTE: This may have already been figured out, please let me know if we have already researched this and what we were told (and by how many banks and which banks, lengths of terms needed etc.). If a house is built on a leased land property, and the bank has say... a 99 year minimum to give a loan on it. Then what happens 10 years down the road when there is only 89 years left on the lease, will someone be able to find a loan to purchase the house so that the seller will be able to sell the house without having to find a cash buyer? Alden if we have not checked on this already, could you find out from the banks that currently offer this type of loan how this works in the future as they may have programs etc. for future buyers. Chris Papkee ----- Original Message ----- From: rraftman at aol.com To: chris at peanutallergy.com Sent: Tuesday, April 03, 2007 4:35 PM Subject: Fwd: [Year-Round Housing Committee] pre approval -----Original Message----- From: atierney at nortonne.com To: housingcommittee at townoflongisland.us Sent: Tue, 3 Apr 2007 3:29 PM Subject: [Year-Round Housing Committee] pre approval [Unable to display image] FYI.. I called the mortgage broker that we have been working with to see if he could pre approve us for the leased land idea and he said he could do it but would need to see a copy of the lease the town would be offering before he could really get us numbers. He also said most banks/ mortgage brokers will require the same thing. Something to think about. Amy Amy Tierney Marketing Representative Norton Insurance Agency 275 US Route 1 Cumberland Foreside, ME 04110 Phone: 829-3450 Toll Free: 1-800-777-5244 Fax: 829-6350 atierney at nortonne.com Please note coverage changes can not be taken nor coverages bound via this email system. thanks! _______________________________________________ housingcommittee mailing list housingcommittee at townoflongisland.us http://townoflongisland.us/mailman/listinfo/housingcommittee_townoflongisland.us -------------------------------------------------------------------------------- AOL now offers free email to everyone. Find out more about what's free from AOL at AOL.com. -------------- next part -------------- An HTML attachment was scrubbed... URL: From atierney at nortonne.com Wed Apr 4 16:06:52 2007 From: atierney at nortonne.com (Amy Tierney) Date: Wed, 4 Apr 2007 16:06:52 -0400 Subject: [Year-Round Housing Committee] Fw: mortgages in future obtainable? In-Reply-To: <003201c776d5$1e529a30$2e01a8c0@D6T3JG51> References: <003201c776d5$1e529a30$2e01a8c0@D6T3JG51> Message-ID: >From talking with the mortgage broker his concern was if we get this loan and build a house can the town take the land back in a year or two for some reason and where would that leave us with the house. It also seemed in talking with him that just getting 'preapproved' is not quite the same as being approved especially in a unique case like this, so he wanted to hold on doing any sort of approval before he sees the lease- a bank may be different than a mortgage broker- I'm not sure. Amy Tierney Marketing Representative Please note coverage changes can not be taken nor coverages bound via this email system. thanks! ________________________________ From: housingcommittee-bounces at townoflongisland.us [mailto:housingcommittee-bounces at townoflongisland.us] On Behalf Of Chris at PeanutAllergy.Com Sent: Wednesday, April 04, 2007 12:20 PM To: housingcommittee at townoflongisland.us Subject: [Year-Round Housing Committee] Fw: mortgages in future obtainable? NOTE: This may have already been figured out, please let me know if we have already researched this and what we were told (and by how many banks and which banks, lengths of terms needed etc.). If a house is built on a leased land property, and the bank has say... a 99 year minimum to give a loan on it. Then what happens 10 years down the road when there is only 89 years left on the lease, will someone be able to find a loan to purchase the house so that the seller will be able to sell the house without having to find a cash buyer? Alden if we have not checked on this already, could you find out from the banks that currently offer this type of loan how this works in the future as they may have programs etc. for future buyers. Chris Papkee ----- Original Message ----- From: rraftman at aol.com To: chris at peanutallergy.com Sent: Tuesday, April 03, 2007 4:35 PM Subject: Fwd: [Year-Round Housing Committee] pre approval -----Original Message----- From: atierney at nortonne.com To: housingcommittee at townoflongisland.us Sent: Tue, 3 Apr 2007 3:29 PM Subject: [Year-Round Housing Committee] pre approval [Unable to display image] FYI.. I called the mortgage broker that we have been working with to see if he could pre approve us for the leased land idea and he said he could do it but would need to see a copy of the lease the town would be offering before he could really get us numbers. He also said most banks/ mortgage brokers will require the same thing. Something to think about. Amy Amy Tierney Marketing Representative Norton Insurance Agency 275 US Route 1 Cumberland Foreside, ME 04110 Phone: 829-3450 Toll Free: 1-800-777-5244 Fax: 829-6350 atierney at nortonne.com Please note coverage changes can not be taken nor coverages bound via this email system. thanks! _______________________________________________ housingcommittee mailing list housingcommittee at townoflongisland.us http://townoflongisland.us/mailman/listinfo/housingcommittee_townoflongi sland.us ________________________________ size=2 width="100%" align=center> AOL now offers free email to everyone. Find out more about what's free from AOL at AOL.com . -------------- next part -------------- An HTML attachment was scrubbed... URL: From Mlongreene2 at aol.com Wed Apr 4 17:03:20 2007 From: Mlongreene2 at aol.com (Mlongreene2 at aol.com) Date: Wed, 4 Apr 2007 17:03:20 EDT Subject: [Year-Round Housing Committee] Fw: mortgages in future obtainable? Message-ID: Hi Amy, You will sign a lease for the land which will run long term (99 years is typical) which will be yours as long as you meet the conditions of that lease. Those are conditions that we will work on at the next meeting. Keep digging for anything and everything that we need to find out. Best, Mark ************************************** See what's free at http://www.aol.com. -------------- next part -------------- An HTML attachment was scrubbed... URL: From Mlongreene2 at aol.com Wed Apr 4 17:13:08 2007 From: Mlongreene2 at aol.com (Mlongreene2 at aol.com) Date: Wed, 4 Apr 2007 17:13:08 EDT Subject: [Year-Round Housing Committee] Fw: mortgages in future obtainable? Message-ID: Chris, The bank loan will run the length of the house loan and is not connected time wise to the lease. If the house must be sold for whatever reason, I envision that the YRHC and/or Town will have first option and offer it to those on the waiting list. If no one is interested other options would be to rent it until it could be resold or if there is no need for it any longer (which seems unlikely) the Town and/or YRHC could sell it and the land for full market value. Mark ************************************** See what's free at http://www.aol.com. -------------- next part -------------- An HTML attachment was scrubbed... URL: From Mlongreene2 at aol.com Thu Apr 5 14:09:49 2007 From: Mlongreene2 at aol.com (Mlongreene2 at aol.com) Date: Thu, 5 Apr 2007 14:09:49 EDT Subject: [Year-Round Housing Committee] LongIslander article Message-ID: Attached please find an article that will appear in the upcoming LongIslander. MG ************************************** See what's free at http://www.aol.com. -------------- next part -------------- An HTML attachment was scrubbed... URL: -------------- next part -------------- A non-text attachment was scrubbed... Name: Year Round Housing Survey Results and Project Update.doc Type: application/octet-stream Size: 32768 bytes Desc: not available URL: From Mlongreene2 at aol.com Fri Apr 6 05:42:29 2007 From: Mlongreene2 at aol.com (Mlongreene2 at aol.com) Date: Fri, 6 Apr 2007 05:42:29 EDT Subject: [Year-Round Housing Committee] Fwd: Perspective on Island life-- some stories from Scotland Message-ID: Hi All, You may wonder at first what a Scottish Island has to do with Long Island, but you can see that in spite of different ownership issues of land, they have done what we are trying to do: Take the bull by the horns and try to preserve the future of their year round island. Mark ************************************** See what's free at http://www.aol.com. -------------- next part -------------- An HTML attachment was scrubbed... URL: -------------- next part -------------- An embedded message was scrubbed... From: "Ronald E. Beard" Subject: Perspective on Island life-- some stories from Scotland Date: Thu, 15 Mar 2007 15:45:03 -0400 Size: 29431 URL: From Mlongreene2 at aol.com Fri Apr 6 08:00:32 2007 From: Mlongreene2 at aol.com (Mlongreene2 at aol.com) Date: Fri, 6 Apr 2007 08:00:32 EDT Subject: [Year-Round Housing Committee] Reply needed ASAP - Need to change meeting date. Message-ID: Hi All, Sorry, but I did not realize that I will be off the island Wed. evening April 11 for an MMA conference on revaluation. Can we reschedule the meeting for Tues., April 10 or Thurs. April 12? If one of those dates does not work for most, we will need to go to April 18. Please let me know ASAP so I can post a notice. Thanks, Mark ************************************** See what's free at http://www.aol.com. -------------- next part -------------- An HTML attachment was scrubbed... URL: From Chris at PeanutAllergy.Com Fri Apr 6 12:15:35 2007 From: Chris at PeanutAllergy.Com (Chris at PeanutAllergy.Com) Date: Fri, 6 Apr 2007 12:15:35 -0400 Subject: [Year-Round Housing Committee] Fw: LongIslander article Message-ID: <003101c77866$cfa542a0$2e01a8c0@D6T3JG51> · Lease payments would accrue to the community and be equal to the taxes that would otherwise be collected as if the land were privately owned. In addition, taxes would be paid on the home and improvements to the property the same as any other private residence. For all intents and purposes, the Town owned land is fully back on the tax rolls. _____ Mark, The letter looks good! A question on the taxes that will be paid. Will the people who get a YRHC deal really be paying the same amount of taxes as someone else who has a house and property? Or is this a tax break (which will help the YRHC home owners as it lowers their costs of living) because by having the house and land as separate entities the land won't really have the same value? I wanted to bring this up to be sure it is clear to all so as not to be a sticking point for anyone at the town meeting vote. If there is a difference in what a YRHC recipient would pay it may be looked at as a good benefit to help them (with expenses), or it may be looked at as "Hey, they get the same services how come they don't have to pay the same taxes as me". ----- Original Message ----- From: rraftman at aol.com To: Chris at PeanutAllergy.Com Sent: Friday, April 06, 2007 9:38 AM Subject: Fwd: [Year-Round Housing Committee] LongIslander article -----Original Message----- From: Mlongreene2 at aol.com To: housingcommittee at townoflongisland.us Sent: Thu, 5 Apr 2007 1:09 PM Subject: [Year-Round Housing Committee] LongIslander article Attached please find an article that will appear in the upcoming LongIslander. MG -------------------------------------------------------------------------------- See what's free at AOL.com. _______________________________________________ housingcommittee mailing list housingcommittee at townoflongisland.us http://townoflongisland.us/mailman/listinfo/housingcommittee_townoflongisland.us -------------------------------------------------------------------------------- AOL now offers free email to everyone. Find out more about what's free from AOL at AOL.com. -------------- next part -------------- An HTML attachment was scrubbed... URL: -------------- next part -------------- A non-text attachment was scrubbed... Name: Year Round Housing Survey Results and Project Update.doc Type: application/msword Size: 32768 bytes Desc: not available URL: From Chris at PeanutAllergy.Com Fri Apr 6 12:55:44 2007 From: Chris at PeanutAllergy.Com (Chris at PeanutAllergy.Com) Date: Fri, 6 Apr 2007 12:55:44 -0400 Subject: [Year-Round Housing Committee] Fw: Fw: mortgages in future obtainable? Message-ID: <004101c7786c$6b56a4f0$2e01a8c0@D6T3JG51> Mark, I am not sure we are discussing the same topic. I understand that the house loan lenght is not defined by the time (left) on a land lease. I am wondering what happens when for example there is only 80 years left on the lease but a bank needs 90 years left to give a loan. Say for another example in 5 or 10 years the home owners wanted to or needed to refinance... are they able to and how does this work. Do we need to put into the lease an auto extension for x amount of years (as long as the terms of the YRHC are still being met). For another example, what if in 20 years the house is up for sale, can a new buyer find a bank willing to lend money with only 70 years left on the lease? I don't remember the exact numbers of years needed on the lease for the bank minimum (was it 30 or 99 years?). It doesn't matter as long as whatever the criterior needed can be met in the future. This type of loan may be easier (more banks and less conditions) or harder to obtain in the future. Maybe the banks could tell us what they see in the future of that trend. For a today's example maybe Alden can chime in here with how many years the (Camden?) bank that he found wants to see. The number of years needed to be left on a lease to be considered for a construction loan on leased land. Maybe the bank could tell us what would happen in today's world on a refi or a sale with less time on a lease. Maybe YRHC needs to explore with the bank(s?) if there are any loan programs or conditions etc. that address this. I would think the YRHC would want to address this now to be sure that those in a YRHC deal wouldn't have to get town approval 20 years from now at a town meeting just to lenghten a lease so they could sell thier house. I also see other potential problems if this is not easily addressable in the future, such as I mentioned above; If those in the YRHC deal wanted (or needed) to refinance for a better rate they may not be able to wait until the town approves an extension on their lease. Chris P. ----- Original Message ----- From: Mlongreene2 at aol.com To: Chris at PeanutAllergy.Com Cc: housingcommittee at townoflongisland.us Sent: Wednesday, April 04, 2007 5:13 PM Subject: Re: [Year-Round Housing Committee] Fw: mortgages in future obtainable? Chris, The bank loan will run the length of the house loan and is not connected time wise to the lease. If the house must be sold for whatever reason, I envision that the YRHC and/or Town will have first option and offer it to those on the waiting list. If no one is interested other options would be to rent it until it could be resold or if there is no need for it any longer (which seems unlikely) the Town and/or YRHC could sell it and the land for full market value. Mark -------------------------------------------------------------------------------- See what's free at AOL.com. -------------- next part -------------- An HTML attachment was scrubbed... URL: From arobinson at islandinstitute.org Fri Apr 6 14:02:28 2007 From: arobinson at islandinstitute.org (Alden Robinson) Date: Fri, 6 Apr 2007 14:02:28 -0400 Subject: [Year-Round Housing Committee] Fw: Fw: mortgages in futureobtainable? References: <004101c7786c$6b56a4f0$2e01a8c0@D6T3JG51> Message-ID: Hi Chris, My contact at Camden National Bank says they typically finance ground leases with a term of 99 years. I am unsure what they do about financing on a ground-leased parcel whose lease term has partially elapsed. However, although I can't speak for Mark or the committee, it seems plausible to me that the YRHC might renegotiate a ground lease to an eligible tenant so that it would start at "zero", if that were necessary to finance the purchase of the building. Of course, I could be missing something. Does that answer your question? Alden -----Original Message----- From: housingcommittee-bounces at townoflongisland.us on behalf of Chris at PeanutAllergy.Com Sent: Fri 4/6/2007 12:55 PM To: Mlongreene2 at aol.com Cc: housingcommittee at townoflongisland.us Subject: [Year-Round Housing Committee] Fw: Fw: mortgages in futureobtainable? Mark, I am not sure we are discussing the same topic. I understand that the house loan lenght is not defined by the time (left) on a land lease. I am wondering what happens when for example there is only 80 years left on the lease but a bank needs 90 years left to give a loan. Say for another example in 5 or 10 years the home owners wanted to or needed to refinance... are they able to and how does this work. Do we need to put into the lease an auto extension for x amount of years (as long as the terms of the YRHC are still being met). For another example, what if in 20 years the house is up for sale, can a new buyer find a bank willing to lend money with only 70 years left on the lease? I don't remember the exact numbers of years needed on the lease for the bank minimum (was it 30 or 99 years?). It doesn't matter as long as whatever the criterior needed can be met in the future. This type of loan may be easier (more banks and less conditions) or harder to obtain in the future. Maybe the banks could tell us what they see in the future of that trend. For a today's example maybe Alden can chime in here with how many years the (Camden?) bank that he found wants to see. The number of years needed to be left on a lease to be considered for a construction loan on leased land. Maybe the bank could tell us what would happen in today's world on a refi or a sale with less time on a lease. Maybe YRHC needs to explore with the bank(s?) if there are any loan programs or conditions etc. that address this. I would think the YRHC would want to address this now to be sure that those in a YRHC deal wouldn't have to get town approval 20 years from now at a town meeting just to lenghten a lease so they could sell thier house. I also see other potential problems if this is not easily addressable in the future, such as I mentioned above; If those in the YRHC deal wanted (or needed) to refinance for a better rate they may not be able to wait until the town approves an extension on their lease. Chris P. ----- Original Message ----- From: Mlongreene2 at aol.com To: Chris at PeanutAllergy.Com Cc: housingcommittee at townoflongisland.us Sent: Wednesday, April 04, 2007 5:13 PM Subject: Re: [Year-Round Housing Committee] Fw: mortgages in future obtainable? Chris, The bank loan will run the length of the house loan and is not connected time wise to the lease. If the house must be sold for whatever reason, I envision that the YRHC and/or Town will have first option and offer it to those on the waiting list. If no one is interested other options would be to rent it until it could be resold or if there is no need for it any longer (which seems unlikely) the Town and/or YRHC could sell it and the land for full market value. Mark -------------------------------------------------------------------------------- See what's free at AOL.com. -------------- next part -------------- An HTML attachment was scrubbed... URL: From Mlongreene2 at aol.com Fri Apr 6 14:52:12 2007 From: Mlongreene2 at aol.com (Mlongreene2 at aol.com) Date: Fri, 6 Apr 2007 14:52:12 EDT Subject: [Year-Round Housing Committee] Fw: Fw: mortgages in future obtainable? Message-ID: Hi Chris, I am glad you are thinking about these things. The solutions, I believe, lie in us crafting flexible conditions in the agreements that keep in mind what our primary goals and reasons are for having embarked on this project: 1. Assisting Long Islanders, (for the health and well being of the entire community), who want to live here permanently, to enter the nearly impossible housing market that has developed here. 2. To assist these same individuals to obtain housing at the most reasonable costs possible (in spite of even small lots now selling for upwards of $100,000!), yet be as fair as possible to all the taxpayers. It would seem reasonable that we would craft agreements that will not cause our YRHC candidates to run into the scenarios that you have brought to our attention. That is the goal of the brainstorming I am asking all to be doing for the next and subsequent meetings. Bring reasonable solutions and conditions for the agreements that we need to make up concerning the lease, the house to be built, the buyback, the selection process, and the process of deciding which land goes to whom. Those are the committee members assignments as noted in the minutes of the last meeting. Keep your thinking cap on. Thanks, Mark ************************************** See what's free at http://www.aol.com. -------------- next part -------------- An HTML attachment was scrubbed... URL: From Mlongreene2 at aol.com Fri Apr 6 14:57:37 2007 From: Mlongreene2 at aol.com (Mlongreene2 at aol.com) Date: Fri, 6 Apr 2007 14:57:37 EDT Subject: [Year-Round Housing Committee] Fw: LongIslander article Message-ID: Hi Chris, The taxes on the land and/or house will fluctuate with the town's tax rate and any future revaluations. There should be no reason for any difference in the taxes paid by a YRHC housing participant than if it were totally in the regular housing market. MG ************************************** See what's free at http://www.aol.com. -------------- next part -------------- An HTML attachment was scrubbed... URL: From Mlongreene2 at aol.com Sat Apr 7 14:32:57 2007 From: Mlongreene2 at aol.com (Mlongreene2 at aol.com) Date: Sat, 7 Apr 2007 14:32:57 EDT Subject: [Year-Round Housing Committee] Meeting date is Thursday, April 12 at the Library Message-ID: Hi All, This is a busy week of all kinds of meetings everywhere, so we have landed in the large room at the Learning Center on Thursday, April 12. 1.Please come prepared with your ideas on how we "Prioritize eligible candidates on the waiting list" Use the criteria we started with last meeting, rate them 1-5 and add others that come to mind. 2. Be thinking (writing down!) of conditions of the lease of the land and what would cause termination (some of these will be the same as eligibility criteria I suspect). 3. Buy back provisions of the house if it needs to be purchased back by the Town/YRHC. That should keep us busy. We may need to start meeting more frequently to have a reasonably well rounded package for Town Meeting. Thanks, MG ************************************** See what's free at http://www.aol.com. -------------- next part -------------- An HTML attachment was scrubbed... URL: From Mlongreene2 at aol.com Thu Apr 12 12:19:11 2007 From: Mlongreene2 at aol.com (Mlongreene2 at aol.com) Date: Thu, 12 Apr 2007 12:19:11 EDT Subject: [Year-Round Housing Committee] Tonite's Meeting and Snow?? Message-ID: Hi All, I am anxious to meet tonight as we have much to do. The forecast is not perfect for our meeting time so let me know what you think. Maybe a call or e-mail at 6:00 or so (766-4440) and we will see what the roads are like and what folks want to do. Thanks, Mark ************************************** See what's free at http://www.aol.com. -------------- next part -------------- An HTML attachment was scrubbed... URL: From Mlongreene2 at aol.com Tue Apr 17 20:40:29 2007 From: Mlongreene2 at aol.com (Mlongreene2 at aol.com) Date: Tue, 17 Apr 2007 20:40:29 EDT Subject: [Year-Round Housing Committee] Fwd: The Lending Hand e-newsletter Message-ID: Hoping we have power by Thursday to meet!! MG ************************************** See what's free at http://www.aol.com. -------------- next part -------------- An HTML attachment was scrubbed... URL: -------------- next part -------------- An embedded message was scrubbed... From: The Genesis Fund Subject: The Lending Hand e-newsletter Date: Tue, 17 Apr 2007 10:50:06 -0400 (EDT) Size: 49225 URL: From Mlongreene2 at aol.com Wed Apr 18 06:41:12 2007 From: Mlongreene2 at aol.com (Mlongreene2 at aol.com) Date: Wed, 18 Apr 2007 06:41:12 EDT Subject: [Year-Round Housing Committee] Meeting Minutes April 12, 2007 Message-ID: Sorry for the delay in getting these out. If the power is back well enough, meeting is on for Thursday, April 19. Please submit your letter of interest to become a formal voting committee member to me (or the Selectmen). A sample lease will follow shortly and will be the focus of work at this next meeting. Thanks, Mark ************************************** See what's free at http://www.aol.com. -------------- next part -------------- An HTML attachment was scrubbed... URL: -------------- next part -------------- A non-text attachment was scrubbed... Name: Minutes April 12, 2007.doc Type: application/octet-stream Size: 24576 bytes Desc: not available URL: From Mlongreene2 at aol.com Wed Apr 18 06:45:33 2007 From: Mlongreene2 at aol.com (Mlongreene2 at aol.com) Date: Wed, 18 Apr 2007 06:45:33 EDT Subject: [Year-Round Housing Committee] Fwd: survey summary for comp plan Message-ID: The following is an excellent summary of our survey work done by Alden for the Comprehensive Plan Committee in response to my request that our housing survey findings be included in the Comp Plan. I will be meeting with the Comp Plan folks to support our positive findings and request. It was supposed to happen tonight, but has been postponed due to storm issues. I will alert you when the meeting is rescheduled. It would be good to have the support of as many YRHC members as possible at this meeting. Thanks, Mark ************************************** See what's free at http://www.aol.com. -------------- next part -------------- An HTML attachment was scrubbed... URL: -------------- next part -------------- An embedded message was scrubbed... From: "Alden Robinson" Subject: survey summary for comp plan Date: Fri, 13 Apr 2007 18:38:23 -0400 Size: 102553 URL: From Mlongreene2 at aol.com Thu Apr 19 06:13:54 2007 From: Mlongreene2 at aol.com (Mlongreene2 at aol.com) Date: Thu, 19 Apr 2007 06:13:54 EDT Subject: [Year-Round Housing Committee] Lease outline and buyback ideas for tonight's meeting Message-ID: Hi All, Attached is a modified lease from Islesboro that we can use as a working document tonight. We will go thru it and see what fits and doesn't as a proposed document. Also is attached a construction/buyback proposal that Alden is working on. Also - just a draft. I have also opened it below in case you could not open it as it is not a word document MG Hi again Mark, I’m starting by attacking section 6 of the IAP lease, which deals with construction. Surprisingly, most of the existing language (sec. 6.4 especially) should work for us, even though IAP didn’t have new construction in mind when it wrote the lease. I’m guessing (ONLY guessing…) that we’ll want to think about three additional provisions: 1. A provision that states what kind of building the homeowner is permitted to build. We could requre that the homeowner submit a building plan to get approved to lease the land. Building to that specific plan could then be a condition of the lease. We could make that as general or specific as we wanted. 2. A provision that states when the homeowner is required to start building, and when s/he would have to finish building. For example, we could require construction to begin within two years of signing the lease, and for the structure to be finished according to the plans (occupancy permit?) within five years. That’s more time that most people would take, but it would allow flexibility while letting YRHC to enforce its goal of getting a year-round home built on the land. 3. A provision that assigns a transfer value to the structure while it’ s under construction. If somebody can’t finish it, the lease needs to state a transfer value just as it would for a finished building. YRHC, or better yet another eligible buyer, can then step in and take over construction. We’ll also have to work out a final transfer formula just like IAP’s lease does. I’ll write to you about them separately. Let me know what your thoughts are about all this when you get a chance. Remember that these are just my guesses and I really don’t know what I’m doing! Sorry this is so long. I’ll write you more as I get it down. Alden Here is my outline of section 6, for your reference: Section 6: Buildings and Improvements: Ownership and Transfer 6.1 Homeowner owns building and improvements. 6.2 Transfer price calculated according to Appendix A. 6.3 Sales process: A.) IAP may find an approved buyer; B.) IAP may buy if it can't find a buyer; C.) After 12 months, homeowner may sell to any buyer for transfer price; D.) If IAP consents, buyer may list for more than tranfer price, but balance goes to IAP. 6.4 Construction and repair: A.) Homeowner pays all costs; B.) Lawful and workmanlike; C.) Consistent with lease; D.) No changes to exterior without IAP's consent; E.) IAP gets to approve all plans and building permits. 6.5 Homeowner may make improvements but IAP may value them at non-luxury equivalent. 6.6 Homeowner documents costs with receipts and invoices; IAP may inspect; Homowner's own labor valued at rate of someone with comparable skills. ________________________________________________ Alden Robinson Island Institute Fellow Town of Long Island, Maine (207) 837-0636 arobinson at islandinstitute.org ************************************** See what's free at http://www.aol.com. -------------- next part -------------- An HTML attachment was scrubbed... URL: -------------- next part -------------- An HTML attachment was scrubbed... URL: -------------- next part -------------- A non-text attachment was scrubbed... Name: Leasespecifics.doc Type: application/octet-stream Size: 43520 bytes Desc: not available URL: From arobinson at islandinstitute.org Thu Apr 19 09:30:33 2007 From: arobinson at islandinstitute.org (Alden Robinson) Date: Thu, 19 Apr 2007 09:30:33 -0400 Subject: [Year-Round Housing Committee] FW: Lease outline and buyback ideas for tonight's meeting References: Message-ID: Hello YRHC, We had a problem with our server. Here is an email Mark sent earlier. Alden -----Original Message----- From: Mlongreene2 at aol.com [mailto:Mlongreene2 at aol.com] Sent: Thu 4/19/2007 6:13 AM To: housingcommittee at townoflongisland.us Subject: Lease outline and buyback ideas for tonight's meeting Hi All, Attached is a modified lease from Islesboro that we can use as a working document tonight. We will go thru it and see what fits and doesn't as a proposed document. Also is attached a construction/buyback proposal that Alden is working on. Also - just a draft. I have also opened it below in case you could not open it as it is not a word document MG Hi again Mark, I'm starting by attacking section 6 of the IAP lease, which deals with construction. Surprisingly, most of the existing language (sec. 6.4 especially) should work for us, even though IAP didn't have new construction in mind when it wrote the lease. I'm guessing (ONLY guessing.) that we'll want to think about three additional provisions: 1. A provision that states what kind of building the homeowner is permitted to build. We could requre that the homeowner submit a building plan to get approved to lease the land. Building to that specific plan could then be a condition of the lease. We could make that as general or specific as we wanted. 2. A provision that states when the homeowner is required to start building, and when s/he would have to finish building. For example, we could require construction to begin within two years of signing the lease, and for the structure to be finished according to the plans (occupancy permit?) within five years. That's more time that most people would take, but it would allow flexibility while letting YRHC to enforce its goal of getting a year-round home built on the land. 3. A provision that assigns a transfer value to the structure while it' s under construction. If somebody can't finish it, the lease needs to state a transfer value just as it would for a finished building. YRHC, or better yet another eligible buyer, can then step in and take over construction. We'll also have to work out a final transfer formula just like IAP's lease does. I'll write to you about them separately. Let me know what your thoughts are about all this when you get a chance. Remember that these are just my guesses and I really don't know what I'm doing! Sorry this is so long. I'll write you more as I get it down. Alden Here is my outline of section 6, for your reference: Section 6: Buildings and Improvements: Ownership and Transfer 6.1 Homeowner owns building and improvements. 6.2 Transfer price calculated according to Appendix A. 6.3 Sales process: A.) IAP may find an approved buyer; B.) IAP may buy if it can't find a buyer; C.) After 12 months, homeowner may sell to any buyer for transfer price; D.) If IAP consents, buyer may list for more than tranfer price, but balance goes to IAP. 6.4 Construction and repair: A.) Homeowner pays all costs; B.) Lawful and workmanlike; C.) Consistent with lease; D.) No changes to exterior without IAP's consent; E.) IAP gets to approve all plans and building permits. 6.5 Homeowner may make improvements but IAP may value them at non-luxury equivalent. 6.6 Homeowner documents costs with receipts and invoices; IAP may inspect; Homowner's own labor valued at rate of someone with comparable skills. ________________________________________________ Alden Robinson Island Institute Fellow Town of Long Island, Maine (207) 837-0636 arobinson at islandinstitute.org ************************************** See what's free at http://www.aol.com. -------------- next part -------------- An HTML attachment was scrubbed... URL: -------------- next part -------------- An HTML attachment was scrubbed... URL: -------------- next part -------------- A non-text attachment was scrubbed... Name: Leasespecifics.doc Type: application/octet-stream Size: 43520 bytes Desc: Leasespecifics.doc URL: From Mlongreene2 at aol.com Fri Apr 20 06:42:05 2007 From: Mlongreene2 at aol.com (Mlongreene2 at aol.com) Date: Fri, 20 Apr 2007 06:42:05 EDT Subject: [Year-Round Housing Committee] Board member letter of interest Message-ID: Good meeting again last night. A reminder, particularly to those who could not make it last night that I need your letter of interest to be a permanent voting member of the YRHC. I will submit these to the Selectmen in a week or so. I will also post a notice, but would assume that those who are interested are already attending and/or on our listserve for notices. Mark ************************************** See what's free at http://www.aol.com. -------------- next part -------------- An HTML attachment was scrubbed... URL: From arobinson at islandinstitute.org Fri Apr 20 15:01:34 2007 From: arobinson at islandinstitute.org (Alden Robinson) Date: Fri, 20 Apr 2007 15:01:34 -0400 Subject: [Year-Round Housing Committee] IAP lease Message-ID: Hi YRHC, Attached and pasted below is the lease Islesboro uses. Let me know if you need anything, Alden LEASE AGREEMENT This Lease Agreement, made and entered into this __________ day of __________, 2007, between Islesboro Affordable Property, a Maine non-profit corporation, with its principal place of business at Islesboro, Maine (hereinafter referred to as "IAP") and __________________, whose mailing address is Post Office Box _____, Islesboro, Maine 04848 (hereinafter referred to as "Homeowner"), 1. Transfer 1.1. IAP hereby leases to the Homeowner and the Homeowner accepts from IAP, upon the terms and conditions hereafter set forth, the possession, occupancy and use of a certain lot or parcel of land, together with any dwelling and improvements thereon, situated in Islesboro, County of Waldo, State of Maine, and more particularly described in Exhibit A attached. Together with the right to pass and re-pass for all legal purposes over and across the access road for access to and from the above-referenced lot. Together with the right to use, in common with other residents of the Ruthie James Subdivision, those areas designated as common areas on the "Ruthie James Subdivision Plan," by Michael Shaffer, RLS, dated July, 1993 and recorded in the Waldo County Registry of Deeds at File 16, Page 208, excepting that portion of the common areas conveyed to Marc Schnur by deed from Islesboro Affordable Property dated May 21, 1997 and recorded in the Waldo County Registry of Deeds in Book 1694, Page 129. This right is subject to IAP's right to further develop common facilities on said common areas. 1.2. IAP reserves to itself, its successors and assigns, all minerals and other natural resources located on the premises, with the following exceptions and conditions: A. Homeowner may extract and use minerals or other natural resources for their own reasonable personal use. Such minerals or other natural resources may not be extracted, sold, or otherwise used or disposed of for any other purpose. Any extraction which is more than minimal requires prior written approval from IAP. B. Homeowner may harvest and use timber for their own reasonable personal use. Such timber may not be harvested, sold or otherwise used or disposed of for any other purpose. Timber harvesting shall be done selectively, leaving a well-distributed stand of trees. Any clearing in excess of two hundred (200) square feet requires prior written notice to, and prior written approval by, IAP. Under no circumstances is the Homeowner permitted to commit waste, create any nuisances, or to surcharge the premises. 2. Term 2.1. The term of this Lease shall commence on the __________ day of __________, 2007 and shall expire upon the date of the death of the Homeowner or the survivor of them, or __________, 20__, whichever occurs first, unless terminated sooner as provided elsewhere in this Lease. If the premises are subject to a mortgage pursuant to Section 5 below, the provisions of §5.4 shall apply. 2.2. In the event that ownership of and title to the leasehold premises should be conveyed by IAP to any other person or entity, this Lease Agreement shall not cease, but shall remain binding and unaffected. 3. Purpose and Utilization 3.1. IAP, its successors and assigns, and Homeowner, his/her heirs and assigns, understand and agree that the purpose of this Lease is to provide housing to residents who meet affordable housing criteria established by the Maine State Housing Authority (hereinafter "MSHA"), and the Federal Home Loan Bank Affordable Housing Program. 3.2. Homeowner agrees to the following conditions and restrictions upon their use of the leasehold premises and interests: A. Homeowner shall share equally in any expense of maintenance of fences, roads, and any other lands or facilities used by them in common with the other Homeowners of the Ruthie James Subdivision in accordance with the provisions of the "Declaration of Restrictive Covenants for Islesboro Affordable Property Ruthie James Subdivision," recorded in the Waldo County Registry of Deeds at Book 1398, Page 149, and the "Amended Declaration of Restrictions," recorded in said Registry at Book 1673, Page 185, and shall comply with said documents in all respects. B. Homeowner shall use the leasehold premises in an ecologically sound manner and dispose of any wastes in a safe and sanitary manner. No more than two (2) unregistered or uninspected vehicles may be kept on the premises. C. Homeowner shall use the leasehold premises in a socially responsible manner, causing no real harm and creating no serious nuisance to the neighbors or the premises. D. Homeowner shall take the responsibility for the use of the leasehold premises by members of their family, friends or visitors, and shall make them aware of the spirit, intent and appropriate terms of this Lease. E. Homeowner shall use the premises as a year-round principal residence, subject to the provisions of §5.3 below. 3.3. Homeowner agrees to secure consent from IAP for any uses which are doubtfully consistent with these purposes, conditions and restrictions. 4. Lease Fees 4.1. In consideration of the possession, occupancy and use of the premises, the Homeowner shall pay to IAP a monthly lease fee consisting of Homeowner's prorated share of the following: any and all payments, assessments and charges assessed upon IAP for the Ruthie James Subdivision; any municipal assessments, including but not limited to real and personal property taxes; water or sewer charges; fines; levies, charges and administrative fees arising out of or related to the ownership and use of the premises as they come due, including IAP's responsibilities under the "Declaration of Restrictive Covenants" noted in §3.2 above. 4.2. However, IAP may, if it has the financial resources to do so, reduce, delay or waive entirely the lease fee at any time in consideration of personal hardship or the incapacity of the Homeowner or their general ability to pay. 4.3. IAP shall pay all local and state taxes on its own interests in land and buildings. Homeowner shall pay all local and state taxes on their dwelling and improvements. 5. Sublease/Transfer/Encumbrance 5.1. IAP hereby consents to Homeowner's grant of an assignable mortgage on all Homeowner dwellings and improvements located on the leasehold premises. All mortgages under this section shall provide for notice to IAP of any default, if practicable, and an opportunity for IAP to cure the default. 5.2. IAP hereby consents to the grant by Homeowner of an assignable mortgage or lien on any dwelling and improvements located on the premises provided that the mortgage is given to (a) a so-called "institutional lender" such as, but not limited to , a federal, state or local housing finance agency, a bank (including savings and loan association or insured credit union), a mortgage banking company, an insurance company, a pension and/or profit-sharing fund or trust, or any combination of the foregoing, the policies and procedures of which institutional lenders are subject to direct governmental supervision, or (b) a "community loan fund", or similar non-profit lender to housing projects for low and moderate income persons (as defined by reference to the membership criteria for the National Association of Community Development Loan Funds, a non-profit corporation with its principal office located in Philadelphia, Pennsylvania) subject to the terms and conditions of this Lease, or (c) the municipality of Islesboro or IAP or its successors or assigns. 5.3. Homeowner may not assign, sublease, sell or otherwise convey any of Homeowner's rights under this Lease without the prior written consent of IAP. Homeowner agrees that IAP shall have broad and full discretion in withholding such consent in order to further the mutual purposes and goals set forth herein. If permission is granted, any assignment or sublease shall be subject to the following conditions: A. Any such assignment or sublease shall be subject to the terms and conditions of this Lease including any future amendments, and the rental or occupancy fees charged the subleasee shall not be more than the amount charged the Homeowner by the IAP, plus a pass-through of actual costs to Homeowner for any dwelling and improvements (such as debt service costs under a permitted mortgage); and B. In the case of an assignment, the total consideration for such assignment and the related sale or transfer of the dwelling and improvements shall not exceed the transfer price as calculated in accordance with Article 6.3 herein. 5.4 If this Lease is assigned or terminated for any reason, or a permitted mortgage is foreclosed upon or a deed is given in lieu of foreclosure, or in the event of the rejection or disaffirmance of the Lease pursuant to bankruptcy law or other law affecting creditor's rights, IAP will enter into a new lease of the premises with terms substantially the same as the terms of this Lease with the assignee under §6.3(A) below, successor under Article 11 below, the holder of a mortgage under §5.2 above or with any party designated by such a mortgage holder. IAP shall execute such lease not more than thirty (30) days after receiving a request to do so from the assignee, successor or mortgage holder within sixty (60) days of the applicable assignment, termination, rejection or disaffirmance. Such new lease shall be for a term no less than the term of any applicable mortgage. Such lease shall be effective as of the date of the applicable assignment, termination, rejection or disaffirmance, and shall have the same priority with respect to other interests in the leased premises and dwelling and improvements as this Lease. The provisions of this Section shall survive the assignment, termination, rejection or disaffirmance of this Lease and shall continue in full force and effect thereafter to the same extent as if this Section were independent and an independent contract made by IAP, Homeowner and the mortgage holder. 5.5 Any mortgage holder may assign its mortgage interest in the regular course of business. The mortgage holder shall give IAP notice of any such assignment. 5.6 Any mortgage holder, or designee of a mortgage holder, (hereinafter collectively referred to as "mortgage holder") who succeeds to the interest of a homeowner under this Lease shall not be considered to be a homeowner, even if it is a leaseholder. None of the provisions of this Lease referring to "Homeowner" shall apply to such a mortgage holder, and the relationship between such mortgage holder and IAP shall be governed by this section. A. The mortgage holder's obligations with respect to the property shall be to act reasonably under the circumstances. B. The mortgage holder may sublet the premises, but only while attempting to permanently transfer the premises in a reasonably expeditious manner, and only for a rental sufficient to cover its ongoing costs. C. The mortgage holder shall not be responsible for past-due charges owed by the previous homeowner, and shall not be responsible for making payments of ongoing fees or payments of any kind to IAP while it is in possession. However, when the mortgage holder sells the improvements to a new homeowner, any such fees and payments due to IAP during the period of the mortgage holder's possession of the premises shall be paid at closing to IAP. D. When a mortgage holder takes possession of the premises from a defaulting homeowner, it shall give IAP 90 days to present a qualified buyer to purchase the improvements for the transfer price calculated in accordance with Appendix A of this Lease. If IAP does not do so, the mortgage holder may transfer the premises to 1) any qualified buyer for the transfer price, which buyer shall execute a Lease substantially identical to this Lease and become a Homeowner thereunder, or 2) to any buyer for the transfer price plus an amount equal to the remaining balance on any debt on the premises or improvements, including any debt which is deferred by the Federal Home Loan Bank under the Affordable Housing Program while the premises are occupied by homeowners qualifying under §3.1 above. 6. Buildings and Improvements: Ownership and Transfer 6.1. As between IAP and Homeowner, Homeowner shall own and have title to the dwelling and improvements to the land made to or on the leasehold premises by them or at their expense. IAP will give Homeowner a Deed to said dwelling and improvements upon receiving the purchase price thereof from Homeowner at the closing of a mortgage loan described in Section 5 above. 6.2. The dollar value of the Homeowner's ownership interest in said dwelling and improvements (hereinafter referred to as "transfer price") shall be calculated in accordance with Appendix A to this Lease. Homeowner understands and agrees that this is an affordable housing lease. Homeowner under such a lease must come from a qualified pool of applicants who have been pre-approved by IAP. 6.3. In the event this Lease is terminated, Homeowner shall have the right to sell or otherwise transfer their title to any dwelling and improvements. They shall notify IAP accordingly no later than 90 days prior to termination. A. Homeowner may transfer his or her title to dwelling and improvements to a qualified buyer. IAP reserves the right in its sole judgment to determine which qualified buyer is available to purchase Homeowner's dwelling and improvements under IAP's guidelines. Any dwelling and improvements being conveyed to the qualified buyer shall be transferred at not more than the transfer price as determined in accordance with Article 6.2, and IAP and the qualified buyer shall enter into a new lease. IAP and Homeowner agree that the dwelling and improvements should be kept affordable for use by those determined by the IAP's Board to qualify. B. If no qualified buyer is available to purchase Homeowner's dwelling and improvements and enter into a new lease with IAP, IAP may elect to purchase Homeowner's dwelling and improvements at the transfer price determined in accordance with Article 6.2. C. If no transfer of Homeowner's dwelling and improvements has taken place under §6.3(A) or (B) within twelve (12) months of termination of this Lease, Homeowner may transfer the dwelling and improvements to any buyer for no more than the maximum transfer price calculated in accordance with Appendix A. D. If, in the circumstance set out in C above, IAP certifies that (1) it has no candidates for the dwelling and improvements of the Homeowner, after advertising the availability of an affordable home with due diligence, and (2) all affordability restrictions placed on the Ruthie James Subdivision required by any financing have expired by their own terms, then the dwelling and improvements may be transferred to any Buyer for their fair market value. The Homeowner shall receive the maximum transfer price, calculated in accordance with Appendix A, and IAP shall receive any balance. 6.4. Any construction, repair, replacement or improvement to Homeowner's dwelling and improvements is subject to the following conditions: A. All costs shall be borne and paid for by the Homeowner; B. All construction shall be performed in a workerlike manner and shall comply with all applicable laws, ordinances and regulations, including the requirements of local and state public health authorities; C. All construction must be consistent with the permitted uses set forth in this Lease; D. The exterior (including height) of any building shall not be increased or expanded without the prior written consent of IAP; E. Homeowner shall furnish to IAP a copy of any plans therefor and all building permits for such construction prior to commencing construction for review by IAP. If Homeowner expects the proposed improvements to be added to Homeowner's basis for valuation under Appendix A herein, IAP shall determine a preliminary valuation for such construction and improvements (subject to future depreciation due to time and damages). 6.5. Qualified Improvements and Repairs. Improvements and repairs qualified for consideration in the appendix calculation are ones that increase the usefulness of the dwelling, or increase the useful lifetime of the dwelling, and may include: The dwelling itself, fixtures and permanently installed equipment in, upon, under or over the dwelling, including but without limiting the generality of the foregoing, all furnaces, piping, wiring, connections, conduits, ducts, equipment, partitions, screens, awnings, windows, doors and blinds, together with any and all repairs, renewals and replacements thereof or additions thereto or substitutes therefor; provided, however, that if the particular item of any of the foregoing is of a luxury quality, IAP may allow only for the usual costs of the non-luxury version of the item. The improvements or repairs not qualified for consideration in determining the Appendix A calculations shall be housecleaning, yardwork, purely routine maintenance, cosmetic work and all improvements and repairs for which reimbursement was, could be, or could have been obtained from insurance or other third party. 6.6. Documenting Costs of Improvements The Homeowner shall document costs and expenses of work by means of detailed receipts and invoices for materials and labor, including receipts for barter goods and services, or by other documentation reasonably acceptable to IAP. The costs of labor performed by the Homeowner may not exceed the rate charged by individuals of comparable skills and experience. IAP may inspect the improvement to verify the quality and state of completion of work. IAP reserves the right to use an independent appraisal of work where costs are in excess of the trade or other reasonable standards for similar work in the local area. The Homeowner shall present such documentation to IAP by the close of the year in which the improvement becomes functional. IAP shall determine by March 1 of the following year the amount to be allowed as a qualified improvement, and shall communicate its decision to the Homeowner in writing. Only amounts so allowed shall be used in the formula set out in Appendix A. 7. Inspection IAP has the right to inspect the leasehold premises and the Homeowner's use of them at any reasonable time and in any reasonable, peaceful manner. In the absence of exceptional circumstances, the Homeowner should be given 24-hours notice of any inspection. IAP shall inspect the interior of the dwelling only on the invitation of the Homeowner or when it has a reasonable basis to believe that there is a lease violation within the dwelling or that such inspection is otherwise reasonably related to its rights under this lease. Entry into a dwelling for inspection shall not be routine. 8. Termination 8.1. The Homeowner may terminate this Lease at any time and for any reason, provided they give IAP at least 90 days notice, in writing, of their intent to terminate. 8.2. IAP may terminate this Lease in the event the Homeowner shall have: A. Violated any of the provisions of this Lease; B. Failed to pay the lease fee (or request and receive a reduction of the fee from IAP) within 10 days of notification that it is overdue; C. Abused the leasehold premises by using it in any manner deemed illegal or seriously detrimental to the land itself, or the potential leaseholders of the future; D. IAP shall not terminate the Lease without first giving to the Homeowner a 30-day notice, citing the cause of termination, and an opportunity to correct their default (or, if the correction cannot reasonably be completed within 30 days, to begin and then continue promptly to complete such correction). A copy of any such notice will be sent to any holder of a mortgage pursuant to Article 5 above. 8.3. If and when this Lease shall be terminated, the Homeowner shall leave the household premises peacefully and quietly. The disposition of Homeowner's improvements shall be handled in accordance with Article 6 herein. 9. Liabilities and Responsibilities 9.1. From the date of this Lease, the Homeowner shall assume sole responsibility and liability, to any and all persons and authorities, related to the possession, occupancy and use of the leasehold premises. The Homeowner shall obtain and maintain adequate fire and casualty insurance in an amount equal to the replacement cost of the structures on the premises. Homeowner shall also obtain and maintain liability insurance in at least the amount of $300,000.00. Homeowner shall indemnify and hold IAP harmless from any liability whatsoever relating to the premises, except any liability arising from the negligent or intentional act of an employee of IAP. 9.2. Homeowner shall pay all service bills, utilities charges, or other governmental assessments charged against the leasehold premises. 9.3. Homeowner shall safeguard the premises against damage, waste or trespass and shall hold harmless IAP from any liability or loss thus incurred. 9.4. In the event IAP shall be required to pay any sum whatsoever in behalf of the Homeowner's responsibility or liability, the Homeowner shall reimburse IAP for any sums paid by it, and reasonable expenses related thereto. 9.5 Homeowner shall provide IAP, in a timely manner, in response to IAP's request, proof of performance of his or her obligations under this Section. 10. Forced Sale or Eminent Domain In the event that title to the premises shall have been lost by condemnation, forced sale or eminent domain, the following provisions shall apply: A. If a partial taking is made by a third party, and the taking does not affect the ability of the premises to be used for the intended purposes under this Lease, any award or compensation made to IAP shall be used for payment of IAP's mortgage loan or capital improvement to the premises, including legal costs relating to the taking, as IAP in its sole discretion shall decide. B. If there is a taking of the entire premises or so much of the premises that they cannot reasonably be used for the purposes set out in this Lease, IAP shall use any award proceeds to pay off any outstanding mortgage loans on the premises, including legal and administrative costs relating to such taking, and may give any remaining proceeds of such award together with an accounting of same to the Homeowner, or in its sole judgment, IAP may choose to apply such remaining proceeds towards the acquisition of a new low-income housing site for the Homeowner. Homeowner agrees that to the extent it receives any such award proceeds, they shall be applied and used in a manner consistent with the purposes set forth in IAP's Articles of Incorporation. Disputes between the parties to this Lease over the allocation of any award payments shall be handled in accordance with the terms of Article 12. 11. Transfer Upon the Death of Homeowner Upon receipt of notice from the executor of the decedent's estate given within ninety (90) days of the death of a Homeowner (or the last surviving co-owner of the dwelling and improvements), IAP shall, unless for good cause shown, consent to a transfer of the dwelling and improvements to and enter into a new lease with one or more of the following possible heirs of Homeowner: A. the spouse of the Homeowner; or B. the child or children of the Homeowner; or C. member(s) of the Homeowner's household who have resided in the dwelling for at least one year prior to the Homeowner's death. Any other person or persons who are heirs, legatees or devisees of the Homeowner must demonstrate to IAP's reasonable satisfaction that they meet the affordable housing income criteria of IAP, and if any such person is unable to do so, then such person shall not be entitled to possession of the premises but must transfer the premises in accordance with the provisions of this Lease. 12. Arbitration Should any disputes or grievances arise between IAP and Homeowner which cannot be resolved in normal interaction, the following arbitration procedure shall be used: Either IAP or Homeowner may, by written notice to the other, appoint one arbitrator. Within ten days after such notification, the other party shall, by written notice to the former, appoint a second arbitrator (and in default of such appointment, the first arbitrator shall be the sole arbitrator). These first two arbitrators shall appoint a third arbitrator. The arbitrator(s) shall meet and give each party an opportunity to present their cases and witnesses, if any, in the presence of the other. Each arbitrator shall give a personal statement of his/her vote and the reasons for it. Arbitration should begin, if possible, within 30 days of the appointment of the second arbitrator, and judgment should be rendered within forty-five (45) days of that date. The decisions and awards of the arbitration panel shall be binding, and judgment may be entered therein on any court having jurisdiction. Notwithstanding the above, Homeowner covenants and agrees to make timely lease fee payments during such period. Continued payment of Homeowner's pro-rata share of taxes, insurance and other fees are necessary for the protection of all parties. Such payments shall not be construed to be a waiver of termination of lease by IAP even if it has commenced termination on the grounds of nonpayment of lease payments. 13. Miscellaneous Provisions 13.1. Right to quiet enjoyment: IAP may not interfere with the personal lives, associations, expressions or actions of the Homeowner, except insofar as they concern the terms and conditions of this Lease. 13.2. If any clause or provision of this Lease shall be adjudged invalid, such fact shall not affect the validity of any other clause or provision, or give rise to any cause of action in favor of either party as against the other. 13.3. Future amendments shall be subject to the approval of any holder of a mortgage under 5.2 above, which approval shall not be unreasonably withheld and shall be presumed unless the lender makes a written objection within thirty days of receiving the proposed amendments for review. 13.4. IAP shall have the right, but shall be under no duty, to prosecute or defend, in its own or the Homeowner's names, any actions or proceedings appropriate or necessary for the protection of the leasehold premises. 13.5. IAP may, in accordance with its association rules, grant variances in the terms of this Lease, but notice of such variance must be given in writing before it can be deemed granted. 13.6. The failure of IAP to insist in any one or more instances, upon a strict performance of any of the covenants or conditions of this Lease, or to exercise any right or option herein continued, shall not be construed as a waiver of the option to do so, but such covenants, rights and options shall continue in full force and effect. 13.7. Whenever this Lease shall require that either party give notice to, or be advised by, the other, that notice shall be given in writing and delivered in person or mailed, by registered mail, to the last known address of the party to be notified. Notice shall be deemed given on the date on which it is delivered or mailed. 13.8. The parties agree to execute and record a Memorandum of Lease substantially in the form attached to this Lease as Appendix B. IN WITNESS WHEREOF, the parties hereunto have set their hands and seals effective as of the day and year first above written. Islesboro Affordable Property Homeowner: ___________________________ ______________________________ By: By: STATE OF MAINE _______________ County. ____________________, 2007 Then personally appeared the above-named ___________________ as __________________ of Islesboro Affordable Property and acknowledged the foregoing instrument to be his/her free act and deed in said capacity, and the free act and deed of said corporation. Before me, ______________________________ Notary Public/Attorney at Law Printed name of Notary/Attorney:_________________ My Commission expires _______________ STATE OF MAINE _______________ County ____________________, 2007 Then personally appeared the above-named and acknowledged the foregoing instrument to be his free act and deed. Before me, ______________________________ Notary Public/Attorney at Law Printed name of Notary/Attorney:_________________ My Commission expires ______________ EXHIBIT A LOT DESCRIPTION Lot #1 as shown on the plan of the Ruthie James Subdivision by Michael P. Shaffer, dated July, 1993 and recorded in the Waldo County Registry of Deeds at File 16, Page 208, together with a right of way for the ingress and egress of motor vehicles and foot traffic, and for all purposes for which streets and ways are commonly used in the Town of Islesboro, by and along the subdivision road and cul-de-sac as shown on the plan mentioned above, said easement being granted together with a right to install utility service in, over, and through the same. Reserving, however, to Islesboro Affordable Property an easement of access to the septic system located underground on Lot #1 for the purposes of inspection, repair and replacement of the same. APPENDIX A Maximum transfer price shall not be more than the (a) initial cash down payment contributed towards the purchase price of the dwelling and other improvements to the land at the time of purchase; plus (b) in-kind contributions toward the construction of the dwelling in any amount set out in an in-kind acknowledgment agreement executed by IAP and the initial family prior to the initial sale of the home. This provision applies to the initial purchase of the dwelling from IAP only; plus (c) sweat equity contributed to the construction of the dwelling in the amount of fifteen percent (15%) of the construction cost of the dwelling if IAP certifies in writing prior to the initial purchase of the dwelling that all sweat equity obligations have been met, otherwise in an amount to be agreed to in writing by IAP and the initial purchaser. This provision applies to the initial purchase of the dwelling from IAP only; plus (d) (i) the amount of the principal paid on the mortgage, or (ii) the amount of principal which would have been paid if payments had been made at the note rate set out in the applicable promissory note, prior to the application of any interest credits or similar subsidy or subsidies, whichever is less; plus (e) the value of improvements to the premises added after purchase and approved in accordance with Article 6 hereof, less depreciation due to the age of or damage to such improvements; plus (f) a price index increase applied to the items in (a), (b) and (c) above measured by the percent increase in the HUD very low income family median income figure for Waldo County from the date of payment to the date the Lease was terminated; plus (g) the outstanding balance, including any accrued interest and costs of enforcement (including any attorneys' fees) of any mortgage on the dwelling and other improvements to the land permitted by this Lease. In the event that the IAP believes the market value of the dwelling and other improvements to the land is, at the time of the proposed sale, lower than the maximum transfer price as set out above, the market value of the premises shall be determined by the averaging two market value appraisals, one done by a licensed appraiser of Homeowner's choosing at Homeowner's expense, and one done by a licensed appraiser of IAP's choosing at IAP's expense. The transfer price to be paid as used in this Lease shall be the lesser of (i) the market value of the premises as determined according to the appraisal method described in the preceding sentence, or (ii) the maximum transfer price as calculated in (a) - (g) above. APPENDIX B MEMORANDUM OF LEASE Lessor: Islesboro Affordable Property, P.O. Box 206, Islesboro, ME 04848 Homeowner: Premises: See attached Exhibit A Term of Lease: Ninety-nine (99) years unless previously terminated Other Conditions: Subject to limitations on assignability and resale designed to ensure permanent affordability. (See attached Appendix A for maximum transfer price.) Lessor must consent to transfer or encumbrances. IN WITNESS WHEREOF the parties hereto have executed this Memorandum of Lease this day of , 2007, by their duly authorized representatives. ISLESBORO AFFORDABLE PROPERTY ___________________________________ By: ____________________ Its: ____________________, thereunto duly authorized Homeowner ___________________________________ STATE OF MAINE ____________________ County _________________________, 2007 Personally appeared before me the above-named ____________________, ____________________ of Islesboro Affordable Property and acknowledged the within instrument to be his/her free act and deed in his/her said capacity and the free act and deed of said corporation Before me, ______________________________ Notary Public My commission expires: _________________________ Printed or Typed Name of Notary: _________________________ C:\ClientFiles\Corporations\IslesboroAffProp\ThomasResale\Lease.wpd January 30, 2001 ________________________________________________ Alden Robinson Island Institute Fellow Town of Long Island, Maine (207) 837-0636 arobinson at islandinstitute.org -------------- next part -------------- An HTML attachment was scrubbed... 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