AMHERST — With well over $1 million in hand to support future housing developments for low- and moderate-income families and individuals, a town committee is looking to use that money to spur developers interested in pursuing such projects.
Members of the Amherst Municipal Affordable Housing Trust recently began discussions on the best way to deploy some of the $1.34 million in development funds the trust has.
“The reality is the trust has never had so much money in the bank,” said Gaston de los Reyes, who chairs the trust, adding that it is of no use to the larger community if the money stays in the bank. “We’ve got to make this money work; that’s what it’s there for.”
The ideas could include some form of revolving loan or grant initiative made available to developers.
The trust has previously depleted its account by providing two grants, totaling $725,000, to Valley Community Development’s Amherst Community Homes in North Amherst. But the account was recently bolstered by a payment of $1.2 million related to the new mixed-use building at 55 South Pleasant St. The Roberts Group, developers of the building, opted to make a payment in lieu of providing affordable units on site.
De los Reyes suggested that to be more project-oriented, the trust could develop a grant initiative to support exploration of future developments, and possibly put out a request for proposals. This could catalyze projects and inspire developers, rather than waiting for them to approach the trust.
“That’s one way we might choose to deploy our resources and our energy,” de los Reyes said.
A revolving fund loan, said Greg Richane, the town’s housing coordinator, could be useful.
“Predevelopment money is generally the hardest money to find for developers of all types, affordable and otherwise,” Richane said. “This can be a way to draw developers in, if that resource exists, and is relatively easy to access.”
Richane pointed to how Joy Squared Architects of Boston has looked at the South Amherst School on South East Street, and the challenges of developing that 3-acre site. With a ceiling of units there and the time, resources and risks associated with a small site, there could be a hesitancy that would be alleviated by financial support from the town, and a developer might be more willing to invest in exploring how the building could be used.
Trust member Allegra Clark said she is concerned that the trust might end up spending money and then nothing comes to fruition.
But Heejae Kim, another trust member, liked the idea.
“Proactively seeking what we can do with the money makes more sense than waiting for what people might ask for,” Kim said.
While it’s uncertain if more money will be coming in to the trust from other developments that might use the payment in lieu route, other money can come from making requests to the Community Preservation Act.
The trust is also expected to get $40,000 from the Interfaith Housing Association of Amherst, a nonprofit established in November 1966 to get the Village Park apartments built on East Pleasant Street, but which has mostly been dormant in recent years.
A recent housing production plan suggests that 700 to 900 new housing units be built in Amherst by 2030.