2007.03.15 Letter from Hathaway Farms
Hathaway Farms L.P.
Memo
To: Peg Keller, Housing and Community Development Planner
From: Gerard Hughes, Property Manager, Spear Management Group
CC: Diane Andes, V.P. SPEAR MANAGEMENT
Date: March 16, 2007
Re: March 15, 2007 Affordable Housing Trust Fund meeting
I wanted to once again say what a pleasure it was to work with the members of the AHTF last night. I found them to be perceptive and cooperative in working to solve some of the issues
that have arisen in the administration of the program. They moved quickly and decisively to remedy the two issues that we met to discuss. The two issues resolved were:
With the income limits rising substantially, some of the residents who were formerly covered by the AHTF would now be under income, resulting in their no longer being covered by the
program, and thus being moved to the market rent. The same situation can occur when a recipient of the AHTF has a decrease in income and falls under income.
The AHTF trustees voted to continue coverage to existing recipients who later fall below the income limits. This exception is to be granted to former/existing recipients of the Trust
Fund and is not intended to be extended to new applicants.
The implementation of the 03/08/06 income limits from the Springfield MSA resulted in substantial increases to the resident portion of the rent as they recertify throughout the year.
These increases ranged from $88 to $134 per month.
The AHTF trustees voted to have the Trust Fund absorb some of the increase (75%) and the resident absorb the remaining 25% increase. You asked me to provide you with the resulting numbers
regarding Resident Portion and Trust Portion. It would break down as follows:
January 1, 2007 Average Market Rents 1 2 3 4 by bedroom size
793 985 1205 1231
January 1, 2006 Resident Rents 1 2 3 4
602 705 800 874
January 1, 2007 Resident Rents 1 2 3 4
690 809 921 1008
Resulting increase to Resident Rent 1 2 3 4
88 104 121 134
1 2 3 4
25% of resulting increase(Resident ) 22 26 30 33
75% of resulting increase(Trust Fund) 66 78 91 101
New Resident Rent for 2007 1 2 3 4
2006 Rent 602 705 800 874
Plus resident increase 22 26 30 33
Equals Resident Rent for 2007 624 731 830 907
New AHTF Assistance for 2007 1 2 3 4
Average Market Rent, January 1, 2007 793 985 1205 1231
Minus Resident Portion 624 731 830 907
Equals Trust Fund Assistance 169 254 375 324
So, to sum up the changes, the following will go into effect for 2007.
Resident Rents for unit sizes 1 2 3 4
624 731 830 907
AHTF Payments for unit sizes 1 2 3 4
169 254 375 324
I hope that the preceding explanation provides you with the information that you need to implement the necessary changes to the rents. We will await your confirmation of the changes
that were unanimously voted by members of the Affordable Housing Trust Fund last night, and we will proceed with processing the invoices for the AHTF when we have it. Again, from Diane,
Sally and I, we wish to thank you for both your cooperation and also for the cooperation of the AHTF trustees who resolved the two problems. Thank You.