Housing Program Authorizes Property Transfers to North AdamsBy Tammy Daniels, iBerkshires Staff
02:23AM / Thursday, March 02, 2017 | |
 The city will be responsible for environmental testing at the former Sun Cleaners before agreeing to accept the property. |
NORTH ADAMS, Mass. — The board of Housing Opportunities Inc. has authorized the transfer of seven properties to the city, a critical step in the dissolution of the organization.
Held back are two properties and the nonprofit's recapture account pending soil test results from the former Sun Cleaners on River Street.
"The city can definitely utilize the assets much better than we can," said Housing Authority Executive Director Jennifer Hohn on Monday. "We are in no position to utilize anything."
The board, which is also the board of the North Adams Housing Authority, has been struggling for years to divest itself of real estate and close the failed housing program.
City officials have been in talks with HOI for nearly six years on taking over its assets but the talks have hit bumps along the way despite a vote several years ago to begin the transfer.
Mayor Richard Alcombright attended Monday's meeting to assure the board the city was prepared to take the properties — and to make it clear the reasons were because of the authority's need to shut down the HOI and that the assets could be put to use on Community Develop Bock Grant eligible projects.
"If the city would be able to liquidate the assets and add that to the recapture account, we could use that for virtually any eligible CDBG project," he said. "We can't just take that money and give everyone raises at City Hall or put a new roof on ... it's very strictly limited."
Funds could go toward a new playground at the park at Brayton School, new water or sewer pipes under certain neighborhoods, or into a new housing program, for example, or taking down bad properties in the Spring and Washington Street neighborhood that would improve the area around Housing Authority properties.
"It's a really beautiful neighborhood here but we've got some blighted properties," the mayor said. While nothing is planned or proposed at this point, Alcombright pointed out the city has a Community Development Office that knows how to deal with CDBG funding and get the most out of it.
The HOI program was established in 1988 "to promote and provide safe, sanitary, and affordable housing" to low- and moderate-income residents. But it's been moribund for years and the properties still under its control have been mostly vacant or foreclosed. The Housing Authority and the city of North Adams are listed in its articles of organization as its successors to any real or personal property.
The U.S. Department of Housing and Urban Development has been pressuring the Housing Authority to dissolve the HOI because federal funds cannot be used to operate it nor can the nonprofit use its recapture funds.
"I think it's important to note that currently these parcels of land are not on the tax rolls and the city is not collecting any tax revenue off these ... we are just holding on to them," Hohn said. "We can't use the fund for anything ... all this money in the bank we can't use, I can't pay staff to run it. We're just literally holding on to stuff we can't use."
The Housing Authority's attorney in the matter, Elisabeth Goodman of Cain Hibbard & Myers, found that the city had already paid for some demolitions.
"There is money invested in these, monies in a sense that the city has already outstanding," she said. "So it's good that it gets back to the city."
The HOI is holding back 111 Bracewell Ave. pending further talks with Louison House about its potential for reuse. The Family Life Support Center recently took possession of Flood House on Church Street from HOI and is working to develop a more robust permanent supportive housing program.
The other property, 111 River St., may be more problematic. Parts of the single-story building date to 1865 but it was more recently a dry cleaner, Sun Cleaners, that closed at least a decade ago. HOI purchased the property for $50,000 in 2008 and there is concern about chemicals in the soil.
The city has agreed to do an Environmental Site Assessment, or 21E, on the property. Goodman and Hohn recommended the board not release any of the $237,000 in the recapture account until the testing is done.
"We have to clean up Sun Cleaners ... It could be absolutely nothing. I could be who knows what," the mayor said. "I think we're all in agreement that the current recapture funds can be used to cover any costs of demolition and clean up."
Hohn said her concern was that the HOI would be left with Sun Cleaners.
"You're still gong to take the asset?" asked Hohn. "You're not going to come back to us with the 21E and say you need to keep it?"
Board member Andrew Colton asked what would happen if the recapture funds didn't cover a cleanup.
Alcombright said the city couldn't take on a liability and whether the HOI inherited Sun Cleaners from the prior board or not, it was "your monkey."
"Worst-case scenario, we're stuck with the property, we transfer most assets to you; best case, the 21E comes back, it's not as bad as we think it is, the city takes possession," Colton summed up. Alcombright did not disagree.
Goodman, however, thought it likely the property will not be worst case because dry cleaning chemicals are volatile and wash out: "It's been closed for 10 years ... it doesn't sit in the ground."
The board unanimously voted to authorize Hohn to sign the deed and mortgage transfers for the seven properties, with Christopher Trombley and Michelle Martinez absent.
Acting as the Housing Authority, the board also voted to dissolve the Hoosac Valley Community Development Corp. It was established in 2012 as something of a successor to HOI but never did anything.
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