Families In Transition Loans

At a glance

What: Families in Transition (FIT) asked to consolidate four City loans (Affordable Housing Trust Fund and federal HOME money) and separately asked for $2.5 million more for a recapitalization project. The $2.5 million request was received and filed.
Where it stands: On September 1 the Board approved the loan consolidation, contingent on the State awarding FIT's requested low income housing tax credit funding, 12 to 2 on roll call (Kantor and Sapienza nay).
Next: State tax credit decision; October 6 return of a Spruce Street lot (see Spruce Street Lot Return).

Belanger: four loans for affordable housing become due over the next 2 to 8 years; usually 30 year soft loans at 0 percent with minimum payments or cash flow sharing; the sources are the Affordable Housing Trust Fund (from property sales and repaid federal grants) and federal HOME funds; reconsolidation is not unusual; the City oversees finances, not buildings. No property tax increase results.
Mayor Ruais said the $2.5 million request "died" at committee a month ago and that the City does not fund or own the building where needles were reportedly found; police visit it about twice a week and evictions are under way.
Sapienza asked what happens if the loans are not extended; Belanger did not know FIT's ability to repay and said it could become a legal battle with unclear recovery. Thomas asked what happens to the affordable housing; Belanger said FIT could not say. Kantor objected to extending 0 percent loans while taxpayers got no break.
Vote: Trisciani moved, Goonan seconded. Yea: Trisciani, O'Neil, Terrio, Burkush, Barry, Vincent, Thomas, Kaw-uh, Goonan, Dexter, Fajardo, Bonilla. Nay: Kantor, Sapienza.
Micklon supported filing the $2.5 million request but asked why the City acts as a bank, citing the needle reports, 15 registered offenders reportedly at one shelter, and recovery of costs from other towns under state law.

Loan consolidation approved 12 to 2; $2.5 million request received and filed.