Sunday, July 1, 2018

Not really complicated, just takes some effort and initiative from those in charge.

Reading emails involving funding for the new school shows that the selectmen can and did got to extraordinary lengths to make something happen, so why not do the same for some residents?


from the link posted by justsmartenough;

Deferred Payment Loans: Most programs place conditions on grants or offer them as forgivable or “deferred-payment” loans (DPLs). A property lien in the amount of the DPL is placed on the property for a specified number of years (15 year minimum.) However, a DPL becomes a grant if it is not sold or transferred within a specified period of time and if all other program requirements are met (e.g., rental agreement). If the lien conditions are violated, the borrower (i.e., the property owner) is subject to specified penalties -- generally, foreclosure on the loan amount. DPLs may take the form of interest subsidies or principle reduction grants to leverage other funds, or they may provide the full amount of rehabilitation costs up to a program’s established maximum limit. A property owner receiving a DPL would not have to make any loan repayments and the full amount of the loan would be forgiven if he/she still lived in the assisted property at the end of a specified number of years. If the property was sold before the end of this specified lien period, then the full amount or a portion of the amount would have to be repaid. This is the program design most widely used in the Mass. CDBG Program.
How can assisted properties be protected from speculation? CDBG-assisted housing rehabilitation programs must include in their design an anti-speculation / recapture /
forgiveness policy to protect against real estate speculation. (This is a required component of the program application. Refer to Mass. CDF/ME Application Guidance, page 25 for instructions.) Most communities impose a time limit in the form of a lien (15 year minimum is required) on the property that restricts the sale or transfer of ownership. Full or partial funds are recaptured (i.e., recovered) by the community if a property is sold or transferred before the expiration of the lien. All contractual agreements executed between communities and individual property owners must include anti-speculation and recapture provisions that are triggered in the event of (a) sale or transfer of the assisted property, (b) noncompliance by the property owner with the terms of the rental agreement, and (c) noncompliance with other provisions of the contract. a. Mass. CDBG recommends that the time limitations in a recapture policy be appropriate to the level of investment of public funds, the financial condition of participating property owners, and the nature of the rehabilitation work. Many municipalities waive the recapture of funds if the transfer of property is from one family member to another (e.g., parent to child or sibling to sibling) and the new occupant family (a) resides in the property, (b) is income eligible, and (c) assumes the balance of the years remaining on the lien. However, Mass. CDBG requires that assisted units be made affordable to low- and moderate-income households for a minimum of fifteen (15) years. b. The recapture policy must include a description of the community’s procedures for compliance monitoring and the corrective action(s) that will be required of violators. Liens and mortgages are two legal means employed by housing rehabilitation programs to enforce and protect the terms of recapture policies. Mortgages are generally used with funding mechanisms that require monthly payments by owner. In such instances, the banking institution and/or the municipality assume responsibility for filing, tracking, and clearing the mortgage. Consequently, the community must establish a system for filing, tracking, and discharging the liens and for filing, tracking, and clearing the mortgages.


Perhaps justsmartenough can provide the link to the Town's policy on this issue?

The issue that was before the selectmen could have been dealt with in a way to aid the two people that were before them (BOS), if the selectmen wished to help.

15 comments:

  1. Mr Bennett, I cannot. Perhaps that is the reason for the consternation of deliberation and lack of resolution.

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  2. I truly have no faith that our BOS even read any of these documents prior to the meeting. Did anyone notice Doug Morrison hold up the vote so he could quickly read over some of the material.



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    1. It seems getting the information packet during the meeting has been a practice for as long as our TA has been in his position. Does it make sense ? Not to me. It seems if these people has the packet a couple of days in advance, then maybe they would look at it prior to the meeting. I was very bothered by the behavior of the board to the ladies that came to speak about the problem they had encountered with their father's home. These people have had a very trying time as it is, so for our leaders to be down right rude was upsetting to me. Not only is the BOS expecting them to pay back the grant their father got in good faith, they will now have to find someone to repair the damage the contractor caused !! What would have been wrong with setting up a meeting with the building inspector to see if something could be resolved. I do believe the contractor had to have insurance to cover any problems. No, don't nock your selves out selectmen, just hand over more of the citizens money when we have to pay Town Council for the law suite that will come because of your lack of compassion and respect for this man's family.

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    2. I believe the grant to repair the home was through the CDBG program...which is no longer if effect due to funding issues.

      I believe there is an RPF to hire COG again to apply for the CDBG grant or other grants for which the town may be eligible.

      The selectmen have forgiven the loans in the past when owners go to sell before the 15 years are up.

      This issue is a bit different in that the contractor's work ( paid for with the CDBG grant?) was not acceptable.

      A look at the old CDBG records might be a place to start to gather facts about this unfortunate situation.

      There were plenty of other properties which were repaired under the same program. It might be wise to figure out how many are within the 15 year window.

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    4. Please provide a link to your assertion “
      I believe the grant to repair the home was through the CDBG program...which is no longer if effect due to funding issues.” Mrs Farrell being so involved with CDBG should know this criteria right ? In 2013 you voted for CDBG for I beleive a sewer pumping station bid.

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  5. It was a contract between the builder and homeowner . Maybe, one should not pontificate that the BOS “ did nothing “ . Perhaps they cannot do anything legally / contractually.
    Perhaps, just like an FHA loan or whatever the bank that lent one the money is not the the one you seek legal recourse for in the case of alleged improper building or repair.
    I watched the BOS meeting as well, I agree in the presentation by the BOS was seemingly floundering and ill prepared to give a concise answer. I find it difficult to grasp that they would not have a better presentation ( on both sides ) but ... well ... it is Templeton and wait for it .... stay in school kids and get a well rounded liberal arts education.

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    1. I agree this has Zero to do with the selectman or town. Why should the town be liable, because somebody is friends with the homeowner ???

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    2. I think the reason the town is evolved is because the homeowner is saying the work signed off by our Inspector was faulty.

      I do not know all the ins and outs, but it would seem, without reading the contract, that "Regis" would be liable for the improper workmanship demonstrated by the leaking roof........

      It does truly piss me off when you know the BOS has not read, reviewed or worked on an issue but vote in unison.........


      I believe the reason we are seeing more of this type of issue is because when people go to Town Hall looking for assistance rather than looking for a way to help or redirecting the parties elsewhere our staff gets defensive and denies responsibility and therefore assistance. I say this from my own observation of this behavior multiple times this year.

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  6. What I find so ironic ( for at least this post ) .... you all here dislike government so much but look to it when in need of in this case assistance with a person who received tax dollars from around the country to fix a roof on a private home, Bootstraps right ?

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    1. Who said any of us dislike our government ? Maybe we expect our government to actually work for the people in our town. If the BOS has no say in this CDBG loan why didn't anyone tell these people so ? Our BOS was quick enough to say NO, and it seems odd that our favorite "spin man" did not say a word either way. So in the past, who voted to forgive these loans ? Does it matter who you are, or where you come from that will decide your fate when it comes to if you will be forgiven ? This man lived in this town for a good many years. He counts as much as anyone else, and as a result so do his daughters. What would have been so wrong with researching this problem, talking with the BLDG. Inspector and trying to help these people out ? That is what I expect from our town government. The man went into this deal with the faith that he would be treated fairly, but it sounds like he wasn't. To sit on your high horse and say no, just because you can, is an abuse of power.

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  7. No , it’s the rule law. Citizens have right of petition ( for now ! Remember to vote ) and redress ones grievances ( for know , remember to vote ) .
    Because one can do something doesn’t mean it’s the right thing to do. Actions and inactions do set a precedence.

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  8. BEV “ If the BOS has no say in this CDBG loan why didn't anyone tell these people so ? ..”
    Perfect example of comments here regarding I don’t want the government telling me what I can and cannot do. ( food , building ... weed etc ) People need to take responsibility for entering contracts. REad then , ask questions , consult family , ask your state / fed representatives if no answer from local. Or, consult an attorney who advocates for elderly in this case perhaps.

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