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U.S,])epartment of Housing and Urban Development

MASSACHUSETTS STATE OFFICE, NEW ENGLAND AREA Office of Housing

Thomas P. O'Neill, Jr. Federal Building 10 Causeway Street - Third Floor

Boston, Massachusetts 02222-1092

Fax (617) 565-6557

MAR 2 0 2008

Felicia Jacques

Director of Development-Northeast Region The Community Builders, Inc.

95 Berkeley Street, 5th Floor

Boston, MA 02116

Dear Ms. Jacques:

Subject:

Request for Approval to Transfer Project-Based Assistance and Use Restrictions under Section 318 of Public Law 109-115

Project Name: Charlesview Apartments

Project No.: 023-55128

Location: Allston, MA

This is written in response to your proposal under Section 318 of Public Law 109- 115, to transfer project-based assistance and use restrictions from the existing Charlesview Apartments to a redeveloped Charlesview, to be located one-half mile from the existing site.

Charlesview, Inc., the non-profit owner of Charlesview Apartments, is planning to redevelop the existing project by selling the current property and building a newly constructed development to replace it. The new development will include a 282-unit rental development and underground parking facility on one site and 118 units of condominiums, common area amenities and parking on a second site. The funding for the redevelopment will come from a land swap negotiated with Harvard University.

At this time, Charlesview is subject to a Flexible Subsidy Use Agreement which expires January 2017, beyond the February 2011 maturity date of the mortgage note; As the regulations and statute controlling the Flexible Subsidy program require that the use of the property be restricted to the maturity date of the mortgage, HUD will modify the term of the Use Agreement to be coterminous with the term of the Section 221 (d)(3 )BMIR mortgage.

HUD has reviewed the Section 318 proposal and we have determined that, provided the mortgage and the Flexible Subsidy loan are paid in full and the Flexible Subsidy Use Agreement is modified to reflect the mortgage maturity date, we will process the transaction in accordance with Section 8bb of the United States Housing Act of 1937, and not under Section 318. Section 8bb allows the Department to transfer remaining budget authority to support existing dwelling units, where: (1) the existing contract is terminated, is not renewed, or expires, and (2) if the budget authority is apportioned by the OMB and is not required to meet rescissions provided in the appropriations (see U.S.C. Section 1473(b)(1)).

The Department is currently authorized to commit Section 8 project-based assistance to owners of "existing dwelling units" (42 U.S.C. Section 1437(b)(1), to the extent Congress has approved funding (budget authority) for this purpose. HUD may not, however, commit Section 8 assistance for newly constructed housing since such authority was repealed in 1983. Thus, HUD may not enter into any legally binding commitment to provide Section 8 assistance for newly constructed units until the units have been constructed and are, therefore, "existing dwelling units."

In the absence of specific statutory authority, the Department may only obligate the amount of funding that is already appropriated or authorized by Congress, and may only commit Section 8 assistance for a HAP contract for the number of units, rents and term that is supported by the budget authority already approved and released by Congress, but not in anticipation of the availability of future congressional appropriations, except for amendments to cover rental adjustments and decreases in family incomes over the life of the HAP contract (see 42 U.S.C. Section l427f(c)(2)(a) and (c)(5).

Therefore, please be advised that the Department may not enter into a binding contractual obligation to provide Section 8 assistance for the newly constructed units at the new Charlesview project. However, we can offer a commitment of good faith and good intentions in our review of such request, should it be made.

Please be aware of the following conditions:

1. The Flexible Subsidy Use Agreement will be amended to reflect the maturity date of the mortgage.

2. After the units have been constructed and are ready for occupancy, the owner may request that the existing HAP contract be transferred to the new project and the residents currently residing in the project will be relocated to the units in the new project.

3. The project to which the contract budget authority is to be transferred must be an existing project consisting of "existing dwelling units". Therefore, any financing for the new project cannot be underwritten with the Section 8 rents.

4. The new project will be owned by a single purpose entity formed as a limited partnership or limited liability company Charlesview, Inc.will retain long-term control of the new ownership entity. The Community Builders will act as developer and share ownership and control of the general partner of!h_e partnershipduring the construction period. If the transfer of the contract is approved, an assignment of the existing contract to the new ownership entity should be requested in accordance with the Department's statutes, regulations, policies and procedures regarding such approval of an assignment of the contract.

5. If the assignment is approved, the contract will reflect the correct physical address and unit configuration of the new project.

6. A REAC inspection of the new project will be required, and the new project must receive a score above 60, prior to the transfer of the new contract

7. The current project owner will execute a 20-year contract renewal, subject to appropriations, prior to the transfer.

· ,

8. The owner of the new project must agree to execute a 20-year Use Agreement to ensure the units remain affordable.

9. As the development and construction of the new project will take approximately three years, the Boston Hub will continue to monitor repairs at the existing Charlesview project in the interim period.

10. The current owner must provide monthly accounting reports to the Boston Hub during the three year construction period.

11. The HAP contract cannot be transferred in phases. The contract must be transferred in its entirety to the new project.

12. The owner will pay for all relocation expenses and make all necessary moving arrangements for the residents impacted by the transfer.

13. HUD will not approve any Section 8 rent increases as a result ofthe transfer.

14. In the event that a resident elects not to move to the new project, the owner of the project will be required to meet all provisions of the Uniform Relocation Act for permanent relocation of that resident. The Department will not provide a Section 8 voucher to the resident.

If you have any questions, you may contact Teresa Cline at (617)994-8534.

Very sincerely yours,

f~~

Acting Director

New England Multifamily Hub

u.s. Department of Housing and Urban Development

Office of the Regional Director Thomas P. O'Neil Jr. Federal Building 10 Causeway Street - Room 301 Boston, MA 02222-1092

(617) 994-8223

(617) 565-6558 Fax

OCT 082009

Harry Mattison

28 Mansfield Street Allston, MA 02134

RE: Freedom of Information Act Request Charlesview Apartments

FOIA Control No.: 09-FI-HQ-02304

Dear Mr. Mattison:

This letter is in response to your Freedom ofInformation Act (FOIA) request dated August 17, 2009. Please note that the request was not received by the Office of Housing until September 29, 2009.

In your request, you asked for copies of "every document or other form of record that has been made or received by a HUD entity or employee relating to the relocation of the Charlesview Apartments, a project-based Section 8 housing project from its current location near the corner of Western Avenue and North Harvard Street in Allston, MA to a new location approximately a half-mile to the west along Western A venue in Brighton, MA." In an October 6, 2009 email, you narrowed the scope of your request to "all documents describing the final decision by HUD to allow the relocation of the Charlesview Apartments including any and all conditions, requirements, prohibitions, or limitations regarding the relocation."

When responding to a FOIA request, HUD searches for responsive documents existing up to the date the request was received in the proper office. Enclosed is a copy of a March 20, 2008 letter from Edward Hinsberger, then-Acting Director of the New England Multifamily Hub to Felicia Jacques, Director of Development-Northeast Region, The Community Builders, which responds to their proposal to transfer the project-based assistance and use restrictions from the existing Charlesview Apartments to a redeveloped Charlesview Apartments.

Your request is granted in full at no cost to you.

For your information, your FOIA request, including your identity and any information made available, is releasable to the public under subsequent FOIA requests. In responding to these requests, the Department does not release personal privacy information such as home address, telephone number, or social security number, all of which are protected from disclosure under Exemption 6.

www.hud.gov espanol.hud.gov

Thank you for your interest in the Department's programs and policies. If you have any questions, you may contact Teresa Cline at (617) 994-8534.

Sincerely,

If .I J~A-4A[1 1ft

fr'fs~y~

FOIA Officer

Enclosure

www.hud.gov espanol.hud.gov

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