SalemNews.com, Salem, MA

June 25, 2010

Y housing project under way

By Steve Landwehr
STAFF WRITER

IPSWICH — On a summer evening in 2003, Charlie Reed and Jack Meany met with the Ipswich Planning Board in the Council on Aging center in the basement of Town Hall.

Reed, then the project manager at Ted Raymond's new development, Turner Hill, and Meany, CEO of the North Shore YMCA, wanted to talk about building some affordable housing out in front of the Ipswich YMCA on County Road, on property owned by Raymond.

Reed quickly decided to back out of the proposal, as suggestions were made that Raymond was using it to "pull a fast one" and avoid a commitment to build affordable housing at his luxury home and golf course development on the outskirts of town.

Yesterday morning, seven years after that aborted start and longer than that since the project was conceived, ground was finally broken for Powder House Village, 48 affordable apartments scheduled for occupancy next summer.

"This has been an eight-year labor of love," Meany said. "It took a lot of courage to get here."

"You all need to realize what a home run this project is," said Clark Ziegler, an Ipswich resident who is executive director of the Massachusetts Housing Partnership. The organization is the leading provider of funding for affordable-housing projects in the state.

The history of the Powder House Village project is an extreme example of the difficulties often encountered by developers who attempt to build affordable housing in relatively well-to-do communities. It's also illustrative of why for-profit developers often shun those projects.

For YMCA representatives, the opposition that mounted in Ipswich was particularly unnerving because they thought they'd acted in good faith to present a project acceptable to townspeople.

After the comprehensive permit application for the project was filed, 140 conditions were proposed by various town boards, which the Y "willingly accepted," Meany said. Indeed, on a number of occasions town officials initially encouraged the Y to proceed with the development.

The Zoning Board of Appeals, the only town board that can rule on a comprehensive permit, issued its approval in August 2004.

Appeals Board Chairman Robert Gambale said yesterday that the process took 37 meetings and half a dozen site visits, and produced a stack of paperwork 2 feet high.

"I'm just glad this project is off the ground," Gambale said.

'A long, long fight'

The Y had its permit, but it didn't take long for opposition to form.

There were complaints that people didn't learn of the project until it was too late to object, although the ZBA meetings had been advertised and all abutters were notified of them by mail.

There were also charges that the development was too big, too close to the street and out of character with the neighborhood, and that it improperly included commercial space on the first level. The Planning Board, however, had asked the Y to include the commercial space because the property is in a business zone.

Lawsuits were filed and rejected. A citizens' petition seeking to have the project scaled back was passed but resisted. The Board of Selectmen even withdrew its initial support. But Y officials steadfastly maintained their course, saying it is part of the organization's mission to provide housing, and the town and the region need it.

Meany underscored that point yesterday.

"We've been fighting for these 48 families" who will live in the complex, Meany said. "They have always been predominant in our minds."

When the legal appeals were exhausted, the Y faced an equally daunting challenge. The economic downturn that swept though the country dried up the Low-Income Housing Tax Credits the Y was counting on to fund the project.

Developers such as the Y sell the credits to investors to raise money, and the investors get a dollar-for-dollar write-off on their federal tax bills. But when the economy slowed down, so did demand for the tax credits.

Last January, through a combination of private investments, state money, and the American Recovery and Reinvestment Act, the Y got just over $8 million to put the project back on track. The federal government essentially bought the tax credits, with an eye to selling them when the economy rebounds.

The roar of excavating equipment was silenced for an hour for yesterday's ceremonies, but Meany reminded folks there's still work to be done before the project's real goal is realized.

"This seems like the end of a long, long fight," he said. "But we're at the beginning — see you in 12 to 14 months."

POWDER HOUSE VILLAGE

Powder House Village apartments will be made available to people who make less than 60 percent of the median household income in Ipswich. Individuals who make less than $35,340 and families making less than $50,460 will be eligible. The project consists of:

12 one-bedroom apartments

24 two-bedroom apartments

12 three-bedroom apartments

A commercial space

Space for a YMCA child care center