The Town Board and affordable housing - where does it go from here?

NORTH EAST — When the North East Town Board met for its Aug. 12 business meeting, it had a lively public comment session, during which a few audience members spoke. One of those residents was Pamela Michaud, a frequent opponent to the proposed Millerton Overlook affordable housing complex that’s been languishing before the town and village since 2004.

Last week she referred to an old letter written by the now-retired commissioner of the Dutchess County Department of Planning and Development, Roger Akeley. The letter referred to Housing Resources’ lack of a detailed timetable for the project’s completion; Housing Resources of Columbia County, Inc., is the applicant behind the Millerton Overlook project.

Akeley, in his letter, suggested Aug. 31, 2010, as the “reasonableness standard� for which to strive, and stated if that’s not doable the county would like to recover as much of the $108,000 in Community Development Block Grant (CDBG) funding used to help purchase the North Elm Street property as soon as possible.

Housing Resources first obtained the 3.7-acre property with the aid of a $108,000 block grant from the town of North East back in 2004; the project was originally slated for completion in 2007. In December 2009, then Housing Resources Executive Director Kevin O’Neill requested an extension for completing the project until 2011. That request was rescinded on Jan. 7, 2010.

Throughout the extended application and review process there have been delays, missed meetings and overdrawn escrow account balances. In mid-July of this year, Housing Resources attorney Scott Longstreet informed the Millerton Planning Board it would no longer replenish the escrow account as the not-for-profit organization felt the village was hampering its application.

“The game plan has been to drag the permitting process out until the applicant is financially drained to death,� Longstreet stated in a letter to the Planning Board, adding that until assurances were given that the board “will cease its abuse of the administrative process and promptly bring both the [environmental review] determination and special use permit application to a vote, no further payments into the escrow are forthcoming.�

Since then there has been a major change at Housing Resources; O’Neill has been replaced by his second-in-command, Stephanie Lane. But there’s been little else new from that front.

There have, however, been continued objections to the way the town has handled the Millerton Overlook project locally, and some of those issues were aired last week.

“The community and I would like to remind you of this [Akeley’s reasonableness standard] date,� Michaud said to town Supervisor
Dave Sherman.

Resident Susan Pettibone next asked Sherman if the town had given up its status as the first mortgage holder on the property in question, as rumors stating as much have been circulating. Sherman replied in the affirmative.

“We very clearly stated that at this board table,� he said. “It occurred some years ago. You could look it up.�

Michaud then asked who the loan was subordinated to and questioned the roles of groups like Neighbor Works and Enterprise Housing Financial. Neighbor Works is Housing Resources’ parent company.

According to resident Dan Swift, who also voiced his discontent with the way the town has handled the process, Enterprise Housing Financial had the North Elm Street property financed for an additional $400,000; that’s on top of the existing $108,000.

“In order for the town to get that land back it would have to pay $508,000,� Swift announced last week. “We’re no longer the first holder on that. We have no say on that at all. I was wondering if we were duped.�

“Dan, I think you probably know the answer because you have the paperwork,� Sherman replied. “I signed that and I don’t sign anything without the OK from the Town Board.

“The loan was subordinated for the full dollar value you’re mentioning,� Sherman said, adding that it includes the agency’s property in Copake as well, which makes the amount sound misleading.

Swift then pursued questions regarding Attorney to the Town Warren Replansky, who wasn’t present, and some of his fees.

“They’re to the tune of $4,700 since January,� Swift said. “Did you think you should hold Housing Resources accountable? I’m more concerned as a taxpayer that we have these bills.�

“Did you look at those bills and add them up yourself?� asked Sherman. “I’m just wondering the source of your data.�

The back and forth continued for a while longer, with the supervisor telling Swift he was “out of order� making such accusations. Swift replied that he’s ready to sit down with Sherman at any point to discuss such issues. Town Councilman Steve Merwin interjected at that time to say he’s frustrated, too.

“If the Town Board votes to end the grant, can we vote to sell the individual parcel?� he asked Sherman.

“The town does not have the ability to sell anything directly,� was the answer. “Housing Resources owns the property.�

“I’m getting really tired of this whole deal,� Merwin replied. “It’s only getting worse. A lot of people are upset, and they’re stopping me and asking why the hell isn’t anything being done. We have to do something — soon.�

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