(a)

Legislative findings.

Whereas there is a shortage of affordable and accessible housing in the Town of Hopkinton, as documented by the Town of Hopkinton Comprehensive Community Plan and more specifically its housing element;

Whereas revenues may be received by the town through fees paid in-lieu of development and other contributions received under the Town of Hopkinton Inclusionary Zoning Ordinance (Section 5.3);

Whereas revenues may be received by the town through contributions from individuals, town appropriations or charitable organizations for the development of affordable housing;

Therefore, the Town of Hopkinton hereby establishes an Affordable Housing Fund to encourage a range of affordable housing choices so that the town can continue to be home to a vital mix of people with a wide variety of income levels.

(b)

Statement of purpose. To establish the Hopkinton Affordable Housing Fund (Fund) to act as a source for funding of affordable housing development in the town; to increase the resources available to create and preserve affordable housing that will help meet the ten (10) percent affordable housing goal set for the town by the State Low and Moderate Income Housing Act; to revitalize Hopkinton's neighborhoods, to implement the town's comprehensive community plan and more specifically its housing element; and to assist the town to leverage additional outside resources which may be used to provide affordable housing.

(c)

Establishment and administration of the affordable housing fund. The fund shall hereby be established by the town as a separate segregated account under the name of the Hopkinton Affordable Housing Fund held and awarded by the town only for the implementation of those goals established in this statement of purpose. The fund shall be administered by the Hopkinton Finance Department.

(d)

Oversight. The affordable housing partnership with the input and advice of the planning department shall act as an advisory board for the fund. The affordable housing partnership shall establish an application and application process for all persons or entities seeking funding under this section and shall recommend to the town council for adoption a protocol/criteria for ranking applications that shall be consistent with this section and shall be used by the affordable housing partnership and the town council in reviewing and reaching determinations on applications submitted.

Following completion of the application process, the affordable housing partnership may recommend projects it deems appropriate to the town manager for presentation to the town council. The town council will make all final funding decisions relative to the distribution and expenditure of all funds held by the fund following a public hearing.

The town council shall be guided by the stated findings and purpose of this section in all decisions that it makes relative to expenditures from the fund but all such decisions shall be in its sole discretion. In reaching its determinations as to expenditures from the fund, the town council may seek input and advice from any town board or commission or any other source from which it believes assistance would be useful.

(e)

Suitable contributions. The fund may accept:

• Revenue from all fees paid in-lieu of development and any other contributions received under the Town of Hopkinton Inclusionary Zoning Ordinance (Section 5.3).

• Contributions from individuals, corporations, charitable or other organizations that are dedicated to and intended for the support and production of affordable housing development in Hopkinton.

• Resources appropriated by the town or any other governmental entity.

Any assets remaining in the fund at the end of any fiscal year shall be carried into the next fiscal year, including all interest and income earned, as well as any repayments or forfeitures of loans and grants.

(f)

Awards. Awards will be made only to projects that are determined in the sole discretion of the town council to be consistent with the goals and policies of the town's comprehensive community plan. All monetary awards will be made in the form of a grant or loan. Non-profit community development corporations, non-profit housing development organizations, affordable housing land trusts, and for-profit housing developers are eligible recipients for awards. Awards may be made to projects that contribute to achieving, maintaining, or exceeding the town's goal of ten (10) percent affordable housing as defined by the Rhode Island Low-Moderate Income Housing Act (Ch. 45-53) which defines affordable housing as federal, state or locally subsidized housing provided to low or moderate income households as defined in applicable federal or state statute, or local ordinance and that will remain affordable for not less than thirty (30) years. Awards may be made for developments that provide affordable homeownership and/or rental opportunities to low- and moderate-income families in Hopkinton. Funded developments may consist of either new construction of affordable housing or rehabilitation of existing structures provided that new affordable units result.

Money from the fund may be used in the following ways:

(1)

To pay for all or part of the cost of constructing low- or moderate-income housing.

(2)

As municipal subsidies that help make housing affordable.

(3)

To leverage funds from other sources in order to construct low- or moderate-income housing.

(4)

To purchase land upon which low- or moderate-income housing will be constructed.

(5)

To purchase property for rehabilitation and conversion to low- or moderate-income housing.

(6)

As loans for the construction or creation of low- or-moderate income housing.

(g)

Monitoring of fund distributions. Entities receiving affordable housing funds shall submit quarterly reports to the planning department on January 1, April 1, July 1 and October 1 of each calendar year until project completion. The following information shall be provided:

(1)

All expenditures of affordable housing funds, including support materials necessary to justify expenditures (i.e. receipts for work performed); and

(2)

A written project status narrative describing activities undertaken during the reporting period, changes in the scope of work, changes in timetables affecting project completion dates, and specific accomplishments, problems or anticipated delays.

(Ch. 215, 9-20-10