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Expanding Partnerships

Leveraging Capital

Leveraging Capital from Housing Partners

Issues/Opportunities Addressed: C)

Timeframe for Action: Mid to Long Term

Over the last two decades, private corporations such as
financial institutions, major employers, and anchor
institutions such as hospitals and universities have played
an increasingly important role in improving and expanding
affordable housing. Investments in low-income housing
tax credit projects have been a primary contributor to
building multi-family affordable rental units across the
country. The City of Nashua has a need to expand both the
amount and type of affordable housing as well as the pool
of funding available for such projects. The challenge now
is for the City to take charge of those challenges and begin
seeking a larger partnership between government,
philanthropy and the private sector. This is a best practice
in many cities across the country who are working
collaboratively to invest in larger, more complex
community and economic development solutions.

The concept of leveraged capital, when a small amount of
initial capital is made available to attract additional
resources, is not new to the affordable housing industry.
Most affordable housing built since the early 1990s has
been financed by private equity investments seeking low-
income housing tax credits and market rate returns. What
is new to the community development sector are the
innovations cities have created through co-investment
opportunities between the public and private sectors.

Nashua Housing Study - 75

Gathering and deploying a larger group of housing
affiliates and a larger pool of resources involves the
following steps:

¢ Education of and outreach to key stakeholders
¢ Representatives from across City
departments
¢ Members of the housing and community
development ecosystem
« External partners from across sectors

¢ Assessment and pursuit of innovative financing
tools and models

¢ Leveraging City funds to grow available
capital

¢ Designating one or more targeted
investment areas

¢ Aggregating capital into a long-term fund
supported by diverse partners to offer low
cost capital

¢ Shaping an effective program to finance
and incentivize a wide spectrum of
affordable housing

This group of housing affiliates may include banks,
hospitals, community development financial
institutions, and any community-based development
corporations.

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Some early action items the City should consider in
assessing the feasibility of creating a larger pool of
resources and partners include:

Engage with City decision makers to deepen
understanding of the need, complexity, and
opportunity of public-private partnerships to fund
housing programs

Engage with likely nonprofit and private sector
implementation and funding partners to improve the
effectiveness of the community development service
delivery system

Convene likely partners to assess innovative
financing solutions and develop a shared value
proposition, to increase financial participation in new
funding strategies

Formalize new public-private partnerships to
accelerate quality affordable housing development
and promote access, equity, and justice, especially for
the City’s most vulnerable residents

Engage with homeowners and small landlord
stakeholders

Expanding Partnerships
Leveraging Capital ASSOCIATES INC

Leveraging Capital from Housing Partners

Case Study — Housing Opportunity Investment Fund, Charlotte, NC

As arecent example, Charlotte, North Carolina brought

together 11 funders, 6 government agencies, 2 community
organizations and together they created a $200M Housing USC Strategy to Maximize Impact
Opportunity Investment Fund (Figure 8). They had
identified a challenge they wanted to address, that among
America’s 50 largest cities, Charlotte ranked 50th in terms City HTF: With CHOIF: Plus:
of residents’ potential for economic mobility. With many Two Deals (4% LIHTC)* | Two Deals (4% LIHTC) Housing Authority
Charlotte residents severely cost burdened and struggling cundin cundi vouchers Produce nearly twice the
. . . . : unaing: :
to find affordable housing in areas of opportunity, partners 6 6 * Increase 30% AMI number of units
mobilized around an immediate action to produce more is Sr, units Get twice as much for
mixed-income housing for low-to-moderate income £ $9.7M City j ene , row cost debt each dollar of HTF
oye . . . . : : : : . ncrease Tinancin
households as a critical first step to improving economic i HIF ‘a ecssensseecsecssssssast , 6 Increase supply of very
mobility i. é Rae st low-income units
. a Areas o
opportunity Poe enone
Collectively, the partners are financing 1,500 units to crsene - Improved ousing locations
house families with a range of incomes. The housing is in economic mobility Improve economic
. . for residents mobility for Charlotte
areas of opportunity, thereby upending a key structural a: on
. we . . $9.7 million $9.7 million residents
barrier to health equity, in which the factors that determine a
people’s health is predicated on where they live. The paved $4.7 million in
example below shows one example of a leveraged, low- vesampl
cost capital investment model in which partnerships

enabled the city to maximize its impact with two deals by Source: Corporate FACTS, 2020
accessing the Charlotte Housing Opportunity Investment

Fund (CHOIF) instead of relying solely on its Housing Trust

Fund (HTF).

Nashua Housing Study - 76

Expanding Partnerships
Housing Authority ASSOCIATES INC

Continue the Partnership with the Housing Authority
Issues/Opportunities Addressed: C) CO) —.-

Timeframe for Action: On-Going ly 2

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The Housing Authority owns and operates some of the only From the City side, continued assistance with expedited
deeply affordable housing in the City and has the knowledge permitting through the Zoning Board of Appeals and
and experience to be a valuable partner on public/private Planning Board will be very helpful to keep approval :
partnerships to produce additional units at a variety of times shortened. City engagement early in the design “4
income levels. The City of Nashua and the Housing process and site plan layout are also helpful to limit i

iterations which cost time and money. Lastly, the City's
participation as a funder in these projects is also very '
helpful. Participating using HOME funds or other funding |
sources can add to the development capital stack

increasing financial feasibility.

Authority have already shown the value of partnering on
affordable housing projects such as the redevelopment of
the Bronstein Apartments. The City and Housing Authority
are not only expanding the total number of affordable units
but are also bringing additional market-rate rental housing
units to the City which are desperately needed.

Going forward, the City can continue to bring value in its
financial resources, access to city-owned land, and staff
resources that could help augment the Housing Authority's
knowledge of affordable housing funding, programs,
construction, and operations and maintenance. The City and
Housing Authority should continue to have open
communication and discussions involving the purchase/use
of land, pooling of resources, and engaging private sector
developers to look for ways of creating additional mixed-
income housing as way to both modernize and expand
affordable housing across Nashua.

Nashua Housing Study - 77

Expanding Partnerships
Right of First Refusal

Right of First Refusal Policy

Issues/Opportunities Addressed:

Timeframe for Action: Mid to Long Term

Much of Nashua’s affordable housing stock (whether
deed-restricted or naturally-occurring) are rental housing
units. Over time as housing pressure increases and prices
escalate, there may be a strong desire on the part of
landlords to let affordability requirements lapse and begin
renting at market rates. If the City does not play a
partnership role, these units may come off the inventory of
affordable housing and leave lower-income households
with limited options.

One way the City could play a stronger partnership role in
affordable housing would be to implement a right of first
refusal policy. This type of policy can help preserve the
ongoing affordability of dedicated affordable rental
housing by giving priority consideration to mission-
oriented buyers when the owner of a subsidized rental
property decides to stop participating in a subsidy
program. Second, they can be applied to unsubsidized
rental properties, helping to preserve the availability of
rental units and in some cases facilitate conversion to
dedicated affordable rentals. Eligible buyers may include
tenant associations, nonprofit and for-profit developers,
and/or state or local government agencies. Right of first
refusal policies may give these buyers an exclusive period
within which to make an offer on the property, or the
option to match any offer made by a private buyer.

Nashua Housing Study - 78

This policy is especially effective in strong and/or
growing housing markets where right of first refusal
policies help to preserve rental housing and prevent
the conversion of subsidized rental properties to
another use by enabling their sale to stakeholders
who are committed to long-term affordability.

There can be a wide range of restrictiveness in the
policy depending on how far the City wishes to go.
This can include:

¢ Providing advance notification, during which the
city has a non-exclusive right to identify a buyer,
but seller has no obligation to sell to that party.

¢ Offering a true “right of first refusal,” in which
eligible purchasers are given the option to match
an existing purchase offer.

¢ Establishing a “right to make an offer” that gives
eligible purchasers exclusive rights to make an
offer for a designated period of time; if no offer is
accepted, eligible purchasers are typically then
given the right of first refusal to match any.
subsequent purchase offer that the owner accepts

¢ Preempting private sales and requiring owners to
sell the property at fair market value to a
designated buyer; in this case the price is typically
determined by independent appraisers.

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The City may want to explore some lighter touches and
early steps such as requiring advance notice of sale for
any rental property which currently has affordability
restrictions or has benefitted from/participated in any
subsidy programs. This provision is already in place for
properties utilizing Low Income Housing Tax Credits
(LIHTC) which gives a right of first refusal to non-profit
organizations if at the end of the compliance period the
owner wishes to sell or convert the property to another
use.

If Nashua’s housing availability and affordability
continue to be a challenge, the City could consider
taking the policy a step further and applying it to all
rental properties which can be a step to help prevent
displacement of residents over time. Clear guidance is
needed on which properties are subject to the policy and
must be communicated effectively to all rental property
owners. In some cases, communities have chosen to
limit the policy to older units as those may have a higher
tendency to offer below-market rents and comprise a
larger share of the community's naturally-occurring
affordable housing stock.

Expanding Partnerships
Employer Assisted Housing

Employer Assisted Housing

Issues/Opportunities Addressed:

Timeframe for Action: Long Term

Employer-assisted housing programs provide an
option for employers to help their employees with the
cost of owning or renting a home. Programs can be
targeted to neighborhoods near where employees
work. Assistance may be provided in a variety of
ways, including down payments that are forgiven
over a period of employment, education and
counseling around homeownership, rental subsidies,
or even a direct investment in the housing
development itself.

The program could be created for public-sector
employees working for the City, but often it is created
by and for the private sector. These programs are
most successful in communities that have one or
more large employers with employees who struggle
to find housing that matches their income. The City
of Nashua could be a partner in a program like this
by providing a matching contribution to any housing
subsidy payment offered by the employer.

The City should begin conversations with major
employers, like the hospitals, to gauge interest in
partnering over time on an employer assisted
housing program.

Nashua Housing Study - 79

As conversations begin with employers about
creating and contributing to an employer
assisted housing program, the City may want to
consider the following steps to organize both the
conversation and the strategy:

1. Evaluate the Housing Needs of Employees
through Studies, Surveys, and Focus Groups

2. Examine the Employers Participation Options
3. Assess the Availability of Housing Options

4. Determine the Best Strategy Going Forward

The Greater Minnesota Housing Fund put
together an excellent guide for both employers
and communities that are looking to start
conversations around an employer assisted
housing program. The guide includes a primer on
programs, examples, lessons learned, FAQs, and
how to make the case for a program.

Source: EAH Guidebook

Case Study — University of Chicago, Chicago,

The Employer-Assisted Housing Program assists full-time
benefits-eligible University of Chicago and University of
Chicago Medicine employees with their home purchase in
the neighboring communities. The program provides up to
$10,000 in down payment assistance. Rental
reimbursement up to $2,400 is also available for new
renters in portions of nearby neighborhoods. Through this
program, the University strengthens its connections to
surrounding neighborhoods, retains valuable employees,
and helps staff optimize their work-life balance. Income
restrictions do apply to households earning over a certain
amount.

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IL

HOUSING STUDY FOR

3 KG THE CITY OF NASHUA, NEW HAMPSHIRE

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October 2020

Q.2. This will be part of Emergency Services Group (Suppression)

Q.3. Four (4) Lieutenant positions shall be created and then filled per
Article 18, these positions are responsible for training, administration,
documentation and coordination, as well as Emergency Scene Safety Officer.

Q.3.a. If the Board of Fire Commissioners does not fund the Lieutenant
positions set forth in paragraph Q.3. above, the Board of Fire Commissioners may
create and fund an “Assistant Superintendent” Position to be known as the
“Training/Safety Lieutenant’, to be assigned to the “Training/Safety Division’.
This Training/Safety Lieutenant shall work four (4) ten-hour days.

(O.3.a. above is from the sidebar agreement of 10/1/12)

The employee holding the position of Lieutenant Training/Safety, as defined in this
paragraph, may take promotional tests for “line” positions based on his/her line
rank and service time prior to promotion to Lieutenant Training/Safety, as defined
in this paragraph.

Q.4. Training Superintendent, 4-10 hour days per week, Training /Safety
Lieutenant, 10/14 schedule.

Q.5. Traiming/Safety Lieutenants instruct basic Fire Fighter evolutions.
Example: hose, ladders, SCBA, pumps, EMS etc.

Q.6. Traiming/Safety Lieutenants are available for Station Assignments as
per Article 36, Section C.

Q.7. Training/Safety Lieutenant positions are covered positions seven (7)
days per week twenty-four (24) hours per day, and will be part of officers’
overtime list.

Q.8. All Lieutenants promoted before July 1, 2003 are not transferable to
the Training/Safety Division under Article 4, they are however allowed to request
assignment in the Training Safety Position.

Q.9. Assoonas practicalall suppression officers will be given the State of

New Hampshire Fire Standards and Training, Incident Scene Safety Officer on
duty.

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R. _ Inorder to fill vacancies in the rank of Assistant Superintendent, a test
will be given. Employees who are currently third ranking specialists in that
division will be considered eligible to take the test. If only one Third Ranking
Specialist passes the test, he shall be promoted to Assistant Superintendent. In the
event that there is no third ranking specialist in that division, no third ranking
specialist passes the test, or no third ranking specialist chooses to test, then all
members of Nashua Fire Rescue who have completed one (1) year of service will
be eligible to take the exam._ However, for vacancies in the Fire Marshal Division,
as of January 1, 2021, to be eligible to take the exam, members must have their
Fire Inspector Land Fire Investigator certifications. Eligibility will be determined
as of the date the vacancy occurs. If no Third Ranking Specialist passes the exam
but, more than one other employee does pass the exam, then the current
promotional policy will be used to promote the Assistant Superintendent.

S. In order to fill vacancies in the rank of Superintendent or Fire
Marshall a test will be given. Employees who are currently Assistant
Superintendents in that division will be considered eligible to take the test. In the
event that there are no Assistant Superintendents, no Assistant Superintendents
pass the exam, or no Assistant Superintendents choose to test, then current Third
Ranking Specialists in that division will be eligible to take a test for the position.
In the event that no Third Ranking Specialists exist, no Third Ranking_Specialists
pass the exam, or no Third Ranking Specialists choose to test, then all members of
Nashua Fire Rescue who have completed one (1) year of service will be eligible to
take a test for the position. However, for vacancies in the Fire Marshal Division,
as of January 1, 2021, to be eligible to take the exam, members must have their
Fire Inspector land Fire Investigator certifications. Eligibility will be determined
as of the date the vacancy occurs. If subsequent tests are, in fact, needed after the
initial test due to no candidates having passed the test, then, Assistant
Superintendents and Third Ranking Specialists from the division will remain
eligible to take those exams as they occur. If one (1) Assistant Superintendent
passes the examination on the first attempt, he/she will be given the appointment.
If more than one employee passes an exam for the Supermtendent position, the
current promotional policy will be used to promote one of the candidates.

Ifa Third Ranking Specialist takes and passes a test during this process, and
he is the only Third Ranking Specialist in the division, then he/she shall be
promoted to Assistant Superintendent if there is an opening in that position as a
result of this process.

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AMENDED
R-16-004

RESOLUTION

RELATIVE TO THE TRANSFER OF $9,282 FROM ACCOUNT #107-51
“CITY CLERK — SALARIES & WAGES” INTO NEW ACCOUNT #107-71 “CITY
CLERK — EQUIPMENT” FOR THE PURCHASE OF A COLOR LASER PRINTER

CITY OF NASHUA

In the Year Two Thousand and Sixteen

RESOLVED by the Board of Aldermen of the City of Nashua that $9,282 be transferred
from Department 107 “City Clerk”, Account 51 “Salaries & Wages” and appropriated into new
account Department 107 “City Clerk”, Account 71 “Equipment” for the purchase of a color laser
printer.

S.1. For purposes of clarification in R and S above, “divisions” will include:
Training/Safety, Fire Alarm, Mechanical, and Fire Marshals. Additionally, the
rank of Superintendent will include the highest ranking position in the division,
Assistant Superintendent will include the 2" highest ranking position in the
division, and Third Ranking Specialist will include the 3 highest ranking position
in the division.

T. The Department will give good faith consideration pursuant to
previous arbitration decisions to the candidates presented pursuant to Paragraphs C
through J above. If all of the candidates presentedare shown not to be qualified for
promotion, then the examinations may be given by the Fire Commissioners to
persons inside or outside the Department. A bsolute preference under this paragraph
shall be given to those in the ranks in accordance with this Article 18 unless those
from the ranks are shown not to be qualified.

U. Any person demoted shall be notified in writing within twenty-four
hours as to the reasons for the demotion. Such notice shall first be given to the
employee mvolved and to the Union.

V. A-pesitien deseription questionnaire job description will be completed
for the position of Dispatcher+Clerrainer Supervisor. Whena vacancy arises in
this classification, the posting for the position will include the-pesitien-deseription:
questionnaire job description and the testing for the vacancy will be based on the
requirements of the position as described therein. Individuals promoted to this
position must meet all the position requirements within six (6) months to fill | the
position. Lacks mdpadua ey J aye

W. The Fire Prevention Bureau shall be known as the Fire Marshall's
Office. The Superintendent of Fire Prevention shall be knownas the Fire Marshall.
The Assistant Superintendents shall be known as Inspector/Investigators. The
Public Education Officer shall be known as Inspector/Public Education Officer.
The purpose of this paragraph is to reflect the title changes only and all other
conditions relating to these positions remain unchanged.

X. Non-fire suppression divisional employees, who have passed the
current fire fighter exam written and physical, shall be given preference by
seniority for interdivisional transfers to fire suppression in the event thata vacancy
occurs. All bargaining unit employees shall be given preference in the filling of
any interdivisional vacancy that may occur in any other division when the position

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