[MassHistPres] CPA funds as loans rather than grants

Thu Nov 29 11:03:43 EST 2012

Dear historical colleagues,

A caveat about historical loans, drawn from our experience with the
soon-to-be-defunct Arlington Preservation Fund, a revolving loan fund
established not with CPA money but with CDBG money.  We soon found that the
business of administering loans was quite onerous.  There are banking,
truth-in-lending etc. regulations which were beyond the competence of our
volunteer board. So we hired succession of banks to do the loan servicing,
which turned out not to be wholly satisfactory to the mortgagees.  APF Inc.
was set up as a Ch. 180 corporation, separate from the town, in order to
avoid all the tedium of operating as a government agency.

John Worden

Arlington HDC

John L. Worden III, Esq.
Simonds, Winslow, Willis & Abbott, P.A.
50 Congress Street, Suite 925
Boston Massachusetts, 02109
phone  (617) 227-8662
fax        (617) 227-1961

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From: masshistpres-bounces at cs.umb.edu
[mailto:masshistpres-bounces at cs.umb.edu] On Behalf Of Michele P. Barker
Sent: Tuesday, November 27, 2012 12:08 PM
To: 'Marcia Starkey'; 'Garrett Laws'
Cc: masshistpres at cs.umb.edu
Subject: Re: [MassHistPres] CPA funds as loans rather than grants

Well, yes and no - the CPA funds would act kind of as a revolving loan, as
the CPA Committee would get the money back eventually and could then
re-grant or lend it to someone else. But in most CPA lending situations I've
seen, it's the applicant who sets up some sort of revolving loan program
using CPA funding - often for affordable housing - the CPA committee does
not administer the loans.

In the situation I'm dealing with, the applicant seeks a combination
loan/grant for one project, and will not be re-lending the funds to anyone
else. The CPA Committee would be the party who would administer the loan.

I hope that makes sense and doesn't make it more confusing!

Michele

Michele P. Barker

Circuit Rider

617-999-3256

mpbarker at preservationmass.org

Preservation Massachusetts

www.preservationmass.org

Old City Hall

45 School Street

Boston, MA 02108

From: Marcia Starkey [mailto:mdstarkey at crocker.com] 
Sent: Monday, November 26, 2012 5:36 PM
To: 'Garrett Laws'; mpbarker at preservationmass.org
Cc: masshistpres at cs.umb.edu
Subject: RE: [MassHistPres] CPA funds as loans rather than grants

This sounds like a revolving fund..could it be?

Marcia Starkey, Greenfield

From: masshistpres-bounces at cs.umb.edu
[mailto:masshistpres-bounces at cs.umb.edu] On Behalf Of Garrett Laws
Sent: Wednesday, November 21, 2012 1:02 PM
To: mpbarker at preservationmass.org
Cc: masshistpres at cs.umb.edu
Subject: Re: [MassHistPres] CPA funds as loans rather than grants

I would hope that there would a deed restriction to assure CPA repayment in
the event of the sale of the property. This is a potential way to get more
"bang for the buck" from CPA. 

Garrett Laws 

Copper & Slate Co. 

On Monday, November 19, 2012, Michele P. Barker wrote:

I'm wondering if anyone is aware of situations in which CPA funds have been
used as direct loans to applicants rather than grants.  I've got a situation
with an applicant whose project was tabled due to the CPA committee's
concerns about the cost of the project. The applicant is considering
re-writing their request to ask for a portion of the CPA money as a loan,
which could be paid back over time with matching grants and other
fundraising, in the hopes that might be more palatable to the committee.
They're hoping that if they agree to repay part of the CPA funds, they might
have a better shot at getting approved.

I checked the CPA online database and contacted the Community Preservation
Coalition, and we came up with two projects - the Ames Shovel Shops in
Easton, and an affordable housing project in Weymouth. I was wondering if
there might be some more out there that aren't identifiable as such from the
description in the CPA database.

Thanks!

Michele

Michele P. Barker

Circuit Rider

617-999-3256

mpbarker at preservationmass.org
<javascript:_e(%7b%7d,%20'cvml',%20'mpbarker at preservationmass.org');> 

Preservation Massachusetts

www.preservationmass.org

Old City Hall

45 School Street

Boston, MA 02108

-- 

Cheers,
Garrett

The Copper & Slate Company, Inc.
Fine Roofing and Exterior Finish Carpentry
238B Calvary Street,
Waltham, MA 02453
(781) 893-1916

Work we do:
http://picasaweb.google.com/copperandslate

Where we've worked over the years:

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69.00049065ef8543e1ef9c3&ll=42.40115,-71.126862&spn=0.125241,0.289421&t=h&z=
12>
http://maps.google.com/maps/ms?ie=UTF8&hl=en&msa=0&msid=20621031654190108386
9.00049065ef8543e1ef9c3&ll=42.40115,-71.126862&spn=0.125241,0.289421&t=h&z=1
2

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