MONTAGUE — Town officials engaged the public in discussion about potential American Rescue Plan Act (ARPA) funding uses, highlighted by an interest in creating affordable housing, during this week’s Selectboard meeting.
Town Administrator Steve Ellis led the discussion with a slideshow presentation that broke down allowable uses, budget specifics and town interests regarding Coronavirus State and Local Fiscal Recovery Funds (CSLFRF), a subset of the federal ARPA program. Projects eyed by the town include a Vactor sewer truck, which was estimated to cost $540,000 across a five-year lease term, and a Water Pollution Control Facility screw pump replacement, which is now quoted at $745,000. Town Planner Walter Ramsey also proposed creation of an “affordable housing fund,” which falls in line with public interest subsequently expressed.
Although no vote was taken on funding allocations, the Selectboard agreed to continue discussions on March 28. Montague’s first ARPA spending report is due April 30.
The town’s ARPA budget amounts to $2.45 million. Montague will receive this funding in two installments of $1.23 million, the first having already been received in June 2021 and the next expected in June 2022. This money, Ellis explained, can be spent to address documented negative economic impacts on small businesses, households, nonprofits and industry sectors; provide premium pay to essential workers; provide replacement revenue to offset pandemic-inflicted reductions; and make improvements to water, sewer, and/or broadband infrastructure.
Ellis highlighted the opportunity for the town to claim up to $10 million — or in Montague’s case, its entire $2.45 million allotment — as standard allowance for revenue loss under the United States Treasury’s “Final Rule.” This, he said, could be of significant benefit to the town due to standard allowance being “generally the most flexible category from a spending perspective.” Montague would need to declare ARPA funding as standard allowance by the April 30 reporting deadline, should the Selectboard decide to do so.
“It is a default assumption in most training conversations right now that smaller communities will take this route,” Ellis noted.
The Selectboard’s previous ARPA funding commitments include a $49,000 long-term combined sewer overflow control plan, a $52,000 collection system study with $250,000 on hold, and $18,450 for 1,000 COVID-19 test kits.
Ramsey opened the public suggestion period by advocating for money to support affordable housing, something he cited as “a slow-burning issue for many years” that has been “highlighted by the pandemic and the hot real estate market that followed.” His proposal was to not only establish a “dedicated funding strategy” to allocate money toward housing, but to set aside land for development. Previously, Ramsey and town officials held discussions regarding “Smart Growth Overlay Districts” on First Street and the former Railroad Salvage property at 11 Power St. that would contain 80 units of housing with at least 20% being classified as “affordable.”
“The private-market nonprofit housing developers, state and federal government all have ways of creating opportunities for people to find housing that is safe and affordable, but Montague also has a role to play in this,” he said. “Montague hasn’t been doing necessarily as much as it could be doing or as much as state law says it should be doing.”
Members of the public showed support for the idea.
“I am obviously very much in favor of the housing initiative,” commented resident Alice Armen.
“I think a lot of people are aware that the pandemic has made finding housing a bit of a crisis for people of many income levels, so anything we can do to support housing in Montague would be a really good investment,” Historical Commission member Janel Nockleby said.
Other topics of interest that arose included various library improvements and water and sewer work.
The Selectboard collectively voiced a desire to move forward in accordance with public interest. Vice Chair Chris Boutwell said the discussion will help guide the town’s focus. Board members agreed to continue discussions on March 28.
“We’ve heard a couple of valuable pieces of input,” Chair Rich Kuklewicz said. “I do think funding for affordable housing makes sense.”
Reach Julian Mendoza at 413-772-0261, ext. 261 or jmendoza@recorder.com.