The Other Spencer Trust

There’s been a lot of discussion in Barrington lately regarding the Amey Tucker Spencer Trust Fund (Spencer Trust), and the approximate $84,000 per year that can be used to help low income residents with financial emergencies such as supplemental heating assistance. 

For eight years, the Spencer Trust was well known to town officials, but not residents.  The trust sat on the shelf for the first 2 ½ years, and even after funds finally started flowing in June, 2007, it was used mostly to cover projects of interest to the town council.  

There is another program in Barrington similar to the Spencer Trust that helps residents with home repairs and upgrades.  The Community Development Block Grant (CDBG) program is designed to provide needy residents with financial assistance for home repairs, and funded by the US Department of Housing and Urban Development (HUD).  

A Barrington resident could learn a lot about this HUD program by going to another town’s website since Barrington has nothing on it's own town website that walks a resident through the program.  The Town of Smithfield’s website is a good choice to get information.  Just type in the keyword “CDBG” at their town website to find the “Smithfield Housing Rehabilitation Program”.

I spoke to Smithfield’s Town Planner, Michael Phillips, about the Housing Rehabilitation program.  He said that resident’s use up the available funds within a couple of weeks after they arrive annually. 

This brings up a question - why would Barrington’s next CDBG application for $250,000 be dedicated to affordable housing projects and developers, instead of Barrington's home repair program? 

On March 8, 2013, Barrington Town Planner, Phil Hervey, held a Public Hearing on the $250,000 submission for Barrington's next CDBG request.  Walker Farms developer, West Elmwood Housing, also attended the meeting and spoke to residents to promote their position that most of the CDBG funds should be allocated to subsidize the sale of the three remaining homes for sale at Walker Farms.  The presentation left many questions unanswered, including: Why wasn’t West Elmwood Housing applying for these funds to the proper funding agency, the RI Housing Resources Commission?

The record shows that prior subsidies at Walker Farms came from five sources:

1) A Spencer Trust disbursement not paid back to the Spencer Trust of approximately $10,000 for Walker Farm land development.

2) A no-interest loan from the Spencer Trust on behalf of West Elmwood Housing, which was paid back, but resulted in an investment loss to the Spencer Trust.

3) Barrington CDBG funds of $500,000 to purchase the Walker Farm land from the Souza estate on November 14, 2007.

4) RI Housing Resources Commission - The Home Investment Partnership Program in the recorded amount of $600,000 (as recorded in Barrington land records).

5) RI Housing Resources Commission - The Building Homes RI Agreement in the recorded amount of $715,000 (as recorded in Barrington land records).

The two above programs from the RI Housing Resources Commission were used to subsidize each prior sale allowing the buyers of various income levels to make an affordable purchase. 

Where did the funds go?  The record of deed transfers in the town hall indicates many financial matters that are not adding up.  For example, the record indicates that the Building Homes RI Agreement should still have available funds.  West Elmwood Housing was questioned about this in the March 8th meeting, but they were unable to provide an explanation based on numbers or facts.  

West Elmwood's request for Barrington’s limited CDBG funds has not been properly thought through by our Town Planner.  At the moment, there is little in the way of HUD required financial transparency in the request.

What should residents demand?  Before the next CDBG public hearing, there must be answers explaining why the RI Housing Resources Commission has not been asked to fund West Elmwood’s request for more subsidy money, and also, why is the CDBG program not being promoted in favor of residents?

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