Transfer and Future Sales of Former Group Homes Approved

Melrose took a step towards increasing its affordable housing stock on Monday when the Board of Aldermen approved a plan to sell off group homes on Lebanon and Trenton Streets, and then use the revenue from those sales to rehabilitate existing (MHA) properties and purchase more homes to convert to affordable apartments.

The aldermen had in an Appropriations Committee meeting. The plan involves a special act that requires approval by the state Legislature and Gov. Deval Patrick.

That act would authorize the transfer of residences at 499 Lebanon St. and 165 Trenton St. from the MHA—which runs government-subsidized public housing and locally administers the Section 8 federal housing subsidy—to the Melrose Affordable Housing Corporation, which owns maintains affordable housing in Melrose for low and moderate income families.

Then, the proceeds from the sale of each property would be be partially retained by the Melrose Housing Authority. Frank Giso of the Melrose Affordable Housing Corporation previously told the aldermen that the first $379,763 of net proceeds generated from the sales would be remitted to the MHA for the repair of its low-income family units.

The remainder of the sales' net proceeds would be used by the Melrose Affordable Housing Corporation to purchase two-family homes as they become available at a price that fits the model the Corporation uses to acquire properties.

The Corporation, which currently owns nine affordable housing units in Melrose, expects to take in upwards of $800,000 from the sale of the two properties.

The former group homes being sold include, in total, 16 bedrooms. Giso had estimated that the purchase of new homes should create 24-26 bedrooms of affordable housing in Melrose.