189-191 Hamilton St — Decision Report

Three-Scenario Comparison

Cash Flow at Key Milestones

Scenario B · Moderate

Steve's Transition — Before & After

Steve's transition is the single biggest financial event in this model. Three things change at once.

Construction Risk

Assumptions Snapshot

Next Steps — Cambridge, MA

• 01Engage elder law attorney for trust/LLC structureWeek 1-2
  The financial model supports a perpetual hold. The legal structure needs to match. An irrevocable trust or LLC holds the property outside probate.
  • Research elder law attorneys in Cambridge/Boston area
  • Schedule initial consultation (bring this report)
  • Decide structure: irrevocable trust vs. LLC vs. deed restriction
• 02Verify affordable rent limits with Cambridge housing authorityWeek 1-2
  Confirm current AMI limits and published rent ceilings for Cambridge. The model uses HUD published rents, but local programs may have different thresholds.
  • Contact Cambridge Housing Authority for current AMI schedule
  • Cross-check model's rent tiers against official limits
• 03Apply for CPA-28 property tax exemptionWeek 3-4
  Cambridge's Community Preservation Act surcharge may qualify for exemption if units are deed-restricted affordable. Improves cash flow by ~$800-1,200/yr.
  • Confirm deed restriction requirements with city assessor
  • Gather documentation (affordability commitment, rent rolls)
  • Submit CPA-28 exemption application
• 04Contact Cambridge Affordable Housing Trust for gap fundingWeek 3-4
  CAHT provides grants and loans for preservation of affordable units in small properties. If the model shows a gap at lower AMI tiers, this is the bridge.
  • Review CAHT funding eligibility and application timeline
  • Prepare project summary with this report's financials
  • Submit inquiry or application to CAHT
• 05Get updated insurance quotesWeek 2-3
  Insurance costs have spiked 150% industry-wide since 2019. Current quotes may differ significantly from model assumptions. This is the single biggest cost risk.
  • Request quotes from 3 insurers for the property as-is
  • Request quotes assuming deed-restricted affordable (may qualify for different rates)
• 06Appraise renovation scope and costWeek 4-6
  The model uses $175/sf as default. Get a real bid to validate or adjust. Scope drives everything downstream.
  • Walk the property with a contractor for scope assessment
  • Get written estimate and timeline
• 07Draft Steve's care plan and transition timelineWeek 4-6
  The model assumes Steve lives in Unit 1 for 7 years. His actual health, preferences, and care needs should drive this number, not an assumption.
  • Discuss care preferences and timeline with Steve
  • Consult with care coordinator or geriatric specialist
• 08Explore MassHousing or DHCD preservation programsWeek 6-8
  State-level programs may offer low-interest loans, technical assistance, or capital for small multifamily preservation. These can close the viability gap at lower AMI tiers.
  • Research MassHousing small property preservation programs
  • Check DHCD Community Investment Tax Credit eligibility
• 09Run final model with verified inputsWeek 8-10
  Replace assumptions with real numbers from steps 2-8. Regenerate this Decision Report with verified data. This becomes the basis for legal structuring.
  • Update all sliders with verified inputs
  • Generate final Decision Report and save shareable link
• 10Share final report with all advisors and schedule decision meetingWeek 10-12
  Everyone at the table needs to see the same verified numbers. One meeting, one report, one decision.
  • Send final report link to attorney, financial advisor, housing counselor
  • Schedule decision meeting with all parties
  • At meeting: agree on AMI tier, legal structure, and timeline