HomeMy Public PortalAboutWatertown HP DRAFT 11-12-20 Clean STAFF DRAFT:WATERTOWN HOUSING PLAN
Housing Plan
Town of Watertown
November 2020
STAFF DRAFT:WATERTOWN HOUSING
Table of Contents
ExecutiveSummary....................................................................................................................1
Introduction.................................................................................................................................
I. Current Housing Needs.........................................................................................................
A. Characteristics of the Population and Households.................................................
B. Housing Characteristics and Trends..........................................................................
C. Housing Market Characteristics..................................................................................
II. Development Regulations,Trends,Funding Sources and
Constraints...........................................................
A. Residential Zoning..................................................................................................
B. Development Trends................................................................................................
C. Funding Sources for Affordable Housing
D. Natural and Physical Constraints................................................................................
II. Existing Watertown Plans.......................................................................................................
A. Promote and maintain a diverse housing stock with increased funding for housing
creation and more opportunities for lower-and middle-income households......
B. Ensure zoning allows for housing production for all income levels and household
types...................................................................................................................................
C. Provide seniors and persons with disabilities with greater housing options..........
IV. Housing Production Goals and Strategies............................................................................
V. Implementation Plan...............................................................................................................
Attachments...........................................................................................................................................
1. Glossary.........................................................................................................................
2. Area Median Income Chart.........................................................................................
3. Affordable Rents Chart.................................................................................................
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STAFF DRAFT:WATERTOWN HOUSING
EXECUTIVE SUMMARY
[TO BE DRAFTED WHEN PLAN IS SUBSTANTIALLY COMPLETE]
WATERTOWN HOUSING PLAN
Introduction
In January 2014,Watertown issued a Housing Production Plan prepared by the Metropolitan
Area Planning Council and approved by the Massachusetts Department of Housing and
Community Development(DHCD).' A Housing Production Plan sets the community's strategy
for complying with Chapter 40B,the 1969 state law requiring every municipality to provide
sufficient deed-restricted affordable housing.
In 2019,as the Watertown Housing Partnership was working on an update of the 2014 plan,
Watertown met its obligations under Chapter 40B through the 1.5%land area threshold.'
Although the community has met its Chapter 40B statutory obligation,a demonstrable need for
additional housing at a variety of income levels remains unmet. Accordingly,the Partnership
decided that it would propose a comprehensive housing strategy for the next five years(2021-
2025). As set forth below,this strategy starts with renewed focus on housing for those most in
need—but also includes creation of housing that works for households at varying income levels.
In formulating this plan,the Partnership considered input provided over the last two years at
various meetings of the Partnership and the Town Council's Human Services Sub-Committee,
as well as the extensive outreach done by the Community Preservation Committee in 2020 as it
developed Watertown's plan under the Community Preservation Act(CPA). The Partnership
also incorporated comments received when the Housing Plan draft was made publicly available. Commented[LF1]:This sentence anticipates opportunity
for public comment this fall.
DHCD approval means the plan document meets the requirements set forth in its Chapter 40B regulations.
z A community can comply with Chapter 40B through either the land area metric or the more well-known 10%
threshold,i.e.that 10%or more of the year-round housing stock is deed-restricted affordable housing.
Watertown's status under Chapter 40B is discussed further at
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STAFF DRAFT:WATERTOWN HOUSING
The plan contains:an assessment of Watertown's housing needs;a description of its zoning,
development trends,funding sources,and constraints;places the current plan in the context of
Watertown's 2015 Comprehensive Plan and the 2014 Housing Production Plan;sets goals and
specific strategies;and includes an implementation plan for the next five years. This Plan is
intended to be read by both housing experts and by a wide variety of Watertown residents.
Since affordable housing is a particularly technical field,a glossary of terms is included.
I.Current Housine Needs3
Watertown's housing needs are shaped by its population(size,age distribution,racial and
immigrant profile,and household income distribution)and its housing market(existing housing
stock,subsidized housing inventory,rent and home price trends,and the affordability of its
housing compared with household income). Watertown is also part of a region—Greater
Boston—and an inner core of communities just outside the City of Boston. Many of the recent
trends discussed below flow from Watertown's relative affordability in the region as the
economy has boomed and housing costs have soared. Whether and how that continues is
unusually uncertain with the trauma of COVID-19 still part of our lives.
A.Characteristics of the Population and Households
1. Population Growth
Watertown's population peaked in 1960 at about 40,000 residents but then declined to 31,915
in 2010. The population has since stabilized and increased. Watertown was estimated to
house 35,939 residents as of July 1,2019(U.S.Census Bureau Quick Facts). The period since
2010 marks the first decade since the 1950s that Watertown has experienced population
growth. This growth already exceeds the projections(31,395 by 2020 and 32,297 by 2035)used
3 The data in this section comes from a variety of federal,state and local sources. Them a in source is the U.S.
Census Bureau's American Community Survey,5-year estimates(2014-2018). In order for the Census Bureau to
provide data between the census years,it samples data on a rolling 5-year basis. Because this is sampling and not
a full count,there is both a margin of error and inclusion of data over a 5-year period.
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STAFF DRAFT:WATERTOWN HOUSING
in Watertown's 2014 Housing Production Plan. Future development in the pipeline suggests a
continuation of this recent trend over the next five years.
Figure 1
Population change
Watertown
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Source:U.S.Census Bureau Population Estimates Program MHP
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The recent increase in Watertown residents is consistent with the growth in the City of Boston
and more generally in Greater Boston. Watertown has grown more in the last decade than
most of its neighboring communities.'
2.Aize Distribution of Population and School Enrollment
Watertown's population is currently skewed towards adults in the 25-35 and 60+ranges.
°Watertown's population growth over the last decade is approximately the same as in Boston and Cambridge,and
is above that in Arlington,Belmont,Brookline,Newton and Waltham.
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STAFF DRAFT:WATERTOWN HOUSING
There is also a much lower percentage of school-age children than the state average(although
this may change,as there is a higher percentage of children under the age of 5). This profile
matches the"Millennial Peak"archetype used by the Massachusetts Housing Partnerships and
reflects Watertown's appeal to Millennials looking for a more affordable place to live within
Greater Boston's inner core.While Watertown also has a slightly higher percentage of those at
or above 60,this is consistent with aging trends throughout the state and is not as pronounced
as in many other communities.
Figure 2
Aga distribution of Waterlo n's population
Compared to Millennial Peak archetype
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s MHP has identified six population topologies that comprise all Massachusetts towns and cities.(See
www.datatown.mho).
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STAFF DRAFT:WATERTOWN HOUSING
Figure 3
School aged children by enrollment type
Watertown
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The age distribution in Watertown is a major factor in the town's stable school enrollment.
Most households in Watertown do not include children. The percentage of family households
with children in 2010 was 20.5%,and is estimated at 21.8%in 2018.
3. Race.Ethnicitv,and National Origin
Consistent with trends experienced across the state,Watertown is becoming more racially and
ethnically diverse.Over the last ten years,the share of Caucasian residents decreased while
the share of Asian and Hispanic residents increased.Compared to the state overall,
Watertown has a significantly smaller share of African American residents and a slightly
greater share of Asian or Pacific Islander residents.
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STAFF DRAFT:WATERTOWN HOUSING
Table 1:Race and Ethnicity
Watertown Massachusetts
2010 2018 2010 2018
Asian or Pacific
Islander 7.3% 8.5% 5.3% 6.5%
Black or African
American 3% 2% 6.6% 7.5%
White or
Caucasian 84.9% 83.6% 80.4% 78.5%
Other(including 2.1% 3.7% 5.1% 4.4%
American Indian or
Native)
wo or more
races 2.7% 2.1% 2.6% 3.1%
�Hispanic or
Latinx any races 5.3% 9.7% 9.6% 11.5%
Source:2010 Census,American Community Survey 5-Year Estimates 2014—2018
Watertown also has a relatively high percentage of foreign-born residents,with a 2018 ACS
estimate that 20.6%were born in another country and that 28%speak a language other than
English at home. Based on 2014-2018 ACS data,about 3%of Watertown households are
limited in their ability to speak English.Limited English language proficiency in these
households may affect their ability to find suitable housing.
4. Individuals with a disability
About 10.9%of Watertown households have at least one individual with a disability.'While this
percentage is slightly higher than in most surrounding communities,it is consistent with state-
wide numbers(about 12%). It is important to consider this population because they often need
housing that is accessible and comes with supportive services. In addition,such households are
6 The percentages in this chart will not add up to 100%because the Hispanic/Latinx percentages are independent
of the preceding percentages.
The most common disabilities are:ambulatory,cognitive,vision,difficulty with independent living or self-care.
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STAFF DRAFT:WATERTOWN HOUSING
more likely to be economically vulnerable. Approximately 45%of these individuals are
unemployed or not in the labor force,while more than 65%of those over 16 years old in
Massachusetts are employed. (Source:American Community Survey 5-Year Estimates 2014-
2018).
The percentage of those with a disability steeply increases with age,which suggests that with
Watertown's growing 60+population,this factor will continue to be important for the Town to
consider in its housing policy.
Table 2:Age Distribution of Watertown Residents with a Disability
Age Percent of age
group with a
disability
Under 17 3.3%
18 to 64 7.5%
64 to 74 17.2%
Over 75 53.7%
Source:American Community Survey 5 Year Estimates 2014—2018
5.Household Income
The median household income in Watertown was estimated at$97,929(ACS,5-year estimates,
2014-2018). This is slightly above the same metric in Middlesex County as a whole but below
most of our more affluent neighbors.'Median household income,however,obscures the very
real differences between households in Watertown and in our region.
The age of household members strongly predicts median income with younger and older
households earning significantly less than the median:
$We are below Arlington,Belmont,Brookline,and Newton,and above Boston,Cambridge and Waltham.
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STAFF DRAFT:WATERTOWN HOUSING
Table 3:Age and Median Income among Watertown Residents
Age Median Income
15-24 years $41,346
65 years and over $57,616
Source:American Community Survey 5 Year Estimates 2014—2018
Living as a female alone with children is a strong predictor of lower median income:
Table 4: Household Types,Children and Median Income among Watertown Residents
Household type Median Income
Families with children under 18 $163,111
Male with children under 18 $91,957
Female with children under 18 Below$57,750
Source:American Community Survey 5-Year Estimates 2014—2018
There are also significant differences in household income by race. While Watertown's median
household income was estimated at$97,929,Latinx households were at$89,770 and Black
households at$82,037.
Finally,as is true in many Massachusetts communities,there is a significant difference between
the incomes of renters and homeowners in Watertown.The median income of renter
households in Watertown was estimated at$80,855,while the median for owner households
was estimated at$120,165.A significant portion of renter households have very modest
incomes.Approximately 26%of these households are estimated to have incomes of less than
$50,000 annually and about 14%have incomes of less than$25,000.
Table 5: Household Income Distribution for Watertown Renters
Household Income I Percent of Households
$0--24,999 14.40%
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STAFF DRAFT:WATERTOWN HOUSING
$25,000 49,999 11.70%
$50,000 74,999 18.20%
$75,000 99,999 16.00%
$100,000--$149,999 23.70%
$150,000+ 15.80%
Source:American Community Survey 5 Year Estimates 2014—2018
A significant percentage of Watertown households fall within the income limits used for
determining eligibility for affordable housing programs.9 The income limits used for most
federal and state housing assistance programs are as follows:
• Extremely low income households(ELI)—Earn at or less than 30%of area median
income(AMI),adjusted for household sizelo
• Very low income households(VLI)—between 30%and 50%of AMI
• Low-income households(LI)—between 50%and 80%of AMI
In addition,households with incomes from 80%to 100%of area median income are considered
"Moderate-income households(MI)"and are eligible for community housing that is funded
through the Community Preservation Act(CPA). However,units subsidized for households at
this income level are not eligible for inclusion on the Subsidized Housing Inventory."
The percentage of households in Watertown earning less than 80%of area median is about
31.5%.An additional 9.6%of households in Watertown qualify for moderate income housing,
s While the starting point for these income limits is area median income data from the U.S.Census,there are many
adjustments made by the U.S.Department of Housing and Urban Development(HUD). One cannot use the income
distribution discussed earlier to determine the percentage of Watertown households falling into the HUD
categories identified here.
10 Income limits differ by household size because that income must cover the costs of more household members as
the household grows in size. For example,30%of AMI for a one-person household is$26,850 while 30%of AMI for
a four-person household is$38,350(2020 HUD income limits).
"The Subsidized Housing Inventory(SHI)is used to determine whether a community has met Chapter 406's
requirement that 10%of each community's year-round housing be deed-restricted affordable housing. Chapter
40B is discussed further at_
11
STAFF DRAFT:WATERTOWN HOUSING
which can be funded through CPA,because they earn between 80 and 100%of AMI.The share
of households eligible for affordable housing in Watertown is significant and similar to
surrounding communities12 but smaller than the state-wide percentages.
Table 6: Households by Qualifying Housing Income Limits
ELI VLI LI MI
Households Household Households Households
(Watertown:#of 1,830 1,010 1,940 1,455
Watertown:%of all 12.1% 6.7% 12.8% 9.6%
Households
Massachusetts:#of 415,190 295,095 349,305 241,950
Households
Massachusetts:%of all 16.1% 11.4% 13.5% 9.4%
Households
Source:2013 2017,Comprehensive Housing Affordability Strategy Data
Using a four-person household as the benchmark,an "Extremely Low Income"family is
earning at or less than$38,350 and a "Very Low Income"family is earning$63,950(2020
HUD income limits). To put these income levels in context,many of the households in the
"Extremely Low Income"and"Very Low Income"tiers are working in healthcare support,
food preparation and service,and other major low wage occupations.13
B. Housing Characteristics and Trends
1. HousinR Unit TvDe
While most of Watertown's land area is occupied by one-and two-family homes,it also has a
12 The WestMetro HOME Consortium's Analysis of Impediments to Fair Housing puts the percentage at 31.5%for
its 13 communities(including Watertown).
13 Healthcare support,which employs almost 200,000 workers in the state,has a mean annual wage of$35,348.
Other major occupations with low wages include food preparation and service at$32,320;building and
grounds/maintenance at$38,270;personal care and service at$38,830;transportation at$40,930;and production
at$44,050. U.S.Bureau of Labor Statistics,May 2019 State Occupational Employment and Wage Estimates for
Massachusetts.
12
STAFF DRAFT:WATERTOWN HOUSING
significant percentage of larger apartment and condo buildings. Approximately 33%(5,332)of
all housing units are single family homes,and an additional 34%(5,495)are 2-family homes.
Approximately 9%(1,472)are in 3-4 unit buildings.The remaining 23%(3,724)of homes are in
buildings with 5 or more units. Many of the larger apartment and condo buildings have been
added since the Great Recession,as discussed in Section IIB below. Just under 50%of the
Watertown housing stock is renter-occupied.This is slightly higher than the state average and
has been growing in the last decade.
Figure 4:
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STAFF DRAFT:WATERTOWN HOUSING
Tenure Mix
Watertown v. Massachusetts
Owners . Renters
!ao ,
75i, 52.00%
8,062 62.3%
1,621,053
50%
25%• 48.00%
7.436 37.7%
980,861
or
Watertcwn Massachusetts
Source:U.S.Census Bureau American Community Survey,2014-2018 5-year estimates.
MHP
Table DP04:Selected Housing Characteristics
xo�sn�am
Household size,which fell between 2000 and 2010 as noted by the 2014 HPP,is now
estimated to be at 2.24 persons per household(2018 5-year ACS estimate). This is consistent
with a similar decline and recent rise in household size at the state-wide level.
2. Age of Housing Stock
About 80%of the housing in Watertown was built prior to 1979 and over 43%was built before
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STAFF DRAFT:WATERTOWN HOUSING
World War II.This is a much larger share than in similar communities nearby,or statewide.The
age of the housing stock can present challenges related to accessibility and the presence of
lead paint,among other considerations.
Table 7:Year Built
2014 or later 2010-2014 2000- 1980-19991960-1979 1940---1959 1939 or Earlier
or Later 2009
Watertown 1.1% 1.2% 7.7% 10.5% 15.1% 20.9% 43.5
Massachusetts 1.0, 1.6% 7% 18.6 N 22% 17', 317,,
Source:American Community Survey 5-Year Estimates 2014—2018
3. Subsidized Housing Stock
Watertown has 1,171 units of affordable housing included on the State's Subsidized Housing
Inventory(SHI).These units meet the requirements of the state's affordable housing law
(Chapter 40B)and are operated and maintained as affordable through long-term deed
restrictions,covenants,regulatory and operating agreements,or other restrictions.Occupants
of this housing must meet income eligibility requirements and the government regulates rents
or sales prices. This figure includes the 589 public housing units operating by the Watertown
Housing Authority.14 It does not include an additional 72 inclusionary units under
construction."
Watertown has complied with Chapter 40B through one of the two statutory benchmarks. The
most recognized metric is for at least 10%of the year-round housing units to be deed-restricted
"affordable"units for households earning up to 80%of area median income. Watertown is
presently at 7.54%.16 The alternative metric is for 1.5%of its land area to be devoted to
affordable housing as defined in Chapter 408. DHCD agreed in December 2019 that Watertown
14 There are 539 state-funded public housing units and 50 federally-funded units. The Watertown Housing
Authority is proposing to convert the 50 federal units into Section 8 project-based vouchers.
is Units under construction include 45 at Arsenal Yards,8 at 385 Pleasant Street,15 at 330-350 Pleasant Street,
and 4 at 101 North Beacon).
"The year-round housing count as of 2010,used in the SHI calculation throughout the decade,was 15,521 units.
This figure will change when the 2020 Census is published,increasing the year-round count and changing
Watertown's percentage of SHI units.
15
STAFF DRAFT:WATERTOWN HOUSING
was at 2.07%and therefore met the"General Land Area Minimum."
Although there are affordable units in Watertown on the Commonwealth's Expiring Use
Inventory,these units are not presently at risk. Brigham House(46 assisted living units)is
covered by a regulatory agreement and a local permit restricting use of the property. Saint
Joseph Hall(25 units)is a Community Housing Development Organization and HOME-assisted
property.
Watertown's affordable units vary in the type of household they are targeted to support. The
589 public housing units serve as a safety net for seniors and families with the lowest incomes
(327 and 228 units,respectively,as well as and 35 units for individuals with special needs). On
the other end,the rental and ownership units created through Watertown's inclusionary zoning
ordinance generally support households that are between 60 and 80%of area median income.
Overall,48%of our subsidized units are in public housing,28%are inclusionary units in market
rate developments,and 31%are in other categories."The number of inclusionary units is
certain to grow while it is unlikely that the number of public housing units will increase because
federal and state policy has shifted away from that model. Appendix is a complete list of
units currently listed on the Subsidized Housing Inventory.
C. Housing Market Characteristics
1. Rent and Home Price Trends
Like all of Greater Boston,Watertown has experienced a significant increase in the price of both
rental and homeownership opportunities over the last 20 years and particularly since the Great
Recession ended in 2009. Most researchers have agreed that housing costs have been rising in
the region because of population and job growth,changes in preferences for household size
11 Most of these are in 100%affordable developments such as St.Joseph's Hall or Brigham House,but 15 are single
family homes.
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STAFF DRAFT:WATERTOWN HOUSING
and location,and housing production that has not kept up with this demand.18 Rising housing
costs have put pressure on households at most income levels throughout the region. Many
households must rent for the long-term,as they are unable to buy. Households that cannot
afford to rent or buy where they presently live will look for communities that have historically
been more affordable. This,in turn,has increased demand in those more affordable
communities(such as Watertown).
Based on 2018 ACS 5-year estimates,over 72%of Watertown renters were paying over$1,500
in gross monthly rent. This is significantly more than just two years before(62%)and six years
before(52%).
At the same time,the median sales price of homes in Watertown has increased substantially
since the Great Recession. By one measure—median home value as estimated by the U.S.
Census—values have risen 25%from 417,000 in the 2011 5-year estimate to$521,700 in the
2018 5-year estimate. Zillow estimated the July 2019 median sale price for a single family
home at$733,000 and the median price for a condominium at$546,000.19
How unattainable is homeownership in Watertown to a renter? The table below shows that
there is a substantial gap between what a household with median income can afford and what
is available to them. This"price gap"means even a relatively affluent individual or family must
stay in the rental market(or look elsewhere). Even with this large price gap,Watertown is
18 See,e.g„The Greater Boston Housing Report Card 2019,Supply,Demand and the Challenge of Local Control,
httos://www.tbf.orR/news-and-insights/reports/2019/iune/greater-boston-housing-report-card-2019;Urban
Institute,Housing and Housing Finance June 2018,httr)s://www.urban.orR/urban-wire/bostons-housing-market-
three-charts;Glaeser EL,Ward BA.The Causes and Consequences of Land Use Regulation:Evidence from Greater
Boston(2006).
19 The U.S.Census and firms like Zillow estimate value or sales price.While actual Watertown data could be
compiled or purchased and be more accurate,it would not change the conclusion that home prices are rising
substantially.
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STAFF DRAFT:WATERTOWN HOUSING
considered more affordable for buying a home than many communities in the region.20
Table 8:Gap between Income and Price Facing Watertown Renters Trying to Buy
Single Family Affordable Median Sales Price Price Gap
to Renter Earning Median Single Family(2018)
Household Income(MHI)
$382,900 $650,000 $267,100
Condo Median
Affordable to Renter Sales Price
Earning MHI Condo(2018)
$314,700 $519,900 $205,200
Sources:The Warren Group and DataCommon 2014-2018 American Community Survey
2. Housing Cost Burden and Affordability Analvsis
One of the most common measures of housing need is whether a household is cost-burdened,
i.e.whether more than 30%of their gross income is spent on housing.21 About 37%of
Watertown renters are cost-burdened,while about 28%of owners are in that situation.
Because cost burden is a direct reflection of household income,the impact of being cost-
burdened is more acute for lower-income households that have fewer financial resources
available to meet other necessary household expenses(food,transportation,health care,
student loans,etc.). Tables _below show the incidence of cost-burdened households in
Watertown across different income groups.While households are cost-burdened across all
income groups,most striking is the very high incidence of housing cost burden among those
with the lowest incomes. Between 65 and 80%of Watertown residents at the two lowest
income levels are cost-burdened.
20 This analysis comes from the WestMetro Consortium's 2012-2025 Consolidated Plan and is based on 2018 data.
Within the 13 WestMetro communities,Watertown's price gap is 12'h for single families and 11'h for condos.
21 As discussed earlier,cost burden is measured as the share of household income that is spent on housing,
whether total ownership costs or total rental costs.Households spending more than 30%of their gross income on
housing are considered cost•••burdened;households spending more than 50%of their gross income on housing
are considered severely cost-burdened.
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STAFF DRAFT:WATERTOWN HOUSING
Table 9:Cost Burden Incidence by Household Income Group for Renting Households
ELI VLI LI MI HI Total
#renting households in income group 1,070 595 1,175 705 3,710 7,250
#of cost-burdened households in income group 695 415 860 405 135 2,510
%of cost-burdened households in income group 65% 69.7% 73.2% 57.4% 3.6% 34.6%
Source:Comprehensive Housing Affordability Strategy Data,2013-2017
Table 10:Cost Burden Incidence by Household Income Group for Ownership
Households
ELI VLI LI MI HI Total
#households in income group 760 415 765 750 5,215 7,910
#of cost-burdened households in income group 605 335 295 400 630 2,265
%of cost-burdened households in income group 79.6% 80.7% 38.6% 53.3% 12.1% 28.6
Source:Comprehensive Housing Affordability Strategy Data,2013-2017
3. Impact of COVID-19 Pandemic
The COVID-19 pandemic that struck the world in March 2020 is likely to have major short-term
implications for tenants and owners and may have long-term implications on the housing
market. With substantial job lay-offs starting in spring 2020,it remains unclear whether many
renters and owners will be able to pay their rents and mortgages. Depending on the
pandemic's course and government intervention�22 there may be significant housing instability. commented[FL2]:Specifics on state and local(ERA
program and CRF)actions are in footnote. Update may be
Concern about a surge in evictions has been raised by many housing market observers.At the needed.
same time,vacancy rates are reportedly rising and rents are softening in some market
segments. For the longer-term,there has been informed speculation that developers and
lenders may be more cautious about new residential projects.
II. Development Regulations,Trends, Fundingr Sources and Constraints
"In addition to the federal CARES Act,the Commonwealth established an eviction and foreclosure moratorium on
April 20,2020(which expired,after one extension,on October 17)and provided additional help through the
Rental Assistance for Families in Transition(RAFT)program. When the moratorium expired,the Commonwealth
launched an"Eviction Diversion Initiative'combining more rental assistance and mediation/legal representation to
lessen evictions. The Watertown Housing Partnership launched an emergency rental assistance program in
September 2020 with$175,000 in Community Development Block Grant program income;this assistance helped
_households over three months. On the private and non-profit side,the Community Resilience Fund used
$73,000 to provide emergency rental assistance to 50 households in need.
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STAFF DRAFT:WATERTOWN HOUSING
A. Residential Zoning
Residential uses are permitted in Watertown either by right,or through a special permit
process,within 11 zoning districts. The majority of this land allows only for single-family and
two-family structures. However,Watertown has been notable in Greater Boston for creating
two new and substantial multifamily zoning districts. The Arsenal Street and Pleasant Street
corridor districts have been cited as leading examples of planned and well-located"growth
districts."23
The zoning districts that allow housing are described below,followed by separate sub-sections
that cover parking requirements,design guidelines and standards,and inclusionary housing
requirements that apply to some or all of these districts.
1. Sinfle-and Two-Family Zoning Districts
The single-family S-6 and S-10 zoning districts are intended only for single family residential
structures.The S-6 district,which sets a minimum lot area of 6,000sf per dwelling unit,allows
for greater densities(approximately 7.25 units per acre)than the S-10 district,which sets a
minimum lot area of 10,000sf per dwelling unit(approximately 4.4 units per acre).24
The two-family zoning district(T)makes up nearly a third of all land in Watertown and allows
for single and two-family dwelling units with a minimum lot area of 5,000sf(approximately 14
units per acre).
The SC zoning district allows single-family conversion to a two-family structure and new two-
family structures,with a Special Permit.
23 Amy Dain,The State of Multi-Family Zoning in Greater Boston,93-95(June 2019)https://ma-
smartRrowth.oriz/resources/resourcesreports-books/.
24 There is also a Cluster Residential District which has an intensity of use similar to the S-10,but is limited to two
areas(Oakley Country Club and the former Rosary grounds).
20
STAFF DRAFT:WATERTOWN HOUSING
Since nearly all parcels within these districts have already been developed, most of the recent
activity in these districts has been either intensifying the existing uses(e.g.,conversions to two-
family,dormers and additions)or tear downs of single-families within the T zoning district on
lots where housing is allowed(5000 sf.or larger with 50 feet of frontage).
2. Multi-familv Zoning Districts
There are two multi-family zoning districts within Watertown.The R.75 allows multi-family
development up to.75 FAR,and the R1.2 allows for a higher density multi-family residential up
to 1.2 FAR. However,although these are multi-family districts,only single-and two-family
development is allowed as of right.Any development of 3 or more units requires a special
permit—3-4 units require a special permit,and 4 or more units requires a special permit with
site plan review.
3. Pleasant Street Corridor District(PSCD)
The Pleasant Street Corridor District(PSCD)was adopted in 2008 to encourage redevelopment
of this industrial corridor with more focus on urban design and placemaking.25 A key goal within
the corridor is to"facilitate a mix of uses including residential,office,research and
development..."and it allows for multifamily residential of 4+units by special permit with site
plan review. After this area resulted in significant residential development without a mix of
uses,amendments were adopted in 2015 to encourage several commercial clusters along the
corridor.
The amendments created three sub-districts:PSCD-2 requires residential projects to include a
commercial component of at least 15%of the gross floor area; PSCD-3 allows for a mix of uses
and does not allow for residential;and PSCD-1,consisting of the remaining parcels,allows
residential use with changes in dimensional and other requirements.The base zoning for PSCD-
"While residential had been allowed in the 1-3 corridor by special permit since 1988,the PSCD substantially
changed the applicable zoning.
21
STAFF DRAFT:WATERTOWN HOUSING
1 provides for FAR of 1.0,with a maximum of up to 1.5 by special permit if certain development
incentives are met. The base zoning for PSCD-2 allows FAR between 1.0 and 2.0 if the
development incentives are achieved. Both sub-districts require a minimum of 1000 square
feet/unit.
The PSCD offers adjustments to dimensional requirements and/or parking requirements to
projects that achieve one or more of six specified goals: (1)a minimum of 50%of the
designated open space is"publicly usable,"(2)a"significant contribution"for connections to
the bike path along the Charles River,(3)underground or structured parking,(4)a
demonstration of reduced demand for cars(for example,by offering sheltered bicycle parking,
participating in a shuttle service,or constructing an on-site bus stop)(5)"significant
conformance"with design and environmental sustainability guidelines,and(6)"development
of desirable uses"at"key opportunity sites"designated in the corridor plan.
4. ReRlonal Mixed-Use District(RMUD)
The Regional Mixed-Use District was created in 2016 for"transformative development"with a
"mix of larger and smaller scale retail,office,hospitality,multifamily residential and research
and development uses"in a"major gateway." The district is intended to be of sufficient scale
and range of uses to serve regional demand. With respect to housing,the district is intended
to provide a"continuum of housing options"with"opportunities for lower-and middle-income
households"as one of the particular goals.
While development in the RMUD ordinarily requires a special permit,26 applicants may seek a
Master Plan Special Permit with site plan review if the proposed project site is over 2 acres.
Under this alternative process,there is approval of a proposed master plan which determines
land uses(including mass and scale)and then site review as particular elements are ready for
2e There are some by-right uses,such as a drive-in bank or light industry of less than 4,000 square feet. However,
none of these uses can exceed a 1.0 FAR without seeking a special permit or Master Plan Special Permit.
22
STAFF DRAFT:WATERTOWN HOUSING
permitting. Applicants may propose a FAR of up to 2.0. There is no minimum lot size per
dwelling unit.
5. Other Relevant Zoning Districts
There are three business zoning districts in Watertown—Neighborhood Business(NB),Limited
Business(LB),and Central Business(CB).The NB and LB districts allow multi-family residential
of 3 or more units by special permit,and 4+units by special permit with site plan. Multifamily is
allowed as of right in the CB district as long as the first floor is used for retail and other business
purposes.All business districts also allow mixed-use structures with up to three residential units
by special permit,or mixed-use structures with four or more units by special permit with site
plan review.
Multi-family and mixed-use residential development are allowed in the 1-3 zoning District by
special permit and with site plan review.
The Assisted Living Overlay District(ALOD)allows development at FAR of 1.0 and a minimum lot
size per unit of 1200 square feet. The Revitalization Overlay District(RO)is a"floating"district
that can be applied by special permit to a mixed-use or residential project with a minimum lot
size of 10,000 square feet. The maximum FAR is 2.0 for a residential development. So far,it
has only been applied to parcels around the northern end of the Galen Street corridor.
6. Parking Reauirements
The parking requirements for residential uses are:
• One and two-family homes: 2/unit or 3/unit if more than 4 bedrooms.
• Town and rowhouses: Minimum of 2/unit and maximum of 2.5/unit.
• Multi-family: Minimum of.75 spaces for every studio unit,1 per 1-BR apartment, 1.5
per 2-BR apartment and 2 per 3+BR apartment.Maximums are 1/studio,1.25/113R,
1.75/2BR and 2.25/3BR+.
23
STAFF DRAFT:WATERTOWN HOUSING
• Mixed Use:sum of commercial and residential requirements,except in the Central
Business District,where it is 1/residential unit.
There are also provisions to promote shared parking,separation of parking and housing costs,
alternative transportation modes,and car sharing. For example,a project can obtain(by
special permit)up to a 25%reduction in parking requirements if it uses shared parking or
encourages alternative transportation modes.
Parking requirements,if excessive,can be a barrier to housing production,as they may
decrease the buildable area on a given lot,or create need for structured parking,which is
expensive to build. Since the 2014 Housing Production Plan identified parking requirements as
an issue,the Town's requirements for multi-family development have been substantially
reduced and become more flexible. In addition,maximum parking requirements were added to
the ordinance.
7. Desijzn Guidelines and Standards
Watertown adopted a comprehensive set of Design Guidelines and Standards in June 2015.
The intent is to"enhance building,parking and public realm interface"along the major
corridors and Watertown and Coolidge Squares. Design standards are increasingly recognized
as a critical tool to achieve quality and a more holistic review of new development. It is also
important to monitor whether the standards or process used become a development
constraint.
8. Inclusionary Zoning
Watertown's zoning ordinance has included a provision for inclusionary housing(Section 5.07)
since 1989. The purpose of the ordinance is to encourage the expansion and improvement of
Watertown's housing stock; provide housing choices for a diversity of households;prevent
displacement of low-and moderate-income residents;provide opportunities for mixed-use
24
STAFF DRAFT:WATERTOWN HOUSING
development;and more. Inclusionary requirements have increased over time,with the most
recent changes in December 2016.
Currently,the inclusionary provision requires all new residential or mixed-use developments
with six or more residential units to provide deed-restricted affordable units. Developers of
smaller projects(6-10 units)may provide units on site or they can provide a payment-in-lieu of
units.21 Developments with 10+units must provide units on site. Density bonuses are available
to developers who target lower income households. The chart below sets forth the particular
requiremen ts.28
Table 11:Watertown's nclusionary Zoning Requirements
Total Project Size Affordable Units Rental Price Ownership Price
1 to 5 units 0 N/A N/A
6 to 10 units Option for cash in-
lieu payment
6 to 19 units 12.5% 80%AMI 80%AMI
20 and over units 15.0% No less than 5%of the 80%AMI
total units at 65%AMI
10%of total units at
80%AM I
Affordable units must be of comparable size to the market rate units,within a range of 20%.
The affordable units also must be comparable to market-rate units with respect to quality of
construction,energy efficiency,and exterior finishes and to"base" market-rate units with
respect to interior finishes.The deed-restrictions must be permanent.
B. Development Trends
27 The payment must equal the applicable total development cost/unit in DHCD's Qualified Allocation Plan.
za Inclusionary requirements are somewhat different for projects with assisted or independent living units.For
independent living units,the project size thresholds and affordable unit requirements are the same but 80%AMI
applies to all such projects. For assisted living units,there are different size tiers and required percentages,and
units serving those with dementia and/or skilled nursing are exempt.
25
STAFF DRAFT:WATERTOWN HOUSING
Over the last 20 years,Watertown has seen significant multifamily development,concentrated
along the Arsenal Street and Pleasant Street corridors. While several projects were started
prior to the Great Recession'29 most of this development occurred after the Commonwealth
emerged from that slump. In the last eight years,eight projects representing 1,268 units have
been completed30 and another 487 are under construction."Although there are several other commented[FL3]:At least 2 of these developments are
likely to be complete by time Housing Plan is done.(One is
developments that have been approved or under consideration,the Town has recently seen a partly complete now but with a temporary certificate of
occupancy.)
slow down in the pace of significant multifamily proposals.
Nearly all of the new units since 2012 have been rental. The bedroom mix has tended toward
1BR and 2BR units. Both are consistent with regional trends.Millennials and Baby Boomers
have increased demand for smaller apartments.
As significant multifamily proposals have slowed,proposed"life science"developments have
increased. In addition to the many existing bio-medical uses that currently operate in
Watertown,three lab/office buildings are presently under construction,one has been
permitted,and others are in various stages of consideration. If even a handful of these projects
are completed,Watertown will significantly increase its already robust life science cluster.
With significant residential development since 2012 and the emergence of a life science cluster,
it will become harder for residential developers to find parcels where the economics work. This
will become particularly true for developers seeking to build 100%affordable projects.
Competition for land in Cambridge—driven by the Kendall Square life sciences cluster—led city
29 Arch stone/Watertown Square Apartments(134 units)and Riverbank Lofts(57)were completed before the Great
Recession,and Repton Place(179)was under construction before.
31 Charlesbank Residences(44),Watertown Mews(206),Riverbend on the Charles(170),Alta/Bell Watertown
(155),St.Joseph's Hall(25),The Gables(296),Riverpark Lofts(65),and Union Market/Elan(282)have been
completed.
31 WaterMills(99)and 385-393 Pleasant(58),Arsenal Yards(302)and 101 North Beacon(28)are under
construction.
26
STAFF DRAFT:WATERTOWN HOUSING
leaders in October 2020 to enact a city-wide affordable housing overlay district with more
advantageous dimensional and permitting requirements for 100%affordable proposals. At
present,the Watertown zoning districts with more opportunities for residential development
are the 1-3(along Arsenal Street,west of School Street), PSCD-2(middle of Pleasant Street),and
the Central Business District(around Watertown Square). The latter may be particularly
attractive for infill affordable projects because of the proximity to the Watertown Square
transit hub and retail.
C. Funding Sources for Affordable Housing"
Other than general funds,existing sources to fund affordable housing are limited. These
sources can be divided into two categories: funds that the Town controls,and funds that
require competitive applications. In the first category,are the following:
• Federal HOME Investment Partnerships program. Watertown is allocated around
$90,000/year from the HOME program as a sub-recipient to Newton,which is the lead
community in the WestMetro Consortium. The Town also has program income(around
$262,000)earned through past HOME activity. HOME monies support building,buying,
and/or rehabilitating affordable housing or providing direct rental assistance to low-
income people.
• Community Development Block Grant(CDBG)program income. The Town also has
program income(around I$190,000)earned through past CDBG activity. CDBG monies Commented[FLa]:we are checking on this number.
support local housing and economic opportunity initiatives for low and moderate-
income households.
• Affordable Housing Trust Fund. The Town has been accumulating funds paid by
developers"in lieu of inclusionary units where the total number of homes in the
32 This sub-section describes only the principal funding sources. There are other sources,e.g.,pre-development
assistance from the Community Economic Development Assistance Corporation(CEDAC),that can be tapped.
27
STAFF DRAFT:WATERTOWN HOUSING
proposed development are between 6 and 10. There is approximately$269,000 in this
fund.
• Community Preservation Act(CPA). Watertown adopted CPA in 2016,allowing the
Town to raise money for eligible uses through a local property tax surcharge
supplemented by a varying state match. The eligible uses are: open space and
recreation,historic preservation and community housing. A municipality must reserve
10%of its annual CPA spending on each of the three eligible uses. CPA funds can be
used to acquire,create,preserve or support community housing for households with
incomes at or below 100%of AMI,or to rehabilitate such housing acquired or created
through CPA.The Town's CPA Fund is currently above$7 million and the property tax
surcharge is likely to produce an annual revenue stream labove$2 million. Access to CPA funds Commented[FL5]:Staff will consult with the Community
Preservation Committee coordinator on amount and
will be competitive,with proposed projects chosen by the Town's Community Preservation wording when plan is near release.
Committee and ratified(or rejected)by Town Council.
In the second category—funds controlled by outside entities—are the following programs:
• Department of Housing and Community Development(DHCD)funding. At least once each year,
DHCD announces funding of proposed affordable housing projects after a statewide
competition. DHCD funding decisions usually include allocation of federal and state tax credits,
grants,subsidies,and loans. This is the largest single source of affordable housing resources in
the state—and the most competitive. DHCD last awarded affordable housing money to a
Watertown project in 2013."
• DHCD award of federal CDBG money. While most CDBG funds go directly to certain
"entitlement"communities—Watertown is not one of them—the state makes awards to other
communities through a competitive round each year. DHCD typically awards less than$1
million to each successful applicant.
33 Metro West Collaborative Development was awarded$1.6 million in DHCD housing subsidies and$153,243 in
federal Low Income Housing Tax Credits to preserve 25 units of affordable housing at Saint Joseph's Hall.
28
STAFF DRAFT:WATERTOWN HOUSING
• "Pooled"federal HOME monies. The WestMetro Consortium pools a certain amount of its
HOME monies each year and awards this sum to a non-profit developer proposing a project
within the 13 Consortium communities. The pooled monies are generally under$500,000.
D. Natural and Physical Constraints
For the purposes of this Housing Plan,protected open space and natural resources such as
wetlands,surface water,and endangered species habitats may be considered as constraints to
potential residential development,and will be discussed as such,since their presence on a
parcel may render that portion of the property unbuildable,or may require mitigation
measures.
1. Wetlands and Floodplains
Wetlands are important because they provide floodwater retention,groundwater recharge and
wildlife habitat.However,these areas also constrain housing and other development because
virtually any development activity that occurs in a Wetland Resource Area is subject to the state
as well as town wetlands protection requirements.They often cannot be developed,or
significant portions cannot.
According to MassGIS data,there are 87 acres of wetlands in Watertown.The majority are the
Charles River and adjacent land,particularly an unnamed island at Charles River Road and
Beacon Street,and another area on the border with Boston at the North Beacon Street Bridge.
Additional wetland pockets were identified in other locations near Walker Pond on the western
edge of town between Waltham Road and Pleasant Street,and Sawins and Williams Ponds in
east Watertown at Arlington Street and Coolidge Avenue.Both pond areas are privately owned.
Given the limited wetland areas within Watertown,they do not act as a significant constraint to
residential development.
29
STAFF DRAFT:WATERTOWN HOUSING
2. Floodplains and Inland Flooding
Several areas along Watertown's southern border with the Charles River pose 100-year flood
hazards.The majority of floodplain affected land is found west of the Watertown Dam with four
multi-acre areas between Bacon Street and Paramount Place.The site of the Stop&Shop at the
western end of Pleasant Street also includes approximately 11 acres entirely within the 100-
year floodplain.The eastern section of the Charles River is contained within its banks with the
exception of a section of Greenough Boulevard north of Arsenal Street.
As climate change becomes more severe,Watertown is at risk of inland flooding due to
extreme storms.Regional efforts are underway to better understand the locations of inland
areas most vulnerable to flooding through advanced modeling.This emerging issue may
constrain residential development in certain areas of town or alter how those developments
must be designed in order to safeguard inhabitants from flood impacts.
3. Rare and Endangered Species Habitat
Estimated Habitats for Rare Wildlife are regulated under the Massachusetts Wetlands
Protection Act,and any developments within the Habitat must be reviewed under the State's
Natural Heritage and Endangered Species Program.Although the town has no known
endangered or threatened species,it is believed that the town has at least one vernal pool at
the Mt.Auburn Cemetery.Vernal pools,which collect water from rain or seasonal flooding,dry
up in the later spring and early summer.They provide essential habitat for several species. It is
suspected that there may also be undocumented vernal pools near the ponds in the west end
of Watertown. However,given the minimal areas noted,endangered species habitats do not
act as a significant constraint to residential development.
4. Municipal Infrastructure
30
STAFF DRAFT:WATERTOWN HOUSING
The Town of Watertown has an older infrastructure system consisting of I72 miles of roadway,
80 miles of water line,82 miles of drain line,and 84 miles of sewer line I.When development commented[FI-6]:Checking with the Department of
Public Works.
projects come before the Town,special attention is paid to the impact of the project on the
infrastructure system,and mitigation is implemented where warranted.
Stormwater Management is a critical response that is important to the future success and
vitality of the Charles River and is practiced and implemented with current and proposed
development of infrastructure projects.Although Watertown relies on the Metropolitan Water
Resource Authority(MWRA)for its potable water supply,well water was once plentiful and
provided both drinking water and irrigation for agricultural ventures.Artesian springs near
Whitney Hill were noted in historic journals and were used for irrigation for pear groves along
Orchard Street.Because the town no longer depends on groundwater for its sustenance,
systematic ground-water testing has not been conducted.The extent to which groundwater has
been affected by land use changes and/or industrial/residential pollution over the past several
centuries is not fully known,but testing at the Arsenal site showed significant contamination in
that area.
III. Existing Watertown Plans
Watertown's 2014 Housing Production Plan and 2015 Comprehensive Plan substantially set the
same goals and proposed strategies. This section will briefly outline those goals and strategies
and indicate the Town's progress in the intervening years. For simplicity,the Comprehensive
Plan's organization will be used.as
A. Promote and maintain a diverse housing stock with increased funding for
housing creation and more opportunities for lower-and middle-income
households
34 Since the Comprehensive Plan incorporated content from the 2011 Strategic Framework for Economic
Development,that plan will not be separately discussed.
31
STAFF DRAFT:WATERTOWN HOUSING
The Comprehensive Plan/Housing Production Plan proposed that the Town focus both on
mixed-use developments with housing and on creating more deed-restricted affordable
housing.35 With respect to mixed-use development(strategy 1C),the plans suggested
identifying sites along Arsenal Street and the Pleasant Street Corridors. As discussed earlier,
there has been substantial development in those corridors in the last eight years(over 1,700
units,including those under construction),with each of these projects adding affordable units
for those with lower incomes and offering more choices for those interested in renting an
apartment. This strategy remains appropriate,given the developable sites still on these
corridors.
The plans articulated the affordable housing production goal in terms of Chapter 4013,i.e.,
adding and maintaining units on the state's Subsidized Housing Inventory(strategies 1A and
1B). Watertown has made progress toward this goal:rising from 6.51%when the Housing
Production Plan was issued to 7.54%now. However,it has also met Chapter 40B requirements
through the 1.5%land area calculation. This allows Watertown to consider alternative metrics
for its progress in creating affordable housing.
The plans also recognized the importance of using existing sources to fund affordable housing
(strategy 1E)--and adding a new one,Community Preservation Act funding(strategy 1G). With
the Community Preservation Committee poised to open applications in 2021,this new tool will
soon be available.This will also allow more to be done with existing sources like federal HOME
Consortium money.
B. Ensure zoning allows for housing production for all income levels and
household types
ss The Housing Production Plan identified them as two separate goals(1 and 3),but the strategies are nearly
identical.
32
STAFF DRAFT:WATERTOWN HOUSING
The Comprehensive Plan/Housing Production Plan proposed that the Town take a hard look at
its zoning for residential development and ensure that it allows units for a range of income
levels and housing types. In the intervening years,there have been substantial changes in the
zoning ordinance,many of them proposed in the plans. These include new opportunities for
mixed use and assisted living created along the Arsenal/Pleasant Street corridors(strategy 2B),
design standards/guidelines(also strategy 213),substantial reduction in parking requirements
for multifamily projects(strategy 2D),and expanding the inclusionary zoning requirements
(strategy 2E). Notwithstanding this progress,continuing to examine these requirements is still
appropriate.
There are three proposed zoning strategies that have not moved towards adoption. One is
allowing multifamily developments up to 4 units by right,with site plan review(strategy 2A).
Another is exploring greater density in the cluster residential district(strategy 2C). Finally,the
plans suggested allowing accessory dwelling units in at least some situations(strategy 2F).
There continues to be interest in more liberal treatment of accessory dwelling units as they are
an effective way for Watertown seniors to age in place and for the creation of less expensive
housing.36
C. Provide seniors and persons with disabilities with greater housing options
The Comprehensive Plan/Housing Production Plan proposed addressing the needs of seniors
and persons with disabilities through supportive housing(strategy 3A)and two methods of
funding home improvements(strategies 3B and 3C). Since those plans,the Town has adopted a
Reasonable Accommodations Policy to permit ramps and similar mobility aides within setbacks,
which helps seniors and others with mobility problems remain in their homes. As discussed
"The plans also discussed requiring developers to include 3BR units in their projects(strategy 2G).Town staff and
the WHIP have strongly encouraged production of 3BR units,which we think is the best way to proceed at the
present time.
33
STAFF DRAFT:WATERTOWN HOUSING
earlier,it has also added new opportunities for assisted living. This continues to be an
appropriate goal as the region and Watertown itself have a significant 60+population.
IV. Goals and Strategies
To achieve its vision for 2025,Watertown must make it easier for people to live here,and stay
here,in affordable,safe housing. Since there are so many variables that the Town does not
control,this Plan starts with an affordable housing goal within our reach:the percentage of
new housing that contains long-term affordability restrictions. Watertown should ensure that
over 15%of all newly-constructed homes have such affordability.This would be a goal,not a
requirement.37 Within this overarching goal,the Town should focus on meeting the specific
needs described in previous sections. To that end,the following goals and strategies address
the current and future housing needs within Watertown.They take into account demographic
changes that have occurred since the 2014 plan,as well as changes in zoning and development
trends during the last six years.
GOAL 1:Increase affordable housing opportunities for low-income households(less
than 80%AMI)
As this goal is the most general of the six identified here,many of Goal 1's strategies will also
help achieve other goals.
STRATEGY 1A: Create an affordable housing trust to enable a more rapid response to
development opportunities and access additional sources of funding.
Under Massachusetts General Laws Chapter 44,section 55C,a municipality may form an
affordable housing trust to create and preserve housing for low-and moderate-income
households.There are currently over 100 communities with such trusts;they have been
37 A 15%goal requires Watertown to continue—or possibly strengthen—its robust inclusionary zoning policy and
add affordable units in other ways.The goal also must take into account the single-family and two-family homes
that will continue to be built every year with no affordability restriction.While the vast majority of long-term,
deed-restricted housing will be at or below 80%AMI,the 15%goal would include"workforce housing'units that
are above 80%AMI.
34
STAFF DRAFT:WATERTOWN HOUSING
instrumental in building many of the affordable units in those communities. The trust collects
funding from multiple sources,such as locally-controlled HOME or CDBG monies,local CPA
funds,or"cash in lieu"payments under an inclusionary zoning ordinance. The trust then uses
these resources to directly or indirectly engage in real estate activity. The trust can play a
critical role by providing pre-development"seed money"for affordable developments. The
trust can provide funding for,or participate in,a project initiated by a non-profit developer. In
time,if it can build sufficient capacity,the trust may itself obtain site control and act as
developer or bring a non-profit developer into its deal. In all of these scenarios,the trust's
financial contribution is a fraction of the total project cost. Trusts try to use their expertise and
local resources to attract federal,state and non-profit/private funds they don't control.38
While the WHIP has done an effective job in promoting affordable housing,creating a municipal
affordable housing trust is the logical next step to expand the Town's toolkit. The Town
Council,as legislative body,can create the trust. A common path for many communities has
been to convert its housing partnership,or equivalent body,into a trust and replace/add
members to provide a higher level of real estate expertise.
STRATEGY 1B: Evaluate increasing inclusionary zoning requirements.
With the 15%inclusionary zoning requirement for larger projects coming up on its fifth
anniversary in December 2021,the Town should evaluate whether market conditions warrant
an increase. At the same time,the Town should consider whether to expand the deeper
affordability tier(below 65%of AMI). It is critical to arrive at the right balance. The
38 A local trust is particularly effective in situations where a local focus and/or rapid response is required. Unlike a
non-profit developer that is working in multiple municipalities,the trust is rooted in one. A trust's ability to deploy
its funds on short notice allows it to compete in a real estate market(like ours)where private developers are also
looking for residential opportunities.
35
STAFF DRAFT:WATERTOWN HOUSING
requirement should maximize the production of affordable units without deterring housing
development. Further review should be done in the near future to inform this judgment.
STRATEGY 1C: Leverage public funds such as those from the Community Preservation
Act and Commonwealth sources.
The potential availability of CPA funds starting in 2021 is a great opportunity for affordable
housing production(as well as for historic preservation and open space). If used wisely,this
resource not only increases available funding but makes it easier to put together strong
applications to the Department of Housing and Community Development for state and federal
tax credits,and state grants and loans. (See also Strategy 4B.) These funds can support
projects where a municipal affordable housing trust is in the lead and/or where a non-profit
partner like Metro West Collaborative, Inc.has made a proposal. This strategy requires at least
one lead entity that does the necessary pre-development work to persuade such funders
(starting with the CPC and Town Council)that the proposed project is worth their support.
STRATEGY 1D: Leverage opportunities on public land.
Use of municipal land for affordable housing lowers total development cost and thereby
narrows the gap that subsidies must fill. This provides an opportunity for developments with a
greater percentage of units with deeper affordability. Existing surplus sites should be explored.
As the need for municipal properties change overtime,use for housing should be considered.
STRATEGY 1E: Maximize Transit-Oriented Development opportunities.
Watertown has relatively limited Transit-Oriented Development(TOD)sites compared to other
inner core communities. This makes it even more important to maximize those locations for
affordable housing. TOD locations can lower transportation costs for residents,which
contributes to overall affordability. Bus service emanating from the Watertown Yard,as well as
service along Arsenal,Mt.Auburn and Main Streets,provide the opportunity for residents to
reach other job centers,shopping and transit hubs.
36
STAFF DRAFT:WATERTOWN HOUSING
STRATEGY IF: Evaluate adding a requirement that developers building new
commercial space help fund affordable housing,offsetting new housing demand
created by such development.
Significant new commercial development,though often welcome,creates housing demand and
contributes to rising rents/prices. Some communities that are attracting such development—
and feeling pressure in their housing market—have adopted fees to raise money for affordable
housing. Typically,these fees only apply when commercial developers propose large
developments(measured by square footage)and fees are per square foot.
In order to evaluate this tool,the Town should commission a"nexus"study. Such a study is
necessary to establish the existence/magnitude of a connection between commercial
development and housing demand in this market. The study can also provide a sensitivity
analysis(i.e.,measuring the impact of alternative fee levels on future development). As with
inclusionary zoning,asking commercial developer to help fund affordable housing is only an
effective strategy to the extent it does not deter desired development.
GOAL 2:Increase affordable housing opportunities to create more units for those
needing deeper affordability(less than 60%AMI), Commented[FL7]:60%is proposed rather than 66%
because 60%or less is the threshold for federal and state
The housing needs analysis makes it clear that Watertown should make a particular effort to tax credits.
create more deeply affordable units(less than 60%AMI). While this goal is a subset of Goal 1,
it is distinct because of two factors: 1)there is a larger gap between total development cost and
operating income for deeply affordable units,and 2)while inclusionary zoning can effectively
produce units in the 60-80%AMI range,units within that income range are not eligible for
federal and state tax credits. Accordingly,the strategies to achieve Goal 2 are somewhat
different than Goal 1.
STRATEGY 2A: Prioritize the use of public funds,public land,and TOD locations to
create more deeply affordable units.
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STAFF DRAFT:WATERTOWN HOUSING
To create more deeply affordable units,the Town should encourage a pipeline of projects that
can compete in the DHCD annual funding round. Such 100%affordable projects would provide
housing to households at or below 60%of AMI. Because the DHCD funding round is so
competitive,the Town must be prepared to use public funds,public land and/or transit-
oriented locations as leverage to attract the state investment. The Town must also be realistic
that even a strong pipeline is unlikely to yield more than one or two awards over the next five
years.
STRATEGY 2B:Support the Watertown Housing Authority and others in the effort to
rehabilitate public housing inventory and create new units on its existing land.
The Watertown Housing Authority has been considering ways that it(and possible partners)can
rehabilitate existing units and potentially add new units by leveraging the value of its existing
land. In addition to creating modernized public housing units,this effort could result in creating
new affordable and/or market rate units. The Town should support the WHA's efforts and help
identify funding sources.
STRATEGY 2C: Partner with community development corporations and others to
explore new ways to create/support more deeply affordable units.
There has been increasing recognition that housing has a significant impact on health incomes
and on climate resiliency. This recognition has created new opportunities to bring investments
from other sectors into the creation of affordable units that serve households that might
otherwise be vulnerable to housing instability. In partnership with community development
corporations,the Town should explore innovative ways to fund housing that serves these
vulnerable populations.
The Town should also look at ways to create more affordability through purchase of small
multi-family buildings or"buy-downs"in market-rate developments with inclusionary units.
Somerville has partnered with a community development corporation to purchase multi-family
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STAFF DRAFT:WATERTOWN HOUSING
buildings(its"One Hundred Homes"program),creating long-term affordability at a
neighborhood-scale. The Town could also negotiate"buy-downs"by providing a dedicated
subsidy stream to market rate developers in return for reducing the required AMI level(e.g.,
from 80%to 60%,or 65%to 50%).
GOAL 3:Increase affordable and supportive housing opportunities for seniors and
individuals with disabilities
STRATEGY 3A: Evaluate rehab loan program.
Watertown should evaluate creating a loan program targeted at making it easier for seniors
and individuals with disabilities to adapt their homes. One potential source is Watertown's
federal HOME money.
STRATEGY 3B:Encourage universal design and visitability standards in new
development.
The importance of"universal design"—creating homes that meet the needs of all people,from
young to old,and able and disabled—has become increasingly recognized in the design and
planning communities. Many jurisdictions have instituted"visitability"standards such as
having a zero-step entry and wider passageways to make homes accessible for all. The Town
should continue to encourage new developments to incorporate these features;when universal
design is included in the planning stage,it does not add significant costs.
STRATEGY 3C: Enter into partnerships with supportive service providers to create
housing and/or provide services to seniors and individuals with disabilities.
It is increasingly clear that for many individuals it is not sufficient for them to find a home they
can afford—they need intensive,coordinated services to address physical,cognitive and mental
health challenges.The"supportive service"model includes both new developments designed in
partnership with service providers and adding or expanding such services to existing units.
There are a variety of funding sources that can potentially be tapped to make those services
financially feasible. The Town should assess the services already in place and explore all
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STAFF DRAFT:WATERTOWN HOUSING
options in order to continue and improve assistance to this under-served and vulnerable
population.
31D:Partner to provide financial planning assistance to enable seniors to age in place
who chose to do so.
It has become harder for seniors to live on their fixed incomes. This makes it even more
important for seniors to begin planning at an earlier age and to become more informed about
their options. The Town should partner with an organization(s)that can provide such planning
assistance to those who want to stay in Watertown as they age.
GOAL 4:Encourage the creation of a variety of housing types at different price
points,with particular emphasis on providing options for residents and workers
who wish to remain in Watertown
While Goal 4 overlaps with the previous goals,it focuses more on a distinct aspect of our
region's housing crisis,namely that a surprising share of households at or even somewhat above
median income levels are feeling the pinch of rising costs. While there is an urgent need for
households below 80%AMI,we must make Watertown work for a full range of incomes. The
Town should also emphasize providing options for residents and workers who want to remain in
Watertown.
STRATEGY 4A:Evaluate adoption of accessory dwelling unit zoning.
Accessory dwelling units(ADUs)are an effective way to provide flexibility to homeowners as
their needs change. They work well for down-sizing seniors who—depending on zoning
regulations—can move to the smaller unit,use it for relatives or caretakers,or rent it out to
supplement their income. ADUs are also inexpensive housing,as they often rent at more
affordable levels. Some communities tie ADU approval to a time-limited commitment from the
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STAFF DRAFT:WATERTOWN HOUSING
owner to keep rents at affordable levels.39 The Town should evaluate all options for allowing
ADUs.
STRATEGY 4B:Leverage public funds such as CPA(up to 100%)and State sources(up
to 120%).
The Town should look for suitable opportunities to add what many call"workforce housing
units"(80%to 120%of AMI). There are public subsidy sources that can fund units for
households above 80%AMI. The Town should consider such units as part of larger,mixed-
income developments.(See also Strategy 1C.)
STRATEGY 4C:Continue to evaluate current zoning,parking requirements and other
incentives to shape residential development
Over the last ten years,the Town has effectively used its development regulations to attract
significant residential and commercial development that has transformed underutilized
properties along its major corridors. As discussed earlier,those regulations have evolved,with
the Town adding design guidelines/standards,lowering parking requirements,emphasizing
transportation demand management,and increasing inclusionary requirements. Over the next
five years,the Town should continue to evaluate how it can use its regulations to provide
incentives for developers to create housing that serves community goals. Besides affordability
(see_),the following areas are among those that should be re-examined:
• How best to encourage development in close proximity to high-frequency bus lines and
local retail and employment,which serves our transportation and affordability goals;
• Making it easier to do small-scale,infill development,often hard to achieve because of
high unit costs;
as While homeowners typically are unwilling to place a deed-restriction on their ADU because of its effect on future
sale of their property and the related regulatory requirements,they are often willing to agree to limit rents. Since
Watertown has complied with Chapter 406,this approach may make sense even though the unit would not count
towards the 10%goal.
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STAFF DRAFT:WATERTOWN HOUSING
• Increasing building sustainability,as regional goals move to"net zero"and beyond.
STRATEGY 4D:Evaluate use of regulatory and administrative policies that would
encourage creation of 3+bedroom units.
While the Town and WHIP are currently encouraging production of 3+bedroom units in new
developments,other regulatory and administrative policies should be explored.
STRATEGY 4E: To the extent possible,ensure that affordable units are compliant with
DHCD guidelines for SHI units,but allow flexibility as needed to increase the number
of functionally affordable units.
Complying with Chapter 40B through the 1.5%land area threshold allows Watertown the
flexibility to add units that are functionally affordable though they may not be included on the
Subsidized Housing Inventory for technical reasons. Accessory dwelling units(ADUs)are one
such example:while ADUS can qualify for the SHI,it is unlikely that a homeowner would agree
to permanent affordability and the exacting regulatory requirements. If such opportunities
arise and SHI compliance is not practical,the Town should do what achieves affordability for
the households involved.
GOAL 5:Preserve existing housing affordability
STRATEGY 5A:Continue monitoring affordable housing stock on the Subsidized
Housing Inventory to ensure utilization by income-eligible households.
The Town should continue to monitor the affordable housing stock on the SHI to ensure that
rents/resales comply with the affordability requirements.
STRATEGY 5B:Prevent loss of any affordable units that have expiring deed-
restrictions.
The Town should continue to monitor the affordability status of its older developments. When
properties are approaching expiration of their affordability,the Town should explore all options
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STAFF DRAFT:WATERTOWN HOUSING
to maintain affordability,including Massachusetts General Laws Chapter 40T if a sale is
contemplated. Under Chapter 40T,the Department of Housing and Community Development
has an exclusive right to make or match a purchase offer;this tool has often been used to bring
affordable housing resources into play and preserve affordability.
STRATEGY 5C:Provide emergency funding for critical repairs in existing affordable
units.
While most affordable units have a sponsor who can make critical repairs,the Town should
consider an emergency funding program for those who do not. Such a program can address
house repairs to address health/safety issues. The Town should look at potential funding
sources and whether a repair program can be effectively managed.
STRATEGY 5D:Evaluate short-term tenant-based rental assistance.
With many Watertown residents already find it difficult to pay for their housing, layoffs or
reduced employment can put households into even greater distress. The WHP responded to
the COVID-19 crisis in 2020 by creating a$175,000 emergency rental assistance program using
Community Development Block Grants(CDBG)program income. The Town should consider
whether to create a program that is available to residents who suffer a short-term loss of
income that jeopardizes their ability to stay in their homes.40 The Town should also consider a
program providing first,last and security deposit assistance.
GOAL 6: Increase community engagement around affordable housing
STRATEGY 6A:Increase public education/awareness of the need for a variety of
housing types at various income levels,via community workshops or other events.
Building local consensus around housing is critical to the Town's ability to achieve any of the
goals in this plan. Housing is a complex topic. It requires both a high level of information-
40 Since income loss can be triggered by many life events,a key question is under what circumstances should the
Town be willing to provide rental assistance.
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STAFF DRAFT:WATERTOWN HOUSING
sharing by experts and local leaders,and discussion that takes into account questions and
varying perspectives from community members. The WHIP(or Municipal Affordable Housing
Trust,if formed)should take the lead in such an effort and,as a start,should issue an annual
progress report
STRATEGY 6B: Evaluate using local preference in affordable housing lotteries.
"Local preference"is giving an advantage to individuals who live or work in a municipality(or
have children attending local schools)when affordable units become available. DHCD allows
local preference of up to 70%if a community meets a rigorous evidentiary test41 and
implements its proposed marketing plan in compliance with DHCD guidelines. Once fair housing
concerns are met,local preference can be a useful tool when a community has a significant
local need for affordable housing units and can help build support for such housing. The case
for local preference is strongest where the local need is distinct from--or of greater scale
than—regional needs. Since local preference does not need to be used for all projects,the
Town could structure a local preference plan that is tailored around such local needs. The
Town should evaluate whether to propose a local preference plan and,if so,what plan to
propose.
STRATEGY 6C:Improve marketing and outreach for affordable housing lotteries. Commented[FL8]:The WHP should discuss whether this
strategy is general,i.e."continue to follow best practices'or
The Town should continue to follow evolving best practices around the affirmative marketing whether there are specific flaws that must be addressed.
of available affordable units.
V. Implementation Plan
Housing Implementation Plan,2021-2025
Strategy Responsible Entities Time Page#
GOAL 1:Increase affordable housing opportunities for low-income households(less than 80%AMI)
41 There is a three-part test:1)demonstration of local need,2)justification of the extent of local preference,and
demonstration that the proposed plan will not have a"disparate impact"on protected classes(e.g.,minorities or
individuals with a disability).
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STAFF DRAFT:WATERTOWN HOUSING
STRATEGY 1A: Create an affordable Community Development& Near Term P.
housing trust to enable a more rapid Planning Department,Watertown
response to development opportunities Housing Partnership,Town
and access additional sources of Manager,Town Council
funding.
STRATEGY 1B: Evaluate increasing Community Development& Near to Mid- P.
inclusionary zoning requirements. Planning Department, Term
Watertown Housing
Partnership,Planning Board,
Town Manager,Town
Council
STRATEGY 1C: Leverage public funds Community Development& Ongoing P.
such as those from the Community Planning Department,Watertown
Housing Partnership,Community
Preservation Act and Commonwealth
Preservation Committee,Town
sources. Manager,Town Council
STRATEGY 1D: Leverage opportunities Community Development& Ongoing p_
on public land. Planning Department,Watertown
Housing Partnership,Planning Board,
Zoning Board of Appeals, Town
Manager,Town Council
STRATEGY 1E: Maximize Transit- Community Development& Ongoing p.
Oriented Development opportunities. Planning Department, Planning
Board, Zoning Board of
Appeals, Watertown Housing
Partnership
STRATEGY IF: Evaluate adding a Community Development& Long-Term P.
requirement that developers building Planning Department,Watertown
new commercial space help fund Housing Partnership,Planning Board,
affordable housing,offsetting new Town Manager,Town Council
housing demand created by such
development.
GOAL 2:Increase affordable housing opportunities to create more units for those needing deeper
affordability(less than 60%AMI)
STRATEGY 2A: Prioritize the use of Community Development& Ongoing P.
public funds,public land,and TOD Planning Department,Watertown
Housing Partnership,Community
locations to create more deeply Preservation Committee,Town
affordable units. Manager,Town Council
45
STAFF DRAFT:WATERTOWN HOUSING
STRATEGY 26:Support the Watertown Watertown Housing Authority, Ongoing P.
Housing Authority and others in the Community Development&
effort to rehabilitate public housing Planning Department,Watertown
Housing Partnership
inventory and create new units on its
existing land.
STRATEGY 2C: Partner with community Community Development& Ongoing P.
development corporations and others Planning Department,Watertown
to explore new ways to create/support Housing Partnership
more deeply affordable units.
GOAL 3:Increase affordable and supportive housing opportunities for seniors and individuals with
disabilities
STRATEGY 3A: Evaluate rehab loan Community Development& Mid-Term P.
program. Planning Department,Watertown
Housing Partnership
STRATEGY 36:Encourage universal Community Development& Ongoing P.
design and visitability standards in new Planning Department,Watertown
Housing Partnership,Commission on
development. Disability
STRATEGY 3C: Enter into partnerships Community Development& Near-Term P.
with supportive service providers to Planning Department,Watertown
Housing Partnership,Commission on
create housing and/or provide services Disability,Council on Aging
to seniors and individuals with
disabilities.
STRATEGY 3D Partner to provide Community Development& Ongoing P.
financial planning assistance to enable Planning Department,Watertown
Housing Partnership,Commission on
seniors to age in place who chose to do Disability,Council on Aging
SO.
GOAL 4:Encourage the creation of a variety of housing types at different price points,with particular
emphasis on providing options for residents and workers who wish to remain in Watertown
STRATEGY 4A:Evaluate adoption of Community Development& Mid-Term P.
accessory dwelling unit zoning. Planning Department,Watertown
Housing Partnership,Planning Board,
Town Manager,Town Council
STRATEGY 46:Leverage public funds Community Development& Ongoing P.
such as CPA(up to 100%)and State Planning Department,Watertown
sources(up to 120%). Housing Partnership,Community
Preservation Committee,Town
Manager,Town Council
46
STAFF DRAFT:WATERTOWN HOUSING
STRATEGY 4C:Continue to evaluate Community Development& Near to Mid- P.
current zoning,parking requirements Planning Department,Watertown Term
and other incentives to shape Housing Partnership,Planning Board,
residential development Town Manager,Town Council
STRATEGY 41):Evaluate use of Community Development& Ongoing P.
regulatory and administrative policies Planning Department,Watertown
that would encourage creation of 3+ Housing Partnership
bedroom units.
STRATEGY 4E: To the extent possible, Community Development& Ongoing P.
ensure that affordable units are Planning Department,Watertown
compliant with DHCD guidelines for SHI Housing Partnership
units,but allow flexibility as needed to
increase the number of functionally
affordable units.
GOAL 5:Preserve existing housing affordability
STRATEGY 5A:Continue monitoring Community Development& Ongoing P.
affordable housing stock on the Planning Department
Subsidized Housing Inventory to ensure
STRATEGY 56:Prevent loss of any Community Development& Ongoing P.
affordable units that have expiring Planning Department,Watertown
deed-restrictions. Housing Partnership,Planning Board,
Town Manager,Town Council
STRATEGY 5C:Provide emergency Community Development& Long-Term P.
funding for critical repairs in existing Planning Department,Watertown
affordable units. Housing Partnership
STRATEGY 5D:Evaluate short-term Community Development& Near-Term P.
tenant-based rental assistance. Planning Department,Watertown
Housing Partnership,Community
Preservation Committee
GOAL 6: Increase community engagement around affordable housing
STRATEGY 6A:Increase public Community Development& Near-Term P.
education/awareness of the need for a Planning Department,Watertown and Ongoing
Housing Partnership,Community
variety of housing types at various
Preservation Committee
income levels,via community
workshops or other events.
47
STAFF DRAFT:WATERTOWN HOUSING
STRATEGY 6B: Evaluate using local Community Development& Near-Term P.
preference in affordable housing Planning Department,Watertown
lotteries. Housing Partnership,Planning Board,
Town Manager,Town Council
STRATEGY 6C:Improve marketing and Community Development& Ongoing P.
outreach for affordable housing Planning Department,Watertown
lotteries. Housing Partnership
48