HomeMy Public PortalAbout2016-08-09 First Reading Zoning Text Amendment - Affordable Housing TOWN OF
1630 WATERTOWN
Office of the Town Manager
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Watertown,MA 02472
Phone:617-972-6465
Michael J. Driscoll www.watertown-ma.gov
Town Manager towmngiAvarerrown-ma vov
To: Honorable Town Council \\ _
From: Michael J. Driscoll, Town Manager
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Date: August 4, 2016
RE: Agenda Item—First Reading on Proposed Zoning Text Amendments Related to Affordable
Housing Requirements and Referral to the Planning Board
As you are aware, at the July 12, 2016 Town Council Meeting, the Honorable Town Council
accepted a Committee on Economic Development&Planning Report and adopted the following
Action Item: "proceed with the changes to Affordable Housing Requirements in the Watertown
Zoning Ordinance per the Housing Partnership memo dated May 14, 2016, as amended by their
memo dated June 23, 2016." (See attached Report and excerpt from the July 12, 2016 Town
Council Minutes)
As a follow-up to the Honorable Town Council's action at the July 12, 2016 Town Council
Meeting, enclosed please find correspondence from Steven Magoon, Community Development and
Planning Director/Assistant Town Manager regarding the Proposed Text Amendments related to
Affordable Housing Requirements.
Therefore, given the above, I respectfully request a First Reading on Proposed Text Amendments
related to Affordable Housing Requirements in the Zoning Ordinance and referral to the Planning
Board be placed on the August 9, 2016 Town Council Agenda.
Thank you for your consideration in the matter.
cc: Steven Magoon, Community Development and Planning Director/Assistant Town Manager
Planning Board
Zoning Board of Appeals
Mark R. Reich, Esquire, KP Law
Town of Watertown
Committee on Economic Development and Planning
Meetings: June 9 and June 27,2016
Report: July 12,2016
The Committee convened at 6:l5 pm on Thursday June 9, 2016 in the Richard E. Mastrangelo
Council Chambers. Present were Susan Falkoff, chair; Kenneth Woodland, vice-chair; and
Vincent Piccirilli, secretary. Also present were members of the Watertown Housing
Partnership: Fred Reynolds, Clifford Cook,David Leon, Helen Oliver, and Brian Costello,
Executive Director of the Housing Authority; as well as Andrea Adams, Senior Planner in the
Department of Community Development&Planning; and Council President Mark Sideris.
The meeting was to discuss a recommendation for increasing Affordable Housing to 15% in the
Watertown Zoning Ordinance.
The Watertown Housing Partnership presented a recommendation, dated May 24, 2016 (cop),
attached). The recommendation has two key changes:
• Create a two-tiered system, with smaller projects under 20 units remaining at 12.5%.
• For projects of 20 or more units, increase to 15%. For rental projects, 1/3 of the units
must be for lower-income households at 65%AMI (Area Median Income), and 2/3 at
the current 80% AMI. For ownership projects, the entire 15% would be at 80% AMI.
The recommendation also included some housekeeping changes to the ordinance.
Discussion covered the following points:
• This provides some relief for smaller developers, and incentivizes smaller projects.
• Provide new housing where the biggest need was identified in the recently adopted
Housing Production Plan, for lower-income households at the 65%AMI threshold.
• Adding at the 65%AMI level would also free up Housing Authority units to address
their long waiting list, by allowing some households in this group to move to private
rental units.
• Ownership projects would remain at 80%AMI because of the difficulty of lower-
income household to obtain financing, resulting in little demand below this level.
• Any changes to section 5.07 of the ordinance would automatically apply to the new
RMUD zone because of the wording of 5.18 (g).
Councilor Aaron Dusbku and President Sideris had asked the committee consider zoning
changes to include middle-income or workforce housing for households above 80%AMI. The
Committee discussed this in depth, and decided to accept the Housing Partnership's
recommendation to not include this, for the following reasons:
• The data collected for the Housing Production Plan shows the greatest need in the
community is at the lower level, or 65%AMI.
• There are currently many market rate housing options in Watertown for middle-income
households between 80% and 120% AMI.
• Any housing above 80%AMI does not count towards the state mandated affordable
housing percentage, and leaves Watertown vulnerable to a 40B challenge.
• Cambridge did a pilot program for this type of housing, and had trouble fulling it
because of low demand.
Page I of 2
Committee on Economic Development and Planning Report July 12, 2016
Two issues were identified that required clarification before the Committee could make a
recommendation:
Section 5.07(e)(2) for the method of cash-in-lieu of units: The question was raised how to
calculate this value for rental units, and if rental units should be excluded. Councilor Piccirilli
made a motion, seconded by Councilor Woodland, to ask the Housing Partnership to examine
this section and propose language to clarify this. The motion was affirmatively voted 3-0.
Section 5.07(i)(3) for affordable units in excess of the requirement to be exennot from FAR and
mininmm lot area: It appears that the language of the ordinance does not make it clear that any
units provided in this section must be at or below the 65%AMI level. Councilor Piccirilli
made a motion, seconded by Councilor Woodland,to ask the Housing Partnership to examine
this section and propose language to clarify this. The motion was affirmatively voted 3-0.
The Housing Partnership agreed to work on these two issues at its next meeting. A follow up
Committee meeting was scheduled for June 27 at 6:15 pill.
The meeting adjourned at 7:20 pm.
The Committee re-convened at 6:15 pill on Monday June 27,2016 in the Louis P. Andrews
Upper Conference Room. Present were Ms. Falkoff, Mr. Woodland, and Mr. Piccirilli. Also
present were Mr. Reynolds, Mr. Leon, Ms. Adams and Mr. Sideris; as well as Steven Magoon,
Director of the Department of Community Development& Planning/Assistant Town Manager;
and resident Elodia Thomas.
The Watertown Housing Partnership presented additional recommendations, dated June 23,
2016, on the two issues that were raised at the last meeting(copy attached), for discussion.
Action Item: Councilor Piccirilli made a motion,seconded by Councilor Woodland,
recommending that the Town Council proceed with the changes to Affordable Housing
Requirements in tine Watertown Zoning Ordinance per the Housing Partnership memo
dated 5/14/16, as amended by their memo (fated 6123116, The motion was affirmatively
voted 3-0.
(Note: A copy of the recommended changes to Watertown's Inclusionary Zoning Requirements
as voted was prepared by Ms. Adams and is attached to this report.)
The Committee thanked the members of the Housing Partnership for their very detailed,
balanced, and well-reasoned approach to increasing affordable housing in Watertown.
The meeting adjourned at 6:35 pm.
Report prepared by Vincent Piccirilli
Page 2 of 2
SUGGESTED CHANGES TO WATERTOWN'S INCLUSIONARY ZONING REQUIREMENTS
SECTION 5.07 AFFORDABLE HOUSING REQUIREMENTS
(a) Intent and Puroose
The purposes of this Section are to encourage the expansion and improvement of the Town of
Watertown's housing stock; to provide for housing choices for households of all incomes, ages, and
sizes; to prevent the displacement of low- and -moderate-income residents; to produce affordable
housing units in order to meet existing and anticipated employment needs within the Town; to provide
opportunities for conventional residential and mixed-use development to contribute to increasing the
supply of affordable housing; and to establish standards and guidelines in order to implement the
foregoing.
(b) Definitions
1. AFFORDABLE HOUSING PROGRAM
Collectively, §5.07 and other provisions of the Watertown Zoning Ordinance that pertain to the
development and preservation of affordable housing in the Town of Watertown.
2. AFFORDABLE HOUSING RESTRICTION
A deed restriction, contract, mortgage agreement, or other legal instrument, acceptable in form and
substance to the Town of Watertown, that effectively restricts occupancy of an affordable housing
unit to qualified purchaser or qualified renter, and which provides for administration, monitoring and
enforcement of the restriction during the term of affordability. An affordable housing restriction shall
run with the land in perpetuity or for the maximum period of time allowed by law, and be enforceable
under the provisions of Chapter 184, Sections 26 or 31-32 of the General Laws,
3, AFFORDABLE HOUSING FUND
A fund account established by the Town for the purpose of creating or preserving affordable housing
in the Town of Watertown.
4. AFFORDABLE HOUSING UNIT
A dwelling unit that is affordable to and occupied by a low- or-moderate-income household and
meets the requirements of the Massachusetts Department of Housing and Community Development
(DHCD), Local Initiative Program, for inclusion on the Chapter 40B Subsidized Housing Inventory.
5. AREA MEDIAN INCOME
The median family income for the metropolitan area that includes the Town of Watertown, as defined
in the annual schedule of low-and -moderate-income limits published by the U.S. Department of
Housing and Urban Development(HUD), adjusted for household size.
6. COVERED DEVELOPMENT
Any development required to provide affordable housing in accordance with §5.07.
7. ELIGIBLE HOUSEHOLD
A low-or-moderate-income household that purchases or rents an affordable housing unit and
occupies it as their domicile and principal residence. asits sOle residence.
8. INCLUSION UNIT
An affordable housing unit built on the same site as the market-rate units in a covered development
under§5.07.
9. LOCAL INITIATIVE PROGRAM
A program administered by DHCD pursuant to 760 CMR 56.00 to develop and implement local
housing initiatives that produce low-and-moderate-income housing, with or without a
Page 1 of 7
Changes to Watertown's Inclusionary Zoning Requirements
Draft 6/27/16
As Approved by the ED&P Subcommittee
Comprehensive Permit as defined in Chapter 40B, Section 20 through Section 23 of the General
Laws.
10. LOW-OR MODERATE-INCOME HOUSEHOLD
A household with income at or below 80% of area median income, adjusted for household size, for
the metropolitan area that includes the Town of Watertown, as determined annually by HUD.
11. MARKET-RATE DWELLING UNIT
All dwelling units in a development subject to this §5.07 that are not affordable housing units as
defined herein.
12. MAXIMUM AFFORDABLE PURCHASE PRICE OR RENT
A purchase price or monthly rent that complies with the requirements and Table shown in
J §5.07(d)(4) and that complies with the regulations and guidelines of the DHCD Local Initiative
Program and the Watertown Planning Board, except that developments subject to§ 5.07(j)(3) shall
comply with the maximum purchase price or rent requirements of that section. For homeownership
units, the maximum affordable purchase price shall account for the monthly cost of a mortgage
payment, property taxes, insurance, and condominium fees where applicable.;-and F#or rental units,
the maximum affordable rent shall account for the monthly cost of rent and utilities. The household
income used to compute the maximum affordable purchase price or rent shall be adjusted for
household size, considering the household size for which a proposed affordable unit would be
suitable under guidelines of the Local Initiative Program or any successor affordable housing
program established by the State.
13. SMALL-SCALE INCLUSION DEVELOPMENT
A covered development that provides 6 or more up to 10 dwelling units.
14. SUBSIDIZED HOUSING INVENTORY
The Department of Housing and Community Development Chapter 40B Subsidized Housing
Inventory as provided in 760 CMR 31.04.
(c) Applicability
(1) §5.07 applies to any development,whether new construction, conversion, adaptive reuse or
expansion of an existing structure, involving the creation of more than five dwelling units or more
than five (5) lots for residential use. Assisted living, outside of the Assisted Living Overlay Zone,
Section 5A 1, shall be considered institutional and shall be exempt from§5.07.
Developments may not be segmented to avoid compliance with this Section. "Segmentation"shall
mean any development, whether new construction, adaptive reuse or redevelopment, or any division
of land that would cumulatively result in an increase by five or more residential lots or dwelling units
above the number existing on a parcel of land or contiguous parcels in common ownership twenty-
four months prior to the application. Where such segmentation occurs, it shall be subject to this
Section as a covered development. A subdivision or division of land shall mean any subdivision as
defined in the Subdivision Control Law, G.L. c.41, Sections 81 K-81 GG, or any division of land under
G.L. c.41, §81 P, into lots for residential use.
(2) This Section does not apply to the rehabilitation of any building or structure, all of or
substantially all of which is destroyed or damaged by fire or other casualty or a natural disaster;
provided, however, no rehabilitation nor repair shall increase the density, bulk or size of any such
building or structure which previously existed prior to the damage or destruction thereof except in
conformance with this Section.
Page 2 of 7
Changes to Watertown's Inclusionary Zoning Requirements
Draft 6/27/16
As Approved by the ED&P Subcommittee
(d) Basic Reauirements
(1) Projects having more than five (5) units: No Special Permit for a development requiring a
special permit and no Building Permit for a use permitted as of right, shall be issued for a
development subject to this Section unless the Petitioner provides the percentage of atteastA::el'.e
and one half pc,cent (12.604) the total dwelling units in the development as affordable housing as
described herein, within §5.07(d)(4)and otherwise consistent with this Section.
(2) Nothing in this Section shall preclude a developer from providing additional mere affordable
units, or greater affordability, or both, than the minimum requirements. In no instance shall any
permit or special permit approval create less than one affordable housing unit, and for purposes of
this Section, any calculation of required affordable housing units that results in the fractional or
decimal equivalent of one-half or above shall be increased to the next highest whole number.
f (3) Affordable units shall be made available to eligible low-or-moderate-income households at
purchase prices or rents that comply with the Massachusetts Department of Housing and
Community Development Local Initiative Program regulations, 760 CMR 56.01, or any successor
program as may be determined by the Special Permit Granting Authority (SPGA) upon
recommendation of f+��the Watertown Housing Partnership(WHP)and as
indicated in §5.07(d)(4)
(4) The Rent and Ownership Price Requirements are as follows:
Total Project Size I Affordable Units J Rental Price I Ownership Price
l i to 5 units 10 II NA NA
6 to 19 units 112.5% 80% AMI 80% of 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% 80% AMI
AMI
(e) Methods of Providina Affordable Units
(1) A covered development with more than five (5) and up to ten (10) units, shall have the option
f of providing an affordable unit on site or making a cash payment in lieu of. A covered development
with more than ten (10) units shall provide the affordable units on site. However, approval for cash
payment in lieu of on-site affordable units may be granted by the SPGA in certain extraordinary
eacceptienal circumstances. The SPGA must find that the developer has clearly demonstrated that
providing such unit(s)on-site would create significant hardship and that a cash payment in lieu of on-
site unit(s) is in the best interest of the Town's affordable housing needs.
Any request for alternative means of compliance shall be reviewed by the WHP,which shall then make
its recommendation to the SPGA.
(2) The SPGA may shall-authorize that an alternative method of compliance be used, in
accordance with the following:
(A)—Cash Payment: The SPGA may grant a special permit to provide affordable housing
through a cash payment to the Watertown Affordable Housing Fund, in lieu of providing one or
more of the affordable units required under this Section;-previded,hewevet '-matF,°ee-�n lieu-ef
an�tal�fer sate er�iemeewnership-init The cash payment shall be equal to
the most current Total Development Cost as articulated in the MA Department of
Housing & Community Development's Qualified Allocation Plan for Low Income
Page 3 of 7
Changes to Watertown's Inclusionary Zoning Requirements
Draft 6/27/16
As Approved by the ED&P Subcommittee
Housing Tax Credit,for the areas described as Within Metro Boston/Suburban Area, as
adjusted for the type of project and number of units. The cash payments tha4 fierense
b %„the f iFinarket-value#er-a4ypcal rkrket rate�eusing-unhand-the-prise-of-the
af#erdaM"ousmg-unites Rsisteat-with-DHED Lt -Guidetines-and-shall also be in accordance
with a schedule of affordable housing payments as outlined in§5.07(h)(6) and guidelines
adopted and amended from time to time by the SPCA, following a public hearing, in
consultation with the WHP and the Watertown Department of Community Development and
Planning (DCDP).
(f) Location and Comoarabilitv of Affordable Units
(1) Affordable units shall be proportionately distributed throughout the building(s) in a covered
development.
(2) Affordable units shall be indistinguishable from market-rate units in exterior building materials
and finishes; overall construction quality; and energy efficiency, including mechanical equipment and
plumbing, insulation, windows, and heating and cooling systems, as determined by the Building
Inspector
(3) Affordable units may differ from market-rate units in type of appliances, finishes; however, the
affordable units shall be comparable to the base market-rate units in such instances.
(4) Affordable units shall have the same floor area as the median market-rate units of the same
number of bedrooms within a margin of 20%; provided that units are not less than the minimum square
foot required by DHCD.
(5) The bedroom mix in the affordable units shall be proportionate to the market-rate units, unless
the SPGA authorizes a different mix by special permit upon the recommendation of the WHP.
(6)(5) The SPGA may adopt regulations or guidelines to further define comparability of the foregoing
requirements.
(7)(6) The WHP shall provide the Petitioner and SPGA as provided in§5.07(i)(9 with its
recommendations with reference to the Petitioners proposal in meeting the requirements for affordable
housing.
(g) Affirmative Marketina and Local Preference Policv
Affordable units shall be made available for purchase or rent to eligible low-or-moderate-income
households under an affirmative marketing plan that complies with federal and state fair housing laws,
and fair housing and local preference guidelines established by the Watertown Housing Partnership.
No Building Permit for a covered development shall be issued unless the DCDP has determined that
the Petitioner's affirmative marketing plan complies with this requirement. The affirmative marketing
costs for the affordable housing units shall be the responsibility of the Petitioner.
(h) Preservation of Affordabilitv
(1) Affordable units provided under this Section shall be subject to an Affordable Housing
Restriction that contains limitations on use, occupancy, resale and rents, and provides for periodic
monitoring to verify compliance with and enforce said restriction. Affordability restrictions shall be
contained in applicable affordable housing restrictions, regulatory agreements, deed covenants,
contractual agreements, land trust arrangements and/or other mechanisms to ensure compliance with
the affordability requirements of this§5.07 (collectively, "Affordable Housing Restriction').
(2) The Affordable Housing Restriction shall run with the land and be in force in perpetuity or for
the maximum period allowed by law, and be enforceable under the provisions of Chapter 184, Section
26 or Sections 31-32 of the General Laws.
Page 4 of 7
Changes to Watertown!s Incl usionary Zoning Requirements
Draft 6/27/16
As Approved by the ED&P Subcommittee
(3) The Affordable Housing Restriction shall provide that initial sales and rental of affordable
housing units and their subsequent re-sales and re-rentals shall comply with federal, state and local
fair housing laws, regulations and policies.
(4) The Affordable Housing Restriction shall provide that in the event that any affordable rental unit
is converted to a condominium unit, the condominium unit shall be restricted in perpetuity in the
manner provided for by§5.07(h)(1) above to ensure that it remains affordable to households in the
same income range as prior to the condominium conversion.
(5) For a covered development that provides Inclusion Units:
(A) No building permit shall be issued until an Affordable Housing Restriction has been
executed by the Petitioner and the SPGA and the Petitioner provides evidence acceptable to
the Director of DCDP that the agreement has been recorded at the Middlesex County Registry
of Deeds.
(B) For a rental, for sale or homeownership unit, the DCDP shall not authorize or sign off on a
Certificate of Occupancy until the Petitioner submits documentation acceptable to the Director
of DCDP that an affordable housing deed rider has been signed by affordable unit homebuyer
and recorded at the Middlesex County Registry of Deeds.
(6) For a covered development that provides affordable housing through a cash payment in lieu of
affordable units:
(A) For a covered development having 10 units or less that provides affordable housing
through a cash payment in lieu of affordable units; the following reduced percentage(%)of the
difference between fair-market value and affordable housing unit as described in §5.07(e)(-2).
A. shall apply: 10 units—100%; 9 units-90%; 8 units—80%; 7 units— 70% and 6 units—60%.
(B)The DCDP shall not sign off on Coertificate(s)of Oeccupancy far Unit 6 until the Petitioner
pays 100%WJ'o of the required cash in lieu payment.fee.;er-payment-in-fall-if-it-is�t
severed-development the
�etitiener-rnust-pay+-.h;�„a,ring-50�o e�payment-in-full-for severed-develepments#aving�
8,and unitsand prsv deevidencete-the4ireste ent has hppn
paid in fulle4he-Affordable-Housing-Fund. F g fee
must-be-paid-prier to the i6suanee of t# s PjR441-and above:
(7) All legal documentation in connection with the affordable housing units shall be in the standard
form provided by the Town of Watertown, as approved by legal counsel to the Town. If the Petitioner
proposes to use documentation other than that provided by the Town, any and all costs associated
with review by legal counsel to the Town shall be paid by the Petitioner.
(i) Submission Reouirements and Procedures
Projects requiring the provision of affordable units under this Section must submit a proposal as to the
method of meeting the affordable housing requirements with the application for zoning relief and a
copy to the WHP. The WHP shall, in writing, provide the SPGA Petitioner-with their recommendations
no later than forty (40)days from submission. The SPGA may adopt additional submission
requirements and procedures not inconsistent with this Section, following a public hearing and
consultation with the WHP.
Q) Special Reaulations for Inclusion Units
(1) Use Reaulations: Developments with Inclusion Units shall comply with §5.01, Table of Use
Regulations; provided, however, that a covered development with not more than ten (10) multi-family
units shall be a permitted use when at least 12.5% of the units are Inclusion Units as defined
Page 5 of 7
Changes to Watertown's Inclusionary Zoning Requirements
Draft6/27/16
As Approved by the ED&P Subcommittee
hereunder, in which case the development shall qualify for review as a Small-Scale Inclusion
Development.
(2) Small-Scale Inclusion Develocment Submission Reouirements and Procedures;No Building
Permit for a Small-Scale Inclusion Development shall be issued until the SPGA has approved a site
plan in accordance with §9.03 and the provisions of this Section. The SPGA may adopt regulations for
submission requirements and procedures not inconsistent with this Section, following a public hearing.
+ (3) Cost Offsets and Affordability Reauirements: Inclusion Units provided in excess of what is
required in §5.07(d)(4)shall be exempt from the minimum lot area per dwelling unit and/or maximum
floor area ratio, as set forth in §5.04, provided that the Inclusion Units comply with the following
affordability requirements:
WRental Units: For the affordable units, the maximum affordable rent shall be affordable to a
household with income at or below 65% area median income (AMI), adjusted for household
size.;P I-permit-for--aAevelepment in which
the-affe n-ave;age;afferdable-fer- Guseheld--w444noeme-at-6�!°-AMp
€er-exarpple;ina-development-wiiH-twe-Irac�ssier}klnvts�ge rnaximt,r�.rentse�eae7i-wait-maybe
thatwhiebisaffardabl--rte-2-heuseheld-witli-iaesme-aE65%AA ,eFene-un{t-may-be- ferdable
seme-ate ° rdable4e a-heuseheld
with-neem ° blo ?t ?n e rental aevelepw,-� �
for afferdab4ity-te-a-househeldAv4h-inronie ex�ced;ng-09%AM .
(B) /hem - Per shall--be
a#erdable4e-a-householdAY&Anseme-at-70%- ,ad}usted4er-household-size;
(k) Local Initiative Proaram Reouirements, The Petitioner shall be responsible for preparing and
complying with any documentation that may be required by DHCD to qualify affordable units for listing on the
Chapter 40B Subsidized Housing Inventory, The Petitioner shall also be responsible for providing annual
compliance monitoring and certification to the Town, or to cover the costs of the Town for provision of
such compliance monitoring.
(1) Severabilitv
If any portion of this Section is declared to be invalid, the remainder shall continue to be in full force
and effect.
Page 6 of 7
Changes to Watertown's Inclusionary Zoning Requirements
Draft 6/27/16
As Approved by the EMP Subcommittee
SUGGESTED CHANGES TO OTHER SECTIONS OF ZONING REQUIREMENTS THAT REFER TO
INCLUSIONARY ZONING
SECTION 5.08 REVITALIZATION OVERLAY SPECIAL PERMIT(110)
(d) Dimensional Criteria: The uses noted in subsection (c) above shall be subject to the following
criteria:
(8) Bonus Densitv: A project developed by a Revitalization Overlay special permit which
complies with the requirements of Section 5.07, except that the allowance for a cash
contribution in lieu of units shall not apply,wWsh-prevides that ten ) of its
residential-unitsbe made afford able4e4ewand4nederate inceme persens as efned-by
rxe fi`.'�_-Office(;f-Q6..,.. v-it:3S i..nd_D e.'i?„_t fs tll :'I
Section 6.07(d),may increase its Floor Area Ratio to a maximum of 2.0.
SECTION 9.07 SPECIAL PERMIT CRITERIA FOR 1-3 DISTRICT
(a) Commercial Uses: Applicants for a special permit for mixed-use development in the 1-3 district shall be
permitted to use up to twenty percent (20%) of the total gross floor area for general retail or service
purposes, provided, however, that no drive-in facility of any kind is permitted. The commercial space
shall be limited to the first floor but may be located in one or more buildings located on the Lot.
(b} --4nclusionaw-Zenina Reeui ^me cants-fera-speclal_permit-for residenflaWse—sins evide ten
percentoRumber ef dwelling units 6ubjeot tG a speGial peFmit for affardablp hnusfi;g
PUFPeses as provided In §5.07(o.
Page 7 of 7
Changes to Watertown's Inclusionary Zoning Requirements
Draft 6/27/16
As Approved by the ED&P Subcommittee
TOWN OF WATERTOWN
1630 HOUSINO PARTNERSHIP
° Ja Administration Building
W r' 149 Main Street
Watertown,MA 02472
f3 ✓/ Phone;617 972 6417
3-. ^ PYL\:617 972 6484
%mwmatertowtrma.eov
To: Honorable Town Council
Michael J, Driscoll,Town Manager
.P�t i2v0"�ii(iJ� iGflGt•rr��
From: Watertown Housing Partnership o �
Date: May 24,2016 0
Subject: Housing Partnership Recommendation on Changes to Inclusionary Zoning
The Watertown Housing Partnership (Partnership) met on April 19, 2016,April 27, 2016
and on May 17, 2016 to consider changes to Watertown's Inclusionary Zoning
requirements in response to the Town Council's referral to the Economic Development
Subcommittee and to address whether the increase to 15% the Inclusionary Zoning set
aside in the newly RMUD district should be applied town-wide.
Attached to this Memo is language the Parhnership suggests should be replace language in
Section 5,07 of the Zoning Ordinance, and in certain other key sections in the Ordinance
where affordable housing is mentioned,
The key changes to Section 5.07 that the Partnership recommends are:
1. Create a two-tiered system for the unit set-aside based on project size.Smaller
projects with up to 19 units should be required to set aside 12.5%of the total units
as affordable, Larger projects with 20 or more units should be required to set aside
19.0% of total units as affordable.The liigh market rate housing cost and recent
increases shown on Table I point out a need for more affordable housing. Numbers
of affordable units set aside at 12.5 and 15 percent are shown on Table 11A.
2. For larger projects create RENTAL UNITS affordable to households below 65%Area
Median Income (AMI). To accomplish this require projects containing 20 and larger
number of rental units to provide 1/3 of the affordable units at 65%AMi. Tables 11
A/B illustrates the impact to developers in the number of set aside units and degree
of affordability. Home-ownership units would remain at 8O%AMh
The Partnership also recommends other housekeeping changes to the Inclusionary Zoning
text and to several other sections of the Zoning Ordinance.
The Partnership believes these changes to Watertown's Inclusionary Zoning (noted above)
are warranted for several reasons:
I
A. They are consistent with and promote Watertown's 2014 Housing Production Plan.
Specifically,the increase to a 15% set aside will help Watertown create more
affordable units, and progress toward the State's goal to meet the Chapter 40(B)
requirement to make 10% of its total housing stock affordable,
B. They are consistent with and promote the affordable housing goals in Watertown's
2015 Comprehensive Plan,specifically Goal 1 to promote and maintain a diverse
housing stock with increased funding for housing creation and more opportunities for
lower-and middle-income households.
C. Mousing options continue to be limited for those on the lower tiers of the income
spectrum,particularly those below 65% of AMI,and these proposed changes aim to
help address that continued affordability gap,and meets the needs of those
households in Watertown that are most cost-burdened.
D. The two tiers of project size address and balance the potential for impacts on small
to medium sized projects (6 to 19 units) by holding the requirements for affordable
units as they are now.
E. The upper tier for larger project sizes (20 or more units) can provide for greater
affordability of 65%AMI while not changing the effect on small or medium sized
projects, High rent levels in Watertown are currently preventing household
movement from State Public Housing Into affordable or market rate rental housing.
F. The provision for greater affordability has additional impact by helping Watertown
Housing Authority residences access these rental units,thus freeing up much
needed public housing units as explained in the attachment submitted by Brian
Costello of the Watertown Housing Authority.
G. For home-ownership projects,setting the affordability at 80%AMI,in concert with
existing HUD regulations and safeguards,helps to insure ability of low to moderate
income households to purchase housing and maintain their household financial
stability.
The Partnership also notes that Section 5.07(j)(3) is being retained,which exempts
affordable units in excess of what is required to be set aside at 65% of AMI from the
maximum lot area per dwelling and/or the maximum floor area ratio. The Partnership
recognizes these tools are important to a projects financial proforma,and may therefore
provide an additional incentive for private developers to offer units at a lower income level.
The Partnership also discussed and considered the need of middle income residents.While
there is a need for housing for middle Income residents,the greater and more urgent need
is for low and moderate income households (between 50%and 80%AMI).Therefore,the
Partnership recommends that any provision for"middle intone"households be on top of,
not in lieu of the 15%.
Memo to Totvn Council and Mtuwger from Watertown Housing Partnership
lnchrslonaryzoning
5124116
Page 2 of 3
The Partnership noted that units above 80%AMI would not increase progress toward the
10% state target and would not be counted on the Subsidized Housing Inventory.
The Partnership thanks the Town Council for its work on this critical issue,and for the
opportunity to provide recommendations to address the affordable housing needs in
Watertown consistent with the Watertown Housing Production Plan and Comprehensive
Plan,
Attachments:
1. The Watertown Housing Partnership suggested replacement language for Section
5.07 of the Zoning Ordinance,
2, Table [Watertown Market Rate Housing Costs and Recent Increases
3, Table IIA Number ofAffordable Units Set Aside and Affordability
4. Comments from the Watertown Housing Authority Perspective.
Memo to Totvn Council and Managerfi•om Watertown Housing Partnership
Inclusionaryzoning
5124116
Poge 3 of 3
SUGGESTED CHANGES TO WATERTOWN'S INCLUSIONARY ZONING REQUIREMENTS
SECTION 5.07 AFFORDABLE HOUSING REQUIREMENTS
(a) Intent and Ptrroose
The purposes of this Section are to encourage the expansion and improvement of the Town of
Watertown's housing stock; to provide for housing choices for households of all incomes, ages, and
sizes; to prevent the displacement of low- and -moderate-Income residents; to produce affordable
housing units in order to meet existing and anticipated employment needs within the Town; to provide
Opportunities for conventional residential and mixed-use development to contribute to Increasing the
supply of affordable housing; and to establish standards and guidelines in order to implement the
foregoing.
(b) Definitions
1.AFFORDABLE HOUSING PROGRAM
Collectively, §5.07 and other provisions of the Watertown Zoning Ordinance that pertain to the
development and preservation of affordable housing In the Town of Watertown.
2.AFFORDABLE HOUSING RESTRICTION
A deed restriction, contract, mortgage agreement, or other legal Instrument, acceptable in form and
substance to the Town of Watertown, that effectively restricts occupancy of an affordable housing unit
to qualified purchaser or qualified renter, and which provides for administration, monitoring and
enforcement of the restriction during the term of affordability. An affordable housing restriction shall
run with the land in perpetuity or for the maximum period of time allowed by law, and be enforceable
under the provisions of Chapter 184, Sections 26 or 31-32 of the General Laws,
3.AFFORDABLE HOUSING FUND
A fund account established by the Town for the purpose of creating or preserving affordable housing
In the Town of Watertown.
4.AFFORDABLE HOUSING UNiT
A dwelling unit that is affordable to and occupied by a low-or-moderate-income household and meets
the requirements of the Massachusetts Department of Housing and Community Development
(DHCD), Local Initiative Program, for Inclusion on the Chapter 40B Subsidized Housing Inventory.
5. AREA MEDIAN INCOME
The medlan family Income for the metropolitan area that Includes the Town of Watertown, as defined
In the annual schedule of low- and -moderate-interne limits published by the U.S. Department of
Housing and Urban Development(HUD), adjusted for household size.
6. COVERED DEVELOPMENT
Any development required to provide affordable housing in accordance with §5.07.
7. ELIGIBLE HOUSEHOLD
A low- or -moderate-Income household that purchases or rents an affordable housing unit and
occupies it as their domicile and_ildnclpml residence, as-It"ole residence:
5, INCLUSION UNIT
An affordable housing unit built on the same site as the market-rate units in a covered development
under§5.07.
g. LOCAL INITIATIVE PROGRAM
A program administered by DHCD pursuant to 760 CMR 66.00 to develop and implement local
housing initiatives that produce low-and-moderate-income housing,with or without a
comprehensive permit as defined in Chapter 40B, Section 20 through Section 23 of the General
Pagel of 7
Changes to Watertown's Incluslonary Zoning Requirements
Draft 5/18/16-As Approved by the Watertown Housing Partnership
Laws.
10, LOW-OR MODERATE-INCOME HOUSEHOLD
A household with Income at or below 80%of area median Income, adjusted for household size,for the
metropolitan area that includes the Town of Watertown, as determined annually by HUD.
11. MARKET-RATE DWELLING UNiT
All dwelling units in a development subject to this§5.07 that are not affordable housing units as defined
herein.
12. MAXIMUM AFFORDABLE PURCHASE PRICE OR RENT
A purchase price or monthly rent that compiles with tho requirements and Table shown in
5 07,(d)-(4 and that complies with the regulations and guidelines of the DHCD Local Initiative
Program and the Watertown Planning Board, except that developments subject to§ 5,070)(3)shall
comply with the maximurn purchase price or rent requirements of that section. For homeownership
units, the maximum affordable purchase price shall account for the monthly cost of a mortgage
payment, property taxes, Insurance,and condominium fees where applicable,;and Lfor rental units,
the maximum affordable rent shall account for the monthly cost of rent and utilities. The household
income used to Compute the maximum affordable purchase price or rent shall be adjusted for
household size, considering the household size for which a proposed affordable unit would be
Suitable under guidelines of the Local Initiative Program or any successor affordable housing
program established by the State.
13. SMALL-SCALE INCLUSION DEVELOPMENT
A covered development that provides 6 or more up to 10 dwelling units.
14, SUBSIDIZED HOUSING INVENTORY
The Department of Housing and Community Development Chapter40B Subsidized Housing Inventory
as provided in 760 CMR 31.04.
(c) Aonlicability
(1) §5.07 applies to any development, whether new construction, conversion, adaptive reuse or
expansion of an existing structure, involving the creation of more than five dwelling units or more than
five (5) lots for residential use. Assisted living, outside of the Assisted Living Overlay Zone, § 6.11,
shall be considered institutional and shall be exempt from §5.07.
Developments may not be segmented to avoid compliance with this Section. "Segmentation" shall
mean any development, whether new construction, adaptive reuse or redevelopment, or any division
of land that would cumulatively result in an increase by five or more residential lots or dwelling units
above the number existing on a parcel of land or contiguous parcels in common ownership twenty-
four months prior to the application.Where such segmentation occurs, if shall be subject to this Section
as a covered development. A subdivision or division of land shall mean any subdivision as defined in
the Subdivision Control Law, G.L. e.41, Sections 81K-81GG, or any division of land under G.L. e.41,
§81 P,into lots for residential use,
(2) This Section does not apply to the rehabilitation of any building or structure,all of or
substantially all of which Is destroyed or damaged by fire or other casualty or a natural disaster;
provided, however, no rehabilitation nor repair shall increase the density, bulk or size of any such
building or structure which previously existed prior to the damage or destruction thereof except in
conformance with this Section.
(d) Basic Requirements
(1) Projects having more than five (6) units: No special permit for a development requiring a
special permit and no building permit for a use permitted as of right,shall be issued for a development
subject to this section unless the Petitioner provides the._percentaye of at-least-twelve-and-one-half
persont-(42_1%)the total dwelling units in the developme nt as affordable housing as described herein,
Page 2 of 7
Changes to Watertown's hrclusionary Zoning Requirements
Draft 5/18/16-As Approved by the Watertown dousing Partnership
within§5.07_(d)(4)includirg.the (able in-Section 39and otherwise consistent with this Section.
(2) Nothing in this Section shall preclude a developer from providing additional moro affordable
units, oi:gre tc;r a((ordabilily, or both,than the minimum requirements. In no Instance shall any
permit or special permit approval create less than one affordable housing unit, and for purposes of
this Section, any calculation of required affordable housing units that results in the fractional or
decimal equivalent of one-half or above shall be increased to the next highest whole number.
(3) Affordable units shall be made available to eligible low-or-moderate-Income households at
purchase prices or rents that comply with the Massachusetts Department of Housing and
Community Development(DHCD) Local Initiative Program regulations, 760 CMR 56.00, or any
successor program as may be determined by the Special Permit Granting Authority(SPGA) upon
rocommondation-of in-eonsldtalionVilh-the Watertown Housing Partnership(WHP)and_as indicated
in W-00)(4)
(4) The Rent and/1''urehaseownerstill) Pprice and eiidf ility Schedulereauiromeitls are as follows:
(The tablo below,ls flew)
Total Project Size Affordable Units Rental Price Ownership Price
1 tot;units 0 14A NA
6 to 19 units 12 5% 80%AMI 80%of AMI
20 and over units 15.0% No less than 5%of the total 80%AMI
units at 6S%AMI
10%of total units at 80%AMI 80%AMI
(o) Methods of Providing Affordable Units
(1) A covered development with more than five (6)and up to ten (10) units, shall have the option
of providing an affordable unit on site or making a cash payment in lieu of. A covered development
with more than ten (10) units shall provide the affordable units on site. However, approval for cash
payment In lieu of on-site affordable units may be granted by the SPGA in certain exceptional
circumstances. The SPGA must find that the developer has clearly demonstrated that providing such
unit(s)on-site would create significant hardship and that a cash payment in lieu of on-site units)is In
the best Interest of the Town's affordable heUSlnu needs.
Any request for alternative means of compliance shall be reviewed by the WHP,which shall then make
Its recommendation to the SPGA.
(2) The SPGA shall authorize that an alternative method of compliance be used,in accordance with
the following:
(A)- —Cash Payment: The SPGA may grant a special permit to provide affordable housing
through a cash payment to the Watertown Affordable Housing Fund, in lieu of providing one or
more of the affordable units required under this Section; provided, however, that a fee in lieu of
affordable units may be authorized only for a covered developments with more than five(5)and
up to ten (10) units of for rental, for-sale or homeownership units. The cash payment shall be
equal to the difference between the fair market value for a typical market-rate housing unit and
the price of the affordable housing unit consistent with DHCD LIP Guidelines and shall be in
accordance with a schedule of affordable housing payments as outlined in §5.07(h) (6) and
guidelines adopted and amended from time to time by the SPGA, following a public hearing, in
consultation with the WHP and the Watertown Department of Community Development and
Planning(DCDP).
Page 3 of 7
Changes to Watertown's Incluslonary Zoning Requirements
Draft 5/18/16-As Approved by the Watertown Housing Partnership
If) Location and Comparability of Affordable Units
(1) Affordable units shall be proportionately distributed throughout the building(s)in a covered
development.
(2) Affordable units shall be indistinguishable from market-rate units in exterior building materials
and finishes; overall construction quality; and energy efficiency, Including mechanical equipment and
Plumbing, insulation, windows, and heating and cooling systems, as determined by the Building
Inspector
(3) Affordable units may differ from rnatket-rate units in type of appliances, finishes; however, the
affordable units shall be comparable to the base market-rate units in such Instances.
(4) Affordable units shall have the same floor area as the median market-rate units of the same
number of bedrooms within a margin of 20%;provided that units are not less than the minimum square
foot required by DHCD.
(5)__ _The bedroom mix in the affordable units shall be proportionate to the market-rate units, unless
the SPGA authorizes a different mix by special permit upon the recommendation of the WHP,
(0)(5) The SPCA may adopt regulations or guidelines to further define comparability of the foregoing
requirements.
(%)(6) The WHP shall provide the Petitioner and SPCA as provided in§5.07(1)-Q)with its
recommendations with reference to the Petitioner's proposal in meeting the requirements for affordable
housing.
(g) Affirmative Marketino and Local Preference Policv
Affordable units shall be made available for purchase or rent to eligible low- or -moderate-Income
households under an affirmative marketing plan that complies with federal and state fair housing laws,
and fair housing and local preference guidelines established by the Watertown Housing Partnership, No
building permit for a covered development shall be issued unless the DCDP has determined that the
Petitioner's affirmative marketing plan complies with this requirement. The affirmative marketing costs
for the affordable housing units shall be the responsibility of the Petitioner.
(h) Preservation of Affordability
(1) Affordable units provided under this Section shall be subject to an Affordable Housing
Restriction that contains limitations on use, occupancy, resale and rents, and provides for periodic
monitoring to verify compliance with and enforce said restriction.Affordability restrictions shall be
contained in applicable affordable housing restrictions, regulatory agreements, deed covenants,
contractual agreements, land trust arrangements and/or other mechanisms to ensure compliance with
the affordability requirements of this§5.07(collectively, "Affordable Housing Restriction").
(2) The Affordable Housing Restriction shall run with the land and be In force In perpetuity or for the
maximum period allowed by law,and be enforceable under the provisions of Chapter 184,Section 26 or
Sections 31-32 of the General Laws.
(3) The Affordable Housing Restriction shall provide that initial sales and rental of affordable housing
units and their subsequent re-sales and re-rentals shall comply with federal, state and local fair housing
laws, regulations and policies.
(4) The Affordable Housing Restriction shall provide that in the event that any affordable rental unit
is converted to a condominium unit, the condominium unit shall be restricted in perpetuity in the manner
provided for by§5.07(h)(1)above to ensure that it remains affordable to households in the same Income
range as prior to the condominium conversion.
Page 4 of 7
Changes to Watertown's Inclusimiary Zoning Requirements
Draft 5/18/16-As Approved by the Watertown Housing Partnership
(6) Fora covered development that provides Inclusion Units:
(A)No building penult shall be issued until an Affordable Housing Restriction has been executed
by the Petitioner and the SPGA and the Petitioner provides evidence acceptable to the Director
of DCDP that the agreement has been recorded at the Middlesex County Registry of Deeds.
(B) For a rental, for sale or homeownership unit, the DCDP shall not authorize or sign off on a
certificate of occupancy until the Petitioner submits documentation acceptable to the Director of
DCDP that an affordable housing deed rider has been signed by affordable unit homebuyer and
recorded at the Middlesex County Registry of Deeds.
(6) For a covered development that provides affordable housing through a cash payment in lieu of
affordable units:
(A)For a covered development having 10 units or less that provides affordable housing through
a cash payment in lieu of affordable units;the following reduced percentage(%)of the difference
between fair-market value and affordable housing Unitas described in§e. 2.A. shall apply: 10
units-100%; 9 units-90%; 8 units-80%; 7 units-70%and 6 units-60%.
(B)The DCDP shall not sign off on certificates)of occupancy for Unit 6 until the Petitioner pays
50% of the required fee; or payment in full if it is a 6-unit covered development. Before a
certificate of occupancy can be issued for Units 7-10, the Petitioner must pay the remaining 60%
or payment in full for covered developments having 7, 8,and 9 units and provide evidence to the
Director of DCDP that the cash payment has been paid in full to the Affordable Housing Fund.
For projects above 10 units, the remaining fee must be paid prior to the Issuance of the
certificates of occupancy for unit 11 and above.
(7) All legal documentation in connection with the affordable housing units shall be in the standard
form provided by the Town of Watertown, as approved by legal counsel to the Town. If the Petitioner
proposes to use documentation other than that provided by the Town,any and all costs associated with
review by legal counsel to the Town shall be paid by the Petitioner.
(i) Submission Reauirements and Procedures
Projects requiring the provision of affordable units under this Section must submit a proposal as to the
method of meeting the affordable housing requirements with the application for zoning relief and a copy
to the WHP. The WHP shall,in writing,provide the ShG-A Petilionerwith their recommendations no later
than forty (40) days from submission. The SPGA may adopt additional submission requirements and
procedures not Inconsistent with this Section,following a public hearing and consultation with the WHP.
Q) Soeclal Reaulations for Inclusion Units
(1) Use Regulations: Developments with Inclusion Units shall comply with §5.01, Table of Use
Regulations; provided, however, that a covered development with not more than ten (10) multi-family
units shall be a permitted use when at least 12.5%of the units are Inclusion Units,as defined hereunder,
In which case the development shall qualify for review as a Small-Scale Inclusion Development.
(2) Small-Scale Inclusion Develoement Submission Reauirements and Procedures: No building
permit for a Small-Scale Inclusion Development shall be issued until the SPGA has approved a site plan
In accordance with §9.03 and the provisions of this Section. The SPGA may adopt regulations for
submission requirements and procedures not inconsistent with this Section, following a public hearing.
(3) Cost Offsets and Affordabllily Reauirements: Inclusion Units shall be exempt from the minimum
lot area per dwelling unit and/or maximum floor area ratio, as set forth in §5.04, provided that the
Inclusion Units comply with the following affordability requirements.and provide a number of units in
oxcoss of what is required In §5.07(d)(4):
(A}Rental Units: For the affordable units, the maximum affordable rent shall be affordable to a
Page 5 of 7
Changes to Watertown's Inclusionary Zoning Requirements
Draft 5/18/16-As Approved by the Watertown Noising Partnersbip
household with income at or below 65%area median Income(AMI),adjusted for household size;
provided, however, that the SPGA may grant a special permit for a development in which the
affordable unit rents are, on average, affordable for a household with income at or less than at
65%AMI. kor-exarnplo,-In a development-with iwo-lnciusfonkJrits,the�narirnum rent-for each
unit may-be that-wliloh-Is<t(fordable-to a-housohold wiihancome-at-65°�o AMI,-or-one�rn(t-may bo
affordable to t-household-wiifrineomo-at 50%-AMI-and 1110-second-unit-may-bo-affordable-to.a
heuschvld ith-inconae�rt-70%AML-1-lowever-no ifordable unit-in��enlal development-shall
be-priced-for-affordabllity-to-a household With incomo-exceeding tl0%AMI:
(13)-llomeownorsll/�-Units -f=or-the--affordable-units;-the-nr.-iximum-purchase-pitee-shall-bo
affordable to a-household-with Incomo-at 70%-AMI,-adjusted for-household-size;
(k) Local Initiative Prooram Requirements. The Petitioner shall be responsible for preparing and
complying with any docurnentation that may be required by DHCD to qualify affordable units for listing on the
Chapter 40B Subsidized Housing Inventory.. l_h�I�otillonor shall als_o_be responslblo for-prro_vidinc�rnisi
compilance monitorincl and codification to the Town or to cov_Fr the costs of the'I'own for Ixoyision of such
comnllance monitorinq,
(I) Severabilitv
If any portion of this Section is declared to be invalid, the remainder shall continue to be In full force and
effect.
Page 6 of 7
Changes to Watertown s Inclusionary Zoning Requirements
Draft 5/18/16-As Approved by the Watertown Housing Partnership
SUGGESTED CHANGES TO OTHER SECTIONS Or ZONING REQUIREmrNTs THAT REFER TO
INCLUSIONARY ZONING
SECTION 5.0O REVITALIZATION OVERLAY SPECIAL PERMIT(RO)
(d) Dimensional Criteria: The uses noted In subsection (c) above shall be subject to the following
criteria:
(8) Bonus Density;A project developed by a Revitalization Overlay special permit which complies
With the,requirements of Section 5.07, except-that the allowance for a cash contribution In lieu
of units shall notapply which-provides-that-tort-percont-(10%)-of-Its-residontial-units be mado
affordablo-to-low-and-iiiociorato-ineonurpersons as dofined-by-Gxecutive-Offico of
Conununities ancl-Development-(f-.00D);-subject-toahe criteria set-forlh-0t-Section-707((I)i may
Increase Its floor Area Ratio to a maximum of 2.0.
SECTION O.07 SPECIAL PERMIT CRITERIA FOR 1-3 DISTRICT
(a) Commercial Uses: Applicants for a special permit for mixed-use development in the 1-3 district shall be
permitted to use up to twenty percent (20%) of the total gross floor area for general retail or service
purposes, provided, however, that no drive-in facility of any kind is permitted. The commercial space
shall be limited to the first floor but may be located in one or more buildings located on the Lot.
(b)—Inch+_sioyaW_Jolting-fecLlrements-Applicants--forzi-special permit for-residential use hall-provide-ten
percent-(10%)-of-tho-total number-0Ldwelling-units-subjocF-lo-a-speciall)ormit for-affordable-housing
purposes-as provided-In-§S:Oa(e).-
Page 7 of 7
Changes to Watertown's Inclusionary Zoning Requirements
Draft 5/18/16-As Approved by the Watertown Housing Partnership
TABLE I WATERTOWN MARKET RATE HOUSING COSTS AND RECENT INCREASES
A) WATERTOWN CONDO AVERAGE SALES PRICES AND THREE YEAR PRICE INCREASE
YEAR AVG. PRICE($) AVG. PRICE($) AVG. PRICE($)
OR ONE BEDROOM TWO BEDROOM I THREE BEDROOM
INCREASE
2015 315,586 396,235 548,560
2012 253,774 309,121 1426,984
THREEYEAR 61,812 87,114 1121,576
PRICE
INCREASE
B) WATERTOWN MONTHLY AVERAGE APPARTMENT RENT AND THREE YEAR RENT INCREASE
YEAR AVG. AVG. AVG.
OR MONTHLY MONTHLY MONTHLY
INCREASE RENT($) RENT($) RENT($)
ONE TWO THREE
BEDROOM BEDROOM BEDROOM
2015 1,688 1,937 2,373
2012 1,517 1,705 2,285
THREE 171 232 88
YEAR,
MONTHLY
RENT
INCREASE
NUMBERS CALCULATED USING DATA OBTAINED FROM MULTIPLE LISTING SERVICE H3 PINERGY, WHICH
INCLUDES ALL MLS SALES AND RENTALS IN WATERTOWN FOR THE TIME PERIODS
TABLE II, AFFORDABLE UNITS SET ASIDE
TABLE II A: AFFORDABLE RENTAL AND OWNERSHIP UNITS RESULTING AT
12.5% AND 15% SET ASIDE
TOTAL AFFORDABLE AFFORDABLE TOTAL AFFORDABLE AFFORDABLE
UNITS IN UNITS AT UNITS AT 15% UNITS IN UNITS AT UNITS AT 15%
PROJECT 12.5% AMI PROJECT 12.5% AMI
AMI AMI
1-5 0 0 21 3 3
6 1 1 22 3 3
7 1 1 23 3 3
8 1 ( 1 24 3 4
9 1 1 25 3 4
10 1 2 50 6 8
11 1 2 75 9 11
12 2 2 100 13 15
13 2 2 125 16 19
14 2 2 150 19 23
15 2 2 175 22 26
16 2 2 200 25 30
17 2 3 300 38 45
18 2 3 400 50 60
19 2 3 500 63 75
20 3 3
TABLE II B: AFFORDABLE RENTAL UNIT SET ASIDE AS PROPOSED BY WATERTOWN
HOUSING PARTNERSHIP
12.5% SET ASIDE THROUGH 19 TOTAL-PROJECT-UNITS AND 15%SET ASIDE
THEREAFTER
(1/3 OF AFFORDABLE UNITS AT 65%AMI BEGINNING AT 20 TOTAL- PROJECT-
UNITS)
TOTAL NUMBER TOTAL NUMBER OF NUMBER OF NUMBER OF
OF UNITS IN AFFORDABLE AFFORDABLE AFFORDABLE
PROJECT UNITS SET ASIDE UNITS AT UNITS AT
65% AMI 80% AMI
1-5 0 0 0
6 1 0 I 1
10 1 0 I 1
15 2 0 2
20 3 1 2
25 4 1 3
50 8 3 5
75 11 4 7
100 1S 5 10
150 23 8 15
200 30 10 20
300 45 15 30
400 60 20 40
500 75 25 50
WATERTOWN HOUSING AUTHORITY
55WAVERLEYAVENUE
WA'tERTOWN,MASSACHOSETTS 02472-3613
i
(617)923-3950-Oface TDD (617)923.3954-Leased Housing
(617)923.3961-Maintenance 1.800-545-1833 ext,569 (617)923.2466.FAX
i
i
Attachment to Recommended Section 6.07 Zoning Changes
The Current Situation of State Family Public Housing Units Owned and
Operated by the Watertown Housing Authority
By; Brian Costello, Executive Director, Watertown Housing Authority
There are 240 State Family Public Housing Units owned and operated by the Watertown
Housing Authority. As you know, rent is calculated at 30% of residents' monthly gross Income
(minus certain allowed deductions)with heat and hot water Included in the rent, The average
monthly rent per apartment in our family developments as of May 1, 2016 is- $482.00. This
equates to an average annual Income of approximately$ 19,000.00. Just five years ago
average rent was approximately$ 350.00 with average annual Incomes at around$ 14,000,00,
This represents an Increase in rent/income greater than 35% in just five short years.
Two basic variables contribute to this Increase In monthly average rents and annual Income.
The first variable Is an Indication that residents have progressed since their initial occupancy in
Public Housing via better jobs through education, training and hard work. The second variable
Involves limited options In the Watertown area to secure market rate housing,
Prior to the explosive cost of housing, both rental and ownership, experienced in the greater
Boston Metropolitan Area and especially in Watertown, it was a very rare occurrence to find a
resident household in the family developments paying in excess of$ 1,000.00 per month
towards rent, Rent at this amount represents an annual income of around $40K or a starting
teacher's salary. In the past when I reviewed the monthly rent roll, you could anticipate and
expect a vacancy was coming when a family was paying that level of rent. This, of course,
presented opportunity for another family at a very low Income (usually <= 14K) to move in and
start their progression.This is the mission of Family low Income Public Housing.
Over the past few years when I review the family rent roll I see a very disturbing
trend. Currently the WHA has 27 family households paying in excess of$ 1,000,00 per month
towards rent(40K+ annual Income)and even more unsettling of the 27 family households, nine
(9)family households pay>11 to $ 1,400.00 per month (56K+ annual Income).
I
Eleven percent (11%) of our families are experiencing limited options to move into ownership or
the private rental housing market. These are residents with good work histories and solid rent
payment positions with the WHA. This 11% would represent 26 vacancies to assist local
applicants on our multiple year waiting list to gain truly safe,decent and affordable housing. It is
Important to note that all mentioned do not become over-Income and ineligible until their
Income/rent exceeds the Section 8 Fair Market Rents(FMR)which currently for a two bedroom
Is $ 1,723.00 per month and a three bedroom Is$2,139.00.
EQUAL HOUSING OPPORTUNITY
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TOWN OF WATERTOWN
1630 PIOUSINU PARTNEKSHiP
14 Administration Building
149 Main street
• �{ a" - Watel'lown,MA 02472
3 _ ° Phonc 617 972 6417
Far:617 972 6484
www watertomi—vma.goy
To: Economic Development Subcommittee of the Honorable Town Council
Michael]. Driscoll, Town Manager
From: Watertown Housing Partnership
Date: June 23, 2016
I
Subject: Housing Partnership Recommendation on Changes to biclusionary Zoning
I
The Watertown Housing Partnership (Partnership) met on with the Economic
Development&Planning Subcommittee (Subcommittee) of the Town Council on June 9,
2016 to consider changes to Watertown's Inclusionary Zoning requirements.
i
This was in response to the Town Council's referral to the Economic Development
Subcommittee and to address whether the increase to 15% the Inclusionary Zoning set
aside in the newly RMUD district should be applied town-wide,
Since the Partnership's meeting with the Subcommittee on June 9, 2016, the Partnership
met again on June 21, 2016 to consider two additional changes:
i
1. Establishment of a methodology of a cash-in-lieu of units payment for rental
projects [§5.07(e)(2)]
2. A clarification of projects are eligible for the exemption from minimum lot area per
dwelling unit, and/or the maximum floor area ratio [§5.07(j)(3)]
Attached to this Memo is revised language the Partnership suggests should replace the
language in Section 5.07 of the Zoning Ordinance, and in certain other key sections in the
Ordinance where affordable housing is mentioned, The changes to Section 5.07 that the
Partnership has made since the meeting with the Subcommittee have been highlighted in
yellow, The remainder of the Track Changes shown in the attached document were
provided previously to the Subcommittee in advance of the June 9, 2016 meeting,
The proposed methodology for a cash-in-lieu-of-units payment has been revised for both
rental and home-ownership units. The Partnership proposes that the Town adopt the MA
Department of Housing and Community Development's Total Development Cost figure,
adjusted for Watertown, the type of unit(new or rehabilitated), and the number of units to
be "bought out" This figure is currently between $329,000 and $349,000,depending on
the size of the unit, The Partnership suggests this methodology is appropriate for both
rental and homeownership,as it reflects a development cost to create units that would
have normally been built by the developer,
The draft Ordinance has also been clarified, such that projects that provide more emits at
65% of Area Median Income (AMI) than what the draft Text Amendment would require are
exempt from the minimum lot area per dwelling unit,and/or the maximum floor area ratio.
Language was removed that suggested that an average AMI figure could be used.
The Partnership also made an additional change, to require that cash-in-lieu payments
occur before the first Certificate of Occupancy is issued for a project, This change is based
on the difficulty the Town has experienced on prior projects in enforcing a staggered
payment,
The Partnership thanks the Subcommittee and Town Council for its work on this critical
issue, and for the opportunity to provide recommendations to address the affordable
housing needs in Watertown.
I
Me=to Town Council and Managerfrom Watertown Housing Partarership
Inclusiottary Zoning
6122116
Page 2 of 2
SUGGESTED CHANGES TO WATERTOWN'S INCLUSIONARY ZONING REQUIREMENTS
SECTION 5,07 AFFORDABLE HOUSING REQUIREMENTS
(a) Intent and Puroose
The purposes of this Section are to encourage the expansion and improvement of the Town of
Watertown's housing stock; to provide for housing choices for households of all Incomes, ages, and
sizes; to prevent the displacement of low- and -moderate-income residents; to produce affordable
housing units in order to meet existing and anticipated employment needs within the Town; to provide
opportunities for conventional residential and mixed-use development to contribute to Increasing the
supply of affordable housing; and to establish standards and guidelines in order to implement the
foregoing,
(b) Definitions
1. AFFORDABLE HOUSING PROGRAM
Collectively, §5.07 and other provisions of the Watertown Zoning Ordinance that pertain to the
development and preservation of affordable housing in the Town of Watertown,
2.AFFORDABLE HOUSING RESTRICTION
A deed restriction, contract, mortgage agreement, or other legal instrument, acceptable in form and
Substance to the Town of Watertown, that effectively restricts occupancy of an affordable housing
unit to qualified purchaser or qualified renter, and which provides for administration, monitoring and
enforcement of the restriction during the term of affordability,An affordable housing restriction shall
run with the land In perpetuity or for the maximum period of time allowed by law, and be enforceable
under the provisions of Chapter 184, Sections 26 or 31-32 of the General Laws,
3. AFFORDABLE HOUSING FUND
A fund account established by the Town for the purpose of creating or preserving affordable housing
in the Town of Watertown.
4.AFFORDABLE HOUSING UNIT
A dwelling unit that is affordable to and occupied by a low-or-moderate-income household and
meets the requirements of the Massachusetts Department of Housing and Community Development
(DHCD), Local Initiative Program, for inclusion on the Chapter 408 Subsidized Housing Inventory,
5, AREA MEDIAN INCOME
The median family income for the metropolitan area that includes the Town of Watertown, as defined
In the annual schedule of low-and -moderate-income limits published by the U.S. Department of
Housing and Urban Development(HUD), adjusted for household size.
6. COVERED DEVELOPMENT
Any development required to provide affordable housing in accordance with §5.07.
7. ELIGIBLE HOUSEHOLD
A low-or-moderate-income household that purchases or rents an affordable housing unit and
occupies it as their domicile and principal residence.as (ts sale res dare
8. INCLUSION UNIT
An affordable housing unit built on the same site as the market-rate units in a covered development
under§5.07.
9. LOCAL INITIATIVE PROGRAM
A program administered by DHCD pursuant to 760 CMR 56.00 to develop and implement local
housing initiatives that produce low-and-moderate-income housing, with or without a
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Comprehensive Permit as defined in Chapter 408, Section 20 through Section 23 of the General
Laws.
10. LOW-OR MODERATE-INCOME HOUSEHOLD
A household with income at or below 80%of area median Income, adjusted for household size, for
the metropolitan area that Includes the Town of Watertown, as determined annually by HUD.
11. MARKET-RATE DWELLING UNIT
All dwelling units in a development subject to this §5.07 that are not affordable housing units as
defined herein,
12. MAXIMUM AFFORDABLE PURCHASE PRICE OR RENT
A purchase price or monthly rent that complies with the requirements and Table shown in
§5.07(d)(4)and that complies with the regulations and guidelines of the DHCD Local Initiative
Program and the Watertown Planning Board, except that developments subject to § 5,07(j)(3)shall
comply with the maximum purchase price or rent requirements of that section. For homeownership
units, the maximum affordable purchase price shall account for the monthly cost of a mortgage
payment, property taxes, insurance, and condominium fees where applicable.;—and Ffor rental units,
the maximum affordable rent shall account for the monthly cost of rent and utilities. The household
Income used to compute the maximum affordable purchase price or rent shall be adjusted for
household size, considering the household size for which a proposed affordable unit would be
suitable under guidelines of the Local Initiative Program or any successor affordable housing
program established by the State,
13. SMALL-SCALE INCLUSION DEVELOPMENT
A covered development that provides 6 or more up to 10 dwelling units.
14. SUBSIDIZED HOUSING INVENTORY
The Department of Housing and Community Development Chapter 40B Subsidized Housing
Inventory as provided in 760 CMR 31.04.
(c) Applicabill
(1) §5.07 applies to any development,whether new construction, conversion, adaptive reuse or
expansion of an existing structure, involving the creation of more than five dwelling units or more
than five (5)lots for residential use. Assisted living, outside of the Assisted Living Overlay Zone,
Section 5.11, shall be considered institutional and shall be exempt from §5.07.
Developments may not be segmented to avoid compliance with this Section. "Segmentation"shall
mean any development,whether new construction, adaptive reuse or redevelopment, or any division
of land that would cumulatively result in an Increase by five or more residential lots or dwelling units
above the number existing on a parcel of land or contiguous parcels in common ownership twenty-
four months prior to the application.Where such segmentation occurs, it shall be subject to this
Section as a covered development. A subdivision or division of land shall mean any subdivision as
defined in the Subdivision Control Law, G.L. c.41, Sections 81K-81GG, or any division of land under
G.L. c.41, §81 P, into lots for residential use,
(2) This Section does not apply to the rehabilitation of any building or structure, all of or
substantially all of which is destroyed or damaged by fire or other casualty or a natural disaster;
provided, however, no rehabilitation nor repair shall increase the density, bulk or size of any such
building or structure which previously existed prior to the damage or destruction thereof except in
conformance with this Section.
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II
(d) Basic Reouirements
(1) Projects having more than five(5) units: No Special Permit for a development requiring a
special permit and no Building Permit for a use permitted as of right, shall be issued fora
development subject to this Section unless the Petitioner provides the percentage of at4east-twelve
and-one-half pereent+1-23%)the total dwelling units in the development as affordable housing as
described herein,within §5.07(d)(4)ineltiding-the-Table-in-Seetien-3aand otherwise consistent
with this Section.
(2) Nothing in this Section shall preclude a developer from providing additional more affordable
units, or greater affordability, or both, than the minimum requirements. In no instance shall any
permit or special permit approval create less than one affordable housing unit, and for purposes of
this Section, any calculation of required affordable housing units that results in the fractional or
decimal equivalent of one-half or above shall be increased to the next highest whole number.
(3) Affordable units shall be made available to eligible low-or-moderate-income households at
purchase prices or rents that comply with the Massachusetts Department of Housing and
Community Development Local initiative Program regulations, 760 CMR 56.00,or any successor
program as may be determined by the Special Permit Granting Authority(SPGA) upon
recommendation of in-consultation-with-the Watertown Housing Partnership(WHP)and as
indicated in §5,07(d)(4)
f (4) The Rent and lPurehaseOwnership Pprice and-eligibilityRrequirements are as follows:
Total Project Size Affordable Units Rental Price Ownership Price
i 1 to 5 units 10 I NA NA
6 to 19 units 112.5% 180%AMI 180% of AMI I
20 and over units 15.0/o No less than 5 of the 80%AMI i
o I /o total units at 65% AMI ( o
10%of total units at 80% 80%AMI
+ AMI
(a) Methods of Providing Affordable Units
(1) A covered development with more than five (5) and up to ten (10) units, shall have the option
of providing an affordable unit on site or making a cash payment in lieu of. A covered development
with more than ten (10) units shall provide the affordable units on site. However, approval for cash
payment in lieu of on-site affordable units may be granted by the SPGA in certain extraordinary
exeeptlonaLclrcumstances. The SPGA must find that the developer has clearly demonstrated that
providing such unit(s)on-site would create significant hardship and that a cash payment in lieu of on-
site unit(s) is in the best Interest of the Town's affordable housing needs.
Any request for alternative means of compliance shall be reviewed by the WHP,which shall then make
its recommendation to the SPGA.
(2) The SPGA may shall-authorize that an alternative method of compliance be used, in
accordance with the following:
(A)—Cash Payment: The SPGA may grant a special permit to provide affordable housing
through a cash payment to the Watertown Affordable Housing Fund, in lieu of providing one or
more of the affordable units required under this Section;provided however,that-a-fee-inJieu of
affordable-units-may-be-authorized-only-for-a-eevered-developments-with-mere fhan4ivw)
and-up-to-ten+�Oymta[,fer-sale-er-homeewnerE;hlp-units:The cash payment shall be equal to
the most current Total Development Cost as articulated in the MA Department of
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i
Housing & Community Development's Qualified Allocation Plan for Low income
Housing Tax Credit,for the areas described as Within Metro Boston/Suburban Area, as
adjusted for the type of project and number of units. The cash payments the-difference
between-the-fair-market"lue-for-a-typical-market-rate-heusing-unit-and-the-pric-e-ef-tFie
affordable-housing-unit-eonsWent wit"HGD-L4P-Guidelines-and-shall also be in accordance
with a schedule of affordable housing payments as outlined in§5.07(h)(6)and guidelines
adopted and amended from time to time by the SPGA, following a public hearing, in
consultation with the WHP and the Watertown Department of Community Development and
Planning (DCDP).
(f) Location and Coinoarability of Affordable Units
(1) Affordable units shall be proportionately distributed throughout the building(s)in a covered
development.
(2) Affordable units shall be indistinguishable from market-rate units in exterior building materials
and finishes; overall construction quality; and energy efficiency, including mechanical equipment and
plumbing, insulation, windows, and heating and cooling systems, as determined by the Building
Inspector
(3) Affordable units may differ from market-rate units in type of appliances,finishes; however, the
affordable units shall be comparable to the base market-rate units in such instances.
(4) Affordable units shall have the same floor area as the median market-rate units of the same
number of bedrooms within a margin of 20%; provided that units are not less than the minimum square
foot required by DHCD.
(5) The bedroom mix In the affordable units shall be proportionate to the market-rate units, unless
the SPGA authorizes a different mix by special permit upon the recommendation of the WHP.
(6)(5) The SPGA may adopt regulations or guidelines to further define comparability of the foregoing
requirements.
(7)M The WHP shall provide the Petitioner and SPGA as provided in §6.07(1) (D with its
recommendations with reference to the Petitioners proposal in meeting the requirements for affordable
housing.
(g) Affirmative Marketina and Local Preference Policv
Affordable units shall be made available for purchase or rent to eligible low-or-moderate-income
households under an affirmative marketing plan (hat complies with federal and state fair housing laws,
and fair housing and local preference guidelines established by the Watertown Housing Partnership.
No Building Permit for a covered development shall be issued unless the DCDP has determined that
the Petitioners affirmative marketing plan complies with this requirement, The affirmative marketing
costs for the affordable housing units shall be the responsibility of the Petitioner.
(h) Preservation of Affordabllitv
(1) Affordable units provided under this Section shall be subject to an Affordable Housing
Restriction that contains limitations on use,occupancy, resale and rents, and provides for periodic
monitoring to verify compliance with and enforce said restriction.Affordability restrictions shall be
contained in applicable affordable housing restrictions, regulatory agreements, deed covenants,
contractual agreements, land trust arrangements and/or other mechanisms to ensure compliance with
the affordability requirements of this§5.07 (collectively,"Affordable Housing Restriction").
(2) The Affordable Housing Restriction shall run with the land and be in force in perpetuity or for
the maximum period allowed by law,and be enforceable Linder the provisions of Chapter 184, Section
26 or Sections 31-32 of the General Laws.
i
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i
(3) The Affordable Housing Restriction shall provide that Initial sales and rental of affordable
housing units and their subsequent re-sales and re-rentals shall comply with federal,state and local
fair housing laws, regulations and policies.
(4) The Affordable Housing Restriction shall provide that in the event that any affordable rental unit
is converted to a condominium unit, the condominium unit shall be restricted in perpetuity in the
manner provided for by§5.07(h)(1)above to ensure that it remains affordable to households in the
same income range as prior to the condominium conversion.
(5) For a covered development that provides Inclusion Units:
(A)No building permit shall be issued until an Affordable Housing Restriction has been
executed by the Petitioner and the SPGA and the Petitioner provides evidence acceptable to
the Director of DCDP that the agreement has been recorded at the Middlesex County Registry
of Deeds,
(B)For a rental, for sale or homeownership unit, the DCDP shall not authorize or sign off on a
Certificate of Occupancy until the Petitioner submits documentation acceptable to the Director
of DCDP that an affordable housing deed rider has been signed by affordable unit homebuyer j
and recorded at the Middlesex County Registry of Deeds.
(6) For a covered development that provides affordable housing through a cash payment In lieu of
affordable units:
I
(A)For a covered development having 10 units or less that provides affordable housing
through a cash payment in lieu of affordable units; the following reduced percentage (%)of the
difference between fair-market value and affordable housing unit as described in§5.07(e)(.2).
A.shall apply: 10 units- 100%;9 units-90%;8 units-80%; 7 units-70%and 6 units-60%.
(B)The DCDP shall not sign off on Coertificate(s)of Occcupancy for-Unit-6-until the Petitioner
pays 100%60%of the required cash In lieu payment.fee.; or-payment irtfull-iNt4s-a-6-unit
severed develepmen"efore-a-eerti#iGat"f-oGoupanoy-can-begssued-for-Units-7-fO the
Petitioner-must-pay-the4emaining-50%-or-payment-in-full-for-covered developments-having-7
8 and-9-units-an"rovide-evidence4o-the-Direeterof-DCDP-that4he-eash payment-has-been
paid in-fu)No the-Affordabi oLising-Fund-Forprojeots-above-40-units,-the-remaining-fee
rust-be-paid-prior-to-the-issuance-of-th"erttfteates-of-ocsupanoy-ferun it-1-1-and-above:
(7) All legal documentation in connection with the affordable housing units shall be in the standard
form provided by the Town of Watertown,as approved by legal counsel to the Town. If the Petitioner
proposes to use documentation other than that provided by the Town, any and all costs associated
with review by legal counsel to the Town shall be paid by the Petitioner.
I
(i) Submission Reauirements and Procedures
Projects requiring the provision of affordable units under this Section must submit a proposal as to the
method of meeting the affordable housing requirements with the application for zoning relief and a j
copy to the WHP, The WHP shall, in writing, provide the SPGA P-et tionerwith their recommendations
no later than forty(40)days from submission. The SPGA may adopt additional submission
requirements and procedures not inconsistent with this Section, following a public hearing and
consultation with the WHP.
0) Soecial Regulations for Inclusion Units
(1) Use Regulations: Developments with Inclusion Units shall comply with §5.01, Table of Use
Regulations; provided, however, that a covered development with not more than ten(10)multi-family
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Changes to Watertown's Inclusionary Zoning Requirements
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units shall be a permitted use when at least 12.5%of the units are Inclusion Units as defined
hereunder, in which case the development shall qualify for review as a Small-Scale Inclusion
Development.
(2) Small-Scale Inclusion Development Submission Reauirements and Procedures: No Building
Permit for a Small-Scale Inclusion Development shall be issued until the SPGA has approved a site
plan in accordance with§9.03 and the provisions of this Section. The SPGA may adopt regulations for
submission requirements and procedures not inconsistent with this Section, following a public hearing.
(3) Cost Offsets and Affordability Requirements: Inclusion Units provided in excess of what is I
required in §5.07(d)(4)shall be exempt from the minimum lot area per dwelling unit and/or maximum
floor area ratio, as set forth in§5.04, provided that the Inclusion Units comply with the following
affordability requirements:
(Aj Rental Units: For the affordable units, the maximum affordable rent shall be affordable to a
household with Income at or below 65% area median income (AM[), adjusted for household
size.;provided,-however,-Neat-th"P-GA-mayVmnt-a-speclaf permit-for-a-develepment-invhioh
theaffordable-unR4ents-are,-on-average affordable-fora OLisehold-with-income-at-WOo-AMF
For examp)e,in a-development-with two-inclusion Units;the-maximum rent-for-each-unit-may-be
that-whic,,4saffordable-to-a-household-w{h income-at-65-0/o-AMl or-on"nit-may-be-affordable
tea-household-with-income-,q"0%-AMl-and-the s cen"nit-may-be-Aordable-te-a-household
with-Incomeat 7-0%AMl�iowever;ne-affordable-unit-in-a-rental development-shall-be-priced
ferafferdabilWo-a-ietisehold-with4ncomeexceeding-80-0/ AMV
(B)-Homeownershis-Units:-€er-ihe-affordable—units, the-maximum-purehase-pdoe shall-be
affordable toadousehold-wfthanoome-at-7&% Ml,adjusted-for-household size:
(k) Local Initiative Program Reauirements. The Petitioner shall be responsible for preparing and
complying with any documentation that may be required by DHCD to qualify affordable units for listing on the
Chapter 40B Subsidized Housing Inventory, The Petitioner shall also be responsible for providing annual
I+ compliance monitoring and certification to the Town, or to cover the costs of the Town for provision of
such compliance monitoring.
(1) Severabllity
If any portion of this Section is declared to be invalid, the remainder shall continue to be in full force
and effect.
I
I
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Changes to Watertown's Inclusionary Zoning Requirements
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As Discussed by WIIP After Pirst Meeting with GD&P Subcommittee
SUGGESTED CHANGES TO OTHER SECTIONS Or ZONING REQUIREMENTS THAT REPRR TO
INCLUSIONARY ZONING
SECTION 5.08 REVITALIZATION OVERLAY SPECIAL PERMIT(RO)
(d) Dimensional Criteria: The uses noted In subsection (c) above shall be subject to the following
criteria:
(8) Bonus Densitv:A project developed by a Revitalization Overlay special permit which
complies with the requirements of Section 5.07, except that the allowance for a cash
contribution in lieu of units shall not apply,avhiel"revides-thaHen-pereenWOVo}of is
residentiai-unitsbe-made-a#erdable-te lew-and-mederate-ineem"ersens as de€ned-by
€xeouNve-9ffieee€Communities-and-Develepmen4E-OGD),subjeeHo4heerife6a-set-feHh in
8eotien-5.07(4, may Increase its Floor Area Ratio to a maximum of 2.0.
SECTION 9.07 SPECIAL PERMIT CRITERIA FOR 1.3 DISTRICT
(a) Commercial Uses: Applicants for a special permit for mixed-use development in the 1-3 district shall be
permitted to use up to twenty percent (20%) of the total gross floor area for general retail or service
purposes, provided, however, that no drive-in facility of any kind is permitted, The commercial space
shall be limited to the first floor but may be located in one or more buildings located on the Lot.
(b)---Inol usienaw-Z-mina-Reeuirements;—Applieants4oFa-speeial-permit#e r-residential4se-shall-previdc-ten
percent-(}0°fo)-e#-the-#alai twmbaF e�dweiling-units subJeet-te-a�peela!-permik-feFa#erdable heustng
purposes-as prevlded-in-§5 07(4.
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Changes to Watertown's Inclusionary Zoning Requirements
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Excerpt from July 12, 2016 Town Council Minutes
Committee on Economic Planning and Development Report on Affordable Housing— Susan G.
Falkoff, Chair
ACTION ITEM: That the Town Council proceed with the changes to Affordable Housing
Requirements in the Watertown Zoning Ordinance per the Housing Partnership memo dated
5/14/16, as amended by their memo dated 6/23/16.
Councilors Falkoff and Woodland read the committee reports for the 5/14/2016 and 6/23/2016
meetings. Councilor Falkoff stated that while the report is very detailed, she felt the suggested
changes were a significant step for increasing affordable housing at both the 80% and the lower
income levels. She encouraged the Council to accept the recommendations.
Councilor Woodland moved to accept the report; Councilor Feltner seconded the report.
Councilor Dushku thanked the Committee and Housing Partnership. He stated that the changes
are a sensible and thoughtful approach for the community. He, however, wished that something
had been done to assist the middle-income group in addition to providing for those who fall into
the legally mandated affordable housing group.
He also stated he was happy to see that those requirements imposed on the RMUD group will
now apply throughout the community. He would also like to see the increased energy
requirements for the RMUD applied to other town development projects.
Councilor Feltner stated that she had attended many of the Housing Partnership meetings and
found it informative and that she was happy with the 100% cash payment requirement.
The motion was adopted unanimously on a voice vote.
Councilor Dattoli moved that the Town Council proceed with the changes to the Affordable
Housing Requirements in the Watertown Zoning Ordinance per the Housing Partnership memo
dated 5/14/16, and as amended by their memo dated 6/23/16; Councilor Falkoff seconded the
motion. The motion was adopted unanimously on a voice vote.
Councilor Piccirilli informed the public that this item will be brought to a first reading for the
August 9, 2016 meeting at which time, the Council will vote to refer the changes to the Planning
Board.
Town of Watertown
Department of
1630 Community Development and Planning
Administration Building
? ! , 149 Main Street
Watertown,MA 02472
f (617) 972-6417
FAX(617)972-6484
To: Michael J. Driscoll,Town Manager
From: Steve Magoon, DCDP Director, Assistant Town Manager
Date: August 4, 2016
Subject: Affordable Housing Zoning Text Amendment
As a follow up to the July 12, 2016 meeting of the Honorable Town Council, attached are the
proposed Zoning Text Amendments regarding Affordable Housing for first reading. Let me
know if there are any questions.
Cc Fred Reynolds, Chairman,WHP
Andrea Adams, Senior Planner
SUGGESTED CHANGES TO WATERTOWN'S INCLUSIONARY ZONING REQUIREMENTS
SECTION 5.07 AFFORDABLE HOUSING REQUIREMENTS
(a) Intent and Purpose
The purposes of this Section are to encourage the expansion and improvement of the Town of
Watertown's housing stack; to provide for housing choices for households of all incomes, ages, and
sizes; to prevent the displacement of low- and -moderate-income residents; to produce affordable
housing units in order to meet existing and anticipated employment needs within the Town; to provide
opportunities for conventional residential and mixed-use development to contribute to increasing the
supply of affordable housing; and to establish standards and guidelines in order to implement the
foregoing.
(b) Definitions
1. AFFORDABLE HOUSING PROGRAM
Collectively, §5.07 and other provisions of the Watertown Zoning Ordinance that pertain to the
development and preservation of affordable housing in the Town of Watertown.
2. AFFORDABLE HOUSING RESTRICTION
A deed restriction, contract, mortgage agreement, or other legal instrument, acceptable in form and
substance to the Town of Watertown,-that effectively restricts occupancy of an affordable housing
unit to qualified purchaser or qualified renter, and which provides for administration, monitoring and
enforcement of the restriction during the term-of-affordability.An.affordable housing restriction shall
run with the land in perpetuity or for the Tazimum-period of time_allowed by law, and be enforceable
under the provisions of Chapter 184, Sections 26 or 31=32 of the General Laws.
3.AFFORDABLE HOUSING FUND -
A fund account established by the,Town for the_purpose of creating or preserving affordable housing
in the Town of Watertown.
4. AFFORDABLE HOUSING UNIT'_
A dwelling unit that is affordable to-and occupied by'a low-or-moderate-income household and
meets the requirements'of the MassachusettsDepartment of Housing and Community Development
(DHCD),Local Initiative Program, for inclusion on the Chapter 40B Subsidized Housing Inventory.
5:AREA MEDIAN INCOME
The median family income for the metropolitan area that includes the Town of Watertown, as defined
in the annual schedule of_low-and-moderate-income limits published by the U.S. Department of
Housing and Urban Deve_I'opment(HUD), adjusted for household size.
'i
6. COVERED DEVELOPMENT
Any development required`to provide affordable housing in accordance with §5.07.
7. ELIGIBLE HOUSEHOLD
A low-or-moderate-income household that purchases or rents an affordable housing unit and
occupies it as their domicile and principal residence.as its-sole�enee.
8. INCLUSION UNIT
An affordable housing unit built on the same site as the market-rate units in a covered development
under§5.07.
9. LOCAL INITIATIVE PROGRAM
A program administered by DHCD pursuant to 760 CMR 56.00 to develop and implement local
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Changes to Watertown's Inclusionary Zoning Requirements
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As Approved by the RD&P Subcommittee
housing initiatives that produce low-and -moderate-income housing,with or without a
Comprehensive Permit as defined in Chapter 40B, Section 20 through Section 23 of the General
Laws.
10. LOW-OR MODERATE-INCOME HOUSEHOLD
A household with income at or below 80%of area median income, adjusted for household size, for
the metropolitan area that includes the Town of Watertown, as determined annually by HUD.
11. MARKET-RATE DWELLING UNIT
All dwelling units in a development subject to this §5.07 that are not affordable housing units as
defined herein.
12. MAXIMUM AFFORDABLE PURCHASE PRICE OR RENT- -
A purchase price or monthly rent that complies with the requirements and Table shown in
§5.07(d)(4)and that complies with the regulations and guidelines of the DHCD Local Initiative
Program and the Watertown Planning Board, except that developments subject to§ 5.070)(3)shall
comply with the maximum purchase price or rent requirements of that section. For homeownership
units, the maximum affordable purchase price shall accountfor the monthly cost of a mortgage
payment, property taxes, insurance, and condominium fees where,applicable.;and,F€o(rental units,
the maximum affordable rent shall account for the monthly costof rent and utilities. The'household
income used to compute the maximum affordable purchase price or rent shall be adjusted for
household size, considering the household size for which a-proposed affordable unit would be
suitable under guidelines of the Local Initiative Program or any successor affordable housing
program established by the State.
13. SMALL-SCALE INCLUSION DEVELOPMENT \"
A covered development that provides 6 or more up to 10dwelling Units.
14, SUBSIDIZED HOUSING tNVENTORY;y ' .- .-
The Department-of Housing and Community_Development Chapter 40B Subsidized Housing
Inventory as provided in 760 CMR 31.04.
(c) Applicability ---
(1) §5.07 applies fo,any.development,whether new construction, conversion, adaptive reuse or
expansion of an existing structure, involving the creation of more than five dwelling units or more
than five (5) lots for_residential use. Assisted living, outside of the Assisted Living Overlay Zone,
Section 5.11, shall be considered institutional and shall be exempt from§5.07.
Developments may not be segmented to avoid compliance with this Section. "Segmentation"shall
mean any development,whether new construction, adaptive reuse or redevelopment, or any division
of land that would cumulatively result in an increase by five or more residential lots or dwelling units
above the'number existing on a parcel of land or contiguous parcels in common ownership twenty-
four months prior to the application. Where such segmentation occurs, it shall be subject to this
Section as a-covered development. A subdivision or division of land shall mean any subdivision as
defined in the Subdivision Control Law, G.L. c.41, Sections 81 K-81 GG, or any division of land under
G.L. c.41, §81 P, into lots for residential use.
(2) This Section does not apply to the rehabilitation of any building or structure, all of or
substantially all of which is destroyed or damaged by fire or other casualty or a natural disaster;
provided, however, no rehabilitation nor repair shall increase the density, bulk or size of any such
building or structure which previously existed prior to the damage or destruction thereof except in
conformance with this Section.
Page 2 of 7
Changes to WatertOWD'S Inclusionaly Zoning Requirements
Draft 6/27/16
As Approved by the ED&P Subcommittee
(d) Basic Reauirements
(1) Projects having more than five (5) units: No Special Permit for a development requiring a
special permit and no Building Permit for a use permitted as of right, shall be issued for a
development subject to this Section unless the Petitioner provides the percentage of aNeast-twelve
and one half pe•^^^`� ) the total dwelling units in the development as affordable housing as
described herein, within §5.07(d)(4)and otherwise consistent with this Section.
(2) Nothing in this Section shall preclude a developer from providing-additional more affordable
units, or greater affordability, or both, than the minimum requirements. In no instance shall any
permit or special permit approval create less than one affordable housing unit, and for purposes of
this Section, any calculation of required affordable housing units'tbat results in the fractional or
decimal equivalent of one-half or above shall be increased to the next highest whole number.
(3) Affordable units shall be made available to eligible low-or-moderate-income households at
purchase prices or rents that comply with the Massachusetts Department of Housing and
Community Development Local Initiative Program regulations, 760 CMR 56,00, or successor
program as may be determined by the Special Per Granting Authority (SPGA) upon
recommendation of in censukatlel- th-the Watertown Housing Partnership (WHP)sand as
indicated in §5.07(d)(4)
(4) The Rent and Ownership Price Requirements arc as; follows:
Total Project Size Affordable Units Rental Price_ Ownership Price
1 to 5 units 0 NA _ NA 1
6 to 19 units 12,5% %, 80% AMI 80% of AMI
20 and over units i 15.0% _ No less than 5% of the 80% AMI �I
`total units at 66% AMI
':10% of total units at 80% 80% AMI
AMI
(a) Methods of Providing Affordable.Units
(1) A covered development with more than five(5) and up to ten (10) units, shall have the option
of providing an affordable=unit on site or making a cash payment in lieu of. A covered development
with more than ten (10) units shall provide the affordable units on site. However, approval for cash
payment in lieu of on-site affordable units may be granted by the SPGA in certain extraordinary
exeeptienal circumstances;The SPGA must find that the developer has clearly demonstrated that
providing such,unit(s),on-site would create significant hardship and that a cash payment in lieu of on-
site unit(s) is in the best interest of the Town's affordable housing needs.
Any request for alternative means of compliance shall be reviewed by the WHIP,which shall then make
its recommendation to the SPGA.
(2) The SPGA may shah authorize that an alternative method of compliance be used, in
accordance with the following:
(A)—Cash Payment:The SPGA may grant a special permit to provide affordable housing
through a cash payment to the Watertown Affordable Housing Fund, in lieu of providing one or
more of the affordable units required under this Section;-provided,-hewe e that afee in lieu-of
affordable units may a '�hoTlzed onlyfier a covered develepme}tseven#Ive{5}
Page 3 of 7
Changes to Watertown s biclusionary Zoning Requirements
Draft 6/27/16
As Approved by the ED&P Subcommittee
and--up-te ten(40)rental fe�sale er i}eaieewnership units The cash payment shall be equal to
the most current Total Development Cost as articulated in the MA Department of
Housing & Community Development's Qualified Allocation Plan for Low Income
Housing Tax Credit,for the areas described as Within Metro Boston/Suburban Area,as
adjusted for the type of project and number of units{..The cash payments the
--diiffeeFenee
nGL1-TRr�TfAtCtlV�It-l'�rld-fhe-prlG�ttC
affordable-hieu&g unit cons'^�,yC,n-LIP-Guidelines-anct-shall also be in accordance
with a schedule of affordable housing payments as outlined in§5.07(h)(6)and guidelines
adopted and amended from time to time by the SPGA,following a public hearing, in
consultation with the WHP and the Watertown Department of Community Development and
Planning (DCDP).
(f) Location and Comoarabilitv of Affordable Units
(1) Affordable units shall be proportionately distributed throughout the building(s) in a covered
development.
(2) Affordable units shalt be indistinguishable from-market-rate units in exterior building materials
and finishes; overall construction quality; and energy efficiency, including mechanical equipment and
plumbing, insulation,windows, and heating and coofing systems, as determined by the Building
Inspector
(3) Affordable units may differ from market-rate units in type'of appliances, finishes; however, the
affordable units shall be comparable to the base market-rate units in such instances.
(4) Affordable units shall have the same floor area as the median market-rate units of the same
number of bedrooms within a margin of 20%; provided that units are'ngt less than the minimum square
foot required by DHCD.
(5) The bedroom mix in the affordable units shall be proportionate to the market-rate units, unless
the SPGA authorizes a"different mix by special permit upon the recommendation of the WHP.
(6)(6) The SPGA may adopt regulations or guidelines to further define comparability of the foregoing
requirements,
(7)(§}- ,The WHP shall provide the Petitioner and SPGA as provided in§5.07(i)0)with its
recommendations with reference to the Petitioner's proposal in meeting the requirements for affordable
housing.
(g) Affirmative Marketina and.Local Preference Policv
Affordable units shall be made available for purchase or rent to eligible low-or-moderate-income
households under an affirmative marketing plan that complies with federal and state fair housing laws,
and fair housing and local preference guidelines established by the Watertown Housing Partnership.
No Building Permit fora covered development shall be issued unless the DCDP has determined that
the Petitioner's affirmativemarketing plan complies with this requirement. The affirmative marketing
costs for the affordable housing units shall be the responsibility of the Petitioner.
(h) Preservation of Affordability
(1) Affordable units provided under this Section shall be subject to an Affordable Housing
Restriction that contains limitations on use, occupancy, resale and rents, and provides for periodic
monitoring to verify compliance with and enforce said restriction.Affordability restrictions shall be
contained in applicable affordable housing restrictions, regulatory agreements, deed covenants,
contractual agreements, land trust arrangements and/or other mechanisms to ensure compliance with
the affordability requirements of this§5.07 (collectively, "Affordable Housing Restriction"),
Page 4 of 7
Changes to Watertown's Inclusf onary Zoning Requirements
Draft 6/27/16
As Approved by the ED&P Subcommittee
(2) The Affordable Housing Restriction shall run with the land and be in force in perpetuity or for
the maximum period allowed by law, and be enforceable under the provisions of Chapter 184, Section
26 or Sections 31-32 of the General Laws.
(3) The Affordable Housing Restriction shall provide that initial sales and rental of affordable
housing units and their subsequent re-sales and re-rentals shall comply with federal,state and local
fair housing laws, regulations and policies.
(4) The Affordable Housing Restriction shall provide that in the event that any affordable rental unit
is converted to a condominium unit, the condominium unit shall be restricted in perpetuity in the
manner provided for by§5.07(h)(1)above to ensure that it remains affordable to households in the
same income range as prior to the condominium conversion. ,
(5) For a covered development that provides Inclusion Units:
(A) No building permit shall be issued until an-Affordable Housing Restriction has been
executed by the Petitioner and the SPGA and.ttie Petitioner provides evidence acceptable to
the Director of DCDP that the agreement has been recorded at the Middlesex County Registry
of Deeds. _
(B) For a rental, for sale or homeownership unit,the DCDP shall not authorize or sign off on a
Certificate of Occupancy until the Petitioner submits documentation acceptable to the Director
of DCDP that an affordable housing deed rider has been.signed by affordable unit homebuyer
and recorded at the Middlesex County Registry of Deeds:
(6) For a covered development that provides affordable housing through a cash payment in lieu of
affordable units:
(A) For a.covered development having 10 units or less that provides affordable housing
through-a cash payment in lieu of affordable units; the following reduced percentage(%)of the
difference'between fair-market value and affordable housing unit as described in§5.07(e)(-2).
A. shall apply:= 10 units—100%;-9.units-900/a; 8 units—80%; 7 units—70%and 6 units—60%.
(B)The DCDP shall not sign off on CGertikate(s)of OGccupancy for Unit 6 until the Petitioner
=pays 10t)/0 5"of-the,required cash in lieu payment.fee. m�n-fal' if�it is a unit
EN34fa4�f ant. Q f re ;; `nrt'i_nte_f nnn n c issued f Units 7.1 ft ih�
.. ._ _ m
L ve ,
enure Di ter ef.DCDR that the cash payment has been
'i .�e-.Housmg_FtrnA C..r n .:ante� Ana t a
put.. iP.full'.e th= ��P mining-flee
be paid pnnr�Tsuance of he �vtes-of-o (3upancy fer�,,.t,'1 and ebeve
}
(7) All legal documentation in connection with the affordable housing units shall be in the standard
form provided by-the Town of Watertown, as approved by legal counsel to the Town. If the Petitioner
proposes to use documentation other than that provided by the Town, any and all costs associated
with review by legal counsel to the Town shall be paid by the Petitioner.
(i) Submission Reauirements and Procedures
Projects requiring the provision of affordable units under this Section must submit a proposal as to the
method of meeting the affordable housing requirements with the application for zoning relief and a
copy to the WHP. The WHP shall, in writing, provide the SPGA Petiboner-with their recommendations
no later than forty (40)days from submission. The SPGA may adopt additional submission
requirements and procedures not inconsistent with this Section, following a public hearing and
consultation with the WHP.
Page 5 of 7
Changes to Watertown s Inclusionary Zoning Requirements
Draft 6/27/16
As Approved by the ED&P Subcommittee
(j) Scecial Reaulations for Inclusion Units
(1) Use Reaulations: Developments with Inclusion Units shall comply with §5.01, Table of Use
Regulations; provided, however, that a covered development with not more than ten (10) multi-family
units shall be a permitted use when at least 12.5%of the units are Inclusion Units as defined
hereunder, in which case the development shall qualify for review as a Small-Scale Inclusion
Development. ,
(2) Small-Scale Inclusion Develooment Submission Reauirements and Procedures: No Building
Permit for a Small-Scale Inclusion Development shall be issued until the SP.GA has approved a site
plan in accordance with §9.03 and the provisions of this Section. The SPCA may adopt regulations for
submission requirements and procedures not inconsistent with this Section, following a public hearing.
(3) Cost Offsets and Affordabilitv Requirements: Inclusion Units provided in excess of what is
required in §5.07(d)(4)shall be exempt from the minimum lot area per dwelling unit and/or maximum
floor area ratio, as set forth in §5.04, provided that the Inclusion Units comply with the following
affordability requirements:
(kRental Units: For the affordable units,the maximum affordable rent shall be affordable to a
household with income at or below 65%-area median Income (AMI), adjusted,for household
'd d h that the SPCA m grant n � which
size.;prs , s..,.sa'ra.1 permit#c:a development" R
the affordable unit rents are, on average, affordable far� househal ith iri.nnmp At 65% A.
Fe example +n a develop _ aA—n.: ;cnt`er-each unit may be
tfat-�erEabl^'^ ^ house o o eF one unit T ay be affordable
to aheuseheldAv4h4reomsat50°/-A41n_1 nd_4he le*.tea-hcv2 h !d
with inas,=ct 70% AM!. Ho,yeyer-„ .e�#erdabl,, unit ii, F)rcAal development shall be PdGe4
for-affordability is u h3uvahald tr th-;n mm�o na;n Qnoi A "I
s'affo:daWs tn:ts the maximum urshace ., shan be
afferdabla to a hsuselaald wit ° djusted-fer kteeFselield size.
(k) Local Initiative.Prooram Requirements. The Petitioner shall be responsible for preparing and
complying with any documentation that may be required by DHCD to qualify affordable units for listing on the
Chapter 40B Subsidized Housing Inventory. The Petitioner,shall also be responsible for providing annual
compliance monitoring and certification to the Tow_n,.o_r to cover the costs of the Town for provision of
such compliance monitoring._-_ --_
(1) SeVerability
Ifany portion of this Section is declared to be invalid, the remainder shall continue to be in full force
arfd.effect. -'
Page 6 of 7
Changes to Watertown's inclusionary Zoning Requirements
Draft6/27/16
As Approved by the EMP Subcommittee
SUGGESTED CHANGES TO OTHER SECTIONS OF ZONING REQUIREMENTS THAT REFER TO
INCLUSIONARY ZONING
SECTION 5.08 REVITALIZATION OVERLAY SPECIAL PERMIT(RO)
(d) Dimensional Criteria: The uses noted in subsection (c) above shall be subject to the following
criteria:
(8) Bonus Densitv: A project developed by a Revitalization Overlay-special permit which
complies with the requirements of Section 5.07, except that the allowance for a cash
contribution in lieu of units shall not apply,which provides t"^'�.<<e^=R`:een4W%}ef t&
residsntia! ur.:te t:e made a#eKlable-te low and�der �me-persens-as defined-by
E)(eOff Ee-of Communities and no � EC(G � t forth
�velapmen���e�riteria�rtn
Section 5 07(d), may increase its Floor Area Ratio to a maximum of 2.0.
SECTION 9.07 SPECIAL PERMIT CRITERIA FOR 1-3 DISTRICT -
(a) Commercial Uses: Applicants for a special permit for mixed-use development in the 1-3 district shall be
permitted to use up to twenty percent-(20%) of the total gross floor area for general retail or service
purposes, provided, however, that no drive-in facility of any kind is permitted. The commercial space
shall be limited to the first floor but maybe located-in one or more buildings located on the Lot.
n.n a Z444 Dc..��lrenn.�nb� �...d::in - - mid i'..I hal dp tan
(b) Inalusisaa, � � �-�s.,�,l-p.w,�,�-�,
percent '�,of-the total nu beFef t#Wellin rm t for affordable-housing
PWP--S2S 3S PFCVided-In- (G) -
�x
i
Page 7 of 7
Changes to Watertown's Inclusionary Zoning Requirements
Draft 6/27/16
As Approved by the ED&P Subcommittee