HomeMy Public PortalAbout20176-12-13 Afford. Set AsideTOWN OF `7(1ATERTOWN
Department of
Community Development and Planning
PLANNING BOARD
Board Members:
Administration Building
John B. Hawes, Jr.,
149 Main Street
Chairman
Watertown, MA 02472
Jeffrey W. Brown
Phone:617,972.6417
Fergal Brennock
Fax: 617.972-6484
Janet Buck
Gary Shaw
www.watertown-ma.gov
PLANNING BOARD REPORT
ZONING ADIENDMENT:
DATE OF FIRST READING:
STAFF RECOMMENDATION:
DATE OF PLANNING BOARD HEARING:
PLANNING BOARD VOTE:
I. PUBLIC NOTICE
A. Procedural Summary:
Changes to Inclusionaty Zoning (Section 5.07)
August 9, 2016
Adoption
Held October 13, 2016
(5-0) Adoption
As required by the Watertown Zoning Ordinance §9.22, notice was given as follows:
Published in the newspaper of record (Watertown Tab) on 9/23/16 & 9/30/16;
Posted at the Town Admnistration Building on 9/19/2016; and,
Mailed to parties in interest on 9/23/2016
B. Planning Board Public Notice:
The Town of Matertowm's Planning Board will hold a public hearing oil a Zoning Ordinance Amendment on
Thursday, October 13, 2016 with the meeting starting at 7:00 pan, in the Town Council Chamber, Administration
Building,149 Alain Street, Watertown, MA 02472, to consider amendments to the IVZO §5.07-Affordable housing
Requirements summarized as follows:
A. Change affordability set -aside for ownership and rental projects having more than five (5) residential units
from twelre and a hcdfpercent (12.5%) to a two -tiered system based an project size: requiring a 12.5%
set -aside for projects of 6-19 units, and a 15%set-aside fur projects of 20 units and over;
B. Change the affordability range for rental projects fi onn 80% ofdrea Median Incone (AMI) to a two -tiered
system based on project size: requiring five percent of set -aside units be at 65%AMI and ten percent of
the set -aside units be at So%AMI,
C. Adopt a new methodology for a cash -in -lien of units payments for all projects, which uses tine MA
Department ofHoasing & Community Development's Total Cost figure, adjusted for Matertown, the type
of emit, and the number ofunits to be "bought out, 11
D. Clari+ which projects are eligible for the exemption from rnininutm lot area per dwelling unit, and/or the
nnaxinvon floor area ratio, and
Zoning Amendment October 20, 2016
Inclusionary Zoning Planning Board Report
E. Requb•e tliat cash -in -lien payments be made prior to issuance of the first Certifcate of Use/Occupancy for
a project.
F. Minor clarifications such as correcting spelling errors, updating §5.08(d)(8) to con form to the proposed
amendments to Section 5.07, deleting Section 9.07(b).
II. DESCRIPTION
A. Nature of the Request and Procedural History
This amendment originated with the Honorable Town Council's referral to the Economic Development &
Planning (ED&P) Subcommittee of whether the increase to 15% in the Inclusionary Zoning set aside in
the Regional Mixed Use District should be applied Town -wide.
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, and reported its findings to
the ED&P Subcommittee at the Subcormnittee's meeting on June 9, 2016. The ED&P Subcommittee
requested that the Partnership consider additional text changes. To do so, the Partnership met again on
June 21, 2016. The ED&P Subcommittee subsequently met again on June 27, 2016, to discuss the
proposed revised Text Amendments recommended by the Housing Partnership, and voted to endorse
them on June 27, 2016. The Town Council then held a first reading and referred this Amendment to the
Planning Board for consideration.
M. PLANNING BOARD FINDINGS
The following provides a breakdown of the suggested amendments with the Planning Board's findings
below.
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 15.0% of total units as affordable.
2. Create a two -tiered system for rental units. To accomplish this, the proposed Text Amendments
would require projects containing 20 and larger number of rental units to provide 1/3 of tine
affordable units at 65% Area Median Income (AMI) with the remainder continue to be at 80% of
ANIL Home -ownership units would remain at 80% AMI.
3. Establish a new methodology for a cash -in -lieu of unit's payment for any projects (rental or
home -ownership).
4. Clarify that projects that provide more units at 65% Area Median Income than required are
eligible for the exemption from minimum lot area per dwelling unit, and/or the maximum floor
area ratio.
5. Require that cash -in -lieu payments occur before the first Certificate of Occupancy is issued for a
project.
Inclusionary Zoning Text Amendment
Planning Board Report
Page 2 of 3
Zoning Amendment October 20, 2016
Inclusionary Zoning Planing Board Report
The Planning Board found the proposed substantive changes to Watertown's Inclusionary Zoning are
warranted for several reasons:
• They are consistent with and promote Watertown's 2014 Housing Production Plan and
Watertown's 2015 Comprehensive Plan.
• Housing options continue to be limited for those on the lower tiers of the income spectrum,
particularly those at 65% of AMI and below.
• The two tiers of project size address potential for impacts on small to medium sized projects (6 to
19 units) by holding the requirements for affordable units as they are now.
• For home -ownership projects, setting the affordability at 80% AMI, in concert with existing
Federal regulations and safeguards, helps to insure ability of low to moderate income households
to purchase housing and maintain their household's financial stability.
• Exempting 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 are important to a project's
financial proforma, and may therefore provide an additional incentive for private developers to
offer units at a lower income level.
• The proposed new methodology for a cash -in -lieu -of -units payment for both rental and home-
ownership units uses the Massachusetts 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. 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. This is a clearer and straight forward approach to this aspect of the
program.
• The requirement that cash -in -lieu payments occur before issuance of the first Certificate of
Occupancy for a project is in response to difficulties the Town has experienced on prior projects
nr enforcing a staggered payment.
IV. PLANNING BOARD RECOMMENDATION
The Planming Board (5-0) respectfully recommends Town Council adoption of the proposed Text
Amendments to Watertown's Zoning Ordinance with the recommended modifications.
Inclusionary Zoning Text Amendment
Planning Board Report
Page 3 of 3
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 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. _ ''a GIB Fside Ge.
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 ED&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 account for the monthly cost of a mortgage
payment, property taxes, insurance, and condominium fees where applicable.�n 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) Aoolicability
(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 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.
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Changes to Watertown s inclusionary Zoning Requirements
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As Approved by the ED&P Subcommittee
(d) Basic Requirements
(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 at east ,�ast t...P..:,^
aFid one half percent (" 60G `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.
(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 withthe 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
Affordable Units
Rental Price
Ownership Price
1 to 5 units
0
NA
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 units at 65% AMI
80% AMI
10% of total units at 80%
AMI
80% AMI
(e) 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
exeeptionalcircumstances. 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 iR lieu a
affeFdable uRit6 may be autheFized only fbF a severed developmeRtS with FAM than fi
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Changes to WatertnWn's inclusionary Zoning Requirements
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As Approved by the ED&P Subcommittee
anduptoten(IO)rental,forsaleoF "emeewnership 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 difference �
affE)Fdab'e housing •t c istent with DHCD LIP 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 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 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)(6) 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) @ with its
recommendations with reference to the Petitioner's proposal in meeting the requirements for affordable
housing.
(g) Affirmative Marketing and Local Preference Policy
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 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 ofAffordability
(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").
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Changes to Watertown's Inclusionary Zoning Requirements
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(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 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 Csertificate(s) of Oeccupancy fAF I lRit-Guntil the Petitioner
pays 100%a0°6 of the required cash in lieu payment.#ee.; or payment In full If it is a 6 un!
(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 Requirements 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 P^'r t oner-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.
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Changes to Watertown's hiclusionary, Zoning Requirements
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As Approved by the ED&P Subcommittee
Q) Special 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
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 Requirements 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
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:
(A}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 (AMI), adjusted for household
(k) Local Initiative Program 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 Town, or to cover the costs of the Town for provision of
such compliance monitoring.
(1) Severability
If any portion of this Section is declared to be invalid, the remainder shall continue to be in full force
and effect.
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Changes to Watertown s Inclusionary Zoning Requirements
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SUGGESTED CHANGES TO OTHER SECTIONS OF ZONING REQUIREMENTS THAT REFER TO
INCLUSIONARY ZONING
SECTION5.08 REVITALIZATION OVERLAY SPECIAL PERMIT (RO)
(d) Dimensional Criteria: The uses noted in subsection (c) above shall be subject to the following
criteria:
(8) Bonus 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 not aoniv.which wevides that ten oercent N 0%) of its
Section `. ^'� 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.
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Changes to Watertown'slnclusionary Zoning Requirements
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As Approved by the ED&P Subcommittee