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Home My Public Portal About2021-02-24 Review of Housing Plan - Recs. z83. Watertown Town Council Administration Building 149 Main Street Watertown, MA 02472 Phone: 617-972-6470 ELECTED OFFICIALS: Report of the Joint Committees on Council Presid Marks.sresid,ent p Economic Development & Planning and Human Services Meeting Date: February 24, 2021 Vincent J.Piccirilli,Jr., Vice President& The Committees convened on Thursday February 24 2021 at 6:30 b Zoom in District C Councilor y n' Pm �' accordance with the Governor's Order Suspending Certain Provisions of the Open Caroline Bays Meeting Law, G.L. c.30A, §20, relating to the 2020 COVID-19 emergency. Present Councilor At Large were Kenneth Woodland, Economic Development&Planning chair; Lisa Feltner, Anthony J.Donato, Economic Development& Planning vice chair; Vincent Piccirilli, Economic Councilor At Large Development&Planning secretary; Anthony Palomba, Human Services chair; Caroline John G.Gannon, Bays, Human Services vice chair; and John Gannon, Human Services secretary. Staff Councilor At Large present were Steven Magoon, Assistant Town Manager/Director of Community A Large t Large Development and Planning; and Laurence Field, Senior Housing Planner. Also present Councilor A Anthony P were President Mark Sideris, Councilor Anthony Donato, David Leon and Cliff Cook from the Watertown Housing Partnership; Elodia Thomas, chair of the Community Angeline B.Kounelis, Preservation Committee, and resident Will Twombly. District A Councilor Lisa J.Feltner, The purpose of the meeting was to review the Watertown Housing Plan and make District B Councilor recommendations. Councilor Woodland chaired. The Draft Plan is located here: KennethM.Woodland, httns://www.watertown-ma.aov/DocumentCenter/View/31207/2021-02-09-Watertown- District D Councilor Housing-Plan Mr. Magoon provided an introduction, highlighting two important things that occurred that had a major impact on the development of this Plan. First, Watertown reached safe harbor under the state's affordable housing law Chapter 40B, meaning that we no longer had to produce a certified Housing Production Plan, allowing us to instead develop a Housing Plan that meets the priorities of our community. Second, Larry Field was hired as our Housing Planner, bringing an incredible depth and breadth of housing experience to Watertown. Mr. Field gave a presentation with an overview of the Plan and a review of the 6 Goals and 25 Strategies (see Attachment). He highlighted 8 key items in the Plan: 1. Affordable housing target to measure progress: 15% of NEW housing over next 5 years should be affordable. 2. Create a Municipal Affordable Housing Trust under state law. 3. The Town should promote a pipeline of 100% affordable projects. 4. Partnering with supportive service providers for that housing works for seniors and individuals with disability. 5. Consider allowing accessory dwelling units (ADUs) in some circumstances. 6. Continue to review zoning as a key tool for shaping development. 7. Evaluate short-term rental assistance. 8. Community conversation on pros & cons of local preference is needed. Page 1 of 2 Committees on EDP & HS Report — February 24, 2021 Next, Mr. Field and Mr. Magoon answered specific questions about the Plan. Following that, there was a discussion about next steps and how to move forward. Key points included: 1. The work of the Human Services Committee from their 2018 referral to gather data on the present affordable housing stock, and to gather opinions from residents, advocates, and developers regarding potential opportunity to increase affordable housing stock in Watertown, was acknowledged as an important first step, and those ideas were incorporated into the Plan. 2. The expertise of the Watertown Housing Partnership in affordable housing was critical to the development of the Plan, and greatly appreciated by the Committee. 3. The Plan should be viewed as a menu of ideas to consider, anticipating that each strategy will require detailed proposals from staff and Committee discussion before making a decision. 4. There were some concerns about the implementation time frames, with Councilors Palomba and Bays asking that the linkage recommendation be given a higher priority, and Councilors Feltner and Palomba asking that the ADU recommendation also be given higher priority. Mr. Field stated these time frames were only suggestions and not firm dates, so the Committee decided not to change them. 5. There was unanimous support to create a Municipal Affordable Housing Trust, but the Committee agreed to wait until the Plan was adopted by the Council, and then for the staff to bring forward a recommendation how to proceed. 4 Councilor Piccirilli made a motion, seconded by Councilor Palomba, for the Town Council to adopt the Watertown Housing Plan,with the Administration to bring forward recommended implementation plans for each specific strategy for policy guidance from the Town Council. Voted unanimouslv by roll call 6-0. Mr. Gannon, listed as the contact for the public on the agenda, noted that no emails were received. The meeting adjourned at 8:04 pm, following a unanimous roll call vote. Report prepared by Vincent Piccirilli Attachments: Housing Plan Presentation Page 2 of 2 Wate towl dous8 19 P a y COMMITTEES ON ECONOMIC & PLANNING AND HUMAN SERVICES FEBRUARY 24 , 2021 Watertown Housing Partnership Members: ❖ Fred Reynolds, Chair ❖Clifford Cook ❖Torey Dean ❖ David Leon ❖ Helen Oliver ❖ Michael Lara, Director, Watertown Housing Authority Watertown Demographics Our population is growing Population change Watertown Our age distribution skewed toward 40000 Millennials and 60+ 3°°°0 About 11% of households have individual with disability IL o 200°0 We are becoming more diverse, but 1 MOO still about 83% white 0 ,P Q, 1g 0 �O 0 O QUO O,\13 O,0 2 2 2 Year Source:U.S.Census Bureau Population Estimates Program MHP AEIIIEA(o. MOUSIA AAIA Housing C While 66% of our homes are single or 2-family, 25% are in 5+ unit . Ll r structures 1111 if We are balanced between owners (52%) and renters (48%) - --- Housing costs in the region and here - s are high & rising a _ .� R We will soon have over 1, 200 deed- - f IWIM . restricted affordable units Greater Boston Housing Report Card Breakdown of Watertown Affordable Units Public Housing ❑ Total Units on SHI: 1,171 ■ Affordable Projects Under construction: 72 ■ Inc usionary ❑ 589 are public housing units 'Ao ❑ Over 95% rental 21%lo ❑ 465 homes specifically 48% for elderly (37.4%) 31% Housing Burden Rule of Thumb: Households spending more than 30°° o income Percentage of Watertown s p g f households that are cost-burdened on housing are "cost burdened" 40 About 37% of Watertown renters 3530 are cost-burdened 25 20 28% of Watertown owners are cost- 15 burdened 10 5 Over 70% of those with extremely- 0 ow or very Housing costs ow incomes are cost- more than costs burdened of income Renters 0 Owners Cost Burden Incidence by Household Income Group RENTERS IN WATERTOWN OWNERS IN WATERTOWN MENNEN NEENNE households in 1,070 595 1,175 795 3,71 #households760 415 765 5,215 cost-burdenedincome group k. rL income group -:IN 695 415 860 ,A '' ' " 335 295 households . . group income roup 5% 69.7% 73.2% 57.4% • ' . I 79.6% 80.7% 38.6% 53.3% 12.1% • ' households . .group income group Source: Comprehensive Housing Affordability Strategy Data, 2013-2017 Watertown Funding Sources ❑ HOME Investment Partnership Program (HOME) --Federal $$ for affordable housing as part of 13-community WestMetro HOME Consortium. --Town gets approximately $80,000/year, plus can apply in competitive round for any pooled money (generally less than $500,000). -- $265,000 in program income from prior projects. ❑ Community Development Block Grants (CDBG) --Federal funding for community development & affordable housing. --Watertown is not "entitled" to CDBG funding; Town must compete with others in state. -- Town has about $36,000 in program income from prior awards. ❑ Affordable Housing Trust Fund --Cash in lieu payments from developers not required to build inclusionary units on-site (approximately $269,000). ❑ Community Preservation Act (CPA) --Will be competitive process, with decisions by CPC and Council Recent History of Affordable Housing in Watertown 1989 — Watertown adds Inclusionary/Affordable housing to the Zoning Ordinance at 10% set-aside 2014 - Watertown adopts a Housing Production Plan (HPP) Goal 2.5 of the HPP is to raise the set-aside from 10% to 12.5% April — October, 2014 — Watertown completes the process to increase the set- aside to 12.5% 2015 — Rezoning of Arsenal Street, and Arsenal Mall to a new Regional Mixed Use District that requires a 15% set-aside Recent History of Affordable Housing ( continued ) December, 2016 —Council adopts inclusionary zoning changes recommended by the Housing Partnership: Two tiered set aside based on project size = 12.5% and 15% Two income tiers for rentals = 65% AMI and 80% AMI Add new method for cash in lieu payments Fall, 2019 —Housing Partnership begins work on updating Housing Production Plan (interrupted by COVID-19) Winter, 2019-2020 —Watertown complies with Chapter 40B through the 1.5% Land Area Calculation Second Half, 2021 (projected) —First round of CPA applications Existing plans 2014 Housing Production Plan and 2015 Figure 2 19 future Land Use Map for Watertown t d Use Comprehensive Plan contained 3 goals : d( Fw20 (eNLane-Pka, rMap BELMONT 11 Increased funding for housing creation & more WALTHAM fir- 6AM6RIOGE opportunities for lower-and middle-income households ~ _ ✓ Ensure zoning allows for housing production for all 7 . income levels and household types Provide seniors & persons with disabilities with greater housing options NEw76N BOSTON I�A�d -- I.:wd Raindar4�IYu,Irirm.rNln�ea iy esahllshed Coenx U5[lueres Idr oensia RkYden6al NeObDbh dCL-14 .,.�•n fSM1'e[rr[rnm}IHIe�7 .. :AndI C[�Krr1191IXh 1kMlm lkrrshy R+CkfIPX RCgbrRl Mixed um :]Irn Wafer '�sl�:y[hnrmod arts rcmmurertmnecfions Xlgh[kmla Aesltlendal �fdrroinlryRm(.IDles are Ynpph axe 5P,n e.n"n Aft*nA..duse Irlawmo eommee�a+Ahxu uae um'.-ousbul 1lxa uu Summary : Goals & Strategies 2021-2025 Goal 1 : Increase affordable housing opportunities for lower-income households (less than 80% area median income) Goal 2: Increase housing opportunities for those needing deeper affordability (less than 60% area median income) Goal 3: Increase affordable and supportive opportunities for seniors and individuals with disabilities Goal 4: Encourage the creation of a variety of housing types at different price points, with particular emphasis on providing options for residents and workers who wish to remain in Watertown Goal 5: Preserve existing housing affordability Goal 6: Increase community engagement around affordable housing GOAL 1: Increase affordable housing opportunities for lower-income households (less than 80% AMI) STRATEGY 1A: Create an affordable housing trust to enable a more rapid Near-Term response to development opportunities and access additional sources of funding. Near to Mid-Term STRATEGY 113: Evaluate increasing inclusionary zoning requirements. Ongoing STRATEGY 1C: Leverage public funds such as those from the Community Preservation Act and Commonwealth sources. Ongoing STRATEGY 11): Leverage opportunities on public land. STRATEGY 1E: Maximize Transit-Oriented Development opportunities. Ongoing STRATEGY IF: Evaluate adding a requirement that developers building new Long-Term commercial space help fund affordable housing, offsetting new housing demand created by such development. Highlight : or a e housing target Target to measure progress : 15% of NEW 120 housing over next 5 years to be affordable 100 Not a requirement but aspiration so New affordable units created under Watertown's 60 inclusionary zoning would qualify 40 New affordable units created in 100% affordable or mixed- income developments would qualify 20 This target is a stretch but realistic o , New housing 2021-25 All new ■ New affordable Highlight : u n ici a affordable ousi n trust Create a municipal affordable housing i 1 MA Communities with CPA or Housing Trust Funds 2019g iM'HP trust understate law : Over 100communities have created housing trusts Housing trusts obtain funding from multiple sources, ; such as federal programs, inclusionary payments & local CPA awards LegendNt Commuter Rail Interstate Housing trusts can provide "seed money" and help fund County Boundaries or even participate in affordable projects so they can Other Trust MAHT compete for significant federal and state funding �Northfiied'o5 p g g CPA1% CPA 1-5% CPA2% / CPA3% "m,moo"mo�a"m.m.oa. Mora.,.mnaa�aa�aewM�Pmmm�"M.,��a. `� O 30 15 0 30 60 Miles GOAL 2: Increase affordable housing opportunities to create more units for tnosE needing deeper affordability (less than 60% AMI) STRATEGY 2A: Prioritize the use of public funds, public land, and TOD locations to create Ongoing more deeply affordable units. STRATEGY 2B: Support the Watertown Housing Authority and others in the effort to Ongoing rehabilitate public housing inventory and create new units on its existing land. STRATEGY 2C: Partner with community development corporations and others to explore Ongoing new ways to create/support more deeply affordable units. Highlight : ro ect with der affordability The Town should promote a pipeline of IF 44 100% affordable projects like St. ` Joseph's Hall : � -. .� -'7; Demonstrable need for households below 60% AMI, e.g., 3-person household with less than $70,000 total income ✓ Last significant affordable project was St. Joseph's Hall in 2013/2014, converting former Rosary Academy to 25 rentals r for households below 60% of AMI " ✓Since this requires significant federal/state funding, successr would be 1 or 2 potential projects every 5 years St.Joseph's Hall GOAL 3: Increase affordable and supportive housing opportunities for seniors and individuals with disabilities STRATEGY 3A: Evaluate rehab loan program. Mid-Term STRATEGY 313: Encourage universal design and visitability standards in new Ongoing development. STRATEGY 3C: Enter into partnerships with supportive service providers to create Near-Term housing and/or provide services to seniors and individuals with disabilities. STRATEGY 3D Partner to provide financial planning assistance to enable seniors to age in Ongoing place who chose to do so. Highlight : u ortive housing Partnering with supportive servicel000 providers so that housing works for 0PNO, Jil seniors and individuals with disability: -� Y l There is need fora supportive service model that �� combines housing with intensive, coordinated services There are non-profit developers p p r-- - � developments around supportive services M There are supportive service providers who can add such services to existing developments Harborlight Community Partners GOAL 4: Encourage the creation of a variety of housing types at different price points, with particular emphasis on providing options for residents and workers who wish to remain in Watertown STRATEGY 4A: Evaluate adoption of accessory dwelling unit zoning. Mid-Term Near-Term and Ongoing STRATEGY 46: Leverage public funds such as CPA (up to 100%) and State sources (up to 120%). STRATEGY 4C: Continue to evaluate current zoning, parking requirements and other Near to Mid-Term incentives to shape residential development. Ongoing STRATEGY 41): Evaluate use of regulatory and administrative policies that would encourage creation of 3+ bedroom units. STRATEGY 4E: To the extent possible, ensure that affordable units are compliant with Ongoing DHCD guidelines for SHI units, but allow flexibility as needed to increase the number of functionally affordable units. Highlight : ccessor we i ng Units •Consider allowing accessory dwelling units (ADUs) in some circumstances : ✓ADUs provide flexibility to homeowners as their needs k evolve. Depending on local rules, owners can use the small unit for themselves, family/caregivers or rental. ✓ADUS are always secondary to the main home but can _ be inside the existing structure, a small addition or detached. R ✓While not a big affordable housing solution, ADU rents generally more affordable Community conversation needed on whether/how ADUs fit into particular neighborhoods Landis Architects,Washington DC Highlight : onti n ue to review zoning Zoning is a key tool for shaping development a Watertown has effectively used zoning to re-position - industrial corridors & create affordable housing i ✓We should continue to look at incentives for developers to provide the kind of housing we want ` Example: development close to transit/retail/jobs Example: small-scale, infill development F.A.R. CONTROLS HOW MUCH Example: increased building sustainability INTERIOR SFI5ALLOWABLE GOAL 5: Preserve existing housing affordability STRATEGY 5A: Continue monitoring affordable housing stock on the Subsidized Ongoing Housing Inventory to ensure proper utilization. STRATEGY 56: Prevent loss of any affordable units that have expiring deed- Ongoing restrictions. STRATEGY 5C: Provide emergency funding for critical repairs in existing Long-Term affordable units. STRATEGY 51): Evaluate short-term tenant-based rental assistance. Near-Term Highlight : va uate short-term rent assistance After the COVID crisis abates, should we continue to provide rent assistance? Watertown committed $275,000 in CDBG program E, income for emergency rental assistance ✓There is a case for helping households who are in short- p g term crisis because of external events like job loss/illness J , Given our scarce affordable housing resources, should we emphasize creating new units instead? Choices about how to fund and structure such a program Community Preservation Coalition GOAL 6: Increase community engagement around affordable housing STRATEGY 6A: Increase public education/awareness of the need for a variety of Near-Term and Ongoing housing types at various income levels, via community workshops or other events. STRATEGY 66: Evaluate using local preference in affordable housing lotteries. Near-Term STRATEGY 6C: Improve marketing and outreach for affordable housing lotteries. Ongoing Highlight : iscuss local preference Community conversation on pros & cons of local preference is needed Watertown generally does not use local preference in affordable housing lotteries WATERTOWN ✓ Many support local preference because it helps those AVER LOTTERY now living/working in Watertown — Monday March 3014, Many disfavor local preference because it raises fair --- , housing issues m At minimum, we should have a robust community conversation about whether local preference should be used more often HUD 2020 Income Limits for Boston Reggion Watertown =wo-pers�r "Mree-person 30% AM $26,850 $30,700 $34,550 $38,350 50% AM $44,800 $51,200 $57,600 $63,950 65% AMI (est) $54,145 $61,880 $69,615 $77,350 80% AM $67,400 $77,000 $86,650 $96,250 100% AM $83,300 $95,200 $107,100 $119,000 Note: Income limits in each tier are adjusted and not solely derived from 100% AM figure. HUD has limits that vary for each household size, not just these four. 27 Contact Information Steve Magoon, Director of Community Development & Planning and Assistant Town Manager smagoon@watertown-ma .gov Larry Field, Senior Planner Ifield@)watertown-ma .gov Phone : 617-972-6417