HomeMy Public PortalAbout08-12-2014 Affordable Housing Transmittal and Amendment_FINAL_201408080928573010 Town of Watertown
Department of
1630 Community Development and Planning
- Administration Building
149 Main Street
Watertown,MA 02472
(617) 972-6417
FAX(617) 972-6484
To: The Honorable Town Council
Michael J. Driscoll, Town Manager
From: Steve Magoon, DCDP Director,Assistant Town Manager
Date: August 7, 2014
Subject: Affordable Housing Zoning Text Amendment
The Honorable Town Council on September 10, 2013 adopted the Housing Production Plan
(HPP) which included a number of implementation strategies. One of the implementation
strategies include the amendment of section 5.07 of the Zoning Ordinance,Affordable
Housing Requirements. This provision currently requires 10% of units in a residential
project to be affordable. The Watertown Housing Partnership (WHP) considered the
recommendations of the HPP, and at their meeting on May 20, 2014, discussed the
proposed text changes and recommended the following actions;
• Change affordability requirement for projects having more than five (5) residential
units from ten percent (10%) to twelve and a half percent (12.5%)
• Change gross floor area of affordable units from a defined minimum size to the
minimum square footages as required by the Department of Housing and
Community Development
• Make house-keeping clarifications such as correcting spelling errors
This language has had a preliminary review by the Planning Board. The WHP voted 5 to 0
to endorse the proposed changes and to forward the recommended changes to the
Honorable Town Council for their consideration.
Therefore, I would respectfully ask the Honorable Town Council place this on the agenda
for a first reading at the August 12, 2014 meeting,with a referral to the Planning Board for
Public Hearing. Thank you for your consideration.
Cc Watertown Housing Partnership
Planning Board
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, Section 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, 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, adjusted for household size.
6. COVERED DEVELOPMENT
Any development required to provide affordable housing in accordance with Section 5.07.
7. ELIGIBLE HOUSEHOLD
A low- or moderate-income household that purchases or rents an affordable housing unit as
its sole residence.
8. INCLUSION UNIT
An affordable housing unit built on the same site as the market-rate units in a covered
development under Section 5.07.
9. LOCAL INITIATIVE PROGRAM
A program administered by the Massachusetts Department of Housing and Community
Development (DHCD) pursuant to 760 CMR 45.00 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 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 the United States Department of Housing and Urban Development (HUD).
11. MARKET-RATE DWELLING UNIT
All dwelling units in a development subject to this Section 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 regulations and guidelines of the
DHCD Local Initiative Program and the Watertown Planning Board, except that
developments subject to Section 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; and for 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) Section 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, and to any mixed
development involving the Greation of more than fifteen (15) dwelling units. Assisted
living, outside of the Assisted Living Overlay Zone, Section 5.11, shall be considered
institutional and shall be exempt from Section 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, Section
Proposed Text Amendments to Section 5.07 of Watertown's Zoning Ordinance
Draft as of May 21, 2014 as Recommended by Watertown Housing Partnership
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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 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 at least ten
percent (10 ` twelve and one-half percent (12.5%) of the total dwelling units in the
development as affordable housing as described herein and otherwise consistent with this
Section.
(2) Nothing in this Section shall preclude a developer from providing more affordable
units 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 45.00, or any successor program as may be determined by the Special Permit
Granting Authority (SPCA) in consultation with the Watertown Housing Partnership (WHP).
(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 of providing an affordable unit on site or making a cash payment. 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 unit(s) is in the best interest of the Town.
Any request for alternative means of compliance shall be reviewed by the Watertown
Housing Partnership 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
1 Text in bold black type in (d)(1)appears this way in the Ordinance now.
Proposed Text Amendments to Section 5.07 of Watertown's Zoning Ordinance
Draft as of May 21, 2014 as Recommended by Watertown Housing Partnership
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schedule of affordable housing payments as outlined in Section 5.07(h)(6) and
guidelines adopted and amended from time to time by the SPGA, following a public
hearing, in consultation with the Watertown Housing Partnership WHP and the
Watertown Department of Community Development and Planning.
(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 gross floor area as the average median market-
rate units of the same number of bedrooms within a margin of 20%; provided, a. one
bedFOom affordable unit shall be not less than 800 squaFe feet, a two-bedroom not
than 1,000 square feet, and a three-bedroom not less than 1350 square that units
are not less than the minimum square foot required by DHCD. if the 20 ma Fain results
0 n a higher gross floor area aveFage than the minimum noted above, the higheF square
footage shall be requir-ed-. 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. Dwelling units evneedinn 2,000 square feet shall he exempt
froproject.
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average" size of dwelling units within the
N'oject.
(5) The SPGA may adopt regulations or guidelines to further define comparability of the
foregoing requirements.
(6) The Watertown Housing Partnership WHP shall provide the App4iEant Petitioner
and SPGA as provided in 5.070) with its recommendations with reference to the Petitioner's
proposal in meeting the requirements for affordable housing.
(g) Affirmative Marketing 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 Department of Community Development and Planning (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
Proposed Text Amendments to Section 5.07 of Watertown's Zoning Ordinance
Draft as of May 21, 2014 as Recommended by Watertown Housing Partnership
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agreements, deed covenants, contractual agreements, land trust arrangements and/or other
mechanisms to ensure compliance with the affordability requirements of this Section 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 Section (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 Community Development and Planning DCDP that the
agreement has been recorded at the Middlesex County Registry of Deeds.
(B) For a rental, for-sale or homeownership unit, the Department of Commun.ity,
Development and Planning DCDP shall not sign off an authorize or sign off on a
Certificate of Occupancy until the applirant Petitioner submits documentation
acceptable to the Director of Community Development and Planniryg 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 Section e. 2. A. shall apply: 10 units— 100%; 9 units- 90%; 8 units—80%;
7 units—70% and 6 units—60%.(B) The Department of Community Development and Planning (DCD&P) shall not
sign off on Certificate(s) of Occupancy for Unit 6 until the applicant 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 ann'ApplicantPetitioner must
pay the remaining 50% 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.
Proposed Text Amendments to Section 5.07 of Watertown's Zoning Ordinance
Draft as of May 21, 2014 as Recommended by Watertown Housing Partnership
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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 Watertown Housing Partnership WHP. The Watertown
Housing Partnership WHP shall, in writing, provide the appri^Gant 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 Watertown Housing Partnership WHP.
Q) SDecial Reaulations for Inclusion Units
(1) Use Regulations: Developments with Inclusion Units shall comply with Section 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 4"1 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 Section 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 Affordabilitv Requirements: Inclusion Units shall be exempt from the
minimum lot area per dwelling unit and/or maximum floor area ratio, as set forth in Section
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 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 65% AMI. For example, in a
development with two Inclusion Units, the maximum rent for each unit may be that
which is affordable to a household with income at 65% AMI, or one unit may be
affordable to a household with income at 50% AMI and the second unit may be
affordable to a household with income at 70% AMI. However, no affordable unit in
a rental development shall be priced for affordability to a household with income
exceeding 80%AMI.
(B) Homeownership Units: For the affordable units, the maximum purchase price shall
be affordable to a household with income at 70%AMI, adjusted for household size.
(4) 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.
(k) Severability
If any portion of this Section is declared to be invalid, the remainder shall continue to be in full
force and effect.
Proposed Text Amendments to Section 5.07 of Watertown's Zoning Ordinance
Draft as of May 21, 2014 as Recommended by Watertown Housing Partnership
Page 6 of 6