40 r overview bill reyelt 053014
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Bill Reyelt of the Massachusetts Department of Housing and Community Development presents an overview of developments under the state's Chapter 40R "Smart Growth" housing initiative in its first decade in effect.
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40 r overview bill reyelt 053014
- 1. The Next 10 Years of Smart Growth Housing in Massachusetts: A Roundtable on the Chapter 40R Program Friday, May 30, 2014 8:30 a.m. to 10:30 a.m. U N D E R S T A N D I N G B O S T O N
- 2. 2 Chapter 40R Program Update Bill Reyelt
- 3. 3 Common Vision for Growth A common vision for moving the Commonwealth to a prosperous and healthy future: • Building 10,000 multi-family homes a year through 2020, particularly near transit, city/town centers and employment centers; • Shifting the way we travel, by tripling the share of travel by bicycling, transit and walking; • Reducing greenhouse gas emissions 25% from the 1990 levels by 2020.
- 4. 4 Planning Ahead for Growth
- 5. CREATE Smart Growth Zoning 5 • Eligible locations • As-of-right, including densities… Single-family: 8 units/acre 2-3 family: 12 units/acre Multifamily: 20 units/acre • Affordability requirement (20%) • Direct funding: $10K-$600K Zoning Incentive Payment upon based on District size $3,000/unit Density Bonus Payment Eligibility for school-cost reimbursement $ (Chapter 40S)
- 6. 6 40R Participation / Activity Geographic Distribution
- 7. 7 33 Approved Districts _(12,350 newly-zoned units; 2,186 built/in-construction) Amesbury 249 Belmont 18 Boston 578 Bridgewater 594 Brockton 1,096 Chelsea 125 Chicopee 1,092 Dartmouth 319 Easthampton 482 Easton 280 Fitchburg 676 Grafton 240 Haverhill 526 Holyoke 296 Kingston 730 Lakeville 207 Lawrence 1,031 Lowell 250 Lunenburg 204 Lynnfield 180 Marblehead 17 Marblehead 47 Natick 138 N. Andover 530 N. Reading 434 N.hampton 156 Norwood 15 Pittsfield 296 Plymouth 675 Reading 256 Reading 202 Sharon 167 Westfield 244 3 Eligible/Pending Districts ________________________ (634 units) Ludlow 350 Norwood 44 Norwood 240 40R Participation / Activity: District Sizes & Production
- 8. 8 40R Regulatory Changes Clarified/Modified: • Infrastructure • Highly Suitable Location • Area of Concentrated Development • Underutilized Land • Mixed Use Density Introduced: • Conditional Approval Effective Nov. 22, 2013
- 9. 9 Built-out 40R Districts Chelsea – Gerrish Ave. • 120 units • residential infill • Brownfield Redevelopment
- 10. 10 Built-out 40R Districts Reading – Gateway • Zoned for 202 Units • Reuse - Vacant Office Park • Adjacent Commercial Proposal
- 11. 11 Built-out 40R Districts Lynnfield – Arborpoint at MarketStreet • 180 units • lifestyle center
- 12. 12 Built-out 40R Districts Our Lady of Mercy / Oakley • 18 Units / 1.5 acres • 4 Sub-districts / Housing Mix • Belmont Housing Trust Belmont
- 13. 13 Built-out 40R Districts: Norwood – St. George • .78-acre District; 15 Units • Area of Concentrated Development • Adaptive reuse of former Church • Mix of Unit Types • Completed in 2008 TRANSIT & SHOPS 40R SCHOOL RECREATION
- 14. 14 Built-out 40R Districts: Northampton 40R Village at Hospital Hill • Redevelopment • 16-acre; 156 units • Mix of Housing
- 15. Completed Projects & 40R Development Opportunities: Reading (Downtown) 15 • TOD/Downtown • 26 acres • 256 Units • Completed Project • Mixed Use
- 16. 16 Completed Projects & 40R Development Opportunities: Pittsfield • 296 units • Multiple sub-districts
- 17. 17 Haverhill 40R • ~526 units • 2 completed projects Completed Projects & Development Opportunities:
- 18. 18 Completed Projects & 40R Development Opportunities Brockton
- 19. 19 Completed Projects & 40R Development Opportunities: Easthampton
- 20. 20 40R Development Opportunities North Andover • 530 _units
- 21. 21 40R Development Opportunities Plymouth – Cordage Park • 675 Units • Mixed use • TOD & reuse
- 22. 22 40R Development Opportunities Marblehead – Vinnin Sq. • mixed use district • Zoned for 47 units • Pending complimentary 40R in Swampscott
- 23. 23 40R Development Opportunities Bridgewater – Waterford Village MBTA Station Waterford Village 40R • 594 units • mixed-use zoning
- 24. 24 • PDF (remaining $100K) • PATH: Planning Assistance Toward Housing • $600,000 for land use/ zoning, municipal sites, & other production strategies • Available July 2014 Resources / Planning Grants
- 25. 25 Thank You! Bill Reyelt / Elaine Wijnja Dept. of Housing & Community Dev. 100 Cambridge St. Boston, MA 02114 617.573.1355/1360 william.reyelt@state.ma.us / elaine.wijnja@state.ma.us 40R Activity Update
Editor's Notes
- Thank you Mary Jo and thanks to the The Boston Foundation for hosting this event. Thanks also to NAIOP for their support and co-sponsorship today.
- It’s been 10 years since c. 40R was adopted, and I think it’s fair to say that over that period consensus has only grown around the importance of S.G. Under Gov. Patrick’s leadership MassDOT, EOEEA and EOHED have worked together to develop a shared vision for growth centered around these 3 key goals relative to housing production, mode shift & GHG reductions with the Governor’s goal of producing 10K multifamily units a year particularly relevant to today’s discussion.
- The framework that EOHED has employed to help implement this vision and achieve these goals is its Planning Ahead for Growth Initiative that seeks to work with municipalities and other stakeholders to: Identify places for growth & preservation Create prompt & predictable permitting Invest in public infrastructure And market those opportunities 40R indicative of create
- I think most of you are familiar w/ the basics of what 40R is but for those who may not be, I’m going to just briefly outline what it is. 40R is voluntary incentive program that offers municipalities direct and in direct financial benefits in exchange for adoption and implementation of zoning overlay districts that meet 3 basic requirements with respect to location, as of right densities and affordability.
- 33 Districts in 31 municipalities 3 additional districts have been adopted: Ludlow, Norwood (#2) and Swampscott. (36 in 33 soon) In discussions w/ Adams, Amesbury, Barnstable, Bridgewater, Great Barrington, Haverhill, Natick, Newburyport, Malden, S. Hadley,
- These districts have resulted in zoning changes allowing for the development of well over 12,000 housing units. To date, approximately 2,186 units have received building permits and are either completed or under construction. Plimpton
- We worked w/ a stakeholder group, including a number of people/organizations here today to make some regulatory changes that became promulgated back this past november Broadly speaking the purpose of the changes was to make the program more efficient based on our experience in implementing it over the past 10 years Underutilized Land – easier to use Conditional Approval
- WalkScore: “Very Walkable” Existing mix of small multifamily and industrial but short walk to civic and commercial destinations Residential only: ~ 125 Units Redevelopment/Brownfield within ½ of Commuter Rail; also nearby bus line. 17% 3-BRs
- WalkScore: “Car Dependent” Residential-Only but nearby/walkable retail & services Redevelopment of vacant office park
- WalkScore: “Car Dependent” 180 Units Multi-Use Lifestyle Center “Highly Suitable Location” / redevelopment of portion of underutilized golf course. Can walk to BSC, hotel and some limited office. Initial proposal included vertical mixed use, but developer backed off that approach.
- WalkScore: “Very Walkable” (Norwood) “Somewhat Walkable” (Belmont)
- We’ll close with a quick snapshot of a few of existing examples… While the smallest district to date, this surplus church property in Norwood is demonstrates the utility of 40R for adaptive-reuse projects. This is in a downtown / commercial center area.
- WalkScore: “Car Dependent” Redevelopment of former State Hospital Diversity of housing types; ~156 units total Zoning allows for vertical mixed-use Nearing build-out
- Town’s 2 active districts provided 40B relief Vertical mixed-use multi-parcel, mixed-use district encompassing a significant portion of downtown Density only applies to parcels designated as DL
- 296 Units; multi-parcel WalkScore: “Walker’s Paradise” Mixed use vertical
- WalkScore: “Very Walkable” 53 Acres Hamel Mill Lofts: 305 Units Hayes Building: 57 Units 40R supports effort to create a more lively 24-hour downtown by increasing residential use. considering another district
- WalkScore: “Very Walkable”
- WalkScore: “Walker’s Paradise” Covers much of the downtown mill area Allows for Vertical mixed-use; ~ 482 Units Originally a 3rd subdistrict just outside the downtown but city dropped due to abutter concerns about density.
- WalkScore: “Car Dependent” Underutilized Land adjacent to former “Lucent Technologies” headquarters Submitted in conjunction w/ a proposal for a relocated MBTA Commuter Rail Station. DHCD encouraged stronger pedestrian connection between uses including the proposed station. Also encouraged mixed-use subdistrict. Zoning allows for ~ 530 housing units
- WalkScore: “Very Walkable” ~ 675 Units Vertical Mixed-Use Redevelopment of former Wal-Mart + mill Cordage mill bldgs. Transit-Oriented
- 2 separate districts WalkScore: “Somewhat Walkable” (Vinnin Sq) and “Walker’s Paradise” (Pleasant St) both are redevelopment both allow vertical mixed use Pleasant St allows for 17 units and Vinnin Sq allows for 47 for a total of 64 zoned units
- WalkScore: “Car Dependent”
- Thank you Questions?
- This table summarizes the respective requirements and incentives of the two programs. The red text highlights the key differences. 40R which is perhaps the more applicable of the two programs with respect to the Inner Core has greater affordability and density requirements but also offers more substantial incentives. Both programs share the same 3 Eligible Locations – ½ mile from transit station; ACD = city or town center or other existing commercial district; HSL captures other locations that don’t fall into either of the first 2 categories but nonetheless are places that make sense to grow. Densities – minimum allowable, CN fewer categories, design standards Incentives – Discretionary state $; 40B relief; 40R ZIP, DB & 40S
- 40R and Compact Neighborhoods share the same requirement with respect to locational eligibility. One common misconception is that the location has to be near a train station. That is just one, albeit the most straight-forward, of the 3 eligible locations – within a ½ mile radius around a transit station (subway, commuter rail, ferry or bus terminal). The second most definitive type of eligible location is what is called an Area of Concentrated Development which is basically a city or town center or other existing commercial district. Lastly, there’s what is called a Highly Suitable Location which are generally other places where there’s underutilized existing infrastructure and opportunities for redevelopment that don’t happen to fall into one of the first two categories. Examples of HSLs have included abandoned mill complexes, surplus state hospitals, old amusement parks, drive-in theatres, etc.
- Okay, so what are c. 40R-40S and Compact Neighborhoods? These are 2 voluntary programs to encourage cities & towns to adopt & implement inclusionary SG overlay zones in eligible locations by offering direct & indirect financial incentives & potential for greater land use control. These overlay zones have to meet three basic criteria relative to location, affordability and as of right allowable density which we’ll go into in more detail. Beginning with 40R and its companion legislation c. 40S, the financial incentives come in the form of 3 types of payments: 1) an upfront Zoning Incentive Payment for simply adopting the zoning overlay (this payment ranges in size from $10-$600K depending on net increase in as of right units); 2) a Density Bonus Payment based on $3,000K per unit that receives a building permit consistent with the zoning requirements; and 3) under c. 40S the potential for reimbursement of any net increase in school cost attributable to any children living in 40R units. I have another slide on the school cost formula in the event you can’t decipher my attempt at an equation, but basically it’s equal to any positive difference between the standard state cost projection (avg. cost x # of students) and the product of the educational % (the percentage of overall state spending on education) and the sum of the associated real estate and excise taxes and any additional c. 70$
- So, here’s a written description of the 40S formula which I won’t go over again but you have the text here. 40S is administered by DOR. Out of the dozen or so communities that have produced eligible 40R units only 3 so far have applied for reimbursement. I think that’s in part perhaps due to an intuitive sense on the part of those particular communities that they have not realized a net increase in school costs. The units constructed so far under 40R have almost entirely 1 and 2 bedrooms which is likely to be a contributing factor. That said, two 40R communities, Lakeville and Chelsea have qualified for reimbursement, in the case of Lakeville I think it has amounted to ~ ½ million $ over the 3 years that it has applied.
- Often preliminary, informal consultation w/ DHCD. submit application for eligibility DHCD reviews draft zoning for eligibility DHCD issues a determination / Letter of Eligibility Zoning adopted in usual manner (e.g., TM) & submitted to / approved by the AG. Back to DHCD for final review to insure still consistent w/ the regs & statute. W/ Letter of Approval/Certification district goes into effect Locally-designated board (e.g. PB) can begin reviewing and approving 40R Projects.
- Other key requirements of both 40R and CN zoning: in order to ensure that the zoning is and remains as of right, it needs to be a stand-alone section of the zoning without a lot of references to other parts of the municipalities zoning code. It needs to be all-inclusive. We encourage and in certain circumstances have actually required mixed use, but by statute 40R has to be primarily residential which we’ve generally defined as at least 51% of the overall floor area. Projects cannot be subject to building moratoriums or permit caps but can contain provisions for phasing of large projects for infrastructure upgrades and mitigation of extraordinary adverse impacts. The zoning cannot contain age-restrictions but can allow for age-restricted projects if proposed and those projects do not constitute the entire district. 5.8 units/acre (5 units +retail on .86 acres), Pomeroy Commons, Amherst, MA
- This slide shows you how the Zoning Incentive Payment is scaled in relation to the district size or the net new number of units zoned for as of right on those parcels within the district that qualify as developable which includes parcels with existing development so long as they qualify as underutilized which I’ll go into more detail about later. Parcels or portions of parcels that are deemed to be Substantially Developed, can be included in the zone and contribute to the Density Bonus Payment, the 2nd payment based on units actually permitted, but these parcels do not count toward the Zoning Incentive Payment. The ZIP is for the low-hanging fruit.
- The 40R allowable density requirements are scaled to 3 different building types: single-family, 2-3 family and multifamily (4+ units). The minimum allowable density for SF is 8 units/acre, 2-3 family 12 units/acre and multifamily 20 units/acre. Again this only applies to Developable (and buildable) Land, not necessarily the gross acreage. Also important to emphasize that this is allowable density – while it can be assumed that developers will generally build to the max, the only penalty for not doing so is fewer units factoring into the Density Bonus Payment.
- In terms of the affordability requirements… … the minimum requirement is 20% which… … applies to all projects of 13 or more units that are permitted under the 40R zoning. … However, the district as a whole has to achieve 20%, so if the municipality chooses to exempt smaller projects, they’ll need to make up that affordability and have at least 20% overall in order to receive density bonus payments. … and the affordable units have to be dispersed throughout the development and spread proportionately across the unit types.