Westborough Westford Grafton Hudson Housing Choice Initiative 495 MetroWest Partnership Energy & Sustainable Development Committee April 24, 2018 Chris Kluchman, FAICP, Housing Choice Program Director 1
State producing fewer units Annual Housing Production in Massachusetts by Decade 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 1960s 1970s 1980s 1990s 2000s 2010s Multifamily Single Family 2 Data source: U.S. Census Bureau, Building Permit Survey
Home prices have surged 800 U.S. Massachusetts 700 House Price Index -- 1980 = 100 California Washington State 600 Oregon Colorado 500 New York 400 300 200 100 1980 1985 1990 1995 2000 2005 2010 2015 3 Data source: Federal Housing Finance Agency, House Price Index – All Transactions
Rents are high State data from U.S. Census Bureau, 2015 ACS; 4 Metro data from apartmentlist.com, National Rent Report, May 2017
Low vacancy rates, tight markets Data source: U.S. Census Bureau, American Community Survey 2012-2016 5 *Calculations adjust out seasonal, occasional, and off-market units
Silver Tsunami 6 Data source: U.S. Census Bureau, Population Estimates Program
Silver Tsunami 1970 Age 50-54 7 Data source: U.S. Census Bureau, Population Estimates Program
Housing is important for business Business Community support for Governor Baker’s Housing Choice legislation and program, March 2018: Boston Medical Center, Manulife Financial (John Hancock), iBoss, Dell, Mass Competitive Partnership, General Dynamics, McKinsey Consulting, NAIOP, Rockland Trust Bank, South Shore Chamber, and more! “The things that keep me up at night about Over 2/3 of employers other tech companies “ High housing costs claim home prices and considering Boston are rental costs have and housing transportation and availability are a affected their ability to housing [challenges], recruit qualified major concern of less so about a fight for businesses looking to candidates. talent.” expand or relocate in Massachusetts.” Northeastern University survey HubSpot chief people officer as of businesses in Greater quoted in the Boston Globe, Boston, April 2017 9/21/2017 MassEcon report, March 8 2017
Low proportion of younger workers, with increasing retirees Data source: U.S. Census Bureau, American Community Survey 2012-2016
Does the state have the housing stock needed to accommodate changing needs? 10
495/MetroWest demographic profile skews older than the rest of the state Data source: U.S. Census Bureau, American Community Survey 2012-2016
Boomer peaks, millennial valleys 25 65 Median Age Data source: U.S. Census Bureau, American Community Survey 2012-2016
Limited rental housing in most of region Data source: U.S. Census Bureau, American Community Survey 2012-2016
Single-family homes predominate Data source: U.S. Census Bureau, American Community Survey 2012-2016
Low-income households are struggling with affordability 14,831 11,512 Severely burdened owner households Severely burdened renter households Data source: U.S. Census Bureau, American Community Survey 2012-2016
The upper end of the rental market has expanded in Worcester County Data source: U.S. Census Bureau, American Community Survey, 1-year estimates: 2006 and 2016
The upper end of the rental market has expanded in Middlesex County Data source: U.S. Census Bureau, American Community Survey, 1-year estimates: 2006 and 2016
The upper end of the rental market has expanded in Norfolk County Data source: U.S. Census Bureau, American Community Survey, 1-year estimates: 2006 and 2016
Perception of School Enrollment Communities are concerned about the effect of new housing on schools, although 72% of communities experienced a decline in school enrollment over the past 10 years. Housing growth has disparate impact on municipal school costs and deserves nuanced attention. MAPC released an important analysis in October 2017 on this topic: report “ The 185 Waning Influence 66 of Housing 34 Production on 41 Public School 25 Enrollment in Massachusetts ”. 19
Is there any good news? 20
Positive Steps: Baker – Polito Administration Build on past successes and coordinated approach • The Administration increased funding for affordable housing by 19% in the Capital Investment Plan, with expected spending of more than $1.1 billion over 5 years. • MassWORKS has emerged as a key catalyst for housing production , and the Administration increased funding by 25%, leading to support for 3,000 units of mixed-income housing. $2.7 million in MassWorks grant for • MassHousing is now investing $100 million toward infrastructure along the 125 Corridor in North Andover helped make this workforce housing , and another $50 million toward 192 unit development possible preservation of existing affordable units. • The Administration has reformed the Housing Development Incentive Program, leading to 630 new units in Gateway Cities and the Urban Center Housing Tax Increment Financing program. In addition, 40R has been updated to include starter homes. • The Department of Housing and Community Development is experimenting with public- private partnerships to rehab public housing and build market rate housing with public housing parcels. • Open for Business Initiative is making properties available to development , including over 2,200 new housing units under agreement within I-495. 21
Positive Steps: Regional Governments Leading Sustainable Berkshires, the Regional Plan includes a detailed chapter on Housing and Westford Neighborhoods with a list of implementation items as well as a Fair Housing Equity Assessment that reviews the state of housing equity in the county. 22
Positive Steps: Local Governments Leading Acton, Bedford, Burlington, Concord, Lexington, Sudbury, Wayland, and Weston coordinate “shared housing services” for efficient staff resources. Westford donated land Chelmsford created a new for 100% affordable zoning bylaw that allows projects, Affordable multifamily near Housing Trust loans to employment. The Planning mixed income projects, Board recently approved Mill Conversion Overlay 168 units through Special and Senior Residential Permits which provides the District in zoning bylaw Town with an alternative to 40B. 23
Positive Steps: Local Governments Leading Littleton’s Fall 2017 Special Town Meeting approved several bylaws: Inclusionary Housing, established a Affordable Housing Trust, and adopted rules for senior residential housing at a range of 4 to 20 units per acre. Natick Center has more than a thousand new units to focus on downtown In Needham , new multifamily revitalization and zoning approved by town discourage higher-density meeting to support job growth development in outlying by Trip Advisor and other areas while meeting all major employers and Chapter 40B obligations. successful reinvention of public housing to add units and serve a broader range of incomes. 24
Positive Steps: Local Governments Leading Chicopee Gardner adopted a Smart Growth Planned Unit Development Overlay allowing mixed use, commercial and multifamily and inclusionary zoning Lunenburg established a 40R Smart Growth Overlay District at the Tri Town Drive-In site. This overlay district Fitchburg allows for higher residential density established a than the underlying district and Mill conversion requires a fixed percent of housing Overlay District units to be Affordable Housing and 40R district to encourage Source: Lunenburg Housing Production Plan, MRPC redevelopment of former mills 25
Summary: The Housing Choice Initiative The Housing Choice Initiative has several elements that create a powerful suite of options for local governments to promote additional housing. 1. Housing Choice Designation 2. Small Town Capital Grants (less than 7,000 population) 3. Coordinated Technical Assistance 4. Legislation 5. Housing Goal: 135,00 new units by 2025 26
Housing Choice Designation How does a City/Town qualify as a Housing Choice Community? Community achieved Housing Choice Designation? Last 5 years • Preferential access or increased subsidy for Commonwealth Grant Programs 1) High Production Greater than 5% • Access to new grant program exclusively for housing growth or 500 units; Housing Choice Communities or • Continue to support sustainable development in order to maintain designation and compete for 2) Production & Planning Greater Housing Choice Grants than 3% growth or 300 units and 4 out • Access technical assistance to maintain housing of 9 best practices production • Designation lasts for 2 years and Has Community Compact and no moratorium on new housing • Apply for technical assistance to increase housing production Community has not yet achieved • Use lower voting threshold in legislation to pass local land-use laws that Housing Choice Designation? encourage sustainable growth • Apply for housing choice designation once permitting activity increases 27
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