This 102 page document is the most recently revised set of recommendations by the Town of Arlington’s Redevelopment Board. The report takes into consideration the comments and information provided over the last few months’ public hearing process. It also incorporates a citizen petition which strengthens the case for increasing permanent affordable housing with the passage of these zoning related Articles. Town Meeting convenes on April 22, 2019.
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Massachusetts is experiencing a housing affordability crisis and a climate crisis. For these reasons, Mothers Out Front Arlington supports changes in zoning by-laws that allow greater density in housing near public transit. Mothers Out Front is supportive of the passage of a meaningful MBTA Communities Act that encourages the development of more multi-family housing and a greater diversity of home types in Arlington. A revised zoning by-law to allow for more multi-family housing will reduce pressure to build single family homes on undeveloped land elsewhere in Massachusetts. This safeguards undisturbed ecosystems and provides real alternatives to automotive commutes in the region, reducing both congestion and fossil fuel emissions. In addition, passing this by-law will allow Arlington to participate in the Massachusetts pilot for communities to build fossil fuel-free homes, thus ensuring that new construction in Arlington supports our net-zero climate goals.
Mothers Out Front Arlington respects the public engagement activities that inform the Working Group’s MBTA Communities Act proposal. We appreciate that the Working Group is working with the Town to identify opportunities for developer incentives to encourage public open spaces, mitigate heat islands, and increase the tree canopy. Similarly, the Town’s commitment to maintaining current (and incentivizing higher) zoning requirements for affordable housing also is important to our group. For these reasons, Mothers Out Front Arlington strongly urges the Arlington Redevelopment Board to accept the MBTA Communities Act plan as proposed by the Working Group.
Two weeks ago, I helped to organize a precinct meeting for residents and town meeting members. During the meeting, we got into a discussion about public open spaces, how the town funds their upkeep, and whether having more commercial tax revenue might provide additional funding for parks and recreation.
As I discussed in an earlier post, only about 5.6% of Arlington’s is zoned for commercial uses, and that limits the amount of commercial property tax revenue we can generate. Commercial property tax revenue is sometimes referred to as “CIP”, which stands for “Commercial, Industrial, and Personal”. Commercial and Industrial refer to property taxes on land and buildings that are respectively used for commercial and industrial uses. Personal tax is tax on the value of equipment that’s owned and used by a business for the purpose of carrying out whatever their business is. This could include things like desks, display fixtures, cooking equipment, fork lifts, and the like.
In 2020, Arlington’s CIP levy was 5.45%, meaning that 5.45% of our property tax revenue came from Commercial, Industrial, and Property tax revenue. Breaking this down further, 4.2% was commercial ($5,562,528 tax levy), 0.2% was industrial ($278,351 tax levy), and 1.1% was personal ($1,423,117 tax levy). The town’s total 2020 tax levy was $133,350,155. This data comes from MassDOR’s Division of Local Services, and I’ll provide more specific sources in the “References” section of this post.
A CIP levy of 5.45% is low (compared with other communities in the commonwealth), and occassionaly folks like to talk talk about how to raise it. Which is to say, we about how to raise the ratio of commercial to residential taxes. I moved to Arlington in 2007, when our CIP levy was 5.37%. This increased in subsequent years, peaking at 6.26% in 2013, and has been gradually decreasing since. Recall that 2008 was the year the housing market crashed, and the “great recession” began. The value of Arlington’s residential property fell, but the value of business properties was relatively stable in comparison. Thus, our CIP percentage got a boost for a couple of years.
Tax levies (the amount of tax collected) are a direct reflection of the tax basis (the assessed value of property). I’m going to shift from talking about the former to talking about the latter, because that will lead nicely to a discussion about property wealth. Which is to say, the aggregate value of property assessments in town.
Here’s a chart showing Arlington’s net CIP and residential property values, from 1983–2020, adjusted to 2020 dollars. (This is similar to the chart that appears on page 102 of Arlington’s Master plan, but for a longer period of time).
Generally speaking, the value of Arlington’s residential property has appreciated considerably, and there’s a widening gap between our residential and CIP assessments (in terms of raw dollars). Because the gap is so large, it’s helpful to see it on a log scale.
Viewed this way, the curvatures are generally similar, but residential property wealth is rising faster than business property wealth.
In summary, there are three reasons why our CIP is as low as it is: (1) a limited amount of land where one can run a business, (2) the value of residential property is appreciating faster than the value of business property, and (3) occasionally business properties are converted to residential (perhaps with the residential property being worth more than the former business property). That’s not to say we can’t improve the commercial tax base. We can, but we will have to think about what and where, and how to compete with a generally competitive residential market.
References
- MassDOR Division of Local Services reports
- DOR Query Tool for Municipal Property Assessments
- DOR Query Tool for Municipal Tax Levies
- Spreadsheet of Arlington Property Assessments, 1983–2020. Data obtained from MassDOR, with calculations added to adjust for inflation.
- Spreadsheet of Massachusetts Property assessments for 2020. Data obtained from MassDOR.
(Updated 7/2/2020, to add log scale graph and revise conclusion.)
Welcome to the redesigned Equitable Arlington website! We know that Arlington values openness and diversity, a greener future, and vibrant neighborhoods and downtowns—but our current zoning is holding us back. We’re advocating for change because we recognize that the choices we make on zoning and housing policy are key to living those values. We are committed to strengthening our community through respectful dialogue and by listening to our neighbors. Our aim with this site redesign is to share accurate and relevant information to help inform such conversations.
With this redesigned site we have:
- Answered some of the most common questions that have come up in our conversations with other residents.
- Created a zoning dictionary with explanations of many of the terms that pepper zoning discussions.
- Gathered a list of resources, where you’ll find everything from short explainer videos to detailed research
- Developed a history of zoning timeline that shows how Arlington’s history fits into the larger context of government actions.
If you’re not familiar with us, I hope you’ll take a minute to read our mission and why our work matters. I also hope you’ll scroll through to meet us, see some of our smiling faces, and read in our own words why we do this work. We’re renters and homeowners, long time residents and newcomers to town who come to this work with a variety of viewpoints and lived experiences!
We believe Arlington can be a leader in the greater Boston area by the choices we make to create more equitable housing policy. Our local actions have effects that go beyond our borders. Arlington has recognized our power to make an impact and has been a regional leader on many issues.
We can channel this same energy and our values to make sure Arlington has the vibrant sustainable and equitable future we all want. To succeed, we need engaged residents who understand the issues, who can balance competing interests, and who are willing to do the necessary hard work. Please join us in building a more equitable Arlington!
(This post originally appeared as a one-page handout, distributed at The State of Zoning for Multi-Family Housing in Greater Boston.)
This chart shows the assessed value of Arlington’s low density housing from 2015–2019 (assessed values generally reflect market values from two years prior). During this time, home values increased between 39% (single-family homes) and 48% (two-family homes). Most of the change comes from the increasing cost of land. As a point of comparison, the US experienced 7.7% inflation during the same period. (1)
Arlington has constructed six apartment buildings in the 44 years since the town’s zoning bylaw was rewritten in 1975; we constructed 75 of them in the preceding 44 years.(2) Like numerous communities in the Metro-Boston area, we’re experiencing a high demand for housing, but our zoning regulations have created a paper wall that prevents more housing — including affordable housing — from being built.
Communities need adequate housing, but they also need housing diversity: different types of housing at different price points. The housing needs of young adults are different than the housing needs of parents with children, which are in turn different than the housing needs of senior citizens. As demographics change, housing needs change too. Keeping people in town means providing them with the opportunity to upsize or downsize when the need arises.
If Arlington’s housing costs had only increased with the rate of inflation, the cost of single family housing would average $581K, over $170K less than today. The median household income in Arlington is about $103K/year.(3) Buying an average single family-home with that income on a typical 30-year mortgage would require approximately 46% of a household’s monthly income.(4)
Either homes in Arlington will only be available to people who have much more substantial incomes than current residents, or the town will find a way to balance the rapidly growing cost of land against the housing needs of its current citizens, those still in school, those preparing to downsize as well as those looking for a bigger space.
In addition, Arlington’s commercial economy will thrive with a greater number of housing units so we can keep the empty nesters, and the new college graduates who have lived in the town for years, as well as welcome new Arlingtonians to support our local businesses, restaurants and other services.
Our Town, like others in the state, is looking for ways to balance the needs of our citizens with the market forces of rising land costs while maintaining a healthy, diverse community.
Footnotes
- The inflation amount comes from Inflation amount from https://data.bls.gov/cgi-bin/cpicalc.pl.
- Figures on multi-family unit construction are taken from Arlington Assessor’s data. They reflect multi-family buildings that are still used as rental apartments.
- Income levels come from 2013-2017 ACS 5-year data for Arlington, MA.
- Assuming 10% downpayment, 4% interest, $800/year for insurance, and Arlington’s $11.26 tax rate, the monthly mortgage payment would be nearly $4000/month.