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.
Related articles
(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.
Prepared by: Barbara Thornton with the capable assistance of Alex Bagnall, Pamela Hallett, Patrick Hanlon, Karen Kelleher, Steve Revilak and Jennifer Susse.
As Arlington considers new zoning and other policy decisions to increase the amount of affordable housing in the town, a concern has been raised about the threat of greater costs to the Town’s budget from new people with school age children moving into the town. The concern: additional children in the public schools costs the town more than the additional new property tax revenue the Town collects from the new housing.
This post examines this concern, drawing on data from two recent housing developments, representing 283 units of housing in Arlington, to determine that actually the Town budget gains over 4.5 times the actual cost of paying for the students. According to the most recent 2020 tax bills, the Town expects to collect $1,250,370 in revenue and to spend an additional $269,589 for the new Arlington Public School students living in these developments.
The data suggests that the fear of increased school costs, overwhelming the potential new revenue from new housing construction is not warranted.
For more information, see the full post here.
In a 2019 study, MAPC found that:
- Three out of ten spaces sit empty during peak demand
- The key factors that drive parking demand are parking supply, transit accessibility and the percentage of deed-restricted units
This study raises important questions about the wisdom of continuing to commit large sections of the land area of our municipalities to be on reserve for parking cars. Such extra space could be used to benefit the open space, environmental sustainability and the need for more housing.
The discussions on zoning have been confusing because while zoning covers ALL of Arlington’s land and the zoning bylaws for all Arlington’s zones are referenced, the key issues of greatest interest to Town Meeting are the discussions about increasing density. These discussions pertain ONLY to those properties currently zoned as R4-R7 and the B (Business) districts. These density related changes would affect only about 7% of Arlington’s land area. The map shows the specific zones that would potentially be affected. They lay along major transportation corridors.
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.)
Why Is This Our Issue & What Should We Do About It?
(presented by Adam Chapdelaine, Town Manager, to Select Board on July 22, 2019)
Overview
Since 1980 the price of housing in Massachusetts has surged well ahead of other fast growing states including California and New York. While the national “House Price Index” is just below 400, four times what an average house might have cost in 1980, a typical house in Massachusetts is now about 720% what it was in 1980. Median household income in the state has only increased about 15% during the same period. No wonder people in Arlington are feeling the stresses of housing costs if they want to live here and are feeling protective of the equity value time has provided them if they bought years ago.
In response to concerns about zoning, affordable housing and housing density, the Town joined the “Mayors’ (and Managers’) Coalition on Housing” to address these growing pressures. This 12 page slide deck presentation outlines the key data points, the number of low and very low income households in Arlington, the rate of condo conversion that is absorbing rental units, etc.
Solutions are offered including:
• Amendments to Inclusionary Zoning Bylaw
• Housing Creation Along Commercial Corridor – Mixed Use & Zoning Along Corridor
• Accessory Dwelling Units – Potential Age & Family Restrictions
• Other Tools Can Be Considered That Are Outside of Zoning But Have An Impact on Housing
Chapdelaine’s suggested next steps are:
• Continued Public Engagement
• Town Manager & Director of DPCD Meet with ARB
• Select Board & ARB Hold Joint Meeting in Early Fall
• ARB Recommends Strategies to Pursue in Late Fall/Early Winter
The Select Board approved the suggested next steps and a joint ARB/ Select Board meeting should be scheduled in the near future.
Note from Reporter: As a community, Arlington has long prided itself on its economic diversity. With condo conversions, tear downs leading to “McMansions”, higher paid workers arriving in response to new jobs, etc., Arlington is at great risk of losing this diversity that has long enriched the community. Retirees looking to downsize and young people who have grown up in Arlington looking for their first apartment are finding it impossible to stay in town. Shop keepers and town employees are challenged to afford the rising housing costs. With a reconsideration of zoning along Arlington’s transit corridors, Arlington NOW has an opportunity to create new village centers, like those recommended in the recent STATE OF HOUSING report. These village centers along our transit corridors could be higher, denser but also offer the compelling visual design and amenities desired by people who want to walk to cafes, shops and public transit.