The presentation, dated March 11, 2019, includes slides used to present the information necessary to understand the rationale for zoning changes, the location of the zoning areas under consideration and the charts, tables and maps that help describe the situation. The proposed zoning changes, especially articles 6, 7, 8, 11 and 16, only cover changes affecting about 7% of the Town, those parts of the Town that are currently zoned R4-R7 and the B zoning districts.
Related articles
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.
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.)
from Karen Kelleher, Reporter
Interested in new policy developments on housing production in the Greater Boston area? The latest research from Mass Housing Partnership (MHP) is of interest. They just released (Dec. 18, 2019) in interactive map showing relative housing density around every mass transit and commuter rail station in the system, concluding that the region could add 235,000 units if every community allowed density as of right in the area around transit.
CHAPA has legislation pending that would require municipalities served by transit to allow higher density as of right within a certain distance from transit stations. You’ll see that the density around Alewife is not too bad in the context of the entire system.
This is mostly because of very high density in Cambridge near Alewife, but the density of two and three families in East Arlington shows better housing density than the sea of single family zoning around many commuter rail stops.
You can check it out here:https://www.mhp.net/news/2019/todex-research-brief
Accessory Dwelling Units (aka “granny flats”)
The following information was presented to the Arlington Redevelopment Board in October, 2020 by Barbara Thornton, TMM, Precinct 16
This Article proposes to allow Accessory Dwelling Units, “as of right”, in each of the 8 residential zoning districts in Arlington.
Why is this zoning legislation important?
Arlington is increasingly losing the diversity it once had. It has become increasingly difficult for residents who have grown up and grown old in the town to remain here. This will only become more difficult as the effects of tax increases to support the new schools, including the high school, roll into the tax bills for lower income residents and senior citizens on a fixed income. For young adults raised in Arlington, the price of a home to buy or to rent is increasingly out of reach.
Who benefits from ADUs?
- Families benefit from greater flexibility as their needs change over time and, in particular providing options for older adults to be able to stay in their homes and for households with disabled persons or young adults who want additional privacy but still be within a family setting.
- Residents seeking an increase in the diversity of housing choices in the Town while respecting the residential character and scale of existing neighborhoods; ADUs provide a non-subsidized form of housing that is generally less costly and more affordable than similar units in multifamily buildings;
- Residents wanting more housing units in Arlington’s total housing stock with minimal adverse effects on Arlington’s neighborhoods.
What authority and established policy is this built on?
Arlington’s Master Plan is the foundational document establishing the validity and mission for pursuing the zoning change that will allow Accessory Dwelling Units.
Under Introduction in Part 5, Housing and Residential Development, the Master Plan states: Arlington’s Master Plan provides a framework for addressing key issues such as affordability, transit-oriented residential development, and aging in place.
The Master Plan states that the American Community Survey (ACS) reports that Arlington’s housing units are slightly larger than those in other inner-suburbs and small cities. In Arlington, the median number of rooms per unit is 5.7. There is a great deal of difference in density and housing size among the different Arlington neighborhoods. The generally larger size of homes makes it easier to contemplate a successful move to encourage ADUs.
What do other municipalities do?
According to a study (https://equitable-arlington.org/2020/02/16/accessory-dwelling-units-policies/), by 2017 65 out of 101 municipalities in the greater Boston (MAPC) region allowed Accessory Dwelling Units by right or by special permit. The average number of ADU’s added per year was only about 3. But by 2017, Lexington had 75 ADUs and Newton had 73. Both of these communities were among about 10 “as of right” municipalities in the MAPC region. This finding suggests that communities with more restrictions are less likely to see any significant affordable housing benefits.
Even in the midst of a housing crisis in this region, according to Amy Dain, housing expert, (https://equitable-arlington.org/2020/02/18/zoning-for-accessory-dwelling-units/) most municipalities still have zoning laws that restrict single family home owners from creating more affordable housing.
And this is despite the fact that, as according to Banker & Tradesman, March 10, 2020: https://www.bankerandtradesman.com/63-percent-in-greater-boston-back-adus/, 63% of people in the region approve of ADUs. California has recently passed strong pro-ADU legislation. A study by Zillow further corroborated this strong interest in communities across the US, including our region. https://equitable-arlington.org/2020/03/10/adu-popularity/.
Learn more about Accessory Dwelling Units/ “Granny Flats” here: https://planning.org/knowledgebase/accessorydwellings/
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.
A portion of Envision Arlington’s town day booth was designed to spark a community conversation about housing. Envision set up a display with six poster boards, each representing a housing-related topic. Participants were given three dots and asked to place them on the topics they felt were most important. There were also pens and post-it notes on hand to capture additional comments. This post is a summary of the results. You could think of it as a straw-poll or temperature check on the opinions of town day attendees.
Social Justice Issues
Aiming for a diverse population by income and race; and being vigilant about identifying and neutralizing barriers to this goal.
197 dots, plus a post-it note that reads “Increasing housing while preserving open space” (with three dots).
Lifestyle Options
Providing for different lifestyles: empty nesters, single millenials, young parents, families, walkable neighborhoods.
149 dots and four post-it notes:
- No more new 5-story buildings with no setbacks. Ugly. (3 dots)
- Why must we maintain our high carbon footprint with single family homes and cars?
- I want to live in a wofati (eco building) (Woodland Oehler Freak-Cheap Annualized Thermal Intertia). Not so legal, one day the norm. Thank you Arlington.
- Connect to transit. Less single family housing with dedicated parking.
Housing Affordability
Affordable housing from subsidies, from construction of smaller units, or from building more housing to reduce the bidding price on current Arlington homes.
308 dots, with 10 post-it notes
- We don’t need more housing. People need to be able to afford to stay in their homes.
- Get Arlington out from the clutches of real estate lobby. (1 dot)
- Wrong categories. Includes affordable housing and development which displaces low and moderate income housing
- Restrictions on teardowns of small homes
- Keep older apartment buildings. They are cheap and affordable.
- Rent control and oversight. “I can only afford to stay because I live in a place that is not secure and in disrepair.”
- Rent control. Please reinstate so that rent is affordable.
- “Affordable” subsidized housing invades your privacy. Every year need all bank stubs, 401(k), like a criminal.
- Build more housing. Build more duplexes, triplexes, etc. Upzone neighborhoods. More transit corridors. Renew calls for a red line stop. Build up the downtown to encourage more density and housing in the same buildings as businesses. More housing + transit = a better society.
- Protect neighborhoods
This was clearly the topic that drew the most response. Arlington housing is expensive.
Maximizing Flexibility of Home Space
Providing for aging parents or childcare providers with a place in your home or getting help paying the mortgage by having a rentable space.
81 dots, and three post-it notes:
- Change zoning to allow accessory dwelling apartments (aka ADUs, granny flats, in-law apartments) (1 dot)
- Want nearby widowed mom to live in own house.
- Accessible rentals, not up 3 flights of stairs.
Doing more with Existing Resources
Examining current Arlington Housing Authority, Housing Corporation of Arlington, and aging apartment buildings for addressing new housing needs.
143 dots, and five post-it notes:
- Fix transportation infrastructure. Peope can live farther out and still get to work. (4 dots)
- Extend red line to Arlington center and heights. (7 dots)
- None of the above. Keep taxes low. (1 dot)
- Accessible for aging residents. Age in place.
- Do something about empty store fronts.
Setting a ten-year goal for new housing
Determining what Arlington’s housing goals should be, and setting about following through on the necessary zoning and incentives to get what we want.
119 dots, and three sticky notes:
- Why is America low-density? Why is this country slave to the auto? More housing near transit!
- Who is “we”?
- There is too much housing density now. Need business area to attract business.
Observations
As noted earlier, the cost of housing seemed to be the main issue of concern. This is understandable: housing prices in Arlington (and the region in general) have been on an escalator ride up since about 2000 or so. That’s led to our current high cost of housing, and also to a form of gradual gentrification. When housing is more expensive than it was last year, a new resident in town has to make more money (or be willing to spend more on housing) than last year’s new resident.
I see at least two broad responses to this: one is to keep the status quo, perhaps returning to the inexpensive housing of decades past. The other is for more multi-family housing, and more transit-oriented development. It will be interesting to see how these dynamics play out in the future.
There’s also recognition of the importance of older “naturally affordable” apartment buildings. Arlington was very pro-growth in the 1950s and 1960s; that’s fortunate, because it allowed these apartments to be built in the first place. On the downside, we haven’t done a good job of allowing new construction into the pipeline during recent decades. Buildings depreciate, so a new building is worth more than one that’s ten years old, which is worth more than one that’s twenty years old, and so on. At some point, the old apartments are likely to be refurbished/upgraded, and they’ll become more expensive as a result.
This is only the beginning of the conversation, but at least we’re getting it going.