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Arlington Redevelopment Board Presentation on Articles 6-9

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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.

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Minneapolis Zones for Diversity

Minneapolis is the most recent governmental entity to disrupt the almost 110 year old idea of local zoning in America by overriding single family zoning. Zoning was developed in the the early 1900’s to control property rights and, in part, to limit access to housing by race. These early laws were upheld by the courts in the 1930’s and the use of zoning to control private property for the interests of the majority became common. Houston Texas did not adopt zoning, an outlier in the nation.

But recently governments are rethinking zoning in light of evidence of exclusionary practices including racism and inadequate supplies of affordable housing. In July Oregon’s legislature voted to essentially ban single family zoning in the state.

Most recently, in the end of July, Minneapolis became the first city this century to remove single family zoning, allowing two family housing units to enter any single family zone as of right. According to the Bloomberg News article, the city took action to remedy the untenable price increases do to single family homes taking a disproportionate amount of city land and services. They hope a wider range of housing, and more housing, will reduce housing costs in the future.

Read the full story from Bloomberg News.

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These Organizations Support the MBTA Communities Plan

In the past few weeks, a number of highly respected Arlington organizations have come out in support of the MBTA Communities Plan. Here are a few. We will continue to update this list as it grows.

Greater Boston Interfaith Organization

This week the Greater Boston Interfaith Organization’s Arlington members released a letter of support, stating:

Arlington GBIO members support the Arlington Redevelopment Board’s proposal for the Article 12 of the Fall 2023 Special Town Meeting (MBTA Communities Overlay District) to enact changes in Arlington’s zoning by-laws that will allow for more multi-family housing to be built by right. We support an article that goes beyond the minimum capacity required by law in order to encourage the construction of a meaningful number of additional homes of various sizes beyond the number already present in Arlington.

Read the full letter.

Arlington Chamber of Commerce

The Arlington Chamber of Commerce sent a letter supporting the MBTA Communities Plan on October 2, saying:

The Arlington Chamber of Commerce believes that the MBTA Working Group’s proposal presents a strong plan for both housing and commercial growth. Arlington’s existing and future small businesses will benefit from an increased customer base and foot traffic resulting from additional housing units.

Read the full letter.

Division of Diversity, Equity and Inclusion

Arlington’s Division of Diversity, Equity and Inclusion wrote to the Arlington Redevelopment Board in support of the MBTA Communities Plan:

The DEI Division would like to formally voice our support for the Working Group’s effort to create a zoning plan that would allow for more multi-housing opportunities at varied price points across Arlington. Only 9% of Arlington’s land is devoted to multifamily housing, and even where building multi-family housing is allowable, it is not permitted by right. This does not provide suitable conditions for a range of housing types to exist. The current price point of homes in Arlington are far beyond the reach of most residents, regardless of their status as a member of a protected class. stating:

Read the full letter. [PDF]

Clean Energy Future Committee

The Clean Energy Future Committee said passage of the MBTA Communities Zoning was crucial because:
Passage of the MBTA Communities zoning amendment at this fall’s Special Town Meeting is the only viable pathway for Arlington to participate in the State’s Fossil Fuel Free Demonstration Program (Demonstration Program), which would allow implementation of the Clean Heat bylaw and home rule petition passed overwhelmingly by Arlington Town Meeting in 2020. Participation in the Demonstration Program will allow the Town to prohibit the installation of natural gas, oil, propane, and other fossil fuel infrastructure in new buildings and major renovations. Town Meeting sent a clear message in 2020 that enacting the Fossil Fuel Bylaw was a priority, and we–the CEFC, Town administrators, and elected and appointed bodies–have an obligation to act upon that priority; passage of the MBTA Communities zoning amendment is an essential step to carrying out the will of Town Meeting. 

Read the full letter.

Mothers Out Front

As we previously reported, the Arlington chapter of Mothers Out Front supports the MBTA Communities Plan, writing:

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.

Read the full letter.

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New Library Designed to Include Affordable Housing

A recently constructed project with 44 units of affordable housing shares a footprint with a new public library in this Chicago neighborhood. The Mayor and the Housing Authority initiated a competition for proposals from architecture firms to build projects that feature the “co-location” of uses, “shared spaces that bring communities together”, according to a recent article by Josephine Minutillo in ARCHITECTURAL RECORD (October 2019).

This project is an excellent example of how a municipal policy (increasing affordable housing) can drive creativity to meet policy goals. This project resulted from a combination of publicly owned land, municipal initiative, a quasi public housing agency expertise and a private architecture/ developer with a commitment to affordable housing. Could a project like this work in Arlington MA?

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It’s a great time to own

A few days ago, the Boston Globe ran an article titled “2021 set records in Boston Housing Market. What now?“. It’s not unusual to see stories about housing in the news — the market is highly competitive and the sale prices can be jaw dropping. Jaw dropping can take several forms: from the new (and used) homes that sell for over two million dollars, to the amount of money that someone will pay to purchase a small post-war cape (around $900,000, give or take).

According to the globe article, the Greater Boston Association of Realtors estimates that the median price of a single family homes in the Boston area rose 10.5% in 2021, to $750,000. Arlington is comfortably in the upper half of this median: according to our draft housing production plan the median sale price of our single family homes was $862,500 in 2020, and rose to $960,000 in the first half of 2021 (see page 39).

In June 2021, I got myself into a habit of sampling real estate sales listed in the Arlington Advocate, and compiling them into a spreadsheet. My observations are generally consistent with the sources cited above; Arlington’s housing is expensive and it’s appreciated rapidly, particularly in the last 6–10 years. It’s a great time for existing owners, but less so if you’re in the market for your first home.

We’re actually facing two problems, which are related but not identical. The first is high cost, which creates financial stress and a barrier to entry (though it is a boon for those who sell). The second problem is quantity; there are regional and national housing shortages, and that contributes to high prices and bidding wars.

Addressing these challenges will require collective effort on behalf of all communities in the metro area; this is a regional problem and we’ll all have to pitch in. There isn’t a single recipe for what “pitching in” means, but here are some for what communities can do.

First, produce more affordable housing. Affordable housing is a complex regulatory subject, but it basically boils down to two things: (1) the housing is reserved for households with lower incomes than the area as a whole, and (2) there’s a deed restriction (or similar) that prevents it from being sold or rented at market rates. Affordable housing usually costs more to produce than it generates in income, and the difference has to be made up with subsidies. It takes money.

Second, simply produce more housing. This is the obvious way to address an absolute shortage in the number of dwellings available. Some communities have set goals for housing production. Under the Walsh administration, Boston set a goal of producing 69,000 new housing units by 2030. Somerville’s goal is 6000 new housing units, and Cambridge’s is 12,500 (page 152 of pdf). To the best of my knowledge, Arlington has not set a numeric housing production goal, but it’s something I’d like to see us do.

Finally, communities could be more flexible with the types of housing they allow. Arlington is predominantly zoned for single- and two-family homes. The median sale price of our single family homes was $960,000 during the first half of 2021, and a large portion of that comes from the cost of land. That’s the reality we have, and the existing housing costs what it costs. So, we might consider allowing more types of “missing middle” housing, where the per dwelling costs tend to be lower: apartments, town houses, triple-deckers, and the like.

Of course, this assumes that our high cost of housing is a problem that needs to be solved; we could always decide that it isn’t. In the United States, home ownership is seen as a way to build equity and wealth. It’s certainly been fulfilling that objective, especially in recent years.

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A Dissertation on Arlington’s Open Space Bylaws

(This post was originally an email message, discussion open space changes proposed by an Affordable Housing article during the Arlington, MA’s 2019 town meeting. It’s also a decent description of our town’s open space laws.)

Sorry this turned out to be a long post. Our open space laws are kind of complicated.

Arlington regulates open space as a percentage of gross floor area, rather than as a percentage of lot area. Let me give a concrete example: say we have a-one story structure with no basement. It covers a certain percentage of the lot area, and has an open space requirement based on the gross floor area (i.e., the interior square footage of the building).

Now, suppose we want to turn this into a two- or three-story structure. The building footprint does not change, and it covers exactly the same percentage of the lot area. However, the open space requirements double (if you’re doing a two-story building), or triple (if you’re doing a three story building). If that quantity of open space isn’t on the lot, then you can’t add the stories.

For this reason, I’d argue that our open space regulations are primarily oriented to limiting the size of buildings. You really can’t allow more density (or taller buildings) without reducing the open space requirements. Alternatively, if the requirements were based on a percentage of lot area, we probably wouldn’t need a reduction. (Cambridge’s equivalent is “Private Open Space”, and they regulate it as a percentage of lot area.)

The other weird thing about our open space laws is that we define “usable open space” in such a way that it’s possible to have none. (Usable open space must have a minimum horizontal dimension of 25′, a grade of 8% or less, and be free of parking and vehicular traffic). I live on a nonconforming lot that does not meet these requirements, as do the majority of homes in my neighborhood.

Suppose I wanted to build an addition, which would increase the gross floor area. With the non-conformity, I’d have to go in front of the ZBA and show that the current lot has 0% usable open space, and that the house + addition produces a lot with 0% usable open space. Because 0% = 0%, I have not increased the nonconformity, and would be able to build the addition, provided that all of the other dimensional constraints of the bylaw are satisified. Although this isn’t directly related to Article 16, it’s an amusing side effect of how the bylaw is written.

Finally, roofs and balconies. Section 5.3.19 of our current ZBL allows usable open space on balconies at least six feet wide, and on roofs that are no more than 10′ above the lowest occupied floor. We allow 50% of usable open space requirements to be satisfied in this manner.

The relevant section of Article 16 would create a 8.2.4(C)(1) which includes the language

Up to 25% of the landscaped open space may include balconies at least 5 feet by 8 feet in size only accessible through a dwelling unit and developed for the use of the occupant of such dwelling unit.

Article 16’s incentive bonuses strike the usable open space requirement, and double the landscaped open space requirement. With only landscaped open space, 5.3.19 doesn’t apply (it only pertains to usable open space). The language I’ve quoted adds something 5.3.19-like, but for landscaped open space. I say 5.3.19-like because it has a 25% cap rather than a 50% cap, and requires eligible balconies to be at least 5’x8′, rather than 6′ wide.

Here are a few pieces of supporting documentation:

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Affordable Housing Overlay – What Is It and How Will It Help?

by Laura Wiener

If you’ve lived in Arlington for a while, your housing costs, whether you rent or own, might be well below what they are for newcomers.  Perhaps you, or someone you know is  experiencing scary annual rent increases, or would like to buy a house but can’t get near Arlington’s $1 million-plus median price tag.  

Arlington, and much of the Commonwealth, has a shortage of housing that is driving up housing prices and increasing homelessness.  Renters are particularly hard hit, with median rents over $2500/month. About 1/3 of Arlington’s renters pay more than 30% of their income for housing. In order to get that rent down to something affordable for a low-income household, subsidies are needed.  Arlington has been very supportive of building affordable housing, using its CDBG (Federal Community Development Block Grant) and CPA (local Community Preservation Act) funds to that end. It has also worked cooperatively with the Arlington Housing Authority and Housing Corporation of Arlington in support of their affordable housing projects.  These subsidy dollars are necessary but not sufficient for building affordable housing.

Land cost is one thing that makes building any housing expensive, and one way to  decrease the cost of building affordable housing is to allow more units to be built on a given piece of land.  But our zoning limits much of our town to single- and two-family homes on a lot.  The Affordable Housing Overlay allows more units to be built on a lot, throughout the Town, and targets those who need it most—low-income households.  

A zoning overlay is an alternative set of zoning requirements that can be applied on a piece of land.  A builder can choose to build under the alternative Overlay Zoning rules, or under the original zoning, known as the Underlying Zoning.  In this case, the proposed Affordable Housing Overlay Zoning can be applied anywhere, on any lot, if at least 70% of the units are priced to be affordable to a household at or below 60% of median income.  If 70% of units are affordable, then the structure can be up to 2 stories taller than with the underlying zoning.  In addition, any number of units can be built, so long as yard and setback requirements are met.  One additional change is that the parking requirement would be a minimum of ½ space per unit.  This reflects the actual parking usage at existing affordable housing owned by the Housing Corporation of Arlington. This proposal includes both rental and ownership units that are affordable.

A group of Arlington residents is proposing an amendment to our current zoning to include an Affordable Housing Overlay.  This proposal will come before the Redevelopment Board for hearings in winter 2025 (probably during February or March), and then go to Town Meeting in spring 2025.  There has already been one informational meeting on November 7 (slides and video), and there may be additional public informational meetings scheduled.

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Commercial Taxes and Residential Wealth

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).

Graph of Arlington Commercial and Residential property taxes over 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

(Updated 7/2/2020, to add log scale graph and revise conclusion.)

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The State of Zoning for Multi-Family Housing in Greater Boston

(published June, 2019)

Overview

To solve the extraordinarily large deficit in housing for the greater Boston region, over 180,000 units of new housing should come on line in the next few years. This deficit is the result of a rapid expansion in in-migration due to new job creation, with no commensurate increase in housing production for the people taking those new jobs.

The report concludes that zoning is a primary culprit in restricting the development of an adequate housing supply, creating a “PAPER WALL” keeping out newcomers. The cost of this inadequate supply is a huge demand for housing which, in turn, bids up the price for available housing. The following “culprits” are considered: inadequate land area zoned for multi-family housing; low density zoning; age restrictions and bedroom restrictions; excessive parking requirements; mixed use requirements and approval processes. Alternative zoning models are suggested.

Elements such as “Approval Process”, “Mixed Use”, “Village Centers vs Isolated Parcels” and “Building Up or Building Out” are considered.

Researcher Amy Dain reports on two years of research into the regulations, plans and permits in the 100 cities and towns surrounding Boston. The research was commissioned by the Massachusetts Smart Growth Alliance and funded collaboratively with: Citizens’ Housing and Planning Association, Home Builders & Remodelers Association of Massachusetts, Massachusetts Association of Realtors, Massachusetts Housing Partnership, MassHousing, and Metropolitan Area Planning Council.

For the full report see: https://ma-smartgrowth.org/wp-content/uploads/2019/06/03/FINAL_Multi-Family_Housing_Report.pdf

For a power point slide presentation see: https://ma-smartgrowth.org/wp-content/uploads/2019/06/04/DainZoningMFPresentationShare2019.pdf

For the Executive Summary see: https://equitable-arlington.org/wp-content/uploads/2019/07/June-2019-Multi-Family-Housing-Report_Executive-Summary.pdf

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