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The Affordable Homes Act

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by Steve Revilak

On Tuesday August 6, 2024, Governor Healey signed the Affordable Homes Act (H.4977) into law.  It’s a significant piece of legislation that will take positive strides toward addressing our state’s housing crisis. At 181 pages, the Affordable Homes Act is a lengthy bill, but the things it does generally fall into three categories: funding, changes to state law, and changes to state agencies.

The act authorizes more than five billion dollars to fund the creation, maintenance, and preservation of housing.  This includes $425M to housing authorities and local housing initiatives (including $2.5M for the Arlington Housing Authority), $60M to assist homeowners or tenants with a household member with blindness or severe disabilities, $70M for community-based efforts to develop supportive housing for persons with disabilities, and $100M to expand opportunities for first-time homebuyers.

The Affordable Homes Act makes several changes to Massachusetts zoning laws, including the legalization of accessory dwelling units (ADUs) statewide.  ADUs, also known as “granny flats” or “in-law apartments,” are a cost-effective way to add new housing, and they’re typically used to provide living quarters for relatives or caretakers, or to generate rental income for homeowners. ADUs are now allowed in all single-family zones in Massachusetts, by right, without the need for a discretionary permit.  Arlington has been a leader in this area, having passed an ADU bylaw in 2021, and it’s great to see this option extended throughout the Commonwealth.

Finally, the Affordable Homes Act makes a number of changes to state agencies, especially the Executive Office of Housing and Livable Communities (EOHLC).  The Act establishes a new Office of Fair Housing within the EOHLC, to “advance the elimination of housing discrimination.”  The Fair Housing office will provide periodic reports on progress towards achieving this goal.  EOHLC is also charged with creating and implementing a state-wide housing plan that will consider supply and demand, affordability, challenges unique to different regions of the state, and an analysis of local zoning laws.

While our legislators deserve kudos for putting this package together, they also deserve kudos for what they left out.  More than three hundred amendments were filed during House deliberations, and a number of them were intended to weaken the multi-family housing requirements of the MBTA Communities Act.  For example, one amendment, simply titled “Technical Correction” would have rewritten the transit community definitions, in order to reduce the housing requirements for Milton. We are heartened that our legislators did not go along with such shenanigans.

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Accessory Dwelling Units

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/

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  1. Arlington
  2. Housing
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How to Talk To Your Neighbors About the MBTA Communities Plan

While you’ve heard a lot about the MBTA Communities Plan, you may be surprised to learn that your neighbors might not know about it. If they have heard the name, they might think it has to do with MBTA buses. Or they might have heard rumors giving an incorrect idea of what the plan is.

You may be tempted to tell them to read the full report by the MBTA Communities Plan Working Group [PDF], but most people don’t have the time to study a 51-page report, even if it’s the most gripping read since Gone Girl. Many of them are so busy they may only have ten seconds to spare.

But you’re in luck, because we’ve written up quick talking points you can use if you’re talking to someone for ten seconds, a minute, or two minutes. If they bring up something they’ve heard that seems incorrect, we also have responses so you can clear up that misinformation.

Ten second version:

The MBTA Communities law says that communities served by the MBTA need to zone areas for multi-family housing. We need more capacity than the state requires in order to:

  • Provide more housing 
  • Support local businesses
  • Be equitable across town

One minute version:

The MBTA Communities law says that communities served by the MBTA like Arlington need to zone some areas for multi-family housing. We need more capacity than the state requires to:

  • Provide more housing 
  • Support local businesses
  • Be equitable across town

Right now, developers can easily build a McMansion. But they have to go through a long and pricey permitting process to build multi-family housing that’s the exact same size. This plan will make it just as easy to build apartment buildings of the same size as that McMansion. And if it’s at least 6 units it will include an affordable unit!

Two minute pitch:

The MBTA Communities Law is a state law. It requires communities with MBTA service to zone some areas for multi-family housing. Each community is required to reach a specific capacity of multi-family housing. Arlington’s current plan goes beyond what the state requires. We need to go above and beyond because:

  1. This plan is the only one that gives Arlingtonians what they initially requested. They asked that the zoning for multi-family housing would be:
    • distributed across town
    • near public transit
    • walking distance from shops and businesses
  2. Currently, a developer can build a 5,000 square foot McMansion in these areas, but not a building with five, less expensive, 1,000 square foot units. This plan would allow for both.
  3. Arlington only requires affordable units in buildings of 6 units or greater. Allowing larger buildings could result in more affordable units for people to live in.

Common Concerns

Use these ONLY if the person brings up these concerns. Listen carefully to what they have to say first, and stick to the top three points.

“Why are we jamming this legislation through? Why don’t we take more time to explore it?”

While it may seem that the process is moving quickly, in fact planning and discussions have been going on for almost a year. The topic was first introduced in a town-wide meeting on November 17, 2022. The Working Group first met in February and has convened 19 times since then. All the Working Group’s meetings were open to the public and attracted a number of attendees. There were also three larger public forums, several surveys, and other outreach outlined on page 5 of the working group’s report. In any case, in order to comply with the law, all communities must submit final plans by the end of 2024. By acting now we get to take advantage of pilot programs and other state benefits.

“The plan says we have to build 20,000 homes!” 

  • According to the current plan, an area that currently has about 2100 homes would be re-zoned to permit a maximum of just over 7,000 homes. That translates to a maximum of 5,000 additional apartments and condos.
  • This theoretical maximum is based on every single unit being 1,000 square feet or less, every single lot being built to the maximum and absolutely no parking. Builders are not likely to build only 1000 square foot units without parking, because there is demand for a variety of units.
  • Building anywhere close to the maximum can only happen if every single current property owner in the zone sells their parcels to developers. Based on Arlington’s historical property sales, we are unlikely to get anywhere near that number. For example, with a condo duplex, they would need to get both condo owners to sell. (Perhaps you can use your own block as an example.)

“Why can’t we just do the bare minimum?”

When the group looked at a “bare minimum” plan (minimum units on maximum acres), they found that in most areas it would not yield additional housing. In some places, it would permit about 2,100 homes in an area that has over 3,000 homes now – in other words, it would allow fewer homes than already exist.

“But we already have multi-unit buildings on Mass Ave!”

Yes, but the majority were built before 1975. Current zoning and the permitting process make it very difficult for similar buildings to be built today.

“But Arlington can’t handle any more people!”

  • Arlington’s population is smaller than it used to be. In 1970, we had over 7,000 more people than we have now. And the town’s infrastructure was built to handle 7,000 more people, as were our amenities.
  • We aren’t just building this for new people. We’re building it so that empty nesters who are downsizing, kids who are moving into their own apartments and other members of our community can stay and have housing that suits their needs.
  • Businesses, churches and libraries all need a population at a certain level in order to thrive.

“These tall buildings will ruin our neighborhoods and block our light.”

  • The plan allows for four floors throughout for an important reason. It’s because buildings that are four stories or higher have to meet Americans with Disabilities Act requirements. That means that it will be built so people in wheelchairs or who use a walker can live there. Right now we have very little housing suitable for people with limited mobility, so people who develop mobility issues have to leave Arlington.
  • Under certain specific circumstances in narrow areas of the plan, it is possible to go up to six floors on Mass Ave only. These buildings have significant bump backs on the fifth and sixth floor. We already have several buildings of this height along Mass Ave.
  • Elsewhere, this would allow four floors in areas where currently homes are two floors plus a lived-in attic or three floors. This is not a huge change, it is an incremental change.

“But what about our schools? This will overload them!”

  • By spreading out the housing, we spread out the new students among all the elementary schools and allow the school department to adjust the school zoning if they need to.
  • Elementary school population has declined by 5% in the past three years and according to projections will decline further. If we don’t add population then the number of elementary students will continue to drop off.
  • Lexington’s School Enrollment Working Group found that new units do not directly correlate with enrollment growth; smaller units are far less likely to incur growth than larger; spreading out the growth over the town would be easier to absorb.

If you encounter anything you think we should add, please contact us via info@equitable-arlington.org.

Contributors: Charles Blandy, Patrick Hanlon, Dori Mazor, Jennifer Susse, Sanjay Newton, Eugene Benson, Steve Revilak, James Fleming, Barbara Thornton, Nicole Gustas and other members

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  1. Social Justice
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Exclusionary by Design

A new report for Boston Indicators, “Exclusionary by Design”, shows the clear intent of many Greater Boston suburbs to resist racial and class integration in the 1970s. Housing scholar Amy Dain demonstrates how racial prejudice and class exclusion figured into suburbs’ downzoning in the 1970s; and how putatively legitimate concerns like tax revenue, aesthetic continuity, and the environment served the cause of exclusion. 

Cover of Exclusionary by Design report

Read the “Exclusionary by Design” report, and see the accompanying 1-hour webinar with Amy Dain, Luc Shuster of Boston Indicators and Ted Landsmark of Northeastern University.

Read here

“This research finds widespread evidence that over the past 100 years, zoning has been used by cities and towns across Greater Boston as a tool for excluding certain groups of people, including:

  • Racial minorities, especially Black residents
  • Lower-income and working-class residents
  • Families with school-aged children• Religious minorities
  • Immigrants
  • And, in some cases, any newcomers/outsiders at all”

Low Diversity is No Accident

In the 1970s, municipalities were ordered by state law to create Growth Policy Statements – but with no mandate that communities actually endorse growth nor inclusion.  Exclusionary language in these statements was seemingly anodyne, seeking to preserve the “present characteristics of their communities” or “socio-economic status“. In several cases the fear of integration was quite apparent: Milton’s statement referred to problems in “surrounding communities” (ie Mattapan and Dorchester) and “breakdown of society”; both Milton and Melrose make mention of the pressures caused by people “moving out of Boston”. Belmont’s plan explicitly calls for the town to stay “relatively expensive … [so as to] attract only those families so economically situated.” 

The intent of such language was not somehow lost on people in that era. Needham’s Local Growth Policy Statement included, but pointedly disavowed its own “Appendix A” — a dissenting statement by the Congregational Church of Needham, calling out the town’s exclusionary aims and endorsing a vision of inclusive growth.

In addition, in many places where multi-family housing was theoretically allowed, “poison pill” requirements and impediments were added to make such building a practical impossibility. More recently we have seen the ironic use of infeasible “inclusionary zoning” requirements – which ensure that no affordable housing can actually be built.

The same language, un-evolved and unrefined, is still invoked by “neighborhood defenders” today. Our current housing affordability crisis and segregation is the plain result. The report is a sobering, enlightening read – essential for any active citizen or town official in eastern Massachusetts.

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  1. News

Yes on Article 16

Article 16 is a proposal to encourage the production of affordable housing in the town of Arlington. I brought this article to town meeting for several reasons, namely, our increasing cost of housing and our increasing cost of land. Arlington is part of the Metropolitan Boston area; we share borders with Cambridge, Somerville, and Medford, and are a mere 5.5 miles from Boston itself. Years ago, people moved out of cities and into the suburbs. That trend has reversed during the last decade, and people are moving back to urban areas, including Metro-Boston. Metro-Boston is a good source of jobs; people come here to work and want to live nearby. That obviously puts pressure on housing prices, and Arlington is not immune from that pressure.

Another reason for proposing Article 16 was my desire to start a conversation about the role our zoning laws play in the cost of housing, and how they might be used to relieve some of that burden. During the 20th century people discovered that one cannot draw a line on a map and say “upper-class households on this side, lower-class households on that side”, but one can draw a line on a map and say “single-family homes on this side, and apartments on that side”. For all practical purposes, the latter achieves the same result as the former. When zoning places a threshold on the cost of housing, it determines who can and cannot afford to live in a given area.

Today 70% of Arlington’s land is exclusively zoned for single family homes, the predominant form of housing in town. In 2013, the median cost of a single-family home was $472,850; this rose to $618,800 in 2018 — an increase of 31%. We can break this down further. The median building cost for a single-family building rose from $226,300 in 2013 to $248,100 in 2018 (an increase of 9.6%), and the median cost for a single-family lot rose from $243,700 to $360,900 (an increase of 48%). Land is a large component of our housing costs, and it continues to rise. Certain neighborhoods (e.g., Kelwyn Manor) saw substantial increases in land assessments in 2019, enough that the Assessor’s office issued a statement to explain the property tax increases. To that end, multifamily housing is a straightforward way to reduce the land costs associated with housing. Putting two units on a lot instead of one decreases the land cost by 50% for each unit.

Article 16 tries to encourage the production of affordable housing (restricted to 60% of the area median income for rentable units and 70% for owner-occupied units). It works as follows:

  • Projects of six or more units must make 15% of those units affordable. This is part of our existing bylaws.
  • Projects of twenty or more units must make 20% of those units affordable. This is a new provision in Article 16.
  • Projects of six or more units that produce more than the required number of affordable units will be eligible for density bonuses, according to the proposed section 8.2.4(C). Essentially, this allows a developer to build a larger building, in exchange for creating more affordable housing.
  • Projects of six or more units that produce only the required number of affordable units are not eligible for the density bonuses contained in 8.2.4(C).
  • Projects of 4-5 units will be eligible for the density bonuses in section 8.2.4(C), as long as they are of a use, and in a zone contained in those tables. This provision is intended to permit smaller apartments and townhouses, filling a need for residents who don’t necessarily want (or may not be able to afford) a single-family home. This provision can help reduce land costs by allowing a four-unit townhouse in place of a duplex, for example.

Historically, Arlington has had mixed results with affordable housing production, mainly due to the limited opportunity to build projects of six units or more. It is my hope that the density bonuses allow more of these projects to be built.

In conclusion, the problem of housing affordability in Arlington comes from a variety of pressures, is several years in the making, and will likely take years to address. I see Article 16 as the first step down a long road, and I ask for your support during the 2019 Town Meeting. I’d also ask for your support on articles 6, 7, and 8 which contain minor changes to make Article 16 work properly.

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Arlington 2020: Cost Distributions of Housing

It’s New Year’s eve and I’m determined to get my third and final “Arlington 2020” article written and posted before 2021 rolls in. I’ve written these articles to paint a picture of Arlington’s housing stock, and how our housing costs have changed over time. The first article looked at the number of one-, two-, and three-family homes and condominiums in Arlington. The second article looked at how the costs of these homes has varied over time.

In this article, I’m going to look at the per-unit costs for our different housing types. The per-unit cost is just the assessed value, divided by the number of units. For condos and single-family homes, the unit cost is simply the assessed value. For two-family homes, it’s the assessed value divided by two. For a ten-unit apartment building, it’s the assessed value divided by ten. We’ll look at the price ranges within housing types, as well as the general differences between them.

The information here doesn’t include residential units from Arlington’s 76 mixed-use buildings. (My copy of the assessor’s data doesn’t distinguish between residential and commercial units in these buildings; I’ll try to say more about them in 2021.) It also omits units owned by the Arlington Housing Authority.

Condominiums

Condominiums provide the most variety and cost diversity. A condo can be half of a duplex, or part of a much larger multi-family building. The low end of the scale tends to be 500–600 square foot units that were built in the 1960’s; the high end tends to be more spacious new construction.

This graph is a histogram, as are the others in this article. The horizontal axis shows cost per unit, and the vertical axis shows the number of units in each particular cost band.

The per-unit price distribution is

min1st quartilemedianmean3rd quartilemax
$92,600$344,450$473,100$500,086$640,850$1,241,000

Single-family homes

Single family homes are heavily concentrated around the $700,000 mark. There’s very little available for less than a half million dollars.

Per unit rice distribution:

min1st quartilemedianmean3rd quartilemax
$103,700$679,900$771,900$825,172$908,750$3,232,700

The $103,700 single-family home deserves some explanation. The property straddles the border between Arlington and Lexington; it appears that the $103k assessed value reflects the portion that lies in Arlington.

Two-family Homes

Two-family homes are the bread and butter of East Arlington; they’re also common in the blocks off Mass ave near Brattle Square and the heights. Many of these homes are older and non-conforming, and they’re gradually being renovated and turned into condominiums.

As a reminder, these are costs per unit (as opposed to the cost of the entire two-family home).

Per unit price distribution:

Min1st quartilemedianmean3rd quartilemax
$209,050$440,550$472,000$479,175$508,588$1,140,450

Three-family Homes

Unlike Dorchester and Somerville, three-family homes are not a staple of Arlington’s housing stock. But we have a few of them. Most were built between 1906 and 1930.

Per-unit price distribution:

Min1st quartilemedianmean3rd quartilemax
$227,567$313,733$336,950$344,292$362,600$719,000

Small Apartments (4–8 units)

The majority of Arlington’s small apartment buildings were constructed during the first half of the 20th century. The most recent one dates from 1976.

Per-unit price distribution:

Min1st quartilemedianmean3rd quartilemax
$154,950$202,950$227,775$231,619$255,775$403,875

Large Apartments (9+ units)

You’ll see three outliers in the per unit-cost distribution for large apartment buildings. These correspond to the newest apartment complexes in Arlington: The Legacy (2000), Brigham Square (2012), and Arlington 360 (2013).

Per-unit price distribution:

Min1st quartilemedianmean3rd quartilemax
$117,013$141,383$153,006$195,789$170,973$474,631

All combined

Finally, we’ll put it all together in one picture, representing nineteen-thousand and some odd homes in town.

Per-unit price distribution:

Min1st quartilemedianmean3rd quartilemax
$92,600$417,175$555,825$587,975$759,900$3,232,700

While there are lower-priced options available, a person coming to Arlington should expect to buy (or rent) a property that costs just shy of half a million dollars (or more).

Here is a spreadsheet with the cost distributions mentioned in this article.

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  1. 2020 Special Town Meeting
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Why Should Arlington Have an Affordable Housing Trust Fund?

Text of Warrant Article 8: (To be considered at Special Town Meeting (Virtual), Mon. 11/16/20 at 8:00 p.m.)


“ARTICLE 8 ACCEPTANCE OF LEGISLATION/BYLAW AMENDMENT/ MUNICIPAL AFFORDABLE HOUSING TRUST FUND

To see if the Town will vote to accept Massachusetts General Laws c. 44 § 55C, to authorize the creation of a Municipal Affordable Housing Trust Fund to support the development of affordable housing in Arlington, establish a new bylaw for the administration of same; or take any action related thereto. (Inserted by the Select Board)”


What will it do? How will it work?


A Proactive Step to Address Housing Affordability. With a municipal affordable housing trust, Arlington will join more than 113 Massachusetts municipalities that have formed a housing trust fund to support a proactive strategy for building housing affordability. The Trust is a small step the Town can take to more proactively address the housing affordability crisis that challenges many of our current residents and makes Arlington increasingly inaccessible to new residents. Creating affordable housing can also be a strategy for maintaining or increasing diversity.


Ability to Act Quickly.
A primary benefit of a housing trust is to enable the Town to act quickly to support or participate in transactions that increase or preserve affordable housing in Arlington. Without a Trust, the Town does not have the flexibility or agility to act quickly. Following are some examples, though there are many other ways that trusts can and do advance housing affordability:
• Financing the acquisition and/or development of market properties for conversion to affordable housing by a nonprofit developer;
• Purchasing an existing affordable home to ensure resale to another low income buyer, or purchasing a market rate home to create an affordable homeownership opportunity;
• Providing flexible financing to increase the number of affordable units or reduce income levels in existing or new projects that include affordable housing.


Developing a Housing Trust Strategy Over Time.

The strategies to be pursued by the Trust would be set forth by the Trustees in a plan or proposal(s) they would lay out after they are appointed, most likely after/through a process of public engagement. The specific strategies are, deliberately, not part of the warrant article or the Bylaw proposed for adoption. This allows the Town the flexibility to set and modify the Town’s housing strategies over time, in a manner that is responsive to the public and its elected representatives. The Bylaw requires the strategy or plan, and most major Trust decisions, to be approved by the Select Board, and Town investments in the Trust would still require Town Meeting approval.


Funding the Affordable Housing Trust Fund.

Creating affordable housing requires substantial subsidy. The Trust’s ability to cause more affordable housing to be created or preserved in Arlington will be directly related to the availability of resources to fund it and leverage additional state and federal resources. The vote before the Special Town Meeting this fall will not provide any funding for the Trust.

While it is anticipated that the Trust might receive initial funding via a grant of Community Preservation Act funds from the CPA Committee, to increase our impact, more resources will be needed.


How Other Communities Fund Their Housing Trust Funds.

The Community Preservation Act is the most common source of funding, but the most impactful trusts tend to have a variety of funding sources that result in a steady flow of financial resources into the Trust. Other municipalities have tapped into a variety of additional sources, including inclusionary zoning payments, federal HOME funds, voluntary/negotiated developer payments, proceeds from sale of tax foreclosed or other Town-owned properties, cell tower payments, cannabis-related revenue, short-term rental fees, fees for managing housing lotteries, sale of bonds, general municipal funding, and private donations. Many also donate excess town property to their housing trust for sale and redevelopment as affordable or mixed income housing. More recently, a number of cities and towns have proposed home rule petitions that would allow them to impose a small fee on the transfer of real property to fund their housing trusts, and there is state legislation proposed to authorize cities and towns to impose such transfer fees without sending a Home Rule Petition to the state legislature.


Building Trust Resources Through a Transfer Fee.

The Housing Plan Implementation Committee originally recommended that Town Meeting adopt a bylaw creating a housing trust and create a funding source for it by voting to authorize the filing of a home rule petition to impose a modest real estate transfer fee. Although the Select Board elected to defer consideration of the transfer fee until 2021, such a fee is attractive to many, because it would be borne only by those selling their Arlington homes or properties, and because it provides a mechanism to capture a very small portion of the extraordinary equity increase that Arlington property owners have realized over many years due to regional market forces. The details of such a fee are important and merit further discussion, but it presents a promising potential revenue source to empower the Trust to be proactive.


The Process.

The article in front of the Special Town Meeting would start the process of creating a municipal affordable housing trust. Once approved by Town Meeting the Affordable Housing Trust Bylaw would be submitted to the Attorney General to certify its consistency with the state law governing housing trusts within 90 days. Once so certified, the Town Manager will appoint trustees, including at least one member of the Select Board. Once these appointments are confirmed by the Select Board, the Trustees themselves would lead the process of proposing an initial set of goals and strategies for the Trust to implement, after approval by the Select Board.


Financial Stability & Accountability.

The Trust will be governed by the MAHT law passed in 2005 that specifies powers and limitations for trusts of this type. The proposed Bylaw has been reviewed and modified pursuant to suggestions of the Finance Committee to ensure accountability and financial stability. The Trust will be managed by the Treasurer, will be audited annually, will have legal and practical limitations on its borrowing capacity, and will not have the power to pledge the full faith and credit of the Town.

To learn more about municipal affordable housing trusts, refer to the MHP Municipal Affordable Housing Trust Fund Guide, v.3

******

This information was prepared by Karen Kelleher, Arlington Town Meeting Member, Precinct 5, Member, Arlington Housing Planning Implementation Committee and Executive Director, LISC Boston ( Local Initiative Support Corporation)

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  1. Arlington
  2. Housing
  3. News

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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