Affordable Housing Primer

Introduction

The issue of affordable housing is complex, sensitive, and devisive. Very few people discount the importance of affordable housing or that the need is out there. However, a large portion of the public does not want affordable housing to be near them or located in their community. This is partly due to the misconception many have about what affordable housing is but also due to bias and prejudice. This page is not a complete domain of the subject but simply a few facts and issues that Harvard residents should understand before passing final judgement on taking a stand for, against, or neutral regarding affordable housing.

First, a definition: for the purpose of Massachusetts laws and programs, affordable housing is housing targeted to and affordable by households that meet specific income eligibility levels, typically households earning below 80% of the metropolitan area’s median income (or AMI).  “Affordable housing” does not refer to the design, type, or method of construction of a housing unit or development, but to the cost of the housing to the consumer.  Housing is generally considered affordable if the household pays less than 30 percent of its monthly income to secure the housing. Harvard falls on the margin between the Boston and Worcester metropolitan statistical areas related to area median income but 80% of Boston AMI ranges from $63,500 to $105,200 (depending on family size) and 80% of Worcester AMI is $50,350 to $94,950. Clearly these are not destitute or problematic households by an income perspective. They are working individuals and families that earn a living but that living is not sufficient to afford the typical housing unit that they would find appropriate in this geographical area. Boston and environs is one of the least affordable markets in the U.S. Compare our area to the 80% AMI in Lansing, MI ($44,950) or El Paso, TX ($33,000).

Next, envision people and families with those incomes likely includes nearly every young couple, every graduating student, every young teacher or firefighter, most public servents, social workers, some small business owners, academics, artists and creatives, and many more that you would likely welcome into your neighborhood.

Finally, affordable housing in Massachusetts is primarily addressed through the M.G.L. Chapter 40B program, otherwise referred to as the Comprehensive Permit Act. You can learn more specifically about this act here. There are other state and federal affordable housing programs but 40B is the most prevelent and the most controversial because unless a community has met it's statutory requirement of 10% of local units being on the state's Subsidized Housing Inventory or SHI, the community is subject to the so-called "unfriendly 40B" where a developer who cannot successfully apply for or obtain a Comprehensive Permit for their proposed development may choose to petition the state for a mandated approval against local desires. The 10% local threshold is also referred to as "safe harbor" where the town or city is insulated against such "unfreindly" projects as long as they maintain or exceed this percentage of units on the SHI. Overall, affordable housing is a recognized public benefit because it provides housing opportunities for a wide range of people and households that currently cannot be housed in Harvard including downsizers, first-time homebuyers, young profssionals, Town work force, and service workers who may have employment in town, among other market segments. Also, affordable housing may be revenue positive, although not every development has to be and still be a net positive in other ways for the community. Remember that people who may want or need affordable housing are in many cases our co-workers, family members, people who may protect us or serve us in many capacities. They are human beings who just want a chance to enjoy the same community values and benefits that we do.

Chapter 40B and Harvard

Harvard currently sits at 5.70% or 4.3 percent below the 10% threshold. As of March 2020, a total of 113 SHI units exist in Harvard leaving an additional 85 eligible to be built based on current total Harvard housing inventory. As new single-family market rate units are built in Harvard going forward, this adds to the overall inventory that the 10% applies to thus ever increasing the target. Recently or historically, several 40B projects have been built or are in development in Harvard including Harvard Green, Trail Ridge, Pine Hill Village, and Craftsman Village. Developers have been active lately inquiring about parcels in the Ayer Road corridor for larger 40B projects in the 125-300 unit range but are currently challenged by available infrastructure. This obstacle will likely be overcome at some point.

Thus, Harvard has generally been reactive related to affordable housing and while recent developments have been successfully negotiated with Town officials, you could argue that even this does not translate into Harvard shaping the type, location, and design of afforable housing on its own terms, by being proactive and developing a specific program for how affordable housing should occur here. How can Harvard do this?

First, Harvard does have an adopted Housing Production Plan (HPP). This plan is a good blueprint for local action but it is not being actively implemented and not often referred to as a policy document. Further, the HPP is not certified. This would require a specific number of units produced in harvard over a limited period of time--a year. Certification and sustained annual production based on HPP policies is one way to temporarily achieve "safe harbor" and should be considered by the Town.

Next, Harvard could consider adopting an Inclusionary Housing Bylaw. This type of bylaw requires that for any development of a specific threshold, a certain percentage of affordable units must either be included on-site, built off-site, or provide a payment-in-lieu to the Housing Trust so that affordable units can be developed independently where the Town chooses to do so.

In summary, Harvard is still vulnerable to affordable housing projects that while they may be well intentioned and serve the needed populations, are not aligned with the policies and preferences of the community. The Town may be better positioned related to its needs with a more proactive position by adopting one or more of the options noted above. The Planning Board, Select Board, ZBA, and Municipal Affordable Housing Trust could coordinate a program to achieve these potential objectives. Harvard also belongs to the Assabet Regional Housing Consortium as a member and this group is further served by the housing consultant MetroWest Collaborative Development, who keeps Harvard's SHI inventory and conducts other tasks related to affordable housing for the Town and should be active partners in whatever the Town choses to do going forward.

Please contact Christopher Ryan at 978-456-4100 x,323 or cryan@harvard.ma.us if you have any comments or questions.