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Building Affordable Housing Under Act 40B

Developer Joe Valle explains Massachusetts' Act 40B to Bob. This statute allows a developer to make full use of the land, without the constraints of stringent town zoning laws, in exchange for the creation of quality affordable homes. This four-acre parcel would typically have two homes, but Act 40B has allowed for the development of 11 homes, four of which are affordable in price. They will sell for half the price of the market homes in the neighborhood. The remaining homes will be sold at market price, but by law all of the houses must be of the same quality, size, workmanship, and layout.

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Building Affordable Housing Under Act 40B

Clip Transcript For:

Building Affordable Housing Under Act 40B

computer-generated transcript - may not be 100% accurate

" Can you explain to us again how it is that. You are allowed to put eleven houses on what is essentially just four acres where it works bloggers in Massachusetts there's a statute forty B which really allows the developer to take a piece of land with -- of the world blank slate. That means is that not to conform to current zoning. And so you can essentially build more homes than would typically be allowed for example this site would have allowed. To wait two homes on two on two acre lots yeah. What we're able to put eleven homes in the trade for that is that we have we're building four affordable homes on the parcel. And those homes will sell for roughly half the work that -- their homes will sell for what that does is it provides. The opportunity for affordable housing in communities in the statute works quite wrong network that same time we have market homes in the community. And all the houses are exactly the same disaster quality size and features yes they must be that way and that's what we conform to hear it's good formula the -- and a lot of welcome thank you."

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Working to Develop Affordable Housing

Bob is in Mashpee, Massachusetts, where the affordable housing project is well underway with five of the eleven homes currently under construction. Bob talks with developer and general contractor Joe Valle about the pace of the project and the four homes that will be designated as affordable by housing agency guidelines. Valle introduces Bob to Zella Elizenberry of the Mashpee Affordable Housing Committee, Jamie Regan the chair of the Mashpee Zoning Board of Appeals, and Eric Smith, the Mashpee Assistant Town Planner. Together they explain the process that led to the approval and construction of Mashpee's first ever 40B affordable housing project. Regan explains that just 10 years ago zoning would have permitted the construction of four homes on this parcel of land, but today it is zoned for only two. While the board sees the need for affordable housing, they wanted to be sure there would be moderately priced housing, too. Elizenberry explains the original intent of the law, which was to prevent "snob zoning" or exclusion of lower-priced, affordable homes in wealthier communities. In exchange for the zoning relief, developers are required to provide 25 percent affordable housing in a development governed by Act 40B. Smith adds that the key areas where zoning relief was extended to the project are in reduced lot size and reduced frontage for the homes. They all agree that this development must speak well for Mashpee and its commitment to quality affordable housing. By law and by intent, the affordably priced homes must be identical to the market-priced homes in the same development, in terms of materials, workmanship, and design. Bob notes that the development is built on a cul-de-sac, which is perfect for young families.

Discussing the Plot Plan for Affordable Housing on Cape Cod

Bob meets with Joe Valle, the developer and general contractor for the River Hill development in Mashpee, Massachusetts, on Cape Cod. Although Mashpee has zoning laws that restrict housing development to minimum two-acre lots, Valle found that this land could not be adequately broken up into two two-acre parcels. So, he applied for zoning relief through Massachusetts' Act 40B and was able to use the 4.5-acre parcel to build 11 homes, four of which are affordable. Valle shows Bob the plan for the new neighborhood, indicating where the affordable homes will be located. He also shows him the available house-plan options. Homebuyers may choose from a Colonial, a Cape, or a ranch model. All homes will be of the same size and specifications, ranging from 1,320 square feet to 1,600 square feet. They will be finished with wood siding, either cedar shingle or clapboard. Valle explains that 40B affordable houses may not differ in size, appearance, or materials from their market-priced neighbors. Valle is also limited, by law, to a 20 precent profit on the development. This will come mostly from the market-priced homes that should sell for around $345,000. He does remark that challenges, like the increase in building supply prices, may limit his profit even further. Still, Valle is excited to use the law as a tool to build beautiful, affordable housing for families who want to live and work in the community.

Discussing Falmouth's Model for Affordable Housing

Bob visits with John Druley of Quaker Homes in Falmouth, Massachusetts. Druley is developing a parcel of land in Falmouth that will have eight homes, two of them affordable for families earing a modest income. Bob and Druley discuss the reality of housing in Falmouth, where one-acre building lots are required for new housing. A lot, Druley explains, will sell for around $300,000 with no construction. For this development, Druley has invoked Massachusetts' Act 40B to gain relief from zoning restrictions such as the one-acre minimum lot size. In return, Druley must make 20 percent of the homes available as affordable homes, for those earning up to 80 percent of the area's median income. The lots are 10,000 sqaure feet with a 40-foot setback from the road, 10-foot sidelines, and a 45 to 50-foot backyard. The homes are 1,800-square-foot Capes with attached garages, clad in white cedar shingles, with skylights, architectural-style roof shingles, and no-maintenance, energy-efficient vinyl windows. Druley explains that the affordable and market-priced homes must be indistinguisable in design, materials, and layout. The state assigns a 40B auditor to monitor the project and assure that no corners are cut on the affordable homes, and that the developer earns no more than 20 percent profit from the development. Druley explains that the market-priced homes in the neighborhood will sell for between $375,000 and $400,000, which will help offset the $119,900 selling price for the affordable homes.

Affordable Housing Problems on Cape Cod

Bob talks with Pat Fiero of the Housing Assistance Corporation about the difficulty in finding land and developing affordable housing on Cape Cod. Fiero tells the story of Dennis, Masssachusetts, where a forward-thinking zoning bylaw allows development of undersized lots if used for affordable housing. The reality is that neighbors have banded together to block such projects, so they do not come to pass. Known as the NIMBY (not in my backyard) response, such thinking prevents people who work in these communities from being able to live in them. It also keeps many who have grown up in these towns from being able to raise their families there.