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<p class="MsoNormal">All interesting ideas! This is a difficult policy issue.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">The cost of developing 1 affordable unit is likely well over $300,000 for a developer, and arguably may be higher than that for a municipality. One issue to consider is whether your payment-in-lieu is high enough to allow your community
to build the affordable units that the developer chooses not to build. Another issue is considering if a high payment-in-lieu will hinder development of much-needed housing units (both market-rate and deed-restricted affordable units).<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Littleton calls for a payment-in-lieu that is two times the HUD income limits for a household of 4 (at 80% AMI). With the April 2024 HUD numbers for the Boston-Cambridge-etc. area, that puts Littleton’s fee-in-lieu at 2x$130,250 per unit.
Littleton’s Inclusionary Housing Zoning Bylaw calls for 10% affordable units for any residential development over 6 units and allows for PILU for developments between 6 and 19 units. Littleton chose the policy direction of setting the payment-in-lieu high,
thus pointing the developers in the direction of building the affordable units rather than opting for the payment.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Maren<o:p></o:p></p>
<p class="MsoNormal"><span style="font-family:"Calibri",sans-serif;mso-ligatures:none">Maren A. Toohill, AICP<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri",sans-serif;mso-ligatures:none">Town Planner<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri",sans-serif;mso-ligatures:none">978/540-2425<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri",sans-serif;mso-ligatures:none"><a href="mailto:MToohill@littletonma.org"><span style="color:#0563C1">MToohill@littletonma.org</span></a>
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri",sans-serif;mso-ligatures:none">Town of Littleton<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri",sans-serif;mso-ligatures:none"><o:p> </o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal"><b><span style="font-family:"Calibri",sans-serif;mso-ligatures:none">From:</span></b><span style="font-family:"Calibri",sans-serif;mso-ligatures:none"> MassPlanners <massplanners-bounces@masscptc.org>
<b>On Behalf Of </b>Tozer, Jeanette via MassPlanners<br>
<b>Sent:</b> Wednesday, April 17, 2024 11:49 AM<br>
<b>To:</b> Williams, Kathleen <kwilliams@yarmouth.ma.us>; Mass Planners <massplanners@masscptc.org><br>
<b>Subject:</b> Re: [Massplanners] Fee in Lieu of Affordable Housing<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal" style="margin-bottom:12.0pt"><span style="font-size:12.0pt;mso-ligatures:none"><o:p> </o:p></span></p>
<div style="border:solid red 1.0pt;padding:2.0pt 2.0pt 2.0pt 2.0pt">
<p style="margin:0in;line-height:12.0pt;background:#FF9C9C"><b><span style="font-size:10.0pt;font-family:"Calibri",sans-serif;color:#CC0000">Warning –</span></b><span style="font-size:10.0pt;font-family:"Calibri",sans-serif;color:black"> THIS EMAIL WAS SENT
BY AN EXTERNAL SENDER</span><span style="font-size:10.0pt;font-family:"Calibri",sans-serif"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;mso-ligatures:none"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri",sans-serif">Hi Kathy,</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-family:"Calibri",sans-serif"> </span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-family:"Calibri",sans-serif">The City of Worcester does not tie the fee in lieu to sale prices. The Inclusionary Zoning ordinance requires a cash payment that is equal to three percent (3%) of the total construction value
of all building permits for the development, including trade permits.</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-family:"Calibri",sans-serif"> </span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-family:"Calibri",sans-serif">Best,</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-family:"Calibri",sans-serif">Jeanette</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-family:"Calibri",sans-serif"> </span><o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;mso-add-space:auto">
<b><i><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:#2F5496;mso-ligatures:none">Jeanette R. Tozer, AICP
</span></i></b><i><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:#2F5496;mso-ligatures:none">(she, her)</span></i><o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;mso-add-space:auto">
<span style="font-size:9.0pt;font-family:"Verdana",sans-serif;mso-ligatures:none">Affordable Housing Trust Fund Manager</span><o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;mso-add-space:auto">
<span style="font-size:9.0pt;font-family:"Verdana",sans-serif;mso-ligatures:none">Executive Office of Economic Development</span><o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;mso-add-space:auto">
<span style="font-size:9.0pt;font-family:"Verdana",sans-serif;mso-ligatures:none">City of Worcester | 455 Main Street, Worcester, MA 01608</span><o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;mso-add-space:auto">
<span style="font-size:9.0pt;font-family:"Verdana",sans-serif;mso-ligatures:none">P: 508-799-1400 x31438</span><o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;mso-add-space:auto">
<span style="font-size:9.0pt;font-family:"Verdana",sans-serif;mso-ligatures:none">E:
</span><a href="mailto:tozerj@worcesterma.gov"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:#2F5496;mso-ligatures:none">tozerj@worcesterma.gov</span></a><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:#2F5496;mso-ligatures:none">
</span><o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;mso-add-space:auto">
<a href="http://www.worcesterma.gov/housing-neighborhood-development/affordable-housing-trust-fund"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:#2F5496;mso-ligatures:none">www.worcesterma.gov</span></a><o:p></o:p></p>
<p class="MsoNormal"><span style="font-family:"Calibri",sans-serif"> </span><o:p></o:p></p>
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<p class="MsoNormal"><b><span style="font-family:"Calibri",sans-serif;mso-ligatures:none">From:</span></b><span style="font-family:"Calibri",sans-serif;mso-ligatures:none"> MassPlanners <</span><a href="mailto:massplanners-bounces@masscptc.org"><span style="font-family:"Calibri",sans-serif;mso-ligatures:none">massplanners-bounces@masscptc.org</span></a><span style="font-family:"Calibri",sans-serif;mso-ligatures:none">>
<b>On Behalf Of </b>Williams, Kathleen via MassPlanners<br>
<b>Sent:</b> Wednesday, April 17, 2024 11:30 AM<br>
<b>To:</b> Mass Planners <</span><a href="mailto:massplanners@masscptc.org"><span style="font-family:"Calibri",sans-serif;mso-ligatures:none">massplanners@masscptc.org</span></a><span style="font-family:"Calibri",sans-serif;mso-ligatures:none">><br>
<b>Subject:</b> [Massplanners] Fee in Lieu of Affordable Housing</span><o:p></o:p></p>
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<b><span style="font-size:10.0pt;font-family:"Calibri",sans-serif;color:red;mso-ligatures:none">Caution:</span></b><span style="font-size:10.0pt;font-family:"Calibri",sans-serif;color:red;mso-ligatures:none">
</span><span style="font-size:10.0pt;font-family:"Calibri",sans-serif;color:black;mso-ligatures:none">This email came from outside the City of Worcester. Do not click on links or open attachments unless you are sure you recognize the sender and you know the
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<p class="MsoNormal" style="margin-bottom:12.0pt"><span style="font-family:"Calibri",sans-serif;mso-ligatures:none"><br>
</span>Hi All,<o:p></o:p></p>
<p class="MsoNormal">The Town of Yarmouth is looking to modify the way we calculate the cash payment for the Fee in Lieu of Affordable Housing. I know this is a topic that has been discussed before and have looked at the more recent responses, but was wondering
how others determine this calculation. <o:p></o:p></p>
<p class="MsoNormal"> <o:p></o:p></p>
<p class="MsoNormal">Yarmouth is looking at a way to calculate the difference in sale price between the market rate unit and an affordable unit and are proposing the following.
<o:p></o:p></p>
<p class="MsoNormal"> <o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in;text-align:justify"><span style="font-family:"Calibri",sans-serif">412.4.5 Fee in Lieu of Affordable Housing. Calculation of cash payment.</span><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in;text-align:justify"><span style="font-family:"Calibri",sans-serif"> </span><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in;text-align:justify"><span style="font-family:"Calibri",sans-serif">For each affordable unit not provided within the locus of the development, the fee shall be the difference between the current Median Sale Price*
and the affordable price calculated to be affordable by the Massachusetts Executive Office of Housing and Livable Communities (HLC) Local Initiative Program (LIP)** to a household of four earning no more than 80% of the Area Median Income as set by U.S. HUD
on an annual basis for Barnstable County.</span><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in;text-align:justify"><span style="font-family:"Calibri",sans-serif">* The Median Sale Price is per the most current Warren Group data, adjusted for unit type, and where units in multi-family buildings of 3 or more
units are considered condominium units. </span><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in;text-align:justify"><span style="font-family:"Calibri",sans-serif">** Housing units in multi-family buildings of 3 or more units are calculated as condominium units.</span><o:p></o:p></p>
<p class="MsoNormal"> <o:p></o:p></p>
<p class="MsoNormal">Thanks,<o:p></o:p></p>
<p class="MsoNormal">Kathy<o:p></o:p></p>
<p class="MsoNormal"><b><span style="font-size:18.0pt;font-family:"Times New Roman",serif">----------------------------------------</span></b><o:p></o:p></p>
<p class="MsoNormal"><b><span style="font-size:12.0pt;font-family:"Times New Roman",serif">Kathy Williams, P.E.</span></b><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">Yarmouth Town Planner</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">1146 Route 28</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">South Yarmouth, MA 02664-4492</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">(508) 398-2231 Ext 1276</span><o:p></o:p></p>
<p class="MsoNormal"><a href="mailto:kwilliams@yarmouth.ma.us"><span style="font-size:12.0pt;font-family:"Times New Roman",serif;color:blue">kwilliams@yarmouth.ma.us</span></a><o:p></o:p></p>
<p class="MsoNormal"><span style="font-family:"Calibri",sans-serif"> </span><o:p></o:p></p>
<p class="MsoNormal"> <o:p></o:p></p>
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