Lancaster Housing Production Plan

Monday, November 4, 2013Lancaster Planning Board

Sam Lawton,Montachusett Regional Planning Commission (MRPC)

andNoreen Piazza, Lancaster Planning Director

Lancaster Housing Production Plan

Introduction and Purpose of Housing Production Plan

Definition of Affordable Housing

Comprehensive Needs Assessment

2015 Goals and Objectives

Numerical Targets and Schedule

Implementation Strategies

Next Steps

Public Comments/Input

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Introduction and Purpose

Town of Lancaster previously developed the 2007 Master Plan with a Housing chapter. An implementing action from the Housing chapter was to produce a Housing Production Plan (HPP).

Town requested MRPC for assistance to draft an HPP.

Purpose of Housing Production Plan: Enable the Town of Lancaster to produce a certain number of

housing units annually that will be occupied by persons qualifying for the purchase or rental of these affordably-priced units, so that the Town of Lancaster can strive to achieve the Massachusetts statutory goal of providing a minimum amount of housing units (10% of overall housing stock) at “affordable” prices.

Achieve “certification” from DHCD

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Housing Production Plan Certification

“Achieving Certification” means:

1. Town’s Housing Production Plan is approved by the MA Department of Housing and Community Development (DHCD), and,

2. Is granted “certification of compliance” with the plan by

creating 13 affordable housing units per year (1-yr exemption) or 25 units per year (2-yr exemption); later decisions by the ZBA, relative to comprehensive permit applications, will be deemed “consistent with local needs”. Also, these decisions will be upheld by the Massachusetts Housing Appeals Committee (HAC).

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Draft Lancaster Housing Production Plan

Written in compliance with the Guidelines and Requirements for Housing Production Plans adopted by the Massachusetts Department of Housing and Community Development (DHCD)

Required Elements of the HPP: Comprehensive housing needs assessment Affordable housing goals/proposed housing mix Implementation strategies Description of Use Restrictions

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Definition of Affordable Housing

For the purposes of Chapter 40B, affordable housing is generally defined as housing units that are:1) Subsidized by an eligible state or federal

program.

2) Subject to a long-term deed restriction limiting occupancy to income eligible households for a specified period of time (at least 30 years or longer for newly created affordable units, and at least 15 years for rehabilitated units).

3) Subject to an Affirmative Fair Marketing Plan.

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Definition of Affordable Housing

Generally Accepted Definition: Housing is considered affordable when “a

household pays no more than 30% of its annual income for rent or mortgage”

MGL Chapter 40B Definition: Affordably-produced and priced to be available to

households where the incomes do not exceed 80% of the median household income for the region in which the community is located.

Lancaster is located within Eastern Worcester County HUD Metro Fair Market Rents (FMR) area.

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Definition of Affordable Housing

Household Size 80% Of Median Income*

1 $45,1002 $51,5503 $58,0004 $64,4005 $69,6006 $74,7507 $79,9008 $85,050

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Low (80%) Income Limits by Household Size

Note: * Adjusted by HUD based on national maximums in high income areasMedian Household Income for Town of Lancaster = $87,962 (ACS, 2011)

Source: U.S. HUD, August 2013

Population: Lancaster and Surrounding Communities

Source: 2010 U.S. Census

  2000 2010 '00-'10 Change

Lancaster 7,380 8,055 9.15%

Clinton 13,435 13,606 1.27%

Harvard 5,981 6,520 9.01%

Bolton 4,148 4,897 18.06%

Leominster 41,303 40,759 -1.32%

Lunenburg 9,401 10,086 7.29%

Shirley 6,373 7,211 13.15%

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Lancaster Age Distribution

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Age Group 2000 2010 % Change< 5 years old 367 346 -6.07%5-19 years 1466 1553 5.60%20-34 years 1722 1754 1.82%35-44 years 1481 1110 -33.42%45-54 years 1029 1408 26.92%55-64 years 582 939 38.02%65-74 years 377 516 26.94%75 years and over 356 429 17.02%Median Age 35.9 39.8 9.80%65 years and over 733 945 22.43%

Source: 2010 U.S. Census

Housing Units: 2000 and 2010

2000 Housing Units 

2010 Housing Units 

 

Occupied Vacant Total2000

Vacancy %

Occupied Vacant Total2010

Vacancy %

% 00-10 Change (Total)

2049 92 2141 4.30% 2409 205 2614 7.84% 22.1%

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Building Permit Trends: 2008-2012

Year Single-Family 2 Family3 or more

Family Total

2012 24 6 1 31

2011 9 2 0 11

2010 25 0 0 25

2009 12 2 0 14

2008 9 2 0 11

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Source: Lancaster Building Department

Housing Prices and Sales 2003-2013

Source: The Warren Group

* 2013 data was collected from Jan-June

Town of Lancaster

Single Family Homes CondominiumsYear Number Avg Price Number Avg Price

2013* 21 $280,000 2 $NA

2012 78 $246,000 16 $220,000

2011 52 $245,250 14 $251,500

2010 50 $269,950 9 $252,500

2009 52 $302,500 7 $279,900

2008 50 $264,750 1 $NA

2007 61 $318,000 10 $305,950

2006 46 $335,950 23 $321,500

2005 72 $337,456 29 $259,900

2004 96 $326,250 13 $166,700

2003 80 $275,250 11 $229,900

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HOUSEHOLD TYPE Lancaster# Units

Lancaster% Units

W.C. %Units

MA % Units

U.S. %Units

Households with mortgages below or at 30% of total annual household income

 940

 64.0% 63.6% 59.7% 62.5%

Households with mortgages more than 30% of total annual household income or less

 529  36.0% 36.3% 40.3% 37.5%

Households with rent costs below or at 30% of total annual household income

 156

 43.7% 51.7% 49.6% 48.4%

Households with rent costs more than 30% of total annual household income or less

 173

 52.6% 48.3% 50.4% 51.5%

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Updated Demographics for Housing Needs Assessment

Housing Costs: % of Income used for Mortgage and Rent Costs

o More than 1/3 of Lancaster residents who own home and have mortgage are paying more than 30% of income towards monthly mortgage payments and other selected housing costs

o However, Lancaster’s % is less than the County, State, or U.S.

o More than half of Lancaster’s renters are paying more than 30% of their income towards rent

o Lancaster’s % is more than the County, State, and the U.S.

Source: ACS 2007-2011 Five-Year Estimates

Lancaster 40B Unit Inventory

Source: DHCD Chapter 40B Subsidized Housing Inventory

Mass. Department of Housing and Community Development (DHCD) Chapter 40B Subsidized Housing Inventory

Project Name Address Type Total SHI Comp PermitSubsidizing

Agency

Bigelow Gardens 449 Main St. Rental 40 No DHCD

Bigelow Gardens 449 Main St. Rental 30 No DHCD

Mill Street Mill St. Court Rental 4 No EOHHS

Blue Heron Pond High St. Ext. (Rt. 110) Ownership 12 Yes FHLBB

Lancaster Woods Woods Ln. Ownership 8 Yes Mass Housing

DDS Group Homes Confidential Rental 8 No DDS

Shaker Village Meditation Lane Ownership 5 Yes DHCD

Lancaster Totals 107

Census 2010 Year Round Housing Units 2,544

Percent Subsidized 4.21%

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Supply-Demand Housing Gap

A family with a median family income of $87,962 can afford a single family home with a maximum sales price of $364,068.

Monthly mortgage payment with taxes and insurance would be $2,389.

22 of the 41 single family homes and 7 of the multi-family/townhouse homes for sale in Lancaster in August 2013 would be affordable

However, HUD low income threshold for family of 4 is $64,400 in Eastern Worcester County

Maximum sale price for an affordable home would be $265,040, with monthly mortgage payment with taxes and insurance of $1,682

Only 13 of the 41 single family homes and 3 of the multi-family/townhouse homes for sale in Lancaster in August 2013 would qualify as affordable

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Master Plan Housing Element Goals & Objectives Incorporated into HPP

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“To preserve Lancaster as a diverse community of people, sustainable over the long term, with equity and access for all.”

Nearly 200 new affordable units in the next 10 years:

50-60 units in multi-family structures

40-50 rental units as a minimum

20-30 units suitable for one-person households

45-55 units for persons aged 65+

20 or more units for persons with disabilities

Numerical Targets and Housing Production Schedule

The Town of Lancaster’s housing production numerical targets and schedule for the next five (5) years is based on a review of planned 40B Projects and Town plans

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YearNumber of

Units Basis for Housing Production

2015 13

5 units at Jones Crossing, a currently permitted 40B project; 5 units at Fieldcrest Estates, a currently permitted 40B project; and 3 units through conversion of the town-owned ambulance building into a multi-family development.

2016 13

3 units at Jones Crossing, a currently permitted 40B project; 4 units at Fieldcrest Estates, a currently permitted 40B project; 4 units through conversion of the town-owned Memorial School building into a multi-family development; and 2 units at Bigelow Gardens, currently available senior housing operated by the Lancaster Housing Authority.

2017 13

4 units at Fieldcrest Estates, a currently permitted 40B project; 3 units through conversion of the town-owned Memorial School building into a multi-family development; and 6 units at Bigelow Gardens, currently available senior housing operated by the Lancaster Housing Authority.

2018 13

4 units at Fieldcrest Estates, a currently permitted 40B project; 3 units through conversion of the town-owned Memorial School building into a multi-family development; and 6 units at Bigelow Gardens, currently available senior housing operated by the Lancaster Housing Authority.

2019 13

5 units at Fieldcrest Estates, a currently permitted 40B project; 4 units through conversion of the town-owned Memorial School building into a multi-family development; and 4 units at Bigelow Gardens, currently available senior housing operated by the Lancaster Housing Authority.

Numerical Targets and Housing Production Schedule

Lancaster had 107 certified SHI units as of April, 2013

Lancaster produced 15 additional affordable units in 2013 which

have not yet been certified by DHCD

Development of the additional units shown in production schedule

would result in an additional 65 SHI units.

107+15+65= 187 units by end of 2019

10% overall SHI goal is 254 units

Therefore, Lancaster would be 67 units short of the overall

goal of achieving 10% SHI

Goal will be reassessed by DHCD based on the 2020 U.S. Census

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Locations for New Affordable Housing

Expansion Areas Senior housing at Memorial School Expansion of Bigelow Gardens

Endorsed 40B Project Sites Jones Crossing (Deershorn Rd.) Fieldcrest Estates (Sterling Rd.)

Municipal Land Lunenburg Rd. (2 locations) Memorial School Conversion of Ambulance Building

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Implementation Strategies:Building Institutions

Create a Lancaster Housing Partnership

Explore eligibility for federal housing subsidy funds through a regional consortium such as the Fitchburg and Leominster HOME consortium.

Explore partnering with private developers to develop more affordable multifamily rental units.

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Implementation Strategies:Refining Regulations

Ensure all new residential development above a defined threshold scale contributes to the Town’s affordable housing needs.

Within revised multifamily overlay district, reconsider the 2-acre “threshold” for allowing multifamily use and consider revision of other dimensional rules.

Consider revisions to regulations for senior & assisted-living housing.

Explore adoption of an Estate Preservation provision in zoning bylaws.

Explore offering a density incentive which includes on- or off-site rehab of existing housing units and deed restrictions.

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Implementation Strategies:Continuing Affordability and Fair Access

Apply controls to ensure continuing affordability and fair access (including use restrictions, resale controls, and regulatory agreements).

Explore means of facilitating long-term affordability of energy in housing.

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Deed/Use Restrictions to Preserve Affordability

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All affordable units must serve households with incomes no greater than that established in the original project approval, which in no event is to be greater than 80 percent of the area median income, adjusted for household size, as annually revised by HUD.

The limitation must remain in place for the life of that residential unit, except that in the case of rehabilitated units the term may be reduced to as little as 15 years if there is no workable alternative. Future sale or rent price will be based upon maintaining affordability at the same percentage of area median as in the initial basis, adjusting for changed median incomes and changed tax, condo fees, and other costs.

Units must be subject to a regulatory agreement between the developer and the subsidizing agency unless the subsidy program does not require such an agreement.

The units must be marketed in a fair and open process consistent with state and federal fair housing laws.

Next Steps and Public Comment/Input

Public Comment/Input – Take comments through November 25

Next Steps: Submit Draft Plan to DHCD for review and comment Incorporate all comments into Final Plan Prepare Final 2015 Housing Production Plan

Planning Board approval Selectmen approval Submit to DHCD in early 2014

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