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8443_ZONING AMENDMENT INCLUSIONARY ZONING u /I -Zon 0 • for Dr. Taylor and feels that the issues can be addressed with the cooperation of the Town. Motion was made by Ms. Baldwin and seconded by Mr. Meagher to continue the public hearing for High Meadow IV to the next meeting. VOTE 3-0 3. DISCUSSION & POSSIBLE VOTE - Zoning Amendment- Inclusionary Zoning Ms. Dachos explained that a workshop is being scheduled with the Council subcommittee on the Open Space zoning amendment as well as the Inclusionary Zoning Amendment. The Board does not meet again prior to the next Council meeting so the members agreed send a memo to the Council requesting that they table inclusionary zoning. Motion was made by Ms. Baldwin and seconded by Mr. Meagher to send a memo to the Town Council requesting that they table the zoning amendment for inclusionary zoning to allow the Board to attend a workshop with the Council subcommittee. VOTE 3-0 4. FORM A - Mark Drive - Langone Motion was made by Ms. Baldwin and seconded by Mr. Meagher to approve the plan for Langone on Mark Drive under"Subdivision Control Law Not Required". VOTE 3-0 Motion was made by Ms. Baldwin and seconded by Mr. Meagher to amend the order of the agenda. VOTE 3-0 8. SITE PLAN - Springfield Street- Kudlic Greg Kudlic was in attendance this evening to go over his site plan for 1) a transfer of a used car license; 2) request to increase number of vehicles from 26 to 46; and 3) also filing with Board of Appeals as this is non-conforming. Mr. Kudlic stated that he received comments from the Engineering Department which he will comply with (arrows and signs). Ms. Dachos stated that a 5' landscaped buffer around the perimeter of the front of the property is now required. Mr. Kudlic stated that the Building Inspector told him to move the bumper stops back 5' . Ms. Dachos asked if he was going to be selling heavy equipment. Mr. Kudlic stated yes and that the only means for him to do that is to apply for a used car license. Mr. Hopkins stated that all lighting must be shielded. Mr. Kudlic stated that he is not proposing new lighting. There was a lengthy discussion regarding the fact that heavy equipment will be sold here and whether or not the spaces as depicted on the plan will allow for the parking of 46 pieces of heavy equipment. In conclusion, Mr. Kudlic agreed to park the larger pieces of equipment in the rear and the small pieces towards the front of the lot. Agawam Planning Board November 2, 2006 Page 3 in a retention area up to a 100 year storm. The Engineering Department comments that were submitted on this plan, according to Mr. Bean, are in appropriate. He feels that they misinterpreted the whole concept of the drainage proposal. He will meet with Engineering tomorrow to resolve their concerns. He stated that 167 new parking spaces are being provided with seven handicap spaces. All entrances are at level grade. An easement is in place for access to Bowles Road. An erosion control plan has been submitted as per the Storm Drainage Ordinance. He stated that they would like to bring in fill material onto the site and install the footings and foundation before winter. Mr. Meagher asked whether the isolated wetland could be "recharged". Mr. Bean stated that it is supported from drainage from the property north of this site and part of this project will also discharge to it. Mr. Morassi asked about the roadway proposed. Mr. Bean stated that cross easements will be needed. Mr. Hopkins asked about lighting. Mr. Bean stated all lighting will be fully shielded. Motion was made by Mr. Morassi and seconded by Mr. Meagher to approve the Site Plan for DFF Corp. with the following conditions: November 2, 2006 Engineering Department comments are to be addressed; a detailed landscaping plan showing size and species is to be submitted; dumpster location shall be shown with screening; any proposed signs shall be shown; to date, the Planning Board has not received comments from the Fire Dept. - it is the applicant's responsibility to ensure they have no comments. VOTE 3-0 4. PUBLIC HEARING- Zoning Amendment-A5 - Age Restricted Housing Ms. Dachos explained that this amendment is meant to clarify the A5 section. The words "where it abuts a public way" are being added to the setback section. There was no public input, therefore Mr. Hopkins closed the public hearing. Motion was made by Mr. Morassi and seconded by Mr. Meagher to send a positive recommendation to the Town Council with regarding to the proposed zoning amendment to "A5 - Age Restricted Housing". VOTE 3-0 5. PUBLIC HEARING - Zoning Amendment- Inclusionary Zoning Andrew Smith of the Pioneer Valley Planning Commission was in attendance to present a proposed inclusionary zoning ordinance. He stated inclusionary zoning allows towns to require developers of ten or more units to set aside 1% of the units as affordable and shall be built on or off the site. Ms. Dachos asked that he check on the "affordable"price for Agawam prior to this going to the Council. A construction time line would be required to ensure that the affordable Agawam Planning Board November 2, 2006 PaEe 4 units are built with the subdivision. A marketing plan would also be required of the developer. Deed restrictions would be placed on the affordable units to ensure they remain affordable for 30 years. There was a lengthy discussion regarding purchase price and restrictions on resale as well as the provision that the affordable units can be built off site. Betty Grimaldi, 431 Springfield Street - stated that she just recently dealt with an issue similar to this in Springfield Street and"it was a nightmare" in terms of the sale price vs. the appraisal. There being no further public input, Mr. Hopkins closed the public hearing. This item will appear on the next agenda for discussion and possible vote. 6. SITE PLAN - Able Machine Tools - Silver Street Tom Zabel of The O'Leary Co. was in attendance to present this plan which shows a 4500 SF addition to the existing building and also additional parking area. Mr. Zabel submitted a copy of the Fire Department comments to the Board for their information. He stated that these comments have been addressed. A revised landscaping plan will be submitted. No new signs are proposed. All lighting will be shielded. The addition will be the same material as the existing building. He stated that the Engineering Department comments have been addressed and a revised plan has been submitted. Motion was made by Mr. Morassi and seconded by Mr. Meagher to approve the Site Plan for Able Machine Tools on Silver Street with the condition that the Engineering Department do a final review of the revised plan. VOTE 3-0 SITE PLAN - Bridgeport National Bindery - Silver Street Tom Zabel of The O'Leary Co. also presented this Site Plan which shows an additional parking area being constructed. The Engineering Department submitted comments dated November 2, 2006 which Mr. Zabel stated will be addressed. He explained that this is a"time sensitive" project as they are hoping to pave before the plants close. Motion was made by Mr. Morassi and seconded by Mr. Meagher to approve the Site Plan for Bridgeport National Bindery with the condition that the November 2, 2006 Engineering Department comments be addressed and the Planning Board did not receive Fire Department comments - it is up to the applicant to ensure that they have no comments on the plan. VOTE 3-0 Agawam Planning Board September 28, 2006 Page 5 Mr. and Mrs. Provost of 267 Mill Street were in attendance to ask the Board to consider moving the location of the recently approved subdivision, Capua Estates. They have concerns over the road being located directly in front of their driveway. Mr. Hopkins stated that given the small number of lots and the fact they the cars will being going up hill to a stop sign, he did not feel this would provide a big risk. Mrs. Provost stated that their concern is during bad weather. Mr. Ward stated that although there's not much the Board can do other than request that a guardrail be installed, he would meet with them to view the situation. Mr. and Mrs. Provost thanked the Board for their time and asked that their safety concerns go on record. 9. DISCUSSION - correspondence - Coyote Circle - Lubarsky The Board received a letter from Mr. Lubarsky which was forwarded to the Engineering Department for input. The Engineering Department's response was given to the Board. Motion was made by Mr. Morassi and seconded by Mr. Ward to send a letter to the developer of Wild Turkey Estates reinforcing the Board's decision on the handicap ramp as previously discussed. VOTE 3-0 10. BOND STATUS - Wild Turkey Estates The developer has submitted a written request for a six month extension. Motion was made by Mr. Morassi and seconded by Mr. Ward to extend the Performance Agreement for Wild Turkey Estates for six months to April 1, 2007. VOTE 3-0 6. DISCUSSION - Inclusionary Zoning - E. Twarog - Pioneer Valley Planning Commission Eric Twarog of the Pioneer Valley Planning Commission was in attendance to go over a draft zoning amendment entitled"inclusionary zoning". He explained that Agawam's affordable housing stock is currently at 4.2% and the state requires it to be at least 10%. This proposal would require a developer who is proposing at least ten units or more must provide for 10% of them to be considered affordable. He went over the components of the proposal and the members gave him feed back. He stated that he will revise the draft and resubmit to them for their action. The meeting adjourned at 8:35 PM. TOR--2006 - 13 ZC —2006-10 AN ORDINANCE TO AMEND ARTICLE XVI, § 180-116, OF THE CODE OF THE TOWN OF AGAWAM (Initiated by the Agawam Planning Board) WHEREAS, Article XVI, entitled "Additional Regulations" contains additional regulations relative to zoning within the Town of Agawam; and WHEREAS, the Agawam Planning Board voted to petition for the amendment of the Zoning Ordinances of the Town of Agawam; and WHEREAS, the amendment proposed by this ordinance encourages developers to build affordable housing; and WHEREAS, the state considers affordable housing to be any unit costing less than $375,000.00 in 2005; and WHEREAS, it is in the best interests of the City of Agawam to enact legislation to encourage affordable housing; NOW THEREFORE, the Agawam City Council hereby resolves, ordains, amends and enacts amendments to the Code of the Town of Agawam in accordance with the attached Exhibit A, entitled "Article XVI Additional Regulations, Section 116 Entitled Inclusionary Zoning." PER ORDER OF THE AGAWAM CITY COUNCIL Donald M. Rheault, President Date PRO ED AS FORM AND LEGALITY F� f incept F. Gi scia, Acting City Solicitor Date t a Town of Agawam' 36 Main Street Agawam, Massachusetts 01001-1837 �fDp•�` Tel. 413-786-0400 Fax 413-786-9927 October 6, 2006 0 Agawam Town Council o A c Donald M. Rheault, President Robert A. Magow:m, Vice President George Bitzas, Councilor Cecilia Calabrese, Councilor Ruth Carr Bitzas, Councilor Gina Letellier, Councilor Joseph Mineo, Councilor Dennis Perry, Councilor Robert E. Rossi, Councilor Jill P. Simpson, Councilor Robert M.Young, Councilor Dear Councilors: At its duly called meeting held on October 5, 2006, the Agawam Planning Board voted to be petitioner for the attached Inclusionary Zoning Ordinance. During recent years, the majority of housing stock being constructed has far exceeded the financial means of a large segment of the population as a whole and many Agawam residents. In an effort to encourage developers to build housing that would be affordable for first time home buyers,many of whom have been raised in this community, the Planning Board is supporting this zoning amendment. If enacted, each housing development of ten units or more would build at least one affordable unit. The State considered affordable to be any unit which would cost less than $375,000 in 2005. The Planning Board feels that this is a very well thought out amendment and looks forward to discussing it with the Council. If in the interim you have any questions,please contact the Planning Office at 786-0400, extension 283. Sincerely, Dennis B. Hopkins, Chairman Agawam Planning Board cc: Clerk, Mayor, Solicitor, Building, File SECTION 115 §115.1.0 — INCLUSIONARY ZONING §115.1.1 Purpose and Intent: The purpose of this ordinance is to encourage development of new housing that is affordable to low and moderate-income households. At a minimum, affordable housing produced through this regulation should be in compliance with the requirements set forth in M.G.L. Ch. 40B sect. 20- 24 and other affordable housing programs developed by state, county and local government. It is intended that the affordable housing units that result from this ordinance be considered as Local Initiative Units, in compliance with the requirements for the same as specified by the Department of Housing and Community Development. Definitions for affordable housing unit and eligible household can be found in the Definitions Section. Affordable housing integrated in housing developments provides many benefits to Agawam, including: (1) To expand housing opportunities. (2) To allow our sons and daughters to remain in Agawam. (3) To fulfill our social contract to those in need. (4) To provide economic diversity in our community. (5) To ensure housing that is necessary to retain and attract industrial, service, and commercial jobs. (6) To regain and retain full local control of new affordable housing projects. (7) To mitigate the financial costs and loss of local control that incur if the community must pay for new affordable housing to prevent its ratio of affordable housing from dropping. (8) To prevent market-rate and high-end only housing projects that effectively increase the cost of housing in Agawam and make the community more economically homogenous, §115.1.2 Applicability: In all zoning districts, the inclusionary zoning provisions of this section shall apply to the following uses: (1) Any project that results in a net increase of ten (10) or more dwelling units, whether by new construction or by the alteration, expansion, reconstruction, or change of existing residential or non-residential space; (2) Any subdivision of land for development of ten (10) or more dwelling units; and (3) Any elderly persons and/or handicapped persons housing development that includes ten (10) or more dwelling units and accompanying services. §116.1.3 Mandatory Provision of Affordable Units: As a condition of approval for a Subdivision or Special Permit, the applicant shall contribute to the local stock of affordable units in accordance with the following requirements. At least ten Page 1 of 4 (10) percent of the units in a division of land or multiple unit development subject to this ordinance shall be established as affordable housing units in any one or combination of methods provided for below: (1) Constructed or rehabilitated on the locus subject to Subdivision or Special Permit approval (see Section 1.4); or (2) Constructed or rehabilitated on a locus different from the one subject to Subdivision or Special Permit approval (see Section 1.5). The applicant may offer, and the Planning Board may accept, any combination of the Section 1.3(1)-(2) requirements provided that in no event shall the total number of units or land area provided be less than the equivalent number or value of affordable units required by this ordinance. §115.1.4 Provisions Applicable to Affordable Housing Units On-and Off-Site: (1) Siting of affordable units. All affordable units constructed or rehabilitated under this ordinance shall be situated within the development so as not to be in less desirable locations than market rate units in the development and shall, on average, be no less accessible to public amenities, such as open space, as the market-rate units. (2) Minimum design and construction standards for affordable units. Affordable housing units shall be integrated with the rest of the development and shall be compatible in design, appearance, construction, and quality of materials with other units. Interior features and mechanical systems of affordable units shall conform to the same specifications as apply to market-rate units. (3) Timing of construction or provision of affordable units or lots. Where feasible, affordable housing units shall be provided coincident to the development of market-rate units, but in no event shall the development of affordable units be delayed beyond the schedule noted below: Market-rate Unit Affordable Housing Unit M Complete) M Required) < 30% -- 30% plus 1 unit 10% Up to 50% 30% Up to 75% 50% 75% plus 1 unit 70% Up to 90% 100% (4)Marketing Plan for Affordable Units. Applicants under this ordinance shall submit a marketing plan or other method approved by the Town through its local comprehensive plan or Community Development Plan, to the Planning Board for its approval, which describes how the affordable units will be marketed to potential home buyers or tenants. This plan shall include a description of the lottery or other process to be used for selecting buyers or tenants. Page 2 of 4 §115.1.5 Provision of Affordable Housing Units Off-Site: As an alternative to the requirements of Section 1.5, an applicant subject to this ordinance may develop, construct or otherwise provide affordable units equivalent to those required by Section 1.5 off-site, All requirements of this ordinance that apply to on-site provision of affordable units, shall apply to the provision of off-site affordable units. In addition, the location of the off-site units to be provided shall be approved by the Planning Board as an integral element of the review and approval process. §115.1.6 Maximum Incomes and Selling Prices, Initial Sale: (1) To ensure that only eligible households purchase affordable housing units, the purchaser of an affordable unit shall be required to submit copies of the last three years' federal and state income tax returns and certify, in writing and prior to transfer of title, to the developer of the housing units or his/her agent, and within thirty (30) days following transfer of title, to the local housing trust, community development corporation, housing authority or other agency as established by the Town, that his/her or their family's annual income level does not exceed the maximum level as established by the Commonwealth's Department of Housing and Community Development, and as may be revised from time to time. (2) The maximum housing cost for affordable units created under this ordinance as established by the Commonwealth's Department of Housing and Community Development, Local Initiative Program or as revised by the Town. §115.1.7 Preservation of Affordability; Restrictions on Resale' Each affordable unit created in accordance with this ordinance shall have limitations governing its resale. The purpose of these limitations is to preserve the long-term affordability of the unit and to ensure its ccntinued availability for affordable income households. The resale controls shall be established through a restriction on the property and shall be in force in perpetuity. (1) Resale price. Sales beyond the initial sale to a qualified affordable income purchaser shall include the initial discount rate between the sale price and the unit's appraised value at the time of resale. This percentage shall be recorded as part of the restriction on the property noted above. (2) Right of first refusal to purchase. The purchaser of an affordable housing unit developed as a result of this ordinance shall agree to execute a deed rider prepared by the Town, consistent with model riders prepared by Department of Housing and Community Development, granting, among other things, the municipality's right of first refusal to purchase the property in the event that a subsequent qualified purchaser cannot be located. (3) The Planning Board shall require, as a condition for approval under this ordinance, that the applicant comply with the mandatory set-asides and accompanying restrictions on affordability, including the execution of the deed rider noted above. The Building Inspector shall not issue an occupancy permit for any affordable unit until the deed restriction is recorded. Page 3 of 4 OTHER REQUIRED ZONING AMENDMENTS Amend Section 180-2, Definitions and Word Usage, of the Agawam Zoning Ordinance by adding the following definitions.- Affordability Deed Restriction-A deed rider, covenant, mortgage, easement, and/or condominium document that ensures that Affordable Housing remains on the land for at least 30 years and is binding and enforceable against any person with an interest in the property meeting the following standards: (1) Is in a form acceptable to: a. The Agawam Planning Board, which may establish rules governing their standards for approving such restrictions;and b. The Massachusetts Department of Housing and Community Development(or its successor agency), in accordance with the standards under M.G.L. Chapter 40B. (2) Includes provisions for adequate legal monitoring, including: a. An identified non-profit housing or government monitoring agency;and b. A fallback non-profit housing or government monitoring agency(which shall succeed the monitoring agency if the monitoring agency no longer exists). The Town of Agawam may be used as the fallback monitoring agency if the Town is granted the right to assign its responsibilities to another agency at its sole discretion. (3) Includes a grant of the right-of-first refusal, at an Affordable Housing price, to the monitoring agency and the fallback agency, if an income-eligible family cannot be found by the seller. (4) includes provisions that the restriction can survive any bankruptcy, insolvency, foreclosure, other than property tax or government super-Gen foreclosure, and shall not otherwise be subject to nullification for any reason. The model deed rider used by the Massachusetts Department of Housing and Community Development may be used for this purpose, provided it is altered to meet all the restrictions of this section. Affordable Housinq Unit-A dwelling unit with an Affordability Deed Restriction available at a cost of no more than 30% of gross household income of households at or below 80%of the Area Median Income as reported by the U.S. Department of Housing and Urban Development, including units listed under M.G.L. Ch. 40B sect. 20-24 and the Commonwealth's Local Initiative Program (LIP). Median Income- The household income determined annually by the US Department of Housing and Urban Development for Agawam or the region that includes Agawam. Qualified Affordable Housinq Unit Purchaser or Tenant-An individual or family with household incomes that do not exceed 80% of the median income, with adjustments for household size, as reported by the United States Department of Housing and Urban Development(HUD) and the Commonwealth's Local Initiative Program. Page 4 of 4 . . .. . � ��.. , .. . . .� , \^»mE /\ »» ?\ ?Aran\ Val House ffo6 l Un . . . w y @cow k{ , ..� � < �« > v :. .406 2006 $ 300,000 S 176,00 O 41% /m/ $ 350,000 $ 206,500 41% \d1 $ 375,000 $ 221,250 41% �. 20201400,0001 $ 236,0001 41\ dKNCLUSIONARY ZONING FOR AGAhAM 1W.� _ „ qW There are many misconceptions about affordable units in the Commonwealth of Massachusetts. Frequently, people assume affordable housing units will lead to higher crime and lower property values. In reality, the cost of an affordable unit (as defined by the Department of Housing and Community Development) is about what a homebuyer could once afford on a modest, middle-class salary. Currently, new construction in Massachusetts is too expensive for some families with two working adults to afford, especially with the cost of land and building materials increasing every year. The affordable price of a single-family home in Agawam would be approximately $176,000 in 2006 dollars, and many working families are having a hard time purchasing homes at this cost. Incidentally, Agawam's DHCD-recognized affordable housing inventory lists 491 units, 4.2 percent, as the official amount of affordable housing units in Agawam. Based upon data collected from Agawam's Assessors' office, the average cost of a single-family home in the City is $202,496. While this is roughly within the ballpark for individuals making 80% of the AMI, this figure represents the value of both new and existing homes. A quick survey of area realtors selling homes built in 2006 produced home values that were much greater than both the current average value and the cost of an affordable house. Houses on the„market (as of November 28, 2006) that were constructed in 2006 ranged between $3391000 and $679,000. This new construction is not only out of the price range for those making 80% of the AMI, but many people who currently live in Agawam could not afford these new housing units. Requiring affordability in new construction will help ensure that the local housing stock remains affordable for Agawam's residents. 5Pru%gf tl Meti�op�htan Anu�al Inicasu 1�a f�I Iq Qmwa 11 n ci N Qnthly.IngQ1 e 7 ,4 a � l �rea* Moderate income for a family $57,350 $4,779 $1,434 of 4 in the Springfield MSA * Springfield MSA FY2006 MFI for 4-Person Household is $62,900 Example#1 Affordable Home Example #2 in Agawam $1L7C10 OQ: i' 76,Sb OQ :. 11Pa mel� rJ°° 50 QO ,KON $11,25 00 r� a k Ai4im $1 { Pt land Intere t k 1�50 52 ,05 W Prarxa�11rt .g . " .y5 00 40i r,, lixa. e �:. - Hom� Qwners Ind prance $7, ( 75 OQ gS.QOF v s oc aOon/G n I�,Fee S0 00 $50 4� °7 ;00 To AL Mq thb $1,42 $1�,4 �# ill :Q5t a Less than, equal to $1,434 Yes Yes No - 1 - Homes Constructed in 2006 For Sale in Agawam 777777777 eat _ ' $339,000 245 North St 7 room, 3 bed, 1.5 bath Colonial $349,000 Lot 0 NORMAN TERR 6 room, 3 bed, 2 bath Ranch $349,900 Lot B Losito Ln 7 room, 3 bed, 2.5 bath Colonial $374,700 LOT 0 NORMAN TERRACE EXT 6 room, 3 bed, 2.5 bath Colonial $399,000 286 Barry Street 7 room, 3 bed, 2.5 bath Colonial $425,000 12 Blairs Hill Road 8 room, 3 bed, 2.5 bath Colonial $679,900 30 Windermere Drive 10 room, 4 bed, 4 bath Colonial Median Cost of a new housing unit in Agawam: $374,700 Average Cost of a new housing unit in Agawam: $416,643 - 2 - Memo To : Planning Board From : Sgt. Richard Niles Subject : Proposed Zoning Amendment- Inclusionary Zoning Date : 10/30/2006 At this time, I have no comment on this submission. Respectfully Submitted Sgt. R. Niles r MEMORANDUM To: Agawam City Council From: Agawam Planning Board Subject: Inclusionary Zoning Amendment Date: November 21, 2006 At its meeting held on November 16, 2006, the Planning Board tabled action on the proposed Inclusionary Zoning Amendment. The Planning Board asks that it meet with the Zoning Review Committee and the Ordinance Committee of the Council prior to taking action on the amendment. Please contact the Planning Office to schedule this meeting. Thank you. 0 � Town of Agawam 36 Main Street Agawam, Massachusetts 01001-1837 Tel. 413-786-0400 Fax 413-786-9927 M MEMO TO: Building Inspector Town Solicitor Engineering/DPW Safety Officer Fire Department Health Department Conservation Commission Board of Appeals School Committee Assessors FROM: Planning Board SUBJECT: Proposed Zoning Amendment-Inclusionary Zoning DATE: October 17, 2006 The Planning Board has received the attached zoning amendment from the Agawam Town Council which was petitioned by the Agawam Planning Board entitled "Inclusionary Zoning'. A public hearing has been scheduled by the Planning Board for November 2, 2006. Please submit any comments you may have prior to that date. Since* , , Dennis B. Hopkins, Chairman AGAWAM PLANNING BOARD DBH:prk Town of Agawam 36 Main Street Agawam, Massachusetts 01001-1837 P` Tel. 413-786-0400 Fax 413-786-9927 October 6, 2006 0 Agawam Town Council Donald M. Rheault, President n Robert A. Magovern, Vice President George Bitzas, Councilor Cecilia Calabrese, Councilor C ' vim, Ruth Carr Bitzas, Councilor Gina Letellier, Councilor r.. Joseph Mineo, Councilor Dennis Perry, Councilor Robert E. Rossi, Councilor Jill P. Simpson, Councilor Robert M. Young, Councilor Dear Councilors: At its duly called meeting held on October 5, 2006, the Agawam Planning Board voted to be petitioner for the attached Inclusionary Zoning Ordinance. During recent years, the majority of housing stock being constructed has far exceeded the financial means of a large segment of the population as a whole and many Agawam residents. In an effort to encourage developers to build housing that would be affordable for first time home buyers,many of whom have been raised in this community, the Planning Board is supporting this-zoning amendment. If enacted, each housing development of ten units or more would build at least one affordable unit. The State considered affordable to be any unit which would cost less than S375,000 in 2005, The Planning Board feels that this is.a very well thought out amendment and looks forward to discussing it with the Council. If in the interim you have any questions,please contact the Planning Office at 786-0400, extension 283. Sincerely, Dennis B. Hopkins, Chairman Agawam Planning Board cc: Clerk, Mayor, Solicitor, Building, File DRAFT INCLUSIONARY ZONING ORDINANCE TOWN OF AGAWAM Prepared by the Pioneer Valley Planning Commission 12/06/05, Revised 3116106, 04/07/06, 09129106 SECTION 1.0 — INCLUSIONARY ZONING 1.1 Purpose and Intent: The purpose of this ordinance is to encourage development of new housing that is affordable to low and moderate-income households. At a minimum, affordable housing produced through this regulation should be in compliance with the requirements set forth in M.G.L. Ch. 40B sect. 20- 24 and other affordable housing programs developed by state, county and local government. It is intended that the affordable housing units that result from this ordinance be considered as Local Initiative Units, in compliance with the requirements for the same as specified by the Department of Housing and Community Development. Definitions for affordable housing unit and eligible household can be found in the Definitions Section. Affordable housing integrated in housing developments provides many benefits to Agawam, including: (1) To expand housing opportunities. (2) To allow our sons and daughters to remain in Agawam. (3) To fulfill our social contract to those in need. (4) To provide economic diversity in our community. (5) To ensure housing that is necessary to retain and attract industrial, service, and commercial jobs. (6) To regain and retain full local control of new affordable housing projects. (7) To mitigate the financial costs and loss of local control that incur if the community must pay for new affordable housing to prevent its ratio of affordable housing from dropping. (8) To prevent market-rate and high-end only housing projects that effectively increase the cost of housing in Agawam and make the community more economically homogenous. 1.2 Applicability: In all zoning districts, the inclusionary zoning provisions of this section shall apply to the following uses: (1) Any project that results in a net increase of ten (10) or more dwelling units, whether by new construction or by the alteration, expansion, reconstruction, or change of existing residential or non-residential space; (2) Any subdivision of land for development of ten (10) or more dwelling units; and (3) Any elderly persons and/or handicapped persons housing development that includes ten (10)or more dwelling units and accompanying services. Page f of 4 1.3 Mandatory Provision of Affordable Units: As a condition of approval for a Subdivision or Special Permit, the applicant shall contribute to the local stock of affordable units in accordance with the following requirements. At least ten (10) percent of the units in a division of land or multiple unit development subject to this ordinance shall be established as affordable housing units in any one or combination of methods provided for below: (1) Constructed or rehabilitated on the locus subject to Subdivision or Special Permit approval (see Section 1.4); or (2) Constructed or rehabilitated on a locus different from the one subject to Subdivision or Special Permit approval (see Section 1.5). The applicant may offer, and the Planning Board may accept, any combination of the Section 1.3(1)-(2) requirements provided that in no event shall the total number of units or land area provided be less than the equivalent number or value of affordable units required by this ordinance. 1.4 Provisions Applicable to Affordable Housing Units On-and Off-Site: (1) Siting of affordable units. All affordable units constructed or rehabilitated under this ordinance shall be situated within the development so as not to be in less desirable locations than market rate units in the development and shall, on average, be no less accessible to public amenities, such as open space, as the market-rate units. (2) Minimum design and construction standards for affordable units. Affordable housing units shall be integrated with the rest of the development and shall be compatible in design, appearance, construction, and quality of materials with other units. Interior features and mechanical systems of affordable units shall conform to the same specifications as apply to market-rate units. (3) Timing of construction or provision of affordable units or lots. Where feasible, affordable mousing units shall be provided coincident to the development of market-rate units, but in no event shall the development of affordable units be delayed beyond the schedule noted below: Market-rate Unit Affordable Housing Unit (% Complete) (% Required) < 30% -- 30% plus 1 unit 10% Up to 50% 30% Up to 75% 50% 75% plus 1 unit 70% Up to 90% 100% (4)Marketing Plan for Affordable Units. Applicants under this ordinance shall submit a marketing plan or other method approved by the Town through its local comprehensive plan or Community Development Plan, to the Planning Board for its approval, which describes how the affordable units will be marketed to potential home buyers or tenants. This plan Page 2 of 4 shall include a description of the lottery or other process to be used for selecting buyers or tenants. 1.5 Provision of Affordable Housing Units Off-Site: As an alternative to the requirements of Section 1.5, an applicant subject to this ordinance may develop, construct or otherwise provide affordable units equivalent to those required by Section 1.5 off-site. All requirements of this ordinance that apply to on-site provision of affordable units, shall apply to the provision of off-site affordable units. In addition, the location of the off-site units to be provided shall be approved by the Planning Board as an integral element of the review and approval process. 1.6 Maximum Incomes and Selling Prices, Initial Sale: (1) To ensure that only eligible households purchase affordable housing units, the purchaser of an affordable unit shall be required to submit copies of the last three years' federal and state income tax returns and certify, in writing and prior to transfer of title, to the developer of the Dousing units or his/her agent, and within thirty(30) days following transfer of title, to the local housing trust, community development corporation, housing authority or other agency as established by the Town, that his/her or their family's annual income level does not exceed the maximum level as established by the Commonwealth's.Department of Housing and Community Development, and as may be revised from time to time. (2) The maximum housing cost for affordable units created under this ordinance as established by the Commonwealth's Department of Housing and Community Development, Local Initiative Program or as revised by the Town. 1.7 Preservation of Affordability; Restrictions on Resale: Each affordable unit created in accordance with this ordinance shall have limitations governing its resale. The purpose of these limitations is to preserve the long-term affordability of the unit and to ensure its continued availability for affordable income households. The resale controls shall be established through a restriction on the property and shall be in force in perpetuity. (1) Resale price. Sales beyond the initial sale to a qualified affordable income purchaser shall include the initial discount rate between the sale price and the unit's appraised value at the time of resale. This percentage shall be recorded as part of the restriction on the property noted above. (2) Right of first refusal to purchase. The purchaser of an affordable housing unit developed as a result of this ordinance shall agree to execute a deed rider prepared by the Town, consistent with model riders prepared by Department of Housing and Community Development, granting, among other things, the municipality's right of first refusal to purchase the property in the event that a subsequent qualified purchaser cannot be located. (3) The Planning Board shall require, as a condition for approval under this ordinance, that the applicant comply with the mandatory set-asides and accompanying restrictions on affordability, including the execution of the deed rider noted above. The Building Inspector shall not issue an occupancy permit for any affordable unit until the deed restriction is recorded. Page 3 of 4 4 OTHER REQUIRED ZONING AMENDMENTS Amend Section 180-2, Definitions and Word Usage, of the Agawam Zoning Ordinance by adding the following definitions: Affordability Deed Restriction -A deed rider, covenant, mortgage, easement, and/or condominium document that ensures that Affordable Housing remains on the land for at least 30 years and is binding and enforceable against any person with an interest in the property meeting the following standards: (1) Is in a form acceptable to: a. The Agawam Planning Board, which may establish rules governing their standards for approving such restrictions; and b. The Massachusetts Department of Housing and Community Development(or its successor agency), in accordance with the standards under M.G.L. Chapter 40B (2) Includes provisions for adequate legal monitoring, including: a. An identified non-profit housing or government monitoring agency; and b. A fallback non-profit housing or government monitoring agency(which shall succeed the monitoring agency if the monitoring agency no longer exists). The Town of Agawam may be used as the fallback monitoring agency if the Town is granted the right to assign its responsibilities to another agency at its sole discretion. (3) Includes a grant of the right-of-first refusal, at an Affordable Housing price, to the monitoring agency and the fallback agency, if an income-eligible family cannot be found by the seller. (4) Includes provisions that the restriction can survive any bankruptcy, insolvency, foreclosure, other than property tax or government super-lien foreclosure, and shall not otherwise be subject to nullification for any reason. The model deed rider used by the Massachusetts Department of Housing and Community Development may be used for this purpose, provided it is altered to meet all the restrictions of this section. Affordable Housina Unit-A dwelling unit with an Affordability Deed Restriction available at a cost of no more than 30% of gross household income of households at or below 80% of the Area Median Income as reported by the U.S. Department of Housing and Urban Development, including units listed under M.G.L. Ch. 40B sect. 20-24 and the Commonwealth's Local initiative Program (LiP). Median income- The household income determined annually by the US Department of Housing and urban Development for Agawam or the region that includes Agawam. Qualified Affordable Housing Unit Purchaser or Tenant-An individual or family with household incomes that do not exceed 80%-of the median income, with adjustments for household size, as reported by the United States Department of Housing and Urban Development(HUD) and the Commonwealth's Local Initiative Program. Page 4 of 4 f� LEGAL NOTICE TOWN OF AGAWAM PLANNING BOARD The Agawam Planning Board will hold a public hearing on Thursday, November 2, 2006 at 7:15 PM in the Agawam Public Library, 750 Cooper Street, Agawam, MA. The purpose of this hearing will be to hear the petition of the Agawam Planning Board on a proposed Zoning Amendment entitled "Inclusionary Zoning". A copy of the proposal can be obtained from the Agawam Planning Office or the Agawam Town Clerk's Office between the hours of 8:30 AM and 4:30 PM in the Agawam Town Hall, 36 Main Street, Agawam, MA. BY ORDER OF: Dennis B. Hopkins, Chairman Agawam Planning Board (Ad to be run 10/19/06 & 10/26/06) CM (-,.) .r:-C C-) c ZE c-) cc: Planning Boards in: m Westfield �► West Springfield n c Suff eld 4— i 1 Southwick Springfield Pioneer Valley Planning Commission Department of Housing & Community Development, Boston Town of Agawam 36 Main Street Agawam, Massachusetts 01001-1837 y Tel. 413-786-0400 Fax 413-786-9927 October 6, 2006 0 Agawam Town Council q a z Donald M.Rheault,President o Robert A. Magovern, Vice President George Bitzas, Councilor Cecilia Calabrese, Councilor. Ruth Carr Bitzas, Councilor Gina Letellier,Councilor X Joseph Mineo, Councilor Dennis Perry, Councilor Robert E. Rossi, Councilor Jill P. Simpson, Councilor Robert M. Young, Councilor Dear Councilors: At its duly called meeting held on October 5, 2006, the Agawam Planning Board voted to be petitioner for the attached Inclusionary Zoning Ordinance. During recent years, the majority of housing stock being constructed has far exceeded the financial means of a large segment of the population as a whole and many Agawam residents. In an effort to encourage developers to build housing that would be affordable for first time home buyers,many of whom have been raised in this community, the Planning Board is supporting this zoning amendment. If enacted, each housing development of ten units or more would build at least one affordable unit. The State considered affordable to be any unit which would cost less than $375,000 in 2005. The Planning Board feels that this is a very well thought out amendment and looks forward to discussing it with the Council. If in the interim you have any questions,please contact the Planning Office at 786-0400, extension 283. Sincerely, Dennis B. Hopkins, Chairman Agawam Planning Board cc: Clerk, Mayor, Solicitor,Building, File 0 • DRAFT INCLUSIONARY ZONING ORDINANCE TOWN OF AGAWAM Prepared by the Pioneer Valley Planning Commission 12106105, Revised 3116106, 04107106, 09/29/06 SECTION 1.0 —INCLUSIONARY ZONING 1.1 Purpose and Intent: The purpose of this ordinance is to encourage development of new housing that is affordable to low and moderate-income households. At a minimum, affordable housing produced through this regulation should be in compliance with the requirements set forth in M.G.L. Ch. 40B sect. 20- 24 and other affordable housing programs developed by state, county and local government. It is intended that the affordable housing units that result from this ordinance be considered as Local Initiative Units, in compliance with the requirements for the same as specified by the Department of Housing and Community Development. Definitions for affordable housing unit and eligible household can be found in the Definitions Section. Affordable housing integrated in housing developments provides many benefits to Agawam, including: (1) To expand housing opportunities. (2) To allow our sons and Daughters to remain in Agawam. (3) To fulfill our social contract to those in need. (4) To provide economic diversity in our community. (5) To ensure housing that is necessary to retain and attract industrial, service, and commercial jobs. (6) To regain and retain full local control of new affordable housing projects. (7) To mitigate the financial costs and loss of local control that incur if the community must pay for new affordable housing to prevent its ratio of affordable housing from dropping. (8) To prevent market-rate and high-end only housing projects that effectively increase the cost of housing in Agawam and make the community more economically homogenous. 1.2 Applicability: In all zoning districts, the inclusionary zoning provisions of this section shall apply to the following uses: (1) Any project that results in a net increase of ten (10) or more dwelling units, whether by new construction or by the alteration, expansion, reconstruction, or change of existing residential or non-residential space; (2) Any subdivision of land for development of ten (10) or more dwelling units; and (3) Any elderly persons and/or handicapped persons housing development that includes ten (10) or more dwelling units and accompanying services. Page 1 of 4 1.3 Mandatory Provision of Affordable Units: As a condition of approval for a Subdivision or Special Permit, the applicant shall contribute to the local stock of affordable units in accordance with the following requirements. At least ten (10) percent of the units in a division of land or multiple unit development subject to this ordinance shall be established as affordable housing units in any one or combination of methods provided for below: (1) Constructed or rehabilitated on the locus subject to Subdivision or Special Permit approval (see Section 1.4); or (2) Constructed or rehabilitated on a locus different from the one subject to Subdivision or Special Permit approval (see Section 1.5). The applicant may offer, and the Planning Board may accept, any combination of the Section 1.3(1)-(2) requirements provided that in no event shall the total number of units or land area provided be less than the equivalent number or value of affordable units required by this ordinance. 1.4 Provisions Applicable to Affordable Housing Units On-and Off-Site: (1) Siting of affordable unit§. All affordable units constructed or rehabilitated under this ordinance shall be situated within the development so as not to be in less desirable locations than market rate units in the development and shall, on average, be no less accessible to public amenities, such as open space, as the market-rate units. (2) Minimum design and construction standards for affordable units. Affordable housing units shall be integrated with the rest of the development and shall be compatible in design, appearance, construction, and quality of materials with other units. Interior features and mechanical systems of affordable units shall conform to the same specifications as apply to market-rate units. (3) Timing of construction or provision of affordable units or lots. Where feasible, affordable housing units shah be provided coincident to the development of market-rate units, but in no event shall the development of affordable units be delayed beyond the schedule noted below: Market-rate Unit Affordable Housing Unit M Complete) _ (% Required) < 30% -- 30% plus 1 unit 10% Up to 50% 30% Up to 75% 50% 75% plus 1 unit 70% Up to 90% 100% (4)Marketing Plan for Affordable units. Applicants under this ordinance shall submit a marketing plan or other method approved by the Town through its local comprehensive plan or Community Development Plan, to the Planning Board for its approval, which describes how the affordable units will be marketed to potential home buyers or tenants. This plan Page 2 of 4 shall include a description of the lottery or other process to be used for selecting buyers or tenants. 1.5 Provision of Affordable Housing Units Off-Site: As an alternative to the requirements of Section 1.5, an applicant subject to this ordinance may develop, construct or otherwise provide affordable units equivalent to those required by Section 1.5 off-site. All requirements of this ordinance that apply to on-site provision of affordable units, shall apply to the provision of off-site affordable units. In addition, the location of the off-site units to be provided shall be approved by the Planning Board as an integral element of the review and approval process. 1.6 Maximum Incomes and Selling Prices, Initial Sale: (1) To ensure that only eligible households purchase affordable housing units, the purchaser of an affordable unit shall be required to submit copies of the last three years'federal and state income tax returns and certify, in writing and prior to transfer of title, to the developer of the housing units or his/her agent, and within thirty(30) days following transfer of title, to the local housing trust, community development corporation, housing authority or other agency as established by the Town, that his/her or their family's annual income level does not exceed the maximum level as established by the Commonwealth's.Department of Housing and Community Development, and as may be revised from time to time. (2) The maximum housing cost for affordable units created under this ordinance as established by the Commonwealth's Department of Housing and Community Development, Local Initiative Program or as revised by the Town. 1.7 Preservation of Affordability; Restrictions on Resale: Each affordable unit created in accordance with this ordinance shall have limitations governing its resale. The purpose of these limitations is to preserve the long-term affordability of the unit and to ensure its continued availability for affordable income households. The resale controls shall be established through a restriction on the property and shall be in force in perpetuity. (1) Resale price. Sales beyond the initial sale to a qualified affordable income purchaser shall include the initial discount rate between the sale price and the unit's appraised value at the time of resale. This percentage shall be recorded as part of the restriction on the property noted above. (2) Right of first refusal to purchase. The purchaser of an affordable housing unit developed as a result of this ordinance shall agree to execute a deed rider prepared by the Town, consistent with model riders prepared by Department of Housing and Community Development, granting, among other things, the municipality's right of first refusal to purchase the property in the event that a subsequent qualified purchaser cannot be located. (3) The Planning Board shall require, as a condition for approval under this ordinance, that the applicant comply with the mandatory set-asides and accompanying restrictions on affordability, including the execution of the deed rider noted above. The Building Inspector shall not issue an occupancy permit for any affordable unit until the deed restriction is recorded. Page 3 of 4 OTHER REQUIRED ZONING AMENDMENTS Amend Section 180-2, Definitions and Word Usage, of the Agawam Zoning Ordinance by adding the following definitions: Affordability Deed Restriction -A deed rider, covenant, mortgage, easement and/or condominium document that ensures that Affordable Housing remains on the land for at least 30 years and is binding and enforceable against any person with an interest in the property meeting the following standards: (1) Is in a form acceptable to: a. The Agawam Planning Board, which may establish rules governing their standards for approving such restrictions; and b. The Massachusetts Department of Housing and Community Development(or its successor agency), in accordance with the standards under M.G.L. Chapter 40B. (2) includes provisions for adequate legal monitoring, including: a. An identified non-profit housing or government monitoring agency; and b. A fallback non-profit housing or government monitoring agency(which shall succeed the monitoring agency if the monitoring agency no longer exists). The Town of Agawam may be used as the fallback monitoring agency if the Town is granted the right to assign its responsibilities to another agency at its sole discretion. (3) includes a grant of the right-of-first refusal, at an Affordable Housing price, to the monitoring agency and the fallback agency, if an income-eligible family cannot be found by the seller. (4) Includes provisions that the restriction can survive any bankruptcy, insolvency, foreclosure, other than property tax or government super-lien foreclosure, and shall not otherwise be subject to nullification for any reason. The model deed rider used by the Massachusetts Department of Housing and Community Development may be used for this purpose, provided it is altered to meet all the restrictions of this section. Affordable Housing Unit-A dwelling unit with an Affordability Deed Restriction available at a cost of no more than 30% of gross household income of households at or below 80% of the Area Median income as reported by the U.S. Department of Housing and Urban Development, including units listed under M.G.L. Ch. 40B sect. 20-24 and the Commonwealth's Local initiative Program (LiP). Median Income - The household income determined annually by the US Department of Housing and Urban Development for Agawam or the region that includes Agawam. ualifred Affordable Housinq Unit Purchaser or Tenant-An individual or family with household incomes that do not exceed 80% of the median income, with adjustments for household size, as reported by the United States Department of Housing and Urban Development(HUD) and the Commonwealth's Local Initiative Program. Page 4 of 4 0 0 DRAFT INCLUSIONARY ZONING ORDINANCE TOWN OF AGAWAM Prepared by the Pioneer Valley Planning Commission 1?106/05, Revised 3116106, 04107106, 09129106 SECTION 1.0 —INCLUSIONARY ZONING 1.1 Purpose and Intent: The purpose of this ordinance is to encourage development of new housing that is affordable to low and moderate-income households. At a minimum, affordable housing produced through this regulation should be in compliance with the requirements set forth in M.G.L. Ch. 40B sect. 20- 24 and other affordable housing programs developed by state, county and local government. It is intended that the affordable housing units that result from this ordinance be considered as Local Initiative Units, in compliance with the requirements for the same as specified by the Department of Housing and Community Development. Definitions for affordable mousing unit and eligible household can be found in the Definitions Section. Affordable housing integrated in housing developments provides many benefits to Agawam, including: (1) To expand housing opportunities. (2) To allow our sons and daughters to remain in Agawam. (3) To fulfill our social contract to those in need. (4) To provide economic diversity in our community. (5) To ensure housing that is necessary to retain and attract industrial, service, and commercial jobs. (6) To.regain and retain full local control of new affordable housing projects. (7) To mitigate the financial costs and loss of local control that incur if the community must pay for new affordable housing to prevent its ratio of affordable housing from dropping. (8) To prevent market-rate and high-end only housing projects that effectively increase the cost of housing in Agawam and make the community more economically homogenous. eeRdem*nium doeument that eRSUFeS that Affordable Heusi R the Ialned i-Ar at least 30 meeting the fellewing standaFds- a r gueh estFietie„sr and . ( ) I.RGli,d - ei c+. ', fer adequate legal meniteriRg inal„rlinn, meniteFinq agenGy if the meniterting 898nGy Re lengeF exists). The Town of Agawam etc.sespensibilities to another agennv at its sole dii.nretion its Page 1 of 6 ageney and the fal'baek ageFiGy, if an ORE;eme eligible family sannet be found by the sel'eF-. Development may be used feF this purpose, pitevided it is altene�_ in- meet all the r-estNetiens of thie. sentien AffeFdable Housing TF-16t rmund A Housing TFUSt Fund is a fund or-eated to reeelve fees Heu of when develepers ept te provide equivalent units -P Gash OF land Instead of a Afferdable Housing T-Fust Fund. 0 RS me OF 0 of Area Median Innetime as repeFted by the U.S.. I C Department of Housing and Fban Development, .. .nit listed „nd A � I Gh 4013 6evf2i 24 and the Commonwealth's I e al 'RitiatiVe PFOg aM (1 !P) household 4%eme6 that do not e*seed Housing a . - - . .04ent feF Agawam eF the region thetinaludes Agawam.of the me iap ineeme,with adjustmepAs for household soze, ar, irepaFted by the WRited Stater, Depaictment ef Housing and Urban Development (HUD) asd the f emmenwealth's I nnnl Initiative Pr-egfam 1.2 Applicability: In all zoning districts, the inclusionary zoning provisions of this section shall apply to the following uses: (1) Any project that results in a net increase of ten (10) or more dwelling units, whether by new construction or by the alteration, expansion, reconstruction, or change of existing residential or non-residential space; (2) Any subdivision of land for development of ten (10)or more dwelling units; and (3) Any elderly persons and/or handicapped persons housing development that includes ten (10) or more dwelling units and accompanying services. 1.3 Mandatory Provision of Affordable Units: As a condition of approval for a Subdivision or Special Permit, the applicant shall contribute to the local stock of affordable units in accordance with the following requirements. At least ten (10) percent of the units in a division of land or multiple unit development subject to this ordinance shall be established as affordable housing units in any one or combination of methods provided for below: Page 2 of 6 0 9 (1) Constructed or rehabilitated on the locus subject to Subdivision or Special Permit approval (see Section 1.4); or (2) Constructed or rehabilitated on a locus different from the one subject to Subdivision or Special Permit approval (see Section 1.5).—,' ef (3) An eq oy alent fees in_lieu of payment may be made (see_Sea♦Eiaa 9 7 , ac r sate,eR OF Off that the Planning BeaFd in its sole disrFetieR deteRnines aFe suitable far the question,eenGtFWGtiGR of agaFdable heusiRg units. The value of donated land shall be equal to e gr,eateF thaR the value of the GenstFuGtien OF Set aside of the affeFdable unit.s. The P!aARiRg as well as other data relax_aRt tG the deternninatien of equivalent value. The applicant may offer, and the Planning Board may accept, any combination of the Section 1.3(1)-(2) requirements provided that in no event shall the total number of units or land area provided be less than the equivalent number or value of affordable units required by this ordinance. 1.4 Provisions Applicable to Affordable Housing Units On-and Off-Site: (1) Siting of affordable units. All affordable units constructed or rehabilitated under this ordinance shall be situated within the development so as not to be in less desirable locations than market rate units in the development and shall, on average, be no less accessible to public amenities, such as open space, as the market-rate units. (2) Minimum design and construction standards for affordable units. Affordable housing units shall be integrated with the rest of the development and shall be compatible in design, appearance, construction, and quality of materials with other units. Interior features and mechanical systems of affordable units shall conform to the same specifications as apply to market-rate units. (3) Timing of construction or provision of affordable units or lots. Where feasible, affordable housing units shall be provided coincident to the development of market-rate units, but in no event shall the development of affordable units be delayed beyond the schedule noted below: Market-rate Unit Affordable Housing Unit (% Complete). (% Required) < 30% -- 30% plus 1 unit 10% Up to 50% 30% Up to 75% 50% 75% plus 1 unit 70% Up to 90% 100% (4)Marketing Plan for Affordable Units. Applicants under this ordinance shall submit a marketing plan or other method approved by the Town through its local comprehensive plan or Community Development Plan, to the Planning Board for its approval, which describes Page 3 of 6 how the affordable units will be marketed to potential home buyers or tenants. This plan shall include a description of the lottery or other process to be used for selecting buyers or tenants. 1.5 Provision of Affordable Housing Units Off-Site: As an alternative to the requirements of Section 1.5, an applicant subject to this ordinance may develop, construct or otherwise provide affordable units equivalent to those required by Section 1.5 off-site. All requirements of this ordinance that apply to on-site provision of affordable units, shall apply to the provision of off-site affordable units. In addition, the location of the off-site units to be provided shall be approved by the Planning Board as an integral element of the review and approval process. te an established lesal he�slng tFust Nnd to be used fGF the development of affordable howeiRg OF at an 94 site IeGus. Fnay pay fees_in_lift of the ngnstr,Metier` of aff rrlable units. Fer the p FP9ses oaf emllnaRGe the fee "R lieu of the GGR6tFUGt1Gn GF provision of affer4dable units will be The RaRning Gleam/ shall male the final determination of aeoeptahle ..al,ie above.(2) SGhedule of fees -in lieu ef units DaYMRtS. Fees in lieu ef units payments shall be Fnade made to the-own eF its Housing T-F ant ire nnneFdaRee with $eGtinn 1.7 shall be used feF i SubsidiZW nr_inec far p r-chase of sites er affordable units within larger developments. 1.6 Maximum Incomes and Selling Prices, Initial Sale: (1) To ensure that only eligible households purchase affordable housing units, the purchaser of an affordable unit shall be required to submit copies of the last three years' federal and state income tax returns and certify, in writing and prior to transfer of title, to the developer of the housing units or his/her agent, and within thirty (30) days following transfer of title, to the local Dousing trust, community development corporation, housing authority or other agency as established by the Town, that his/her or their family's annual income level does not exceed the maximum level as established by the Commonwealth's Department of Housing and Community Development, and as may be revised from time to time. (2) The maximum housing cost for affordable units created under this ordinance as established by the Commonwealth's Department of Housing and Community Development, Local Initiative Program or as revised by the Town. Page 4 of 6 1.7 Preservation of Affordability; Restrictions on Resale: Each affordable unit created in accordance with this ordinance shall have limitations governing its resale. The purpose of these limitations is to preserve the long-term affordability of the unit and to ensure its continued availability for affordable income households. The resale controls shall be established through a restriction on the property and shall be in force in perpetuity. (1) Resale price. Sales beyond the initial sale to a qualified affordable income purchaser shall include the initial discount rate between the sale price and the unit's appraised value at the time of resale. This percentage shall be recorded as part of the restriction on the property noted above. (2) Right of first refusal to purchase. The purchaser of an affordable housing unit developed as a result of this ordinance shall agree to execute a deed rider prepared by the Town, consistent with model riders prepared by Department of Housing and Community Development, granting, among other things, the municipality's right of first refusal to purchase the property in the event that a subsequent qualified purchaser cannot be located. (3) The Planning Board shall require, as a condition for approval under this ordinance, that the applicant comply with the mandatory set-asides and accompanying restrictions on affordability, including the execution of the deed rider noted above. The Building Inspector shall not issue an occupancy permit for any affordable unit until the deed restriction is recorded. others, the FrOFe FestFir. ve eFdoinanGe,'eµ ie Rr.th,erreiR, shall apply. 1T-1 Sev�eFabillif any pFevisieR of this erdiPARGe is held invalid by a sewt of eampetent>€y �Y i r.ema'Rder of the town's Zoning Or-.mane. OTHER REQUIRED ZONING AMENDMENTS (Note: Bold italic text denotes proposed new text; text with a 6tFikethFOUgh denotes text to be deleted) Amend Section 180-2, Definitions and Word Usage, of the Agawam Zoning Ordinance by adding the following definitions: Affordabll�,Deed Restric -A deed rider, covenant, mortgage, easement and/or condominium document that ensures that Affordable Housing remains on the land for of least 30 years and is binding and enforceable against any person with an interest in the property meeting the following standards. (5) Is in a form acceptable to: Page 5 of 6 a. The Agawam Planning Board, which may establish rules governing their standards for approving such restrictions; and b. The Massachusetts Department of Housing and Community Development(or its successor agency), in accordance with the standards under M.G.L. Chapter 40B. (6) Includes provisions for adequate legal monitoring, including: a. An identified non-profit housing or government monitoring agency; and b. A fallback non-profit housing or government monitoring agency(which shall succeed the monitoring agency if the monitoring agency no longer exists). The Town of Agawam may be used as the fallback monitoring agency if the Town is granted the right to assign its responsibilities to another agency at its sole discretion. (7) Includes a grant of the right-of-first refusal, at an Affordable Housing price, to the monitoring agency and the fallback agency, if an income-eligible family cannot be found by the seller. (8) Includes provisions that the restriction can survive any bankruptcy, insolvency, foreclosure, other than property tax or government super-lien foreclosure, and shall not otherwise be subject to nullification for any reason. The model deed rider used by the Massachusetts Department of Housing and Community Development may be used for this purpose, provided it is altered to meet all the restrictions of this section. Affordable Housinq Unit-A dwelling unit with an Affordability Deed Restriction available at a cost of no more than 30% of gross household income of households at or below 80% of the Area Median Income as reported by the U.S. Department of Housing and Urban Development, including units listed under M.G.L. Ch. 40B sect 20-24 and the Commonwealth's Local initiative Program (LiP). Median Income- The household income determined annually by the US Department of Housing and Urban Development for Agawam or the region that includes Agawam. Qualified Affordable Housina Unit Purchaser or Tenant-An individual or family with household incomes that do not exceed 80% of the median income, with adjustments for household size, as reported by the United States Department of Housing and Urban Development(HUD) and the Commonwealth's Local Initiative Program. Page 6 of 6 DRAFT INCLUSIONARY ZONING ORDINANCE TOWN OF AGAWAM Prepared by the Pioneer Valley Planning Commission 12106105, Revised 3116106, 04107106, 09121106 SECTION 1.0—INCLUSIONARY ZONING 1.1 Purpose and Intent: The purpose of this ordinance is to encourage development of new housing that is affordable to low and moderate-income households.At a minimum, affordable housing produced through this regulation should be in compliance with the requirements set forth in M.G.L. ch. 40B sect. 20- 24 and other affordable housing programs developed by state, county and local government. It is intended that the affordable housing units that result from this ordinance be considered as Local Initiative Units, in compliance with the requirements for the same as specified by the Department of Housing and Community Development. Definitions for affordable housing unit and eligible household can be found in the Definitions Section. Affordable housing integrated in housing developments provides many benefits to Agawam, including: (1) To expand housing opportunities, (2) To allow our sons and daughters to remain in Agawam. (3) To fulfill our social contract to those in need. (4) To provide economic diversity in our community. (5) To ensure housing that is necessary to retain and attract industrial, service, and commercial jobs. (6) To regain and retain full local control of new affordable housing projects. (7) To mitigate the financial costs and loss of local control that incur if the community must pay for new affordable housing to prevent its ratio of affordable housing from dropping. (8) To prevent market-rate and high-end only housing projects that effectively increase the cost of housing in Agawam and make the community more economically homogenous. 1.2 Definitions: Affordabiiily Deed Restriction -A deed rider, covenant, mortgage, easement, and/or condominium document that ensures that Affordable Housing remains on the land for at least 30 years and is binding and enforceable against any person with an interest in the property meeting the following standards: (1) Is in a form acceptable to: a. The Agawam Planning Board, which may establish rules governing their standards for approving such restrictions; and b. The Massachusetts Department of Housing and Community Development (or its successor agency), in accordance with the standards under M.G.L. Chapter 40B. (2) Includes provisions for adequate legal monitoring, including: a. An identified non-profit housing or government monitoring agency; and b. A fallback non-profit housing or government monitoring agency (which shall succeed the monitoring agency if the monitoring agency no longer exists). The Town of Agawam may be used as the fallback monitoring agency if the Town is granted the right to assign its responsibilities to another agency at its sole discretion. Page 1 of 5 (3) Includes a grant of the right-of-first refusal, at an Affordable Housing price, to the monitoring agency and the fallback agency, if an income-eligible family cannot be found by the seller. (4) Includes provisions that the restriction can survive any bankruptcy, insolvency, foreclosure, other than property tax or government super-lien foreclosure, and shall not otherwise be subject to nullification for any reason. The model deed rider used by the Massachusetts Department of Housing and Community Development may be used for this purpose, provided it is altered to meet all the restrictions of this section. Affordable Housing Trust Fund -A Housing Trust Fund is a fund created to receive fees-in- lieu-of-when developers opt to provide equivalent units in cash or land instead of actual construction. Such trust funds are authorized by M.G.L. Chapter 44: Section 55C, Municipal Affordable Housing Trust Fund. Affordable Housing Unit-A dwelling unit with an Affordability Deed Restriction available at a cost of no more than 30% of gross household income of households at or below 80% of the Area Median Income as reported by the U.S. Department of Housing and Urban Development, including units listed under M.G.L. ch. 40B sect. 20-24 and the Commonwealth's Local Initiative Program (LIP). Median Income-The household income determined annually by the US Department of Housing and Urban Development for Agawam or the region that includes Agawam. Qualified Affordable Housing Unit Purchaser or Tenant-An individual or family with household incomes that do not exceed 80% of the median income,with adjustments for household size, as reported by the United States Department of Housing and Urban Development(HUD) and the Commonwealth's Local Initiative Program. 1.3 Applicability: In all zoning districts, the inclusionary zoning provisions of this section shall apply to the following uses: (1) Any project that results in a net increase of ten (10) or more dwelling units, whether by new construction or by the alteration, expansion, reconstruction, or change of existing residential or non-residential space; (2) Any subdivision of land for development of ten (10) or more dwelling units; and (3) Any elderly persons and/or handicapped persons housing development that includes ten (10)or more dwelling units and accompanying services. 1.4 Mandatory Provision of Affordable Units: As a condition of approval for a Subdivision or Special Permit, the applicant shall contribute to the local stock of affordable units in accordance with the following requirements. At least ten (10) percent of the units in a division of land or multiple unit development subject to this ordinance shall be established as affordable housing units in any one or combination of methods provided for below: Page 2 of 5 (1) Constructed or rehabilitated on the locus subject to Subdivision or Special Permit approval (see Section 1.5); or (2) Constructed or rehabilitated on a locus different from the one subject to Subdivision or Special Permit approval (see Section 1.6); or (3) An equivalent fees-in-lieu of payment may be made (see Section 1.7); or (4) An applicant may offer, and the Planning Board may accept, donations of land in fee simple, on or off-site, that the Planning Board in its sole discretion determines are suitable for the construction of affordable housing units. The value of donated land shall be equal to or greater than the value of the construction or set-aside of the affordable units. The Planning Board may require, prior to accepting land as satisfaction of the requirements of this ordinance, that the applicant submit appraisals of the land in question, as well as other data relevant to the determination of equivalent value. The applicant may offer, and the Planning Board may accept, any combination of the Section 1.4(1)-(4) requirements provided that in no event shall the total number of units or land area provided be less than the equivalent number or value of affordable units required by this ordinance. 1.5 Provisions Applicable to Affordable Housing Units On- and Off-Site: (1) Siting of affordable units. All affordable units constructed or rehabilitated under this ordinance shall be situated within the development so as not to be in less desirable locations than market rate units in the development and shall, on average, be no less accessible to public amenities, such as open space, as the market-rate units. (2) Minimum design and construction standards for affordable units. Affordable housing units shall be integrated with the rest of the development and shall be compatible in design, appearance, construction, and quality of materials with other units. Interior features and mechanical systems of affordable units shall conform to the same specifications as apply to market-rate units. (3) Timing of construction or provision of affordable units or lots.Where feasible, affordable housing units shall be provided coincident to the development of market-rate units, but in no event shall the development of affordable units be delayed beyond the schedule noted below: Market-rate Unit Affordable Housing Unit (% Complete) _ M ReguiredL < 30% -- 30% plus 1 unit 10% Up to 50% 30% Up to 75% 50% 75% plus 1 unit 70% Up to 90% 100% (4)Marketing Plan for Affordable Units. Applicants under this ordinance shall submit a marketing plan or other method approved by the Town through its local comprehensive plan or Community Development Plan, to the Planning Board for its approval, which describes Page 3 of 5 4 0 how the affordable units will be marketed to potential home buyers or tenants. This plan shall include a description of the lottery or other process to be used for selecting buyers or tenants. 1.6 Provision of Affordable Housing Units Off-Site: As an alternative to the requirements of Section 1.5, an applicant subject to this ordinance may develop, construct or otherwise provide affordable units equivalent to those required by Section 1.5 off-site. All requirements of this ordinance that apply to on-site provision of affordable units, shall apply to the provision of off-site affordable units. In addition, the location of the off-site units to be provided shall be approved by the Planning Board as an integral element of the review and approval process. 1.7 Fees-in-Lieu-of Affordable Housing Unit Provision: As are alternative to the requirements of Section 1.5 or Section 1.6, an applicant may contribute to an established local housing trust fund to be used for the development of affordable housing in lieu of constructing and offering affordable units within the locus of the proposed development or at an off-site locus. (1) Calculation of fee-in-lieu-of units. The applicant for development subject to this ordinance may pay fees-in-lieu of the construction of affordable units. For the purposes of this ordinance the fee-in-lieu of the construction or provision of affordable units will be determined as a per-unit cost as calculated from regional construction and sales reports. The Planning Board shall make the final determination of acceptable value. (2) Schedule of fees-in-lieu-of-units payments. Fees-in-lieu-of units payments shall be made according to the schedule set forth in Section 1.5(3), above. (3) Creation of Affordable Units. Cash contributions and donations of land and/or buildings made to the Town or its Housing Trust in accordance with Section 1.7 shall be used only for purposes of providing affordable housing for low or moderate income households. Using these contributions and donations, affordable housing may be provided through a variety of means, including but not limited to the provision of favorable financing terms, subsidized prices for purchase of sites, or affordable units within larger developments. 1.8 Maximum incomes and Selling Prices, Initial Sale: (1) To ensure that only eligible households purchase affordable housing units, the purchaser of an affordable unit shall be required to submit copies of the last three years' federal and state income tax returns and certify, in writing and prior to transfer of title, to the developer of the housing units or his/her agent, and within thirty (30) days following transfer of title, to the local housing trust, community development corporation, housing authority or other agency as established by the Town, that his/her or their family's annual income level does not exceed the maximum level as established by the Commonwealth's Department of Housing and Community Development, and as may be revised from time to time. (2) The maximum housing cost for affordable units created under this ordinance as established by the Commonwealth's Department of Housing and Community Development, Local Initiative Program or as revised by the Town. Rage 4 of 5 1.9 Preservation of Affordability; Restrictions on Resale: Each affordable unit created in accordance with this ordinance shall have limitations governing its resale. The purpose of these limitations is to preserve the long-term affordability of the unit and to ensure its continued availability for affordable income households. The resale controls shall be established through a restriction on the property and shall be in force in perpetuity. (1) Resale price' Sales beyond the initial sale to a qualified affordable income purchaser shall include the initial discount rate between the sale price and the unit's appraised value at the time of resale. This percentage shall be recorded as part of the restriction on the property noted above. (2) Right of first refusal to purchase. The purchaser of an affordable housing unit developed as a result of this ordinance shall agree to execute a deed rider prepared by the Town, consistent with model riders prepared by Department of Housing and Community Development, granting, among other things, the municipality's right of first refusal to purchase the property in the event that a subsequent qualified purchaser cannot be located. (3) The Planning Board shall require, as a condition for approval under this ordinance, that the applicant comply with the mandatory set-asides and accompanying restrictions on affordability, including the execution of the deed rider noted above. The Building Inspector shall not issue an occupancy permit for any affordable unit until the deed restriction is recorded. 1.10 Conflict with Other Laws The provisions of this ordinance shall be considered supplemental of existing zoning ordinances. To the extent that a conflict exists between this ordinance and others, the more restrictive ordinance, or provisions therein, shall apply. 1.11 Severability If any provision of this ordinance is held invalid by a court of competent jurisdiction, the remainder of the ordinance shall not be affected thereby. The invalidity of any section or sections or parts of any section or sections of this ordinance shall not affect the validity of the remainder of the town's Zoning Ordinance. Page 5 of 5 Meffiorandum To: Agawam Planning Board From: Eric Twarog, Senior Planner Date: 9/28/2006 Re: Proposed Inclusionary Zoning Ordinance Process First, and foremost, we need to address the process by which affordable units are created and certified. Once the Town adopts an Inclusionary Zoning Ordinance, it is up to the private sector to create the affordable units. In Agawam's proposed ordinance,ten units of new rEttial construction must result in at least one unit of affordable housing. The developer sus phis one unit at a loss', and a deed restriction is placed upon the house. In order to xrte s the whole project is economically viable, the developer will conduct a pro fornid 44 -h' and adjust the cost of each market rate unit to compensate for any losses resul'tarag fain the construction of affordable units. The Town of Agawam requires ten percent;�f#lte'�units created under this proposed ordinance to be affordable. In order fog an (fordable unit to count under the Commonwealth of Massachusetts' Local Inttalre Program (LIP) Subsidized Housing Inventory—the ten percent target goal to which cities and towns aspire—the deed restriction must state that for a period of thirty years the affordable unit will be available to persons making eighty percent of the Area Median Income. The deed restriction is then recorded with the registry of deeds and becomes attached to the unit for the duration of the deed. After these tasks have been completed an agent of the town will then fill out a Local Inventory Program Application (available online at www.mass.gov/dhcd) which will then place the unit on the Town's "Subsidized Housing Inventory"z once the unit is accepted. Buying and Selling of Affordable Units Before an affordable unit can be sold, there must be a marketing plan for the unit as well as an entity responsible for reviewing potential applicants for the unit. This entity can be 1 Dimensions and size do not have to be identical to those of accompanying Market Rate units,as this could conceivably result in houses that are too large for people of modest incomes to heat comfortably. 2 In 1990,the Commonwealth defined the term"subsidy"as technical assistance given to a project as well as funding for the project,which accounts for why a"Subsidized Housing Inventory"can include units that do not receive any financial support from any government agency. either a local housing authority or some non-profit housing agency. Communities that do not have the staff in-house for reviewing such applications will need to hire a consultant to do this. Applications will Only need to be reviewed when an affordable unit is bought or sold to verify that the applicant makes eighty percent of the Area Median Income. Rental units will require annual monitoring to ensure that occupants are not making more than the threshold income. Throughout the entirety of this process, the administration of the application and monitoring process will require staff time at a cost to the town. Incentives There are two options for inclusionary zoning ordinances—by right or by special permit. If the Town plans on requiring affordable housing units as a condition of a by-right approval process,then there should be provisions to ensure that the development will be economically viable. Typically, this comes in the form of a density bonus, which would allow the developer to build additional unit(s) to cover the cost of selling a unit for less than its market value. The guarantee for some economic return is rooted in the fact that if a landowner is deprived of all economic value of his/her land, a court challenge could result in a regulatory taking, which has been repeatedly held to be unconstitutional by the United States Supreme Court. Under the special permit process,the Town has the latitude to negotiate density bonuses with the developer. Fees-in-Lieu If the Town does not want to allow additional unit(s)through density bonuses, then the payment of fees-in-lieu of an affordable unit could function as a feasible alternative. Fees-in-lieu can be designated to a housing authority or non-profit housing agency, such as Habitat for Humanity,provided the agency pledges to construct affordable units within the Town of Agawam and to return the funds to the developer if they are not spent within a fixed period of time. Subsidized Housing Inventory Occupants of units created through an Inclusionary Zoning Ordinance are not required to receive any form of subsidized housing assistance from a governmental agency. However, if a Section 8 qualified individual finds accommodations within Agawam, federal housing law prohibits discrimination from occurring,which remains the same with or without an Inclusionary Zoning Ordinance. Keep in mind that those communities that have not reached their 10 percent threshold of affordable units are susceptible to a Chapter 40B Comprehensive Permit which can bypass local zoning. Chapter 40B, sometimes referred to as the "Anti-snob"law was passed in 1969 to combat the effects of Exclusionary Zoning which is zoning designed to 3 This eighty percent limit is a minimum,not a maximum. The Town of Newton has sixty-five percent of the Area Median Income as its threshold. exclude particular groups from a community. Chapter 40B has altered the exclusionary practices of many communities throughout Massachusetts. Since the passage of this law, approximately 25,000 units of affordable Dousing have been constructed in Massachusetts which is viewed as a positive thing by housing advocates as well as the state. The Subsidized Housing Inventory is simply the name of the list upon which affordable units are placed to keep a record of the percentage of affordable units that a community has to meet the 10 percent affordability mandate. Communities that have reached their 10 percent are no longer susceptible to a Chapter 40B Comprehensive Permit. 0 0 INCLUSIONARY ZONING FACT SHEET TOWN OF AGAWAM Prepared by the Pioneer Valley PIanning Commission What is Inclusionary Zoning? Inclusionary zoning is a planning tool used by towns in Massachusetts to increase the affordable housing inventory in a community, and to help provide a range of housing options to include hornebuyers or renters whose income is below the regional median household income.In Agawam inclusionary zoning would allow home buyers who qualify to purchase a house at$150,000. How is affordability defined for Agawam? Households whose income falls at or below 80%of the median income for the area qualify for affordable housing programs. For 2005 in Agawam, this is$50,650 for a family of four and$54,700 for a family of five. For example,this five person"household" could be a couple,one working full-time and the other part-time,with two children and an elder parent living with them. This family would be able to live and work in Agawam under the Inclusionary Zoning Bylaw. Law-Income Qualifications for Agawam # hnusehnll Income Qalific"frton:°' 1 person $35,450 2 person $40,500 3 person $45,600 4 person $50,650 5 person $54,700 6 person $58,750 *Based on median household income far Springfield MSA($61,500) Why would a town want to insure a diverse real estate market? There are two primary reasons: (1) Inclusionary zoning preserves and protects the social character of the town. Data from the Massachusetts Department of Employment and Training(second quarter of 2005 is the most recent) shows that the 773 establishments in Agawam paid an average annual wage of$30,940. However, current market conditions show that the median price of a single-family home in 2005 in Agawam is$209,900,which requires a household to have an income of at least$72,000 per year. (Based on 5% down-payment, 7.8%interest for 30 years and$400 in other long-term debt. Mass Housing calculations show$1,980 for monthly principal,interest,taxes and insurance.) Therefore, even with two fulltime employees per household,families who work in Agawam would not be able to purchase a house in town. (2) Towns are being asked by the state to provide 10%of their total housing stock in affordable homes or apartments. Towns can control this development through using tools such as Inclusionary Zoning. If towns fail to help meet the affordable housing need developers of property can gain control over how developments are designed by invoking Chapter 40B of the Mass.General Laws. This law,which allows towns to waive local zoning bylaws,has actually produced more than 25,000 housing units in 172 communities in the state. How do Towns establish an Inclusionary Zoning Bylaw? After public hearings, the Planning Board submits a bylaw for adoption at Town Meeting. The bylaw would require developers to include a certain number of homes or rental units in a development which could be purchased or rented by families with incomes of less than$61,500. (This is the median income for the Springfield Metropolitan Statistical Area which includes Agawam.) What are some of the choices towns need to make within the Inclusionary Zoning Bylaw? • What percentage of a development should be protected for wage earners?Towns have dedicated as little as 10%or as much as 25%of their new housing to be affordable. • How many new homes in one subdivision should trigger the protection? Some towns have said that developers must include units for wage earners if a minimum of 10 acres are being developed. Other towns have said developments of 10 units or more must include affordable units. • Should developers be given options other than building the units? Most towns allow developers to give money or land to a local fund rather than build the units. A Housing Trust Fund is created to receive fees-in-lieu-of-when developers opt to provide equivalent units in cash or land instead of actual construction. (Such trust funds are authorized by M.G.L.Chapter 44:Section 55C, Municipal Affordable Housing Trust Fund.) • Special considerations can be negotiated with developers. These might include waivers if hardship can be proven. If Agawam wishes to focus development in the town center,a developer might contribute to adding new units outside of the development area. Will the Inclusionary Zoning Bylaw escalate home prices even more by discouraging any new homes from being built in Agawam? This concern is diminished by offering economic benefits to home builders for participating in the town's effort such as more predictable and timely subdivision approvals, greater design flexibility such as courtyards or a mix of accessory units and two-family or attached houses. Other incentives created by State and local governments are: • Developers will want to participate if towns give bonus units for qualifying subdivisions in exchange for a fee paid to the Housing Trust Fund. These funds can be used to help build affordable units in another location in town. • Towns have also offered tax exemptions for affordable units. • Towns offer timely permitting of projects as incentives since most developers place high value on predictable outcomes in the public process.