Housing Supply and Economic Prosperity in Massachusetts

Housing Institute – June 11, 2014

Clark Ziegler, Executive DirectorMassachusetts Housing Partnership

cziegler@mhp.net

How do the Commonwealth and its cities and towns measure up against

the housing needs articulated by MAPC?

We’re building much less housing than in the past and far less than our economy demands

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

Annu

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ng G

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Massachusetts Housing Growth

Local resistance to multifamily housing is widespread, even though it represents two

thirds of the housing we need

Many communities are permitting less multifamily housing than in the past when they need to be

permitting more

Single family housing

construction is getting less smart.

Lot sizes are increasing in two

out of three communities in metro Boston

Zoning and other anti-growth policies keep the market from meeting housing demand

The bottom line: housing supply causes us to miss out on the state’s economic potential

How did we get here?

State Planning Office disbanded in 1979

Most towns have “downzoned” and no longer allow housing to be built at the density of existing neighborhoods.

In the 70s and 80s federal and state grants covered 90 percent of the cost of new sewer systems and extensions. Now those systems are borne by new development or added to municipal debt.

Towns can now make land “undevelopable” by adopting local septic regulations and wetland bylaws far in excess of state standards

Voter approval of Proposition 2-1/2 in 1981 made towns hypersensitive about affect of residential development on local budgets

Frivolous appeals can add 7 or 8 years to the development process and most developers cannot afford that delay

Has anybody tried to break this pattern?

Executive Order 215

“It should be the general policy of all state agencies not to award discretionary funds to cities or towns which have been determined to be unreasonably restrictive of new housing growth.”

1982

MHP launched in 1985 to work with towns to increase housing supply.

More than a dozen communities found “unreasonably restrictive” of housing growth and denied state funds.

More than 30 communities signed memoranda of agreement to increase housing supply as a condition of remaining eligible for state funds.

1983-1990

Executive Order 418

State agencies “shall give priority in awarding discretionary funds to those cities and towns…that are taking steps to increase the supply of housing for individuals and families across a broad range of incomes.”

2000

2003-2006Local aid linked to housing production (dead on arrival)

Smart Growth Zoning Act, Chapter 40R

“Commonwealth Capital” distributes state funding for capital/infrastructure based on whether cities and towns are engaged in smart growth.

2007-2014MassWorks, Compact Neighborhoods, 10,000 unit multifamily goal

What’s next?

Time to think big.

Zoning 1-2-3Multifamily housing should be allowed by zoning in every city and town in the Commonwealth.

Cluster development should be the rule, not the exception, for single family development.

Regional planning agencies should play a stronger role and have the right to disallow zoning that undercuts regional needs.

New RulesCities and towns that contribute to the economic growth and vitality of the Commonwealth should be guaranteed a share of the fiscal benefits of that growth.

Wetlands bylaws and septic regulations need to be taken off the table as a local strategy to slow or stop growth.

The state needs to be in the infrastructure business, both through financing and through improved regulation.

There should be serious consequences for filing frivolous land use appeals.

Maps and additional information are available at www.massgrowth.net