The Planning Board is supporting an
amendment to the City’s inclusionary housing and zoning ordinance that will
make it easier for low-income residents to rent affordable housing units.
The proposed change in the ordinance will
also increase the amount of money developers will need to pay the City if they
attempt to opt-out of building affordable units in projects of 10 or more
The amendment first came before the Planning
Board in April, and at Tuesday night’s meeting, the board unanimously supported
recommending the changes in the ordinance.
The inclusionary housing ordinance was first
introduced by At-Large City Councillor Leo Robinson in 2016, according to Lad
Dell, the city planner and land use administrator.
“The reason was that in the Greater Boston
area, the cost of housing has gone up astronomically, and Chelsea has not been
isolated from that. There was a concern that long-time Chelsea residents would
be pushed out.”
But the original ordinance set the
eligibility guidelines at 80 percent of the Average Median Income (AMI) to
qualify for affordable units.
Since the AMI is based on income for the
Greater Boston area, and not just Chelsea, that figure stood at about $89,000
for a family of four. Dell noted that the figure is well above the average
Chelsea income of $55,000 for a family of four.
Under the new amendment, the affordable
rental units will now be evenly split between 80, 50, and 30 percent AMI.
Condominium projects will remain at the 80 percent AMI level.
“If a developer did not want to provide the
15 percent of affordable units, they had the option of a $200,000 payment in
lieu per unit,” said Dell. “That was raised to $400,000 in April.”
Planning Board member Eric Asquith asked
what the rationale was for raising the payment in lieu to $400,000.
“The $400,000 price tag kind of startles a
lot of people, but that’s what it costs to build an affordable unit in
Chelsea,” said Alex Train, assistant director of planning.
However, Train said developers still need
City approval to substitute the payments for the creation of affordable units.
Planning Board member Sara Arman questioned
why the rate was set at 15 percent and not higher.
“That’s on par with other communities,” said
Train. “We want to have a balance between affordable housing and encouraging
Several board members noted that there is
very little developable land in Chelsea, with member Mimi Rancatore asking if
the number triggering affordable units should be lowered from 10 to eight.
Train said that most of the development in Chelsea
is reuse or redevelopment of existing land.
“It’s about that
balance,” he said. “One thing that has proven to lower prices is building more
houses, and if we set (the affordable housing number) below 10, it may
discourage more building.”
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