Lancaster Housing Production Plan Monday, November 4, 2013 Lancaster Planning Board Sam Lawton, Montachusett Regional Planning Commission (MRPC) and Noreen Piazza, Lancaster Planning Director

Lancaster Housing Production Plan  Introduction and Purpose of Housing Production Plan  Definition of Affordable Housing  Comprehensive Needs Assessment  2015 Goals and Objectives  Numerical Targets and Schedule  Implementation Strategies  Next Steps  Public Comments/Input 2

Introduction and Purpose  Town of Lancaster previously developed the 2007 Master Plan with a Housing chapter. An implementing action from the Housing chapter was to produce a Housing Production Plan (HPP).  Town requested MRPC for assistance to draft an HPP.  Purpose of Housing Production Plan:  Enable the Town of Lancaster to produce a certain number of housing units annually that will be occupied by persons qualifying for the purchase or rental of these affordably- priced units, so that the Town of Lancaster can strive to achieve the Massachusetts statutory goal of providing a minimum amount of housing units (10% of overall housing stock) at “affordable” prices.  Achieve “certification” from DHCD 3

Housing Production Plan Certification  “Achieving Certification” means: 1.Town’s Housing Production Plan is approved by the MA Department of Housing and Community Development (DHCD), and, 2.Is granted “certification of compliance” with the plan by creating 13 affordable housing units per year (1-yr exemption) or 25 units per year (2-yr exemption); later decisions by the ZBA, relative to comprehensive permit applications, will be deemed “consistent with local needs”. Also, these decisions will be upheld by the Massachusetts Housing Appeals Committee (HAC). 4

Draft Lancaster Housing Production Plan  Written in compliance with the Guidelines and Requirements for Housing Production Plans adopted by the Massachusetts Department of Housing and Community Development (DHCD)  Required Elements of the HPP:  Comprehensive housing needs assessment  Affordable housing goals/proposed housing mix  Implementation strategies  Description of Use Restrictions 5

Definition of Affordable Housing  For the purposes of Chapter 40B, affordable housing is generally defined as housing units that are: 1)Subsidized by an eligible state or federal program. 2)Subject to a long-term deed restriction limiting occupancy to income eligible households for a specified period of time (at least 30 years or longer for newly created affordable units, and at least 15 years for rehabilitated units). 3)Subject to an Affirmative Fair Marketing Plan. 6

Definition of Affordable Housing  Generally Accepted Definition:  Housing is considered affordable when “a household pays no more than 30% of its annual income for rent or mortgage”  MGL Chapter 40B Definition:  Affordably-produced and priced to be available to households where the incomes do not exceed 80% of the median household income for the region in which the community is located.  Lancaster is located within Eastern Worcester County HUD Metro Fair Market Rents (FMR) area. 7

Definition of Affordable Housing Household Size80% Of Median Income* 1$45,100 2$51,550 3$58,000 4$64,400 5$69,600 6$74,750 7$79,900 8$85,050 8 Low (80%) Income Limits by Household Size Note: * Adjusted by HUD based on national maximums in high income areas Median Household Income for Town of Lancaster = $87,962 (ACS, 2011) Source: U.S. HUD, August 2013

Population: Lancaster and Surrounding Communities Source: 2010 U.S. Census '00-'10 Change Lancaster 7,380 8, % Clinton 13,435 13, % Harvard 5,981 6, % Bolton 4,148 4, % Leominster 41,303 40, % Lunenburg 9,401 10, % Shirley 6,373 7, % 9

Lancaster Age Distribution 10 Age Group % Change < 5 years old % 5-19 years % years % years % years % years % years % 75 years and over % Median Age % 65 years and over % Source: 2010 U.S. Census

Housing Units: 2000 and Housing Units 2010 Housing Units OccupiedVacantTotal 2000 Vacancy % OccupiedVacantTotal 2010 Vacancy % % Change (Total) % %22.1% 11

Building Permit Trends: YearSingle-Family2 Family 3 or more FamilyTotal Source: Lancaster Building Department

Housing Prices and Sales Source: The Warren Group * 2013 data was collected from Jan-June Town of Lancaster Single Family Homes Condominiums YearNumberAvg PriceNumberAvg Price 2013*21$280,0002$NA $246,00016$220, $245,25014$251, $269,9509$252, $302,5007$279, $264,7501$NA $318,00010$305, $335,95023$321, $337,45629$259, $326,25013$166, $275,25011$229,900 13

HOUSEHOLD TYPELancaster # Units Lancaster % Units W.C. % Units MA % Units U.S. % Units Households with mortgages below or at 30% of total annual household income % 63.6%59.7%62.5% Households with mortgages more than 30% of total annual household income or less % 36.3%40.3%37.5% Households with rent costs below or at 30% of total annual household income % 51.7%49.6%48.4% Households with rent costs more than 30% of total annual household income or less % 48.3%50.4%51.5% 14 Updated Demographics for Housing Needs Assessment Housing Costs: % of Income used for Mortgage and Rent Costs o More than 1/3 of Lancaster residents who own home and have mortgage are paying more than 30% of income towards monthly mortgage payments and other selected housing costs o However, Lancaster’s % is less than the County, State, or U.S. o More than half of Lancaster’s renters are paying more than 30% of their income towards rent o Lancaster’s % is more than the County, State, and the U.S. Source: ACS Five-Year Estimates

Lancaster 40B Unit Inventory Source: DHCD Chapter 40B Subsidized Housing Inventory Mass. Department of Housing and Community Development (DHCD) Chapter 40B Subsidized Housing Inventory Project NameAddressTypeTotal SHIComp Permit Subsidizing Agency Bigelow Gardens449 Main St.Rental40NoDHCD Bigelow Gardens449 Main St.Rental30NoDHCD Mill StreetMill St. CourtRental4NoEOHHS Blue Heron PondHigh St. Ext. (Rt. 110)Ownership12YesFHLBB Lancaster WoodsWoods Ln.Ownership8YesMass Housing DDS Group HomesConfidentialRental8NoDDS Shaker VillageMeditation LaneOwnership5YesDHCD Lancaster Totals107 Census 2010 Year Round Housing Units2,544 Percent Subsidized4.21% 15

Supply-Demand Housing Gap  A family with a median family income of $87,962 can afford a single family home with a maximum sales price of $364,068.  Monthly mortgage payment with taxes and insurance would be $2,389.  22 of the 41 single family homes and 7 of the multi- family/townhouse homes for sale in Lancaster in August 2013 would be affordable  However, HUD low income threshold for family of 4 is $64,400 in Eastern Worcester County  Maximum sale price for an affordable home would be $265,040, with monthly mortgage payment with taxes and insurance of $1,682  Only 13 of the 41 single family homes and 3 of the multi- family/townhouse homes for sale in Lancaster in August 2013 would qualify as affordable 16

Master Plan Housing Element Goals & Objectives Incorporated into HPP 17  “To preserve Lancaster as a diverse community of people, sustainable over the long term, with equity and access for all.”  Nearly 200 new affordable units in the next 10 years:  units in multi-family structures  rental units as a minimum  units suitable for one-person households  units for persons aged 65+  20 or more units for persons with disabilities

Numerical Targets and Housing Production Schedule The Town of Lancaster’s housing production numerical targets and schedule for the next five (5) years is based on a review of planned 40B Projects and Town plans 18 Year Number of UnitsBasis for Housing Production units at Jones Crossing, a currently permitted 40B project; 5 units at Fieldcrest Estates, a currently permitted 40B project; and 3 units through conversion of the town-owned ambulance building into a multi-family development units at Jones Crossing, a currently permitted 40B project; 4 units at Fieldcrest Estates, a currently permitted 40B project; 4 units through conversion of the town-owned Memorial School building into a multi-family development; and 2 units at Bigelow Gardens, currently available senior housing operated by the Lancaster Housing Authority units at Fieldcrest Estates, a currently permitted 40B project; 3 units through conversion of the town-owned Memorial School building into a multi-family development; and 6 units at Bigelow Gardens, currently available senior housing operated by the Lancaster Housing Authority units at Fieldcrest Estates, a currently permitted 40B project; 3 units through conversion of the town-owned Memorial School building into a multi-family development; and 6 units at Bigelow Gardens, currently available senior housing operated by the Lancaster Housing Authority units at Fieldcrest Estates, a currently permitted 40B project; 4 units through conversion of the town-owned Memorial School building into a multi-family development; and 4 units at Bigelow Gardens, currently available senior housing operated by the Lancaster Housing Authority.

Numerical Targets and Housing Production Schedule  Lancaster had 107 certified SHI units as of April, 2013  Lancaster produced 15 additional affordable units in 2013 which have not yet been certified by DHCD  Development of the additional units shown in production schedule would result in an additional 65 SHI units.  = 187 units by end of 2019  10% overall SHI goal is 254 units  Therefore, Lancaster would be 67 units short of the overall goal of achieving 10% SHI  Goal will be reassessed by DHCD based on the 2020 U.S. Census 19

Locations for New Affordable Housing  Expansion Areas Senior housing at Memorial School Expansion of Bigelow Gardens  Endorsed 40B Project Sites Jones Crossing (Deershorn Rd.) Fieldcrest Estates (Sterling Rd.)  Municipal Land Lunenburg Rd. (2 locations) Memorial School Conversion of Ambulance Building 20

Implementation Strategies: Building Institutions  Create a Lancaster Housing Partnership  Explore eligibility for federal housing subsidy funds through a regional consortium such as the Fitchburg and Leominster HOME consortium.  Explore partnering with private developers to develop more affordable multifamily rental units. 21

Implementation Strategies: Refining Regulations  Ensure all new residential development above a defined threshold scale contributes to the Town’s affordable housing needs.  Within revised multifamily overlay district, reconsider the 2-acre “threshold” for allowing multifamily use and consider revision of other dimensional rules.  Consider revisions to regulations for senior & assisted- living housing.  Explore adoption of an Estate Preservation provision in zoning bylaws.  Explore offering a density incentive which includes on- or off-site rehab of existing housing units and deed restrictions. 22

Implementation Strategies: Continuing Affordability and Fair Access  Apply controls to ensure continuing affordability and fair access (including use restrictions, resale controls, and regulatory agreements).  Explore means of facilitating long-term affordability of energy in housing. 23

Deed/Use Restrictions to Preserve Affordability 24  All affordable units must serve households with incomes no greater than that established in the original project approval, which in no event is to be greater than 80 percent of the area median income, adjusted for household size, as annually revised by HUD.  The limitation must remain in place for the life of that residential unit, except that in the case of rehabilitated units the term may be reduced to as little as 15 years if there is no workable alternative. Future sale or rent price will be based upon maintaining affordability at the same percentage of area median as in the initial basis, adjusting for changed median incomes and changed tax, condo fees, and other costs.  Units must be subject to a regulatory agreement between the developer and the subsidizing agency unless the subsidy program does not require such an agreement.  The units must be marketed in a fair and open process consistent with state and federal fair housing laws.

Next Steps and Public Comment/Input  Public Comment/Input – Take comments through November 25  Next Steps:  Submit Draft Plan to DHCD for review and comment  Incorporate all comments into Final Plan  Prepare Final 2015 Housing Production Plan  Planning Board approval  Selectmen approval  Submit to DHCD in early