Lancaster Housing Production Plan
Monday, November 4, 2013Lancaster Planning Board
Sam Lawton,Montachusett Regional Planning Commission (MRPC)
andNoreen Piazza, Lancaster Planning Director
Lancaster Housing Production Plan
Introduction and Purpose of Housing Production Plan
Definition of Affordable Housing
Comprehensive Needs Assessment
2015 Goals and Objectives
Numerical Targets and Schedule
Implementation Strategies
Next Steps
Public Comments/Input
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Introduction and Purpose
Town of Lancaster previously developed the 2007 Master Plan with a Housing chapter. An implementing action from the Housing chapter was to produce a Housing Production Plan (HPP).
Town requested MRPC for assistance to draft an HPP.
Purpose of Housing Production Plan: Enable the Town of Lancaster to produce a certain number of
housing units annually that will be occupied by persons qualifying for the purchase or rental of these affordably-priced units, so that the Town of Lancaster can strive to achieve the Massachusetts statutory goal of providing a minimum amount of housing units (10% of overall housing stock) at “affordable” prices.
Achieve “certification” from DHCD
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Housing Production Plan Certification
“Achieving Certification” means:
1. Town’s Housing Production Plan is approved by the MA Department of Housing and Community Development (DHCD), and,
2. Is granted “certification of compliance” with the plan by
creating 13 affordable housing units per year (1-yr exemption) or 25 units per year (2-yr exemption); later decisions by the ZBA, relative to comprehensive permit applications, will be deemed “consistent with local needs”. Also, these decisions will be upheld by the Massachusetts Housing Appeals Committee (HAC).
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Draft Lancaster Housing Production Plan
Written in compliance with the Guidelines and Requirements for Housing Production Plans adopted by the Massachusetts Department of Housing and Community Development (DHCD)
Required Elements of the HPP: Comprehensive housing needs assessment Affordable housing goals/proposed housing mix Implementation strategies Description of Use Restrictions
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Definition of Affordable Housing
For the purposes of Chapter 40B, affordable housing is generally defined as housing units that are:1) Subsidized by an eligible state or federal
program.
2) Subject to a long-term deed restriction limiting occupancy to income eligible households for a specified period of time (at least 30 years or longer for newly created affordable units, and at least 15 years for rehabilitated units).
3) Subject to an Affirmative Fair Marketing Plan.
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Definition of Affordable Housing
Generally Accepted Definition: Housing is considered affordable when “a
household pays no more than 30% of its annual income for rent or mortgage”
MGL Chapter 40B Definition: Affordably-produced and priced to be available to
households where the incomes do not exceed 80% of the median household income for the region in which the community is located.
Lancaster is located within Eastern Worcester County HUD Metro Fair Market Rents (FMR) area.
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Definition of Affordable Housing
Household Size 80% Of Median Income*
1 $45,1002 $51,5503 $58,0004 $64,4005 $69,6006 $74,7507 $79,9008 $85,050
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Low (80%) Income Limits by Household Size
Note: * Adjusted by HUD based on national maximums in high income areasMedian Household Income for Town of Lancaster = $87,962 (ACS, 2011)
Source: U.S. HUD, August 2013
Population: Lancaster and Surrounding Communities
Source: 2010 U.S. Census
2000 2010 '00-'10 Change
Lancaster 7,380 8,055 9.15%
Clinton 13,435 13,606 1.27%
Harvard 5,981 6,520 9.01%
Bolton 4,148 4,897 18.06%
Leominster 41,303 40,759 -1.32%
Lunenburg 9,401 10,086 7.29%
Shirley 6,373 7,211 13.15%
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Lancaster Age Distribution
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Age Group 2000 2010 % Change< 5 years old 367 346 -6.07%5-19 years 1466 1553 5.60%20-34 years 1722 1754 1.82%35-44 years 1481 1110 -33.42%45-54 years 1029 1408 26.92%55-64 years 582 939 38.02%65-74 years 377 516 26.94%75 years and over 356 429 17.02%Median Age 35.9 39.8 9.80%65 years and over 733 945 22.43%
Source: 2010 U.S. Census
Housing Units: 2000 and 2010
2000 Housing Units
2010 Housing Units
Occupied Vacant Total2000
Vacancy %
Occupied Vacant Total2010
Vacancy %
% 00-10 Change (Total)
2049 92 2141 4.30% 2409 205 2614 7.84% 22.1%
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Building Permit Trends: 2008-2012
Year Single-Family 2 Family3 or more
Family Total
2012 24 6 1 31
2011 9 2 0 11
2010 25 0 0 25
2009 12 2 0 14
2008 9 2 0 11
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Source: Lancaster Building Department
Housing Prices and Sales 2003-2013
Source: The Warren Group
* 2013 data was collected from Jan-June
Town of Lancaster
Single Family Homes CondominiumsYear Number Avg Price Number Avg Price
2013* 21 $280,000 2 $NA
2012 78 $246,000 16 $220,000
2011 52 $245,250 14 $251,500
2010 50 $269,950 9 $252,500
2009 52 $302,500 7 $279,900
2008 50 $264,750 1 $NA
2007 61 $318,000 10 $305,950
2006 46 $335,950 23 $321,500
2005 72 $337,456 29 $259,900
2004 96 $326,250 13 $166,700
2003 80 $275,250 11 $229,900
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HOUSEHOLD TYPE Lancaster# Units
Lancaster% Units
W.C. %Units
MA % Units
U.S. %Units
Households with mortgages below or at 30% of total annual household income
940
64.0% 63.6% 59.7% 62.5%
Households with mortgages more than 30% of total annual household income or less
529 36.0% 36.3% 40.3% 37.5%
Households with rent costs below or at 30% of total annual household income
156
43.7% 51.7% 49.6% 48.4%
Households with rent costs more than 30% of total annual household income or less
173
52.6% 48.3% 50.4% 51.5%
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Updated Demographics for Housing Needs Assessment
Housing Costs: % of Income used for Mortgage and Rent Costs
o More than 1/3 of Lancaster residents who own home and have mortgage are paying more than 30% of income towards monthly mortgage payments and other selected housing costs
o However, Lancaster’s % is less than the County, State, or U.S.
o More than half of Lancaster’s renters are paying more than 30% of their income towards rent
o Lancaster’s % is more than the County, State, and the U.S.
Source: ACS 2007-2011 Five-Year Estimates
Lancaster 40B Unit Inventory
Source: DHCD Chapter 40B Subsidized Housing Inventory
Mass. Department of Housing and Community Development (DHCD) Chapter 40B Subsidized Housing Inventory
Project Name Address Type Total SHI Comp PermitSubsidizing
Agency
Bigelow Gardens 449 Main St. Rental 40 No DHCD
Bigelow Gardens 449 Main St. Rental 30 No DHCD
Mill Street Mill St. Court Rental 4 No EOHHS
Blue Heron Pond High St. Ext. (Rt. 110) Ownership 12 Yes FHLBB
Lancaster Woods Woods Ln. Ownership 8 Yes Mass Housing
DDS Group Homes Confidential Rental 8 No DDS
Shaker Village Meditation Lane Ownership 5 Yes DHCD
Lancaster Totals 107
Census 2010 Year Round Housing Units 2,544
Percent Subsidized 4.21%
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Supply-Demand Housing Gap
A family with a median family income of $87,962 can afford a single family home with a maximum sales price of $364,068.
Monthly mortgage payment with taxes and insurance would be $2,389.
22 of the 41 single family homes and 7 of the multi-family/townhouse homes for sale in Lancaster in August 2013 would be affordable
However, HUD low income threshold for family of 4 is $64,400 in Eastern Worcester County
Maximum sale price for an affordable home would be $265,040, with monthly mortgage payment with taxes and insurance of $1,682
Only 13 of the 41 single family homes and 3 of the multi-family/townhouse homes for sale in Lancaster in August 2013 would qualify as affordable
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Master Plan Housing Element Goals & Objectives Incorporated into HPP
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“To preserve Lancaster as a diverse community of people, sustainable over the long term, with equity and access for all.”
Nearly 200 new affordable units in the next 10 years:
50-60 units in multi-family structures
40-50 rental units as a minimum
20-30 units suitable for one-person households
45-55 units for persons aged 65+
20 or more units for persons with disabilities
Numerical Targets and Housing Production Schedule
The Town of Lancaster’s housing production numerical targets and schedule for the next five (5) years is based on a review of planned 40B Projects and Town plans
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YearNumber of
Units Basis for Housing Production
2015 13
5 units at Jones Crossing, a currently permitted 40B project; 5 units at Fieldcrest Estates, a currently permitted 40B project; and 3 units through conversion of the town-owned ambulance building into a multi-family development.
2016 13
3 units at Jones Crossing, a currently permitted 40B project; 4 units at Fieldcrest Estates, a currently permitted 40B project; 4 units through conversion of the town-owned Memorial School building into a multi-family development; and 2 units at Bigelow Gardens, currently available senior housing operated by the Lancaster Housing Authority.
2017 13
4 units at Fieldcrest Estates, a currently permitted 40B project; 3 units through conversion of the town-owned Memorial School building into a multi-family development; and 6 units at Bigelow Gardens, currently available senior housing operated by the Lancaster Housing Authority.
2018 13
4 units at Fieldcrest Estates, a currently permitted 40B project; 3 units through conversion of the town-owned Memorial School building into a multi-family development; and 6 units at Bigelow Gardens, currently available senior housing operated by the Lancaster Housing Authority.
2019 13
5 units at Fieldcrest Estates, a currently permitted 40B project; 4 units through conversion of the town-owned Memorial School building into a multi-family development; and 4 units at Bigelow Gardens, currently available senior housing operated by the Lancaster Housing Authority.
Numerical Targets and Housing Production Schedule
Lancaster had 107 certified SHI units as of April, 2013
Lancaster produced 15 additional affordable units in 2013 which
have not yet been certified by DHCD
Development of the additional units shown in production schedule
would result in an additional 65 SHI units.
107+15+65= 187 units by end of 2019
10% overall SHI goal is 254 units
Therefore, Lancaster would be 67 units short of the overall
goal of achieving 10% SHI
Goal will be reassessed by DHCD based on the 2020 U.S. Census
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Locations for New Affordable Housing
Expansion Areas Senior housing at Memorial School Expansion of Bigelow Gardens
Endorsed 40B Project Sites Jones Crossing (Deershorn Rd.) Fieldcrest Estates (Sterling Rd.)
Municipal Land Lunenburg Rd. (2 locations) Memorial School Conversion of Ambulance Building
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Implementation Strategies:Building Institutions
Create a Lancaster Housing Partnership
Explore eligibility for federal housing subsidy funds through a regional consortium such as the Fitchburg and Leominster HOME consortium.
Explore partnering with private developers to develop more affordable multifamily rental units.
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Implementation Strategies:Refining Regulations
Ensure all new residential development above a defined threshold scale contributes to the Town’s affordable housing needs.
Within revised multifamily overlay district, reconsider the 2-acre “threshold” for allowing multifamily use and consider revision of other dimensional rules.
Consider revisions to regulations for senior & assisted-living housing.
Explore adoption of an Estate Preservation provision in zoning bylaws.
Explore offering a density incentive which includes on- or off-site rehab of existing housing units and deed restrictions.
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Implementation Strategies:Continuing Affordability and Fair Access
Apply controls to ensure continuing affordability and fair access (including use restrictions, resale controls, and regulatory agreements).
Explore means of facilitating long-term affordability of energy in housing.
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Deed/Use Restrictions to Preserve Affordability
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All affordable units must serve households with incomes no greater than that established in the original project approval, which in no event is to be greater than 80 percent of the area median income, adjusted for household size, as annually revised by HUD.
The limitation must remain in place for the life of that residential unit, except that in the case of rehabilitated units the term may be reduced to as little as 15 years if there is no workable alternative. Future sale or rent price will be based upon maintaining affordability at the same percentage of area median as in the initial basis, adjusting for changed median incomes and changed tax, condo fees, and other costs.
Units must be subject to a regulatory agreement between the developer and the subsidizing agency unless the subsidy program does not require such an agreement.
The units must be marketed in a fair and open process consistent with state and federal fair housing laws.
Next Steps and Public Comment/Input
Public Comment/Input – Take comments through November 25
Next Steps: Submit Draft Plan to DHCD for review and comment Incorporate all comments into Final Plan Prepare Final 2015 Housing Production Plan
Planning Board approval Selectmen approval Submit to DHCD in early 2014
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