WORCESTER – The Worcester Together Affordable Housing Coalition released a statement on Friday critical of the seven city councilors who voted against a more aggressive version of the Inclusionary Zoning ordinance on Tuesday.
In its statement, the Affordable Housing Coalition said, “the people who stand to lose from the City Council’s unwillingness to act forcefully in the face of a housing disaster are also the people the seven City Councilors claim to represent.” It also said, “We hope these votes will matter in November.”
Councilors Al-Large Krystian King and Thu Nguyen, District 4 Councilor Sarai Rivera and District 5 Councilor Etel Haxhiaj supported the features of the policy the Housing Coalition advocated for.
District 1 Councilor Sean Rose, District 2 Councilor Candy Mero-Carlson, District 3 Councilor George Russell, Councilors At-Large Morris Bergman, Donna Colorio, Kate Toomey, and Mayor Joe Petty supported the version of inclusionary zoning proposed by City Manager Erik Batista and the city’s Chief Development Officer, Peter Dunn.
The Inclusionary Zoning ordinance, which will likely go into effect later this month, creates new requirements for developers of multi-family housing projects with 12 or more units.
Developers of these projects will now be required to retain a percentage of their units for tenants below certain income levels. The rent for those units may not exceed 30% of the gross income for the household and may not exceed fair market rent levels set by the federal Department of Housing and Urban Development (HUD).
Project developers have three options to comply with the ordinance.
- 15% of units are restricted for households which earn not more than 80 percent of area median income
- 10% of units are retained for households which earn not more than 60 percent of area median income.
- Pay a fee equal to 3 percent of the total cost of construction of the project.
Current fair market rates in Worcester, as set by HUD, are below.
- Efficiency – $1,231
- One-Bedroom – $1,277
- Two-Bedroom – $1,635
- Three-Bedroom – $1,990
- Four-Bedroom – $2,196
In fiscal year 2022, 60 percent of area median income ranges from $46,440 for a single person household to $87,540 for an eight person household.
The maximum income limit at 80 percent of area median income ranges from $61,900 for a single person to $116,700 for an eight person family.
For example, an affordable designated three-bedroom unit at 60 percent area median income would only be able to be rented by a family with an income of less than $57,700.
The ordinance requires that developers maintain their affordable units for 30 years.
The Worcester Housing Coalition advocated for three significant changes to the city’s proposal.
- require not less than 5 percent of units be reserved for families at or below 60 percent of area median income;
- Increasing the fee to developers who decline to provide any affordable units; and
- Extend the time required to maintain affordable units from 30 years to 99 years.
The city’s Inclusionry Zoning ordinance also provides several other incentives for developers who provide the required affordable housing units. An amendment proposed by Councilor Rose during the council meeting on Tuesday modified the ordinance to make those incentives available only to developers who provide units to tenants with income at or below 60 percent of area median income.
Image by Sam Bishop
