POR 2023 #157 : That the City Manager be and hereby is requested to work with relevant departments including the Affordable Housing Trust, Community Development Department and Law Department to review the attached zoning proposal and report back to the City Council with an initial assessment regarding the feasibility and efficacy of such an approach no later than October 31, 2023. CHARTER RIGHT EXERCISED BY COUNCILLOR TONER IN COUNCIL SEPTEMBER 11, 2023

Councillor Quinton Zondervan Affordable Homeownership Overlay Policy Order September 11, 2023 (with Attachment A) Whereas: To undo decades of racial discrimination and denial of homeownership opportunities to Black and Brown residents, Cambridge must intentionally change its policies and regulations to promote and create homeownership opportunities for disenfranchised communities; and Whereas: The existing financing mechanisms for affordable housing development preferentially generate income-restricted rental housing, which is also the greatest need, but further limits homeownership opportunities for people who have been economically disenfranchised; and Whereas: The current low-rise residential height and density limitations in our zoning code perpetuate historically racist housing policies, but simply removing them would produce additional luxury housing that remains largely unaffordable to economically disenfranchised community members; and Whereas: The opportunity exists to conditionally allow for more height and density if a portion of the additional units produced by private market rate developers are made available for purchase through our income restricted affordable homeownership programs; and Whereas: Our existing affordable homeownership programs understandably include limited equity provisions to maintain the limited supply of affordable units that is produced, but permanently limiting the equity that affordable homeownership participants can recover is a further perpetuating of historical and ongoing racist and economic disenfranchisement; and Whereas: Utilizing the private market rate developers to produce additional affordable homeownership units creates a potentially renewable supply of affordable homeownership units, and hence could allow for less strict limited equity requirements for our affordable homeownership units; now therefore be it ORDERED: That the City Manager be and hereby is requested to work with relevant departments including the Affordable Housing Trust, Community Development Department and Law Department to review the attached zoning proposal and report back to the City Council with an initial assessment regarding the feasibility and efficacy of such an approach no later than October 31, 2023

ATTACHMENT A Notwithstanding other provisions in the zoning code, a developer may build as of right multi-family housing, up to 3 stories tall (35’) or taller if allowed by the underlying base district, including standalone, attached, and semi-attached structures, up to 9 total units per lot, with no limits on density, and no minimum lot size per unit, but meeting the setback requirements of Section 11.207.5.2.3 “Yard Setbacks”, and the open space requirements of Section 11.207.5.2.4 “Open Space” of the Affordable Housing Overlay, provided that the developer make a portion of the units available to the city under a right of first refusal affordability covenant as follows: Total Units Affordable Units 2 or 3 1 4,5 or 6 2 7,8 or 9 3 Prior to obtaining a building permit, the developer will confer with CDD to identify the affordable units to confirm that the city is interested in purchasing them at cost plus a fee. The price shall be negotiated and agreed upon prior to the issue of a building permit. The requirements of Section 11.203.3, “Standards for Providing Affordable Dwelling Units Created through Inclusionary Housing”, shall apply to the affordable units. The city will not agree to participate in any project involving the demolition of an existing structure, unless the existing structure is not suitable for conversion to residential use, has been condemned, or is otherwise in a state of disrepair so severe that demolition is the only option. Upon completion of construction (certificate of occupancy obtained), the affordable units will be offered to the city for purchase under an expiring limited equity affordability covenant. The city will have up to 60 days (with a 30 day extension if needed) to complete the purchase, either via the AHT, through a designated third party (e.g. CHA, JAS, HRI, etc.), or through an income-restricted qualified home buyer(s). The city will make every effort to make the units available for purchase to qualified first-generation home buyers already living in Cambridge. The city may purchase the unit and operate it as an affordable rental unit, managed by a third party of its choosing. However, the preferred option will be to sell the unit to a qualified home buyer, via the affordable homeownership resale pool. If the city or its designee fails to complete the purchase within 90 days, the developer may choose to sell the unit on the open market, however, 80% of the net proceeds above the cost plus fee pre-negotiated with the city shall be contributed to the Affordable Housing Trust. Net proceeds shall not include any transaction fees or other carrying costs associated with selling the property on the market. If the unit is purchased by qualified home buyer(s), full market equity in the property shall vest at a rate of 5% per year, so that after 20 years of continuous ownership by the same individual buyer(s) or their heirs, they will have 100% full equity in the property. After 20 years, the unit may be sold on the open market by the owner(s). However, if the unit is sold prior to 20 years of continuous ownership, the limited equity provisions shall apply

to the new owner, and the 20 year clock is reset. After 5 years (25% vested) the property may be passed on to legal heir(s) in case of death, in which case the vesting will confer onto the heir(s) and will not start from 0.