a report from Councilor E. Denise Simmons, Co-Chair and Councilor Jivan Sobrinho-Wheeler, Co-Chair of the Housing Committee for a public hearing held on October 22, 2020 to receive an update from the Community Development Department and the Affordable Housing Trust Fund on potential changes made to the eligibility preferences for the Inclusionary Housing Program

Attachment A Opening Remarks for Housing Committee Hearing October 22, 2020 at 5:30 pm Sullivan Chamber Zoom Link: https://cambridgema.zoom.us/s/97895847144 Good Evening, I want to thank everyone for coming out to attend this evening's Housing Committee hearing, the call of which is as follows: "The Housing Committee will conduct a public hearing to receive an update from the Community Development Department and the Affordable Housing Trust Fund on potential changes made to the eligibility preferences for the Inclusionary Housing program." This committee last held a hearing on this topic on June 25, 2019, at which time members of the Affordable Housing Trust and the Community Development Department previewed some of the potential changes under consideration for the eligibility criteria and preferences for our Inclusionary Housing program. This Committee has, for a number of years, been asking that we explore potential changes as to who has access to this program, how we can make it easier for people to provide documentation proving they are eligible, and how we can best ensure that we're serving the population the Inclusionary Program was designed to serve. This process has been frustratingly slow, and a number of external events - most notably the tragic loss of longtime Affordable Housing Trust member Cheryl-Ann Pizza Zeoli last year, and the onset of the Covid-19 pandemic this year - have unquestionably slowed down our progress. Tonight, I am hoping we can get this process back on track and moving toward a resolution. What I am hoping we accomplish is that the CDD and the Trust can give us an update on what proposed eligibility preferences are before us, Committee members can ask any questions they may have, and we can then commit to a timeframe for moving this forward to the full City Council for a vote. With that, I will ask my co-chair, Councilor Sobrinho-Wheeler, for any opening remarks he may have. Following that, we will turn the floor over to Iram Farooq and Chris Cotter of the Community Development Department to introduce the proposed eligibility preference changes up for discussion. Councilor, the floor is yours.

Attachment B City of Cambridge Community Development Department October 22, 2020 Preferences Resident Selection Inclusionary Housing

October 22. 2020 recommendations to change criteria for preferences for inclusionary housing units. projected impact of recommended changes Department based on Housing Committee discussion information, considered current criteria, identified gaps and opportunities for change, and Committee for discussion Process to-date • June 2019: Affordable Housing Trust and CDD submitted recommendation for changes to Housing • 2018 - early 2019: Affordable Housing Trust and CDD staff and Law Department reviewed program • 2018: Housing Committee requested Affordable Housing Trust and CDD to develop • October 2020: additional recommendations prepared by CDD in consultation with the Law City of Cambridge - Community Development Department

October 22, 2020 55 69 104 212 470 242 175 629 102 629 Ownership 64 46 683 238 265 344 737 1,301 1,477 3,780 2,322 3,243 Rental Households in Applicant Waiting Pools Number of Cambridge-based Worker Applicants Number of Non-Resident, Non-Worker Applicants Number of Resident Applicants Number of Applicants Resident applications with child between 6 and 18 Total All Applications Resident applications with child under 6 3+ BR applications 2 BR applications Studio applications 1 BR applications Resident applications with emergency housing need City of Cambridge - Community Development Department

October 22, 2020 consistent manner units evidenced by waiting pools affordable homes each year (excluding HomeBridge) inclusionary rental units each year Continuing Challenges • Need for affordable units greatly exceeds the number of available • Number of affordable housing units is limited • How to allocate this limited resource in a fair, equitable, and • From FY15 to FY20, an average of 125 new households housed in • Any change will advantage some applicants and disadvantage others • From FY15 to FY20, an average of 12 new homebuyers purchased City of Cambridge - Community Development Department

October 22, 2020 preferences • Prioritize emergency need applicants in relation to other • Adjust emergency need criteria • Prioritize all residents before any non-resident • Expand type of documents to establish residency • Improve options for families with older children Recommended Changes Key 2019 Recommendations • Maintain Cambridge Residency preference • Revise emergency need preference • Revise preference for families with children City of Cambridge - Community Development Department

October 22, 2020 standard for all applicants) options for families with older children • Applicants can decline up to 3 units while retaining this preference (e.g. • Expand changes in rental housing to more significantly improve • Large rent increases preference for applicants who decline available unit (recommended in 2019) Key 2020 Additional Recommendations Additional Recommended Changes • Create options for recently displaced former residents • Remove recommendation for loss of emergency housing need • Expand criteria for emergency housing need • Create preference for veterans • Revise preference for families with children • Potential preference weighting system City of Cambridge - Community Development Department

October 22, 2020 New or Modified from 2019 / - expand documentation accepted application is active Comments & Considerations - preference continues for as long as NEW - right to return provision in AHO Recommendations last permanent address was Former residents who met 10/2020: CDD displaced through no-fault homeless or living in Current resident former residents who were residency criteria at time of former residents who are preceding application eviction within 12 months application in Cambridge transitional housing whose Current resident 6/2019 CAHT / CDD Recommendations Cambridge permanent address was in residency criteria at time of application former residents who are homeless or living in Former residents who met transitional housing whose last Current resident transitional housing whose last permanent address was Current homeless or living in in Cambridge former residents who are Cambridge Residents - preference criteria Current Residents Former Residents City of Cambridge - Community Development Department

October 22, 2020 New or Modified from 2019 / NEW Comments & Considerations not be former residents - CHA gives all mobile voucher options in market holders priority for project-based units in Cambridge gives mobile voucher holders more - Current CHA payment standards - some CHA voucher holders may Non-resident CHA mobile- 10/2020: CDD new voucher from CHA Recommendations within 1 year of receiving a voucher holders who apply 6/2019 CAHT / CDD Recommendations Current Cambridge-based employees Cambridge-based employees Cambridge-based employees Cambridge Residents - preference criteria (continued) Former Residents Cambridge Workers City of Cambridge - Community Development Department

October 22, 2020 New or Modified from 2019 / Comments & Considerations NEW Pending court action filed for Recommendations complaint filed) 10/2020: CDD which would result in rent year Victim of natural disaster Facing rent increase of 25% no-fault eviction (e.g. Required by ISD to vacate have lived in for at least 1 exceeding 50% of income Paying more than 50% income for rent in a unit they Pending court action filed for Paying more than 50% income Required by ISD to vacate Recommendations 6/2019 CAHT / CDD complaint filed) Victim of natural disaster no-fault eviction (e.g. for rent in a unit they have lived in for at least 1 year Court-ordered no-fault Current eviction judgment Paying more than 50% Home cited for code Home cited for code income for rent violation violation Emergency Housing Need - preference criteria Eviction Threat Cost Burdening Housing Condition City of Cambridge - Community Development Department

October 22. 2020 Comments & Considerations New or Modified from 2019 / - confirmed by police reports, court records, service providers and - expand documentation accepted 10/2020: CDD months, which could result in victim advocates Currently homeless Living in time-limited Recommendations n/a Households with recent transitional housing loss of housing. incidents, e.g. within 6 Households with recent months, which could result in Recommendations 6/2019 CAHT / CDD Living in time-limited Currently homeless n/a transitional housing incidents, e.g. within 6 loss of housing Current Currently homeless Living in time-limited transitional housing More than 2 persons per bedroom Emergency Housing Need - preference criteria (continued) Domestic Homeless Overcrowding Victims of Violence City of Cambridge - Community Development Department

11 October 22, 2020 children under 18 children under 6 MODIFIED MODIFIED Comments & Considerations New or Modified from 2019 / - provides equal preference for rental units to all families with - No additional preference for rental units for families with young Recommendations Child Under age 18 (for 1 of 10/2020: CDD Child Under age 6 (for 2 of every 3 available units) n/a every 3 available units) units) Child Under age 18 (for all Recommendations Child Under age 18 (for 1 of Child Under age 6 (for 2 of every 3 available units) 6/2019 CAHT / CDD Child Under age 6 (for 2 of every 3 available units) every 3 available units) every 3 available units) Child Under age 18 (for 1 of Current Child Under age 18 Child Under age 6 Child Under age 18 Child Under age 6 Families with Children - preference criteria Rental Homeownership Children Young Children Children Young Children City of Cambridge - Community Development Department

October 22, 2020| New or Modified from 2019 / Comments & Considerations NEW with Dept. of Veterans' Services - specific criteria to be developed U.S. Military Veterans Recommendations 10/2020: CDD Recommendations 6/2019 CAHT / CDD Current Veterans - preference criteria Veterans City of Cambridge - Community Development Department

13 October 22, 2020 1 point 1 point (rental only) 4 points Preference Weighting 1 point • Same preferences for families and emergency need • Same preferences for families and emergency need Emergency Housing Need Cambridge Residents Preference Criteria Families with Children under Age 18 Families with Children under Age 6 additive workers) Current preference system • Applicants may qualify for more than one preference; preferences are • Non-resident households (after all residents and Cambridge-based • Cambridge-based workers (after all residents) City of Cambridge - Community Development Department

14 October 22, 2020 Families with children Emergency Need (rental only) Residency Residency 3. Emergency Need (rental only) N 3. Families with children 4. Veterans - NEW which families with children will receive less priority (unless they also qualify for emergency housing need) Changes to Weighting of Preferences Current weighting of preferences Recommended weighting of preferences • Families with children considered ahead of emergency housing need applicants • Prioritizing emergency housing need preference would only impact preferences for two- and three-bedroom rental units in • Gives preference for emergency housing need more weight than preference for families with children • Gives maximum priority to any resident applicant with emergency housing need City of Cambridge - Community Development Department

15 October 22, 2020 12 15 Homeownership 12 17 Rental * applicants eligible for preference as a Cambridge resident or Cambridge-based employee; preferences cannot be combined Potential Weighting of Preferences Emergency Housing Need US Military Veteran Cambridge Resident* Preference Criteria Families with Children Under 6 Total Possible Points Cambridge-based Employee* Families with Children Under 18 City of Cambridge - Community Development Department

16 13 12 15 12 13 October 22, 2020 Homeownership 12 13 13 15 16 Rental Examples - Weighting of Preferences Non-resident, Cambridge-based employee, 14-year old child Resident with 10-year old child, emergency need for rental Resident with 2-year old child Resident Applicant Resident no child, emergency need for rental Resident who is a veteran Non-resident, emergency need for rental City of Cambridge - Community Development Department

Procedures for resident selection for Inclusionary Housing and Law Department will review for applicable requirements at least 30 days legal sufficiency and conformity with zoning laws NEXT STEPS Thank You • CDD will develop recommended changes to the preference system into Draft Standards and • Draft Standards and Procedures will be reviewed for consistency with the Ordinance and other • Draft Standards and Procedures will be posted for public review and comment for a period of • Standards and Procedures for resident selection Inclusionary Housing will be finalized • Housing Committee discussion of recommended changes