Moving that the Affordable Housing Overlay Discussion Be Favorably Forwarded to Ordinance Committee

ADD NEW DEFINITIONS TO ARTICLE 2.000:

Affordable Housing Overlay (AHO). A set of modified development standards set forth in Section 11.207.3 of this Zoning Ordinance intended to allow increases in density, limited increases in height, and relaxation of certain other zoning limitations for residential developments in which all units are made permanently affordable to households earning up to 100% of area median income. Affordable Housing Overlay (AHO) Dwelling Unit.

A dwelling unit within an AHO Project for which occupancy is restricted to an AHO Eligible Household and whose rent or initial sale price is established by the provisions of Section 11.207.3 of this Zoning Ordinance. Affordable Housing Overlay (AHO) Eligible Household. A household whose gross household income does not exceed the amounts set forth in Section 11.207.3 of this Zoning Ordinance. Affordable Housing Overlay (AHO) Project.

The construction of a new building or buildings and/or the modification of an existing building or buildings resulting in single-family, two-family, townhouse, or multifamily dwellings within which each dwelling unit is an AHO Dwelling Unit subject to the standards and restrictions set forth in Section 11.207 of this Zoning Ordinance. Grade.

The mean finished grade ground elevation of a lot measured either around the entire perimeter of the building or along any existing wall facing a public street, which grade ground elevation is maintained naturally without any structural support. Story. That portion of a building included between the upper surface of a floor and the upper surface of the floor or roof next above. Story Above Grade. A story whose highest point is more than 4 feet above the Grade.

CREATE NEW SECTION:

11.207 AFFORDABLE HOUSING OVERLAY 1. Purpose and Intent The purpose of this Section is to promote the public good by supporting the development of housing that is affordable to households earning up to 100% of area median income.

The intent of this Section is to allow increases in density, limited increases in height, and relaxation of certain other zoning limitations for residential developments in which all units are made permanently affordable to households earning up to 100% of area median income (referred to as “AHO Projects,” as defined in Article 2.000 of this Zoning Ordinance); to incentivize the reuse of existing buildings in order to create AHO Projects that are more compatible with established neighborhood character; to promote the city’s urban design objectives while enabling AHO Projects to be permitted as-of-right, subject to non-binding advisory design consultation procedures; and to apply such standards throughout the City, to promote city planning goals of achieving greater socioeconomic diversity and a more equitable distribution of affordable housing citywide.

2. Applicability

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(a) The provisions set forth in this Section shall apply to the creation, enlargement, or alteration of AHO Projects, as defined in Article 2.000 of this Zoning Ordinance, in all zoning districts except Open Space Districts. (a)(b) An AHO Project shall meet all of the standards set forth in this Affordable Housing Overlay, or else it shall be subject to the requirements otherwise applicable in the zoning district. 3.

Standards for Eligibility, Rent, and Initial Sale Price for AHO Dwelling Units (a) All dwelling units in an AHO Project shall comply with the standards for AHO Dwelling Units as set forth in this Section. (b) For all AHO Dwelling Units: (i) AHO Dwelling Units shall be rented or sold only to AHO Eligible Households, with preference given to Cambridge residents, in accordance with standards and procedures related to selection, asset limits, and marketing established by the Community Development Department.

(ii) AHO Dwelling Units shall be created and conveyed subject to recorded covenants approved by the Community Development Department guaranteeing the permanent availability of the AHO Dwelling Units for AHO Eligible Households. (c) For rental AHO Dwelling Units: (i) The gross household income of an AHO Eligible Household upon initial occupancy shall be no more than one-hundred percent (100%) of AMI.

(ii) At least eighty percent (80%) of AHO Dwelling Units shall be occupied by AHO Eligible Households whose gross household income upon initial occupancy is no more than eighty percent (80%) of AMI.

(iii) Rent, including utilities and any other fees routinely charged to tenants and approved by the Community Development Department, shall not exceed thirty percent (30%) of the gross household income of the AHO Eligible Household occupying the AHO Dwelling Unit or other similar standard pursuant to an applicable housing subsidy program which has been approved by the Community Development Department.

(iv) After initial occupancy, the gross household income of an AHO Eligible Household shall be verified annually, or on such other basis required by an applicable housing subsidy program which has been approved by the Community Development Department, periodically to determine continued eligibility and rent, in accordance with policies, standards, and procedures established by the Community Development Department.

(v) An AHO Eligible Household may continue to rent an AHO Dwelling Unit after initial occupancy even if the AHO Eligible Household’s gross household income exceeds the eligibility limits set forth above, but may not exceed one hundred twenty percent (120%) of AMI for more than one year after that Eligible Household’s gross household income has been verified to exceed such percentage, unless otherwise restricted pursuant to an applicable housing subsidy program which has been approved by the Community Development Department.

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(vi) Notwithstanding the requirements set forth in (i) through (v) above, an owner may voluntarily choose to charge a lower rent than as provided herein for AHO Dwelling Units. (d) For owner-occupied AHO Dwelling Units: (i) The gross household income of an AHO Eligible Household upon initial occupancy shall be no more than one-hundred percent (100%) of AMI.

(ii) At least fifty percent (50%) of AHO Dwelling Units shall be sold to by AHO Eligible Households whose gross household income upon initial occupancy is no more than eighty percent (80%) of AMI.

(iii) The initial sale price of an AHO Dwelling Unit shall be approved by the Community Development Department and shall be determined to ensure that the monthly housing payment (which shall include debt service at prevailing mortgage loan interest rates, utilities, condominium or related fees, insurance, real estate taxes, and parking fees, if any) shall not exceed thirty percent (30%) of the monthly income of: 1.