2021-11-09 00:00:00 - Joint Committee on Housing

SHOW NON-ESSENTIAL DIALOGUE

[BENJAMIN FIERRO (HOME BUILDERS AND REMODELERS ASSOCIATION OF MASSACHUSETTS):] Good morning Mr Chairman and members of the committee. Uh416 it's my pleasure to testify before you this morning and thank you. I appreciate being taken. Uh First this morning. Mr Chairman for425 the record, I serve as legal and legislative council to the Home builders and Remodelers Association of Massachusetts and I'm here this morning to testify in strong opposition. Mr. Chairman, I won't list all the bill numbers. Let me just say that we are opposed to all of the bills that are on today's hearing list. Mr Chairman. I think one thing that the pandemic has brought to the fore Over the past 18 or 20 months is that housing is a social justice and public health imperative and it's imperative not just for our major cities and urban areas, it is an imperative in our rural and suburban communities.

The fact of the matter is that we have seen the release of473 the latest census data and if one examines the census data for any of the suburban or rural communities, what one finds is that there is virtually no diversity in those communities and why is that there's a lot of reasons of course. But I would argue that one of the most substantial important reasons is a lack of housing that these individuals and families can afford. This is both rental housing and for sale housing. The fact of the matter is that we need more housing, not just for first time home buyers, but for first generation homebuyers who have that opportunity to build wealth. Mr. Chairman, I am mindful that I have three minutes. Uh, and as you know, because we've known each other, I could probably spend three hours testifying on the individual bills. Let me just point out quickly a couple of things. First, there are several bills here that would establish a commission to study Chapter 40B uh, if the members of this committee are not familiar back in 2000 and three, then Governor Mitt Romney formed a 40B task force.540

This task force consisted of over 23 individuals represent representatives of municipalities, state government, housing officials, environmentalists, housing advocates, and the Mass Municipal Association and so on. They took a long, hard look at Chapter 40B studied it's history, which is, I'm sure members of the committee no, was enacted in 1969 primarily as a civil rights statute. As a matter of fact, um, from that Work, they produced a report of over 40 pages that set out the causes and reasons for the high cost of housing in Massachusetts. First, among them, of course, is the high cost of land. Obviously the demand, the need for housing to meet our population, but also the regulatory barriers both state and primarily local.591 That report set out multiple recommendations and those recommendations were incorporated into later regulatory changes by the Department of Housing Community Development under Governor Romney.

I might note that that test was, was convened following a nearly 18 month review under then Governor Acting614 Governor Jane Swift, which revised those regulations. I would point out that under Governor Patrick, we once again went through a thorough and complete rewrite and re look at the regulations each time addressing many of the concerns brought to the fore by municipal officials. So that report is there, that work is there? And I634 commend it to your reading if if you haven't taken a look at it. Um Again, I can't go, I guess we will submit written testimony on the details of many of these bills, but I would note that many of them are fundamentally unnecessary. Uh They put into the statute requirements that local boards, zoning boards which approve and review comprehensive permits. Look at certain elements uh such as impact on infrastructure. Adequacy of water trafficking, impacts stormwater and so on. All of those factors are already taken into consideration by local zoning board of Appeals in drafting their decisions. Lastly, I just want to say679 that approving or going through the 40B process is really a last resort for home builders and685 developers.

Why? Because it is because it is costly and very time consuming. For example, I'm familiar with a 40B project for a multi family rental units. This project was two years in the making and review before the Mass Housing Partnership. It then was subject to over three years of review by the local zoning board. The developer has appealed some of the limitations to the housing appeals committee. That appeal will take at least a year. And the A butters and neighbors who were opposed to the project have filed an appeal in the Superior Court. That appeal will take at least a year if not to. So we're talking about a period of three pre filing of at least two years,729 three years of review by the local board at least a year review appeal before the housing appeals committee and then potentially up to two more years. This is why housing is so expensive in Massachusetts and not available to our families and individuals. I thank you for your time. Mr. Chairman and members of the committee. I welcome the opportunity750 to answer questions. I look forward to working with the committee going forward. Thank you.

SHOW NON-ESSENTIAL DIALOGUE

[ERIC SHUPIN (CHAPA):] On behalf of Citizens Housing and Planning Association,790 thank you for the opportunity to testify today in support of the state's affordable housing law. Chapter 40B CHAPA's mission is to encourage the production and preservation of housing that is affordable to low and moderate income families and individuals and to foster diverse and sustainable communities through planning and community development. There has been no tool that has been more effective than Chapter 40B. and helping achieve our mission of creating affordable housing. The Legislature created the affordable housing law in 1969 to address local zoning and land use restrictions that can make it impossible to build affordable housing under existing local zoning. The legislation codified the goal of ensuring that each community in the Commonwealth does it's fair share to meet the housing needs of its residents.

Over 50 years later, the need for this important law remains as strong as ever. The affordable housing law has been the most successful tool to create affordable and mixed income housing outside of our largest cities. Over 70,000 homes have been created across the state in urban, suburban and rural communities. Almost 50,000 homes created by Chapter 40B are rental apartments and nearly 20,000 are homeownership. Yes, 36,000 of those homes are dedicated for working families, seniors and persons with disabilities with lower modern incomes in the past decade alone, the law has produced over 20,000 homes. Communities across the commonwealth have made significant progress adding affordable housing options. According to the subsidized housing inventory released by DHCD. In December 2020 77 communities have met their 10% goal. This is up from 65 communities in 2017. Unfortunately, local barriers to affordable housing still exists in many communities across the commonwealth. Large lot zoning and884 the prohibition of multi family housing are still widespread and have greatly contributed to889 Massachusetts, high housing costs, low levels of housing production and increased sprawl.

While we have made recent important zoning reforms that will make it easier for communities to approve new smart road housing and new multi family zoning requirements are being put in place for communities served by the MBTA. Chapter 40B remains the only state policy to help ensure every city and town is doing its part to create and meet our affordable housing needs outside of urban areas. Multi family rental housing opportunities are particularly scarce and the limited options that exist were mostly built in recent years with the Comprehensive permit law. Chapter 40B is also an important economic engine that has supported thousands of construction and construction-related jobs. Chapter respect respectfully request that the committee continues to protect our affordable housing law so that can remain an important931 resource for creating opportunities for everyone in the commonwealth to have a safe, healthy and affordable place to call home. Thank you very much again for the opportunity to testify

SHOW NON-ESSENTIAL DIALOGUE

[CLARK ZIEGLER (MASSACHUSETTS HOUSING PARTNERSHIP):] Good morning. Mr. Chairman, members of the committee. My name is Clark Ziegler. I'm executive director of the Massachusetts Housing Partnership. I just wanna make a few comments and then I'll submit written testimony to the committee. Um I think many of you in the committee probably know us through our financing activity. We financed more than 52,000 units of affordable rental housing or affordable homes for purchase by first time low income homebuyers, but actually our roots are really in working with local cities and towns to expand housing opportunities and help local communities to address housing needs in their own ways.

So during our998 lifetime is an organization, we've worked in almost every city and town of the Commonwealth, more than 330 and you know, Pretty much everything by the tiniest towns in the Berkshires.1007 At this point, we've worked with 60 cities and towns to successfully develop affordable housing on locally donated land or buildings um totaling almost 4000 housing units. We literally wrote the book, the guidelines for local zoning boards of appeal back in the early two thousands when there are a lot of concerns about the 40B process. We stepped up and wrote, published local guidance for zoning boards to help strengthen the hand of local communities and understanding how to review comprehensive permits and what rights communities have. Um and that guidance was updated in 2017 and we also provide free third party technical assistance to zoning boards of Appeal in reviewing for to be applications at no cost to the commonwealth, that this is funded through fees on developers. Um1054 And today we have assisted 40B reviews in 228 cities and towns totaling 397 40B proposals.

So we come at this from a perspective, having worked a great deal with communities to make this process work effectively,1069 and I guess I would just offer three general comments to the committee. Um First of all, we are opposed to any effort to amend 40B or to repeal 40B, I think, um uh for a number of reasons. First of all, um the need for affordable housing in the commonwealth is as great as it has ever been. And I think one of the lessons for the pandemic as the economy was struggling and unemployment skyrocketed, there was no relief on housing costs whatsoever. In fact, home prices have gone up even faster during the pandemic as have rents in most markets uh compared to the time, uh pre-COVID so1108 the housing market pressure, extraordinary. As you all know where the metro Boston is one of the most expensive1113 housing markets in the entire country and has been for some time.

And that is a threat both from a social equity perspective, because it makes it so difficult for for working folks to live in the competence stay in the commonwealth, but also from an economic perspective, because it really threatens our ability to grow the economy and add jobs. And that's uh that that's a problem that's been with us for a long time and it is as as acute as ever. Second of all, a lot of the complaints the committee may hear about 40B are really based on either old old information, old problems that have subsequently been addressed by changes1148 in state policy in ways that state agencies work together. Um and uh Ben Vieira mentioned some of the some of those efforts in previous administrations to update the guidance and to address local concerns. There have been very, very legitimate local concerns over the years about how 40B works and I can say As one of the agencies that works together across the Commonwealth uh to uh administer 40B. Those concerns have been taken seriously and and have been addressed. And the third and final point I make is that rather than tinkering with 40B, I think1185 we should put our energy into making 40B unnecessary or less necessary.

It is in many cases a last resort. If zoning in the commonwealth worked as it should, it would be possible to develop affordable housing to add the housing supply we need in ways that that align with local priorities. Um without needing a mechanism like Chapter 40B. There are a lot of great proposals on the table.1208 I would call out in particular CHAPA's proposed housing production bill. There are things that we can do to encourage accessory development or allowance of accessory units, accessory apartments without the requirement for special permits uh to allow sort of small scale multi family development and otherwise single family only only districts which1229 California has recently adopted and also been pursued in Minnesota and Oregon.

Um And I think we we can build on forthcoming guidance from DHCD around the MBTA zoning requirement and the Economic Development bill, that's a major major step forward. Thank you to the Legislature for getting into the Governor, thanks to the governor for signing it. Um but1251 I think over the next few weeks and months we will be really focused as we should. I'm putting local zoning in place that allows us to build housing uh in the right places for folks at a range of incomes. That's where the energy should go. I think there is really no um no good reason to to pick apart 40B or to make changes there. It's a statute that works. We have a lot of other work, we have a lot of other work to do as a commonwealth to expand our housing supply and1277 reform our zoning. And that's where I recommend that the committee put its energy.1281 So with that, um I'll stop and happy to answer any questions.

SHOW NON-ESSENTIAL DIALOGUE