Town of Provincetown
Provincetown Housing Partnership
Affordable Housing Permit Procedure

 

This document is available on-line as a service and is not the official record due to changes in formatting for the Internet. The charts and attachments that belong to this document are not attached to the Internet version. The official, complete paper copy can be viewed or requested during regular office hours, Monday - Friday: 8 a.m. to 5 p.m. in the Office of the Town Clerk, 260 Commercial St. Provincetown, MA 02657.

The following minutes are available on-line as a service and are not the official record due to changes in formatting for the Internet. The minutes may have attachments that are not included here in this format. The official, complete paper copy can be viewed during regular office hours, Monday - Friday: 8 a.m. to 5 p.m. in the Office of the Town Clerk, 260 Commercial St. Provincetown, MA 02657.

The Provincetown Housing Partnership conducted a public hearing on Wednesday, December 10, 1997, at 7:00 p.m., and adopted the following "Criteria for Evaluating Affordable Housing Proposals and Procedures for Securing Affordable Housing Permits." These criteria will become effective December 18, 1997.

CRITERIA FOR EVALUATING

AFFORDABLE HOUSING PROPOSALS and

PROCEDURES FOR SECURING

AFFORDABLE HOUSING PERMITS

December 1997

1. PURPOSE

A.Reasons For Affordable Housing Permits.The Town of Provincetown has demonstrated a commitment to affordable housing by amending its Growth Management Zoning By-law to include special provisions for affordable housing, and by creating the Provincetown Housing Partnership to coordinate housing activities.The PHP is empowered to establish criteria to evaluate affordable housing proposals, make recommendations on housing proposals and to review, prioritize and authorize the issuance of Affordable Housing Permits under Section VIII.D. of the Town's Zoning Bylaws.The purpose of these published procedures is to provide guidelines for developers proposing housing in Provincetown and to the PHP in evaluating and prioritizing such proposals. These standards are based on an understanding of the great need for affordable housing balanced with other, sometimes competing, concerns of the Town. (Typical examples: water, septic, environmental, traffic.)Potential developers should note, however, that mitigations will be expected for excessive impacts on any of the above.

These Affordable Housing Permits may make it possible for qualified builders to develop affordable units without using the comprehensive permit, Chapter 40B of the Massachusetts General Laws.

B.Support/Authorization from the PHP.It is in the developer's interest to consult theProvincetown Housing Partnership early in the proposal process.The PHP will when necessary help developers to secure technical assistance in the planning of affordable housing developments. When and if the PHP believes that a proposed development will meet the needs of the town, thePHP will recommend to the Inspector of Buildings the award of Affordable Housing Permits for a proposed development. Approval/ Authorization of an application by the PHP must be secured before Affordable Housing Permits can be awarded.

Applicants for Affordable Housing Permits are responsible for following all procedural requirements in this document.Small projects (one or two units) may be allowed a simplified application process.The PHP may, but is not required to, accept and consider an application that is not in proper form, to authorize any Affordable Housing Permits for an application that does not meet the requirements of Section VIII.D. of the Town's Zoning Bylaws, or to recommend the issuance of any permit for any proposal.

The PHP's recommendation will in effect translate into valuable assistance to the proposed project, including but not necessarily limited to favorable comment on the Regulatory Compliance Sheet [RCS] and/or before the Selectmen, Planning Board, Zoning Board of Appeals, Historic District Commission, and the Commonwealth's Department of Housing and Community Development [DHCD].

C.Availability of Guidelines.These guidelines are available to any person, group or company proposing housing development in the Town, and should be studied in advance of discussions between the developer and PHP.These standards are intended as minimal standards and nothing herein shall bind the PHP to accept or consider any proposal.

D.Continuing Evaluation. Because Affordable Housing Permits are new and unique, and because it is in the mutual interest of PHP and developer to make the system work as well as possible and become a permanent part of Provincetown zoning, the PHP will require periodic reports during the ENTIRE development process, culminating in a final report which will contain, among other matters, actual costs and plans (when required), and arrangements for monitoring/ managing resale in the case of ownership units or continuing rent levels and tenant eligibility in the case of rentals.

2. GENERAL PRINCIPLES

A.A town permit should represent a fair exchange.A permit which confers priority or allows an exception such as a density bonus involves the Town's trading of a value in exchange for the solution of a community problem.(In the case of Affordable Housing Permits, the problem is the acute shortage of affordable housing.)While the Town welcomes the participation of the private development community in the solution of the problem, The Town is committed to solutions which benefit the town and its citizens, whether property owners or tenants. Therefore the PHP encourages developers to demonstrate that their projects include the maximum feasible proportion of affordable units.

B.Relation to zoning.Developers are expected to conform as closely as possible to Provincetown's Zoning By-Law, requesting only those variances which are demonstrably necessary, usually as a consequence of site conditions and/or financial feasibility. However, some relaxation of zoning and other locally controlled regulations that would impede the development of affordable housing can be secured through Affordable Housing Permits or the comprehensive permit process. (M.G.L. Chapter 40B '' 20-23.) 

C.The environment is a life-support system.The PHP will pay careful attention to the environmental concerns raised by development insofar as they affect residents' and visitors' health, safety, and general welfare, which the Town is committed to protect.Avoidance or mitigation of any such conditions will be required.It should be understood that Affordable Housing proposals will not be held to a higher standard then those imposed on market developments.Specific expectations are detailed in Section 9.A of these PROCEDURES. 

D.Scattered sites are preferable to concentration.Believing that affordable housing should be available throughout the Town and on a dispersed basis, the PHP seeks proposals which avoid concentrating multi-family and subsidized development in areas where a concentration of such housing already exists.

E.Priority to Rentals.Increasing the supply of affordable rental units will be a priority in the award of Affordable Housing Permits. 

3.DEFINITIONS

A.Low/moderate Income. Standard definition: the U.S. Department of Housing and Urban Development defines very low income as households earning less than 50% of the area (Barnstable County) median income, and low income as households earning between 50 and 80% of the area (county) median.Moderate income refers to those with incomes between 80% of the median income and the median income.All incomes vary with family size. SEE CHARTS 1, 2 AND 3. SEE NOTES ON CHART 2 for TOWN OF PROVINCETOWN INCOME LEVELS.

B.Affordable Housing Permits. As defined by Provincetown Zoning Bylaw Section VIII.D. (April 1997), eligibility for Affordable Housing Permits is limited to units serving renter households earning less than 50% of the Barnstable County median income or purchaser households earning less than 65% of the Barnstable County median income, adjusted in both cases for family size. The discrepancy from HUD categories (above) takes into account the Town of Provincetown's lower incomes in relation to the Barnstable County median income. SEE NOTES ON CHART 2 for PROVINCETOWN INCOME LEVELS.

C.Affordable Housing.Standard definition: dwelling units available at a cost of no more than 30% of the gross annual income of households at or below 80% of the Barnstable County median income, as reported by the U.S. Department of Housing and Urban Development [HUD] and the Commonwealth's Local Initiative Program [LIP]. Costs to include principal, interest, real estate taxes and condominium fees,or rent and utilities.Provincetown definition: to be affordable to Provincetown residents, housing should be priced to meet the needs of those with incomes at or below 50% and 65% of the area median, see B. above.SEE CHART 4, RENT LIMITS, AND CHART 5, HOME PROGRAM (UTILITY ALLOWANCES.) .

D.Qualified affordable housing unit purchaser or tenant. (Under Provincetown Zoning Bylaw Section VIII.D.April 1997), Purchaser: an individual or family with household incomes not exceeding 65% of the Barnstable County median income, with adjustments for household size. Renter: an individual or family with household incomes not exceeding 50% of the Barnstable County median income, with adjustments for household size. Some adjustment may be necessary when differences exist between purchaser/renter income limits required by the U.S. Department of Housing and Urban Development HOME programs and homebuyer ceiling incomes allowed by the Commonwealth of Massachusetts Local Initiative Program. SEE CURRENT REGULATIONS FOR HOME PROGRAMS (CHARTS 3 AND 4) AND LIP GUIDELINES. SEEK CLARIFICATION OF ANY CONFUSION FROM THE CAPE COD COMMISSION AFFORDABLE HOUSING SPECIALIST. 

4. PRICING OF UNITS

A.Cost the most critical element of housing in Provincetown.Because the Town needs +/- 150affordable units and because space for development is in extremely short supply, the Town seeks developments with the highest possible proportion of affordable units.However, financial pressures often require a mix of market rate and affordable units.Priority will be given to proposals which exceed State and County minima, usually 25% affordability.

B.Long-term Affordability.All deeds to affordable units in a development must include a long-term affordability restriction which caps resale prices and defines eligibility for subsequent purchasers. The restriction must include a right-of-first-refusal clause to the Town in the event of resale or any other change of ownership, either of single units or of multi-unit complexes. Responsibility for enforcing/administering resale restrictions rests with the PHP or successor agency.

LIP and Zoning By-law regulations define long-term affordability as 40 years.LIP's formula for resale applies the original percentage discount below market price (appraisal) to derive a resale price ceiling.Developers are strongly advised to use LIP documents (deeds and resale restrictions) to avoid delays and additional costs.

The duration of affordable housing restrictions will affect the priority given to proposals for Affordable Housing Permits.

C.LIP and HOME Regulations.Developers of projects consisting of more than two [2] units are expected to observe Massachusetts Department of Housing and Community Development Local Initiative Program [LIP] regulations regarding deed restrictions, ceiling prices, rents, eligibility to purchase, etc., as addressed in the most current LIP regulations, or other measures that ensure affordability. If County or State HOME funds are used, HUD schedules must be reconciled with state regulations.These ceilings must be reflected in financial projections submitted to the PHP as part of the consultation process.

D.Condominium/ Management fees. Condominium fees are to be included as part of the demonstration of affordability.Pro formas for multi-family rental developments must include management fees (as well as service packages in the case of special needs facilities) in their operating budgets.

5. COMPOSITION OF BUILDINGS/UNITS

A.Mix of Units.Unless otherwise dictated by a market analysis conducted or commissioned by the developer, preference will be given to proposals that consist of an even mix of 3, 2, and 1 bedrooms.

B.Accessibility. In developments over 10 units, one or more units should be handicapped accessible if feasible. (The PHP recognizes that rehabilitation of some older buildings make accessibility either physically impossible or economically infeasible.)

C.Conformance to State and Federal standards.Proposed developments are expected to conform to HUD Housing Quality Standards [HQS] and to State Building and Sanitary Codes, as applicable, i.e. HQS if County or State HOME funds are used.

6. DESIGN

A.Compatibility.Architecture and design should be compatible with the development's surroundings. Buildings whether newly constructed or remodeled should harmonize with landforms, vegetation and natural features so as to protect natural features while using them for noise abatement and visual enhancement.

B.Size and Scale.Size and/or scale of construction will be key elements in the assessment of compatibility.

C.Location and Density.Site and density are critical elements in compatibility and are the two factors most likely to raise environmental concerns.

(1) Location.Priority will be given to proposals which avoid concentrating affordable housing or negatively impacting water-sensitive areas of the Town.(For other Priority considerations, see Section 4B.)

(a) As previously stipulated, developments are encouraged outside the immediate neighborhood of other housing designated as affordable housing developments.

(b) Potential developers contemplating new construction or more intense use of existing structures should consult town maps identifying water-sensitive areas (eg. Stearns and Wheler). Proposals for projects in any such area must describe proposed actions to mitigate negative impacts.

(2)Density.Affordable housing may require greater density than allowed in local by-laws.While Affordable Housing Permits may make it possible for qualified builders to develop affordable units without using Chapter 40B, any proposed density greater than that allowed in Provincetown Zoning By-laws ' 3110 will be evaluated with regard to financial necessities and the capacity of the site to accommodate the proposed density without compromising health and safety as prescribed in Title V. If found acceptable, increased density will be recommended by the PHP to the appropriate Town or County Board(s).

D.Design Standards. To the maximum extent possible, developments should observe the consideration standards in ' 3152 of the Provincetown Zoning By-laws, the design standards in ' 3153 and the yard, lot coverage and green area standards in ' 3120, 3130 and 3140.However, cluster development is encouraged wherever feasible.Developers are strongly discouraged from seeking variance(s) in provisions relating to elevation (' 3310) or any provisions related to flood areas or governing enclosures below a structure's lowest floor.

E.Energy efficiency.Attention should be paid to energy efficiency and reduced maintenance costs.Design exceeding HUD housing quality standards [HQS] and state building and/or sanitary codes will be favorably received.

F.Integration of affordable and market units.Units designated as below market rate or subsidized shall be integrated throughout a development and not be distinguishable from the exterior.Interior features of affordable units shall comply in all respects to the minimum design and constructions standards set forth in the Local Initiative Guidelines by the Massachusetts Department of Housing and Community Development, July 1996, or as amended. Affordable units should be situated within the development so as to be in equally desirable locations as market rate units and equally accessible to public amenities such as open space.SEE CURRENT LIP GUIDELINES.

G.Timing of construction or provision of affordable units or lots.To the maximum extent feasible, affordable units shall be constructed or rehabilitated at the same time asmarketrate units (if any.).Timing of development shall occur in accord with a construction schedule which shall be mutually agreed upon and set forth in writing. The construction schedule must identify units as affordable or market.This provision is intended to assure the inclusion and timely completion of the affordables.

7. DEVELOPER CRITERIA

A.Prior experience. The PHP will look for prior relevant construction experience of both developer and development team, although no member of the team is required to have previously developed affordable housing. References will be checked.Developers should disclose any less-than-satisfactory prior experiences rather than let the reference search discover them.

B.Cooperation. The developer must demonstrate a willingness to work cooperatively with all town boards and agencies through construction completion and the issuance of a certificate of occupancy.Examples of cooperativeness include but are not limited to 

!submission of complete application,

!regular meetings with the PHP and such agencies as request them,

!availability of key personnel on development team,

!timely reports.

8. SUBMISSION PROCESS

A.First look. Developers must seek PHP input before proceeding to formal proposals and presentations.As a first step the developer should submit an overview of the proposed project and request an appointment to discuss the project and receive PHP guidance.Small projects (one or two units) may be allowed a simplified application process.

B.Coordination of Submissions.In the event that a developer is planning to apply for State or CountyHOME funding, the developer may save time by submitting 3 copies of such applications to the PHP (plus additional exhibits which may be requested by the PHP), even if available only in preliminary form..

C.Formal Review. After preliminary discussion with the PHP, the developer must submit the following information for formal review.The submission must follow the order given here, in sections separated by numbered tabs.Three [3] copies of the application should be submitted, although only one set of plans is required.

Tab 1:

(1) Project name, contact person (address, telephone, fax, etc.), names and resumes of members of the development team (owner, proposed lender, attorney, consultant, architect, contractor, and management firm in the case of rentals.) 

(2) Detailed project description including location, number of units and unit mix with respect to ownership and/or rental.

(3) Distribution of units by bedrooms, sale/rental prices, subsidized/market sale or rental units.

(4) Proposed density, total site area, total buildable site area, total building coverage of site, site coverage for walks, parking, roads and open space on site at completion.

(5) Amenities, including Social and fiscal benefits estimated to derive from the project. 

Tab 2:

(6) Site plan.

(7) Locus plan showing contiguous and nearby uses, water supplies, schools, public buildings, residences,and any known subsidized housing.

(8) Preliminary site analysis including topography, existing utilities, town water, wetlands, variances and/or permits needed or in hand.

(9) The proposed water distribution system with comments from the Provincetown Water & Sewer Board and a communal sewerage treatment and disposal system with comments from the Provincetown Board of Health.

Tab 3:

(10) Architectural concept including building and unit design.

Tab 4:

(11) Housing subsidy or other government programs to be involved in the development.

(12) Provisions for long-term affordability and the vehicle(s) intended to provide it.

Tab 5:

(13) Financial statement showing developer's ability to complete project.

(14) Development pro forma.If applicable, operating budget.

9. REVIEW AND EVALUATION PROCESS

A.Review.Upon receipt of a submission, the PHP will assess it for completeness and if/when satisfied, schedule one or more consultations with the developer, as many as necessary to permit revisions.It is the objective of the PHP to work cooperatively with the developer to reach the point of endorsement.All of the previously raised concerns will become the basis for evaluation, along with these general criteria:

(1) Suitability of the proposed location for this proposal.Will nearby land uses be supported by or damaged by having the proposed use carried out?What other uses of the site would be displaced or preempted by this development? Are roads, drainage, other public services adequate?Is site subject to erosion, siltation, potential groundwater or surface water contamination, habitat disturbance, or loss of valuable natural vegetation? Has traditional public access to or along the shoreline, if any, been maintained?

(2) Suitability of activity.Does proposed activity have damaging seasonal consequences, including excessive addition to peak period congestion?At what level does proposed housing contribute to year round affordability?

(3) Suitability of design.Are scenic views from public ways and developed properties treated with consideration?Is parking impact and visibility minimized?

(4) Effect of project on fire, police and school services, traffic, recreation, etc., and the mitigations proposed to prevent excessive impacts . 

(5) Feasibility.Does proposal give reasonable assurance of successful completion?Does it promise an experienced and adequately financed development team?

B.Prioritization.In the event of applications for more than the available number of Affordable Housing Permits, the PHP will favor those proposals which in its opinion best meet the needs of the town.

C.Authorization. Upon satisfaction of all conditions outlined in these procedures and any others arising in the process of consultation, the PHP will authorize release by the Inspector of Buildings of Affordable Housing Permits.Authorization will be followed by support as necessary before relevant officials and boards, at the developer's request.

Michael Bunn, Chairman

Provincetown Housing Partnership

posted Town Hall:

Advocate:December 18, 1997