Guidelines for Student Occupation of Accessory Dwelling Units to Be Explored
Accessory Dwelling Unit (ADU). Photo: City of Northfield. MN
Report on the Meeting of the Amherst Planning Board, February 5, 2025
This meeting was held over Zoom and was recorded.
Present
Doug Marshall (Chair), Bruce Coldham, Lawrence Kluttz, Fred Hartwell, Jesse Mager, Johanna Neumann, and Karin Winter.
Staff: Nate Malloy (Planner) and Pam Field Sadler (Assistant)
Accessory Dwelling Units in Amherst
Although the new state legislation governing accessory dwelling units (ADUs) went into effect on February 5, the state has not yet released its model bylaw. Amherst has a local ADU bylaw that differs slightly from the state regulations, allowing slightly larger units of 1,000 sq.ft, as opposed to the 900 sq.ft in the state legislation, and requiring owner occupancy of one of the units. With some of the state rules still unclear, the Planning Board decided to maintain the local bylaw in parallel with the state one to give developers a choice as to which version they want to follow.
The state law also specifies that the town can’t regulate dimensional standards of the lot coverage any more than for a single-family home, but it can require submission of a parking management plan and compliance with the rental registration bylaw. Town Planner Nate Malloy said, “The state wants ADUs to happen. Some pieces of the regulations still need to be interpreted, but to me, it’s basically saying, ‘Just give the ADU a building permit. Don’t waste your time trying to regulate it with all these other standards.’”
Members of the Planning Board’s housing subcommittee, however, noted that the purpose of the ADU regulations is to provide housing for permanent residents and that short-term rentals are not allowed. Municipalities with many short-term rentals that are driving out permanent residents, such as Provincetown, Martha’s Vineyard, and Nantucket, received special exemptions from certain provisions of the regulations. Jesse Mager, representing the subcommittee, felt that Amherst should also ask for a provision that both the ADU and principal structure can not be student homes. He said, “I don’t think the legislation was trying to create student housing. The subcommittee worried about the effect on neighborhoods of greatly increasing student housing.”
However, Planning Board Chair Doug Marshall wondered if there were enough non-students to occupy the second dwelling units, and that Mager’s stipulation would disincentivize ADUs. Bruce Coldham felt that the ADU provision represents an opportunity for small builders to avoid going through a complicated regulatory process to construct a dwelling unit. Malloy indicated that about a half dozen property managers have already inquired about the new rules.
As of now, there are two application forms on the town website: one for the existing bylaw and one incorporating the new rules. Malloy suggested including a preamble to the new bylaw, saying that it is supplemental to the state law.
The Planning Board agreed to petition the state to limit student housing in ADUs. Marshall asked the Planning Department to draft a document “with reasonable conditions” for ADUs to submit to the state.
Overlay Zone Considered to Increase Housing in North Amherst
The housing subcommittee is beginning a discussion about increasing housing density in North Amherst, possibly by creating an overlay zone to allow expansion of existing apartment complexes or using the 40R zoning, which has a requirement for affordable units but is a flexible development tool. Johann Neumann supported increasing the density of existing apartment complexes to “keep student housing where the student housing is.” Coldham agreed, noting that this area is “definitely not downtown,” so design standards are not as important. Fewer regulations could encourage more development.
Marshall wanted to make sure the water and sewer infrastructure was adequate for a greater number of residents, but Mager said, “I wasn’t thinking of big requirements. I was thinking, wouldn’t it be nice if we’re adding 5 to 600 people to the area?’” The subcommittee had not discussed whether the additional units should be apartments or mixed-use buildings closer to the town center. The topic will be discussed at future meetings.
Mager is presenting the work of the subcommittee at Thursday, February 13 meeting of the Amherst Municipal Affordable Housing Trust.
ADUs have long been permitted in Amherst, and I’ve never seen one in an Amherst back yard (not that I know everybody). The economics don’t seem to work, for an owner occupier of a single family home to build an ADU, as there is a 7-8 year payback, even if they collect $1000 per each of 4 students, crammed into 1000 square feet. (see math, below)
Also, if Nantucket, Provincetown, and Martha’s Vinyard can get exemptions, because of their particular kinds of towns, why can’t Amherst, that is a particular kind of town (the only Mass town with a flagship state university).
The Planning Board needs to stop thinking along the lines of “fewer regulations could encourage more development” and insist on the regulations our town needs to not be in an uncontrolled chaotic state, letting the “marketplace” decide. Iconic economist Adam Smith, promoted the idea that an “invisible hand” of our collective wisdom would steer us towards the good, even accounting for greed. But he also believed in strong property rights, which the Amherst Planning Board and Planning Department is not as dedicated to.
Also, is there any consideration of how much housing will be needed in our college town as college enrollment continues to decline, a la the “demographic cliff” that is widely predicted, including by UMass President Marty Meehan. (25-35% of colleges are expected to close, merge, or undergo major restructuring in the next 15-20 years).
If we “begin with the end in mind” (Stephen Covey) we need to plan for the future state, not the current taste for get rich quick student housing. Who will live in those dwellings, if what trends are indicating will come to pass?
here’s some AI figuring of ADU costs and ROI on that investment:
An ADU in Amherst, MA would likely cost between $180,000 to $360,000 for a new detached construction that could accommodate 4 students. The cost breakdown includes:
Key Cost Components
Construction costs: $200-400 per square foot1
Site preparation and foundation: $10,000-50,000
Utility connections: $10,000-30,000
Permitting and design fees: $6,000-25,000
Interior finishes and appliances: $20,000-100,000
Return on Investment Analysis
With potential rental income of $48,000 per year from 4 students at $1,000 each per month, here’s the ROI calculation:
Annual Income: $48,000
Annual Expenses (estimated):
Property taxes
Insurance
Maintenance
Utilities
Property management
Assuming 30% of rental income goes to expenses ($14,400), the net annual income would be approximately $33,600.
For a $250,000 ADU investment (middle range), the simple ROI would be about 13.4% annually, meaning the investment could be recouped in approximately 7-8 years.
Important Considerations:
Local zoning laws may restrict student rentals
Higher wear and tear with student tenants may increase maintenance costs
Vacancy periods during summer months could reduce annual income
Construction costs in Massachusetts are currently trending upward4
I often hear this comment, as it relates to student housing builds. “ Building on University Drive , will take the pressure off neighborhoods “
Guess what , those neighborhoods are never coming back to what they were .
Building more, will have no effect on the neighborhoods .
Saying that it is an uncontrollable chaotic state, is pure speculation. The reality is that with a few zoning laws, the peace will be kept, things will look relatively normal, contrary to what the previous writer wrote, and there will be benefit for everybody. That payback period is pretty short. Adam Smith is one economist out of so many that they can’t be counted. We can try and control what our neighborhoods will look like but eventually the strong power of the dollar and commerce will have the final design. If I look at Hampden county, it looks like a pretty nice place to live, is a lot cheaper, and has a more diverse population. Also, the more diverse businesses give the consumer many more choices.
At this time, the Amherst ADU bylaw stipulates that an ADU can only have an occupancy of 3 persons. The State law does not name any occupancy cap.
I support the Planning Board Housing Sub-Committee interest in creating (and asking for state support of) the rule that students can occupy either the primary house or the ADU, but not both.
Two questions I have raised (without answers having been provided), can we maintain our occupancy cap of 3? Can we allow the 100SF ADU?