Housing Trust Recommends Taking Donation in Lieu of Constructing Affordable Units Downtown

Report on the Meeting of the Amherst Municipal Affordable Housing Trust, March 14, 2024

This meeting was held over Zoom and was recorded. It can be viewed here.

Present
Carol Lewis and Erica Piedade (Co-chairs), Allegra Clark, Rob Crowner, Gaston de los Reyes, Grover Wehman-Brown; and Paul Bockelman (Town Manager, ex-officio)

Staff: Nate Malloy (Senior Planner), Greg Richane (Housing Coordinator)

Accepting Payment in Lieu of Affordable Units in Downtown Development
Former Business Improvement District Director Gabrielle Gould, now representing developer Barry Roberts, presented Roberts’ plan to construct a five-story apartment building at 45-55 South Pleasant Street, behind the former Hastings Store. Hastings owners Mary Brohl and Sharon Povinelli are partnering with Roberts on the proposed project, which will create a 22-unit mixed-use building after demolishing the rear additions to Hastings and the wood frame building next door. Roberts would like to contribute $1.2 million to the housing trust instead of including three affordable units in the new development, as required by the Inclusionary Zoning Bylaw (article 15).

The Planning Board is evaluating the project for a permit, but asked the Housing Trust to advise it about the proposal to offer the payment in lieu of the affordable units. Planner Nate Malloy drafted a memo outlining the pros and cons of accepting the payment instead of the affordable units. He notes although the project is centrally located and is likely to be completed relatively quickly, taking the funds would allow the AMAHT to explore other ways of creating affordable housing outside of the strict rules that govern how money from the Community Preservation Act (CPA) is spent. All of the AMAHT money to date has come from CPA funds. 

Gould suggested that the $1.2 million could be used to provide up to four homeownership opportunities, which would help low-income residents build generational wealth. Although she  made the claim that 14 out of the 15 affordable units in the downtown area are currently vacant, Malloy pointed out that most of them are in very recently completed buildings that are just now being leased — 11-13 East Pleasant Street, Spring Street, and Central East Commons on Main Street. Gould did admit that all of the affordable units in Roberts’ other buildings are rented, because he has a staff member dedicated to verifying applications for those units to ensure they are occupied. Malloy said his department planned to look into the reasons for vacancies in the town’s affordable units. 

The amount of the proposed compensatory payment is based on four times 80% of the area mean income (AMI), which is $93,000, so Roberts would pay $375,000 per unit. Bockelman felt that payment was too low, noting that  the desirable location in the center of town would allow for car-free living. But Gould pointed out that a family with children would need a car to buy groceries because currently there is no supermarket within walking distance. She suggested that a house in a nearby neighborhood would be more suitable for a family.Carol Lewis noted that the design of units, with most of the space being bedrooms and very little common space, seemed more geared to college students than anyone else. 

Gould said that other projects that Roberts is planning, such as at the site of the former Rafters on the corner of  University Drive and Amity Street, would have affordable units, but this project is too small and it would take about 21 years to recoup the cost of building the affordable units due to rents that are less than market rate.

Although the members of the Housing Trust were unanimous in wanting the Planning Board to approve the payment-in-lieu-of the affordable units, their views on what to do with that money varied. Grover Wehman-Brown wanted to increase the rental assistance for residents with very low incomes. Rob Crowner envisioned encouraging homeownership, by having the trust share in the cost of purchasing a home, so that it would be affordable to a moderate-income buyer. He noted that he was on the Planning Board during the development of the Inclusionary Zoning bylaw, and that much of the impetus for that bylaw was to preserve homeownership near the downtown in response to the construction of the large Archipelago buildings at Kendrick Place and One East Pleasant.

Gaston de los Reyes said that the trust is working on its strategic plan that should set priorities as to the best use of funds between creating affordable rentals and homeownership. He noted that this money could be important seed money for other projects. 

Bockelman said he liked the idea of giving the trust more money to work with, but that the town’s job was to get the best value, and he felt strongly that the reimbursement formula in the bylaw no longer works, especially for downtown property. Malloy noted that the decision on this project is not precedent setting. Any other developer who wanted to buy out of providing affordable units would also need to apply to the Planning Board for a special permit. 

Malloy drafted a memo on the Housing Trust discussion for the Planning Board to consider in its review of the project. The Planning Board was to have discussed the project again on March 20, but delayed the review until April 3. 

Way Finders Mixed-income Apartments at the East Street School and Belchertown Progressing
Way Finders gave a presentation on the 78 mixed-income units planned for the East Street School site and Belchertown Road. About 10 residents attended. Information on the project can be found on the Way Finders website. Way Finders will begin its application to the Zoning Board of Appeals for a comprehensive permit this spring. The project is expected to be completed by the fall of 2028.