Massachusetts,
If they build it...State eyes zoning to lower costs for homes
businesstoday.com
by Jon Chesto
Sunday, May 11, 2003
In his 17 years in construction, Jeff Rhuda says he has seen housing starts decline as local regulations became tougher.
The result, says the acquisition manager for home builder Symes Associates Inc. in Beverly, is higher prices.
With state and federal budgets facing shortfalls, for-profit developers such as Rhuda will play a key role in many of Gov. Mitt Romney's plans to address what some say has become a full-fledged crisis: the state's dearth of affordable housing.
``It used to be that you just had to save for (your children to go to) college,'' Rhuda said. ``I don't want my kids moving out of state (but) at this rate, you've got to save for a down payment so your kids can afford to stay here.''
Romney plunged into the affordable housing debate soon after taking office in January, backing changes that would spur private sector development of homes.
Some would be targeted to sell for less than market rates, but many others would be in market rate developments.
By adding to the housing supply, the governor hopes to slow the red-hot price hikes in residential real estate.
The goal is to double the number of annual housing permits from the nearly 16,000 issued last year.
Romney set up a task force to recommend changes to the state's anti-snob zoning law, known as Chapter 40B, to make it more palatable to towns without curbing housing construction.
He recently proposed carving out a $50 million pot from local aid accounts to reward towns where housing is built starting in July 2004, assuming the Legislature approves his idea.
Romney is also trying to take steps to streamline the way surplus state-owned properties, such as shuttered hospitals, are sold to developers.
It's far too soon to tell what kind of impact the governor's plans will have. But some, including Rhuda, are already impressed. ``They're certainly taking action like they're serious,'' said Rhuda, who sits on Romney's Chapter 40B group.
Romney tackles the issue at a critical time for the state's economy, which has yet to pull away from a recession that started in 2001. While the Bay State is considered to be an expensive place to do business, its highly trained work force is one of its biggest assets. Economists and business leaders worry about the state's talented employees leaving if they can't afford to live here.
``There will be this invisible crisis of businesses moving or not expanding or not setting up (here) in the first place,'' said Charles Euchner, executive director of the Rappaport Institute for Greater Boston at Harvard University.
Romney isn't the only state leader trying to fix the problem. Lawmakers are weighing a number of bills that could help. They include a plan to offer tax incentives to housing projects in downtown areas and a bill that would only allow state aid from the Community Preservation Act to towns that adopt certain housing-friendly measures.
But Benjamin Fierro, a lawyer for the Home Builders Association of Massachusetts, said the number of pro-housing bills pales in comparison to the waves of bills - about 70 - filed to alter Chapter 40B, most aimed at making it harder to build.
Local leaders say the law, which allows developers to bypass zoning limits in most communities if parts of their projects are devoted to affordable housing, gives builders too much power to sidestep community needs.
But Fierro said local zoning, in many places, has become so restrictive that a tool such as Chapter 40B is necessary to get affordable housing built.
Rhuda noted that the state's new building permits, as a portion of the nation's, has steadily declined from a peak of 2.6 percent in 1987 to just under 1 percent last year.
``It isn't any one community, it's a cumulative effect of these communities that just kills housing,'' Rhuda said.
Geoff Beckwith, executive director of the MassachusettsMunicipal Association, said local zoning plays an important role in maintaining the state's character and stemming suburban sprawl.
Beckwith said he fears developers will use the current crisis as an excuse to persuade state leaders to weaken zoning rules. If that happens, workers may leave the state because the quality of life here could suffer, he said.
``If you knock down the barriers to housing, sprawl will become an even greater problem,'' Beckwith said. ``We don't look like parts of New Jersey. As a result, we have a delicate balance between enlarging the housing stock and . . . not becoming `Sprawl City, USA.' ''
Romney's task force, which includes people with a range of opinions on the issue, has been busy trying to strike that balance.
Rep. Harriett Stanley (D-West Newbury), one of the Legislature's top critics of Chapter 40B, said she's hopeful a solid compromise will be reached this month.
``Communities need to realize that they have an obligation to affordable housing . . . whether they are rich or poor, suburban or rural,'' she said. ``(But) the way to reach that goal is not something Boston should dictate. It's something the towns should determine on their own.''
Tom Callahan, executive director of the Massachusetts Affordable Housing Alliance, said he's ``mildly optimistic'' that some of the barriers to affordable housing will fall this year. ``We need to make so much progress that even if we make mild or partial progress this year, it's only going to be a drop in the bucket,'' he said.
Jane Wallis Gumble, Romney's director of housing and community development, recognizes the challenge in doubling the rate of home construction in the state.
``Do I think it's impossible?'' Gumble said. ``No. But it will take a lot of hard work. . . . I think people recognize the absolute need to increase the supply of housing in Massachusetts.'' |
