HUD Publishes FY2023 Fair Market Rents

On September 1, the U.S. Department of Housing and Urban Development (HUD) published Fair Market Rents (FMRs) for FY2023. Published annually, FMRs are an estimate of the amount of money that would cover gross rents (rent and utilities) on 40% of the rental housing in a regional area.

In Massachusetts, FMRs are used to set the rent levels that rental vouchers can be used for, including vouchers from the Housing Choice Voucher Program (Section 8), Massachusetts Rental Voucher Program, and the Alternative Housing Voucher Program.

According to HUD, the new FMR levels will enable the voucher program to keep up with rent increases in the private market. These new FMRs will allow voucher holders to access and secure leases in more units so that they can benefit from the housing affordability and stability that vouchers provide.

In Boston, for example the FY2023 FMR for a two-bedroom home is $2,635.  That is an increase from the FY2022 FMR of $2,399 in FY2022.

The new FMRs will go into effect on October 1.

CHAPA Statement on Final MBTA Community Guidelines

CHAPA is pleased to see that the final MBTA multi-family zoning guidelines issued by the Baker Administration put the Commonwealth on the path to achieving our state’s housing goals. This is the most significant change to zoning in more than 40 years and will make it possible to create the homes people need, support local businesses, reduce car dependency, and help stabilize rents and home prices that have been rising faster than people’s incomes.

The final MBTA multifamily zoning guidance gives the green light for communities to get started on the critical work of establishing areas where multifamily homes will be allowed as of right, rather than the current extensive processes for zoning approvals and special permits that can make it impossible to create the homes we need. The guidelines thoughtfully address questions that arose after the initial draft was released while continuing to hold our communities to meet specific targets for homes that must be allowed. In addition, multiple forms of technical assistance will be available to help communities adopt zoning that complies with the law and enable communities to use this opportunity to advance local goals around affordability, sustainability, economic development, fair housing, and inclusion.

The guidance clarifies that communities can require affordability through local inclusionary zoning policies or through the state’s smart growth law, Chapter 40R. We encourage all communities to adopt 40R districts. By doing so, we will see more affordable homes created as part of future development and communities will receive financial benefits for establishing zoning and issuing building permits. This incentivizes new homes to be created in these areas.

Ultimately, we cannot build what is not allowed. Zoning is the tool our communities use to determine what can and cannot be built, translating into who has or does not have the opportunity to live there. Zoning is historically rooted in segregation and shaped by redlining, and the effects last for generations. By zoning for multifamily housing that creates opportunities for people across income levels, we are setting our intentions for the future. We are taking a critical step to replace exclusionary zoning with zoning that allows us to have the future we deserve – a future where everyone can thrive.

Baker Administration Releases Final Guidelines for MBTA Communities

Slides with Overview of Final Guidelines for MBTA Communities

On August 10, the Baker-Polito Administration issued final guidelines to determine compliance with the new requirement for every MBTA community to have at least one zoning district in which multifamily housing is allowed as of right and located near a transit station, if applicable.

After issuing draft guidelines on December 15, 2021, the Administration held a public comment period until March 31, 2022. According to the Department of Housing and Community Development (DHCD), they received nearly 400 comments after more than 24 public engagement sessions.

In a letter from Housing and Economic Development Secretary Mike Kennealy and DHCD Undersecretary Jennifer Maddox, the final guidelines incorporate several changes:

Revised Community Categories: MBTA Communities are now categorized as rapid transit, commuter rail, adjacent, or adjacent small town. The “bus service” category has been eliminated.

Significant Adjustments for Small and Rural Towns with No Transit Stations: The final guidelines eliminate the minimum land area requirement and reduce the multi-family unit capacity requirement for communities with a population of less than 7,000 or less than 500 residents per square mile.

Changes to the Reasonable Size Criteria: The guidelines establish “circuit breakers” that prevent multi-family unit capacity from exceeding 25% of a community’s existing housing stock, or the minimum land from exceeding 1.5% of its total developable land area.

Tailored District Location Requirements: The portion of a multi-family zoning district that must be located within a half mile of a transit station now varies based on the amount of developable station area within each MBTA community. Communities with more developable station area land will be required to have more of their multi-family districts within a half mile of transit stations. A community with less than 100 developable acres within a half mile of a station will be free to choose any appropriate location.

Multi-family Unit Capacity Tool: To help communities calculate multi-family unit capacity in a consistent, transparent, and data-driven way, we built a compliance model workbook tool. The compliance model will provide a GIS land map for each municipality and calculate a zoning district’s multi-family unit capacity and gross density based on inputs provided by each community. This tool will be widely available for use in the fall.

The final guidelines also include refinements and adjustments in other key areas, such as affordability, local site plan review, and other technical matters, including updated definitions.

Please visit mass.gov/mbtacommunities for the guidelines and other relevant information, including forms pertaining to the compliance process. The website also includes an online form for technical assistance requests.

DHCD will host a webinar on the guidelines on September 8, 2022 at 1:00pm. Webinar Registration.

CHAPA will post more information on the final guidelines after finishing a thorough review. Please check back on our website soon.

Governor Signs Climate Bill with Pilot to Ban Fossil Fuels

On August 10, Governor Baker signed a clean energy and climate bill (H.5060) which includes a pilot program to allow ten cities and towns to restrict or prohibit the use of fossil fuels in most construction or major renovation projects. Governor Baker expressed concern that the pilot program could slow housing production. It is not clear which ten communities will be selected to participate in the pilot but Boston has already expressed interest passing a fossil fuel ban.

The fossil fuel ban would apply to research laboratories for scientific of medial research or to hospitals or other health care facilities.

A community must have local approval to participate in the pilot. Eligible communities must have:

  • Met the 10% threshold on the subsidized housing inventory under Chapter 40B; or
  • Has approved a zoning ordinance or by-law that provides for at least 1 district of reasonable size in which multi-family housing is permitted as of right.

The pilot would be overseen by the Department of Energy Resources, who could promulgate regulations to implement the pilot.

SLIDES WITH OVERVIEW OF FOSSIL FUEL BAN DEMONSTRATION PROJECT

 

DHCD Issues Guidance for MRVP Payment Standards

On August 9, the Department of Housing and Community Development (DHCD) issued new guidance for the Massachusetts Rental Voucher Program (MRVP), as required in the FY23 MRVP Budget Line Item passed in July. DHCD is implementing new calculation methods for both Mobile and Project Based Voucher Tenant Rent Shares for MRVP.

According to DHCD, DHCD is moving MRVP from a model with maximum rents and a Voucher Value to a payment standard model, similar to the federal Housing Choice Voucher Program (Section 8). A utility allowance will also replace the current heat deduction. DHCD believes this switch will allow MRVP Participants additional choice when searching for housing with their voucher, while also lowering the percentage of net income a vast majority of Participants pay in rent to Owners.

For Project Based Vouchers, DHCD is lowering Tenant Rent Share to 30% of net income and adding a utility allowance.

According to DHCD, all changes to the calculation of tenant rent share will be effective the first time tenant rent share is re-calculated for any reason on or after January 1, 2023.

CHAPA advocated for these changes along with many of our partners in the FY2023 state budget. These new policies will strengthen and improve our state rental voucher program and will benefit the tens of thousands of residents with MRVP vouchers.