January 2025 Newsletter
What would it take to build 100% affordable housing in Newton?
Newton for Everyone recently hosted an event with Newton native Jason Korb, a for-profit developer who is mission-driven to create exceptional affordable housing projects. Utilizing multiple resources, his projects provide badly needed homes with high levels of deeply affordable units.
Congressman Jake Auchincloss kicked off the evening with opening remarks to the more than 200 people who attended the event in person or on Zoom.
“In my view housing and the cost of housing is the number one economic challenge facing Massachusetts.”
The high cost is “suffocating our economy here in the Bay State and it’s depriving people of the opportunity of retirement security and of the ability to allow opportunities to unfold in their lives and to make the most of their career along with their family.”
“…[W]e need to build more housing. We need to build more market rate housing. We need to build more affordable housing. We need more supply and the work that you’re doing helps us get closer to that goal.”
Korb showcased several of his projects demonstrating how these developments have revitalized communities while respecting the physical context and scale of their neighborhoods. He used his experience with these projects to point out key elements that helped make them successful.
Keys to success: What can a city or town do to encourage more affordable housing?
Korb stressed the delicate interplay of municipal support, community engagement, and financial feasibility. He stressed that striking a balance between these factors is crucial for navigating the complexities of affordable housing development.
Streamlined permitting processes. Clear requirements and limited timeframes help move a project forward.
Supportive zoning regulations. Among other options, zoning could allow a larger building if it meets an affordability threshold. Or, parking requirements could be lower if there is more affordable housing
More local funding. If more CPA funds were dedicated to housing, they could be used to leverage other funding sources and might incentivize more developers to work in Newton. Local funding is critical when applying for state and federal funding.
Support from municipal leaders. Local officials can help facilitate the process by advocating for projects and ensuring that state officials know of their support. Their support also signals to developers that the city will work with them to make sure a project gets built.
Proactive engagement of the community. Municipal leaders working with neighborhood groups can build early support and help to respond to community concerns while keeping the project financially viable
Identifying underutilized city or state property. Older buildings or parking lots could be suitable for redevelopment.
Allowing sufficient scale. Projects with 40 or more units on one site are more likely to be financially viable. Smaller projects struggle to attract necessary funding and resources, while mid-sized and larger developments benefit from economies of scale and operational efficiencies. Projects that include multiple locations to reach the scale required for funding are a lot more expensive and complicated.
Reduced permitting fees for more affordable units. Permitting fees can be hundreds of thousands of dollars. Some portion of these could be waived if the project has greater affordability restrictions.
Additional ingredients for success
Identifying and securing financing from many competitive sources
For just a single one of Korb’s projects, 19 different sources of funds were needed. To make that project work he had to submit extensive applications showing that the project met all requirements for each of those highly competitive sources.
Closer to home, the West Newton Armory with 43 deed-restricted affordable units needed to put together 14 different funding sources. Beginning with the City identifying a developer, designing the project, going through the permitting process and securing funding, this project will take more than 5 years to be completed.
Securing low-income housing tax credits (LIHTC).
LIHTCs are one of the primary ways to finance projects with a higher percentage of deed-restricted affordable units. Korb noted approvingly that utilizing these tax credits requires a 15-year ownership commitment, encouraging developers to improve construction quality, long term maintenance, and tenant relations. This all helps ensure the long-term viability and sustainability of affordable housing projects.
The 40B process gives affordable housing development a clearer process and timeline.
M.G.L. Chapter 40B is a state statute that says that if 20-25% of the units in a project have permanent affordability restrictions, they can be reviewed by a zoning board of appeals within a process clearly defined by state law. The process allows for projects which are larger than what may be allowed by local zoning.
Korb prefers this process because of its clear requirements and more predictable timing. It can be used for affordable housing both before and after a municipality meets the goal of 10% of the homes being affordable. It also levels the playing field as all developers, both non-profit and for-profit, are subject to the same percentage profit cap.
Korb is a passionate advocate for affordable housing, emphasizing its essential role in creating diverse, inclusive communities. He believes that everyone, regardless of income level, deserves access to safe, quality affordable housing. And his work exemplifies his commitment to this mission.
Event recording: What would it take to build 100% affordable housing in Newton?
Download a copy of Jason Korbs's presentation
ADUs – An Option for Everyone
Newton for Everyone sees accessory dwelling units (ADUs) as one important way to add diverse housing options that can help families in Newton. As of February 2, Massachusetts state law requires ADUs to be allowed by-right across the state.
The Zoning and Planning Committee (ZAP) is working to align Newton’s ADU ordinance with state law. At the ZAP meeting on Monday, 1/27, the committee will also look at amendments to the ADU ordinance that would help make ADUs a good option for creating naturally affordable housing.
This moment offers a chance to improve our ADU ordinance to better serve Newton residents. (Newton for Everyone testimony submitted to Council)
A public hearing on ADUs is scheduled for February 24, 2025.
Newton for Everyone will be holding an event: “Can You Have an Accessory Dwelling Unit?” What are your options? See ideas for both ADUs that are attached to your home and ones that are separate buildings. Stayed tuned for more information.
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Newton for Everyone is dedicated to promoting housing opportunities for people of all ages, means, backgrounds and abilities in Newton. The housing shortage affects all of us. We believe that diverse housing options are crucial to fostering a thriving community, a sustainable environment and a robust economy.