Public Hearing: ADU's and Inclusionary Zoning
On Monday evening, the City Council and Planning Board will hold a joint Public Hearing to discuss some new zoning changes: Accessory Dwelling Units (ADU’s) and Incentives for Affordability, and Inclusionary Zoning. The meeting will begin at 7:00 PM, and will be held on the Zoom online conferencing platform. For instructions on joining the meeting, see the agenda.
There is a lot here, and I don’t expect that the public hearing will be completed Monday night. There is a lot to discuss here, and a lot of details to understand.
Some are questioning whether the public hearing should happen given the fact that these are zoning changes and because of our current world situation, all meetings are held online and not in person. I would argue that the use of the Zoom conferencing platform makes this meeting even more inclusive, by allowing those who would not have been able to attend in person participate. This is our new normal, and we need to continue to adapt to the world we live in. Please be assured that this public hearing will not be rushed. We are aware that he community is learning how to participate in meetings. We all need to be patient with each other.
The ADU and Inclusionary Zoning Ordinance text is found here.
Accessory Dwelling Unit Ordinance
The ADU Ordinance is similar to the ordinance discussed last year, but includes two incentives for the creation of affordable units, which was a point of discussion last year, and ultimately led to the failure to pass the ordinance by one vote. Since this is a zoning ordinance, 2/3 of the City Council, or 8 members, must vote in favor of the ordinance.
Our current ADU ordinance is limited to use by family members or caregivers. Once the individual is no longer living there, the unit must be dismantled.
This new ADU ordinance was introduced to the council on February 13, 2020 and contained the signatures of 8 councilors in support of this new version.
Why are ADU’s an important housing tool? Because they encourage “gentle” housing growth. It encourages an efficient use of the city’s housing supply while preserving the character. It will add some new rental units to the housing stock, creating more diverse housing options in the city. It maximizes privacy, dignity, and independent living among family members.
(1) Accessory Unit per single lot; no more than 2 bedrooms. An ADU is a housekeeping unit, with its own sleeping, cooking, and sanitary facilities, separated from the principal dwelling and subordinate in size to the principal unit.
There must be 1 dedicated off-street parking space for the unit, unless a waiver is granted.
The ADU shall not be larger than 800 square feet, unless a waiver is given, in which case, it cannot exceed 1000 square feet. The ADU cannot be smaller than 350 square feet.
An ADU is allowed in buildings with 4 or fewer units.
The ADU must remain in common or single ownership, meaning the ADU cannot become a condo. The ADU cannot become a short term rental.
The owner must live on the property, either in the principal dwelling or the ADU.
There cannot be separate utilities for electric, water or gas.
Entry must be through an existing entry or the back or side of the main dwelling.
Egress access must be located on the side or rear , with visibility to the public minimized.
The ADU must be capable of being discontinued as a separate dwelling unit without demolition of any structural components of the principal dwelling.
Unattached ADU’s shall comply with all setbacks of the principal structure. Accessory structures, garages and unattached ADU’s shall not exceed 1.5 stories of 18 feet in height.
There can be no net loss of caliper of private trees on the lot unless waived.
The Building Inspector must issue a certificate of occupancy before any occupancy of the unit.
Waivers can be requested for only 3 things: parking, tree loss, and ADU size greater than 800 square feet, to a maximum of 1000 square feet.
Property Tax Exemption Incentives:
If the homeowner offers their ADU at an affordable rent, they may become eligible to receive a property tax exemption. To be eligible, the tenant must not earn more than 60% of the Area Median Income, based on the US Department of Housing and Urban Development, which in 2019 was:
1 Person: $49,800
2 People: $56,880
3 People: $64,020
In addition, the homeowner cannot charge rent, including utilities, that exceeds the following per month:
1 Person: $1245
2 People: $1333
3 People: $1600
The Property Tax Exemption would be through a special act of the state legislature. The amount of the exemption is based on the square footage of the ADU in relation to the square footage of the building structures on the property. The homeowner would need to apply every year for an exemption, and include a 1-year lease with tenant financial information and proof of rent charged.
ADU Loan Program
The allows a homeowner to apply for an ADU loan from the City of Salem to construct a compliant ADU. To qualify, the tenant income and maximum rental amounts are the same as for the Real Estate Tax Exemption above.
Inclusionary Housing (or Inclusionary Zoning)
This ordinance is intended to expand housing stock in Salem, especially its Affordable Housing Units. It will leverage market-rate housing production towards the production of Affordable Units.
The Inclusionary Housing ordinance applies to any subdivision or development, whether new construction, conversion, adaptive reuse or expansion of an existing structure, involving the creation of 6 or more units. It applies to all residential dwelling types with the exception of assisted living residences, nursing or convalescent homes, and other similar uses.
This ordinance requires, as a condition of development, the creation of 10% of units affordable to households with incomes at or below 60% of the Area Median Income (AMI). AMI is determined by the US Department of Housing and Urban Development. Nothing precludes the developer from creating more affordable units or more deeply affordable units.
In the case of fractional units, the developer may choose to round up to the next whole number or convert the fraction into a payment to the Salem Affordable Housing Trust Fund. So, if the building contains 12 units, 10% would be 1.2 units of affordability. The developer could choose to create 2 units or 1 unit and pay and equivalent of .2 unit into the Affordable Housing Trust Fund, based on construction cost.
In return for increasing the city’s affordable housing stock at a much more deeply affordable amount, the development may incorporate a density bonus or parking reduction. The density bonus will allow an increase of 25% of the total number of units that would normally be permitted in the applicable zoning district. The Affordable Housing requirements are calculated on the total number of new units, including the units created through the density bonus.
The second incentive is to reduce the required parking spaces, which is guided by distance from the development to the commuter rail station. If within a half mile, parking may be reduced to 1 space per unit. Outside of the half mile radius, reduction to 1 space per unit is allowed if Transportation Demand Management practices are incorporated, which are meant to reduce the demand for parking through the use of shared parking, use of off-site parking, payment of a stipend to residents without cars, providing guaranteed emergency ride home, providing transit pass subsidies, providing covered bicycle parking and storage, providing bicycle or car sharing on site, and other acceptable means.
The B5 (central development or downtown) area does not qualify for these incentives (density bonus and parking reduction). If it can be proven that the project is not feasible financially because of these Inclusionary Housing requirements, the project may request tiered affordability, which is discussed in detail in the ordinance.
The ordinance details the selection process for residents of the affordable units (through a lottery), as well as the rules governing the materials and appliances used in the affordable units.
