Changes would have throttled affordable housing

The Massachusetts Senate recently rejected an effort by State Senator Robert L. Hedlund to undermine the effectiveness of Chapter 40B by making it unprofitable for builders to use the law to develop affordable housing.  Hedlund, a vocal critic of the law and a past supporter of an initiative petition to repeal it, made his attack on 40B as the Senate was approving a $1.355 billion housing bond bill.

The Weymouth republican first offered an amendment that would have allowed a municipal board of appeals to deny any application for a comprehensive permit where less than thirty-three percent of the units in a rental development or fifty percent of the units in a homeownership development, were affordable to persons of low and moderate-income.   An applicant would not be able to appeal a denial under such circumstances to the Housing Appeals Committee.

Existing 40B regulations require no more than twenty-five percent of the units in a development be affordable to persons of low or moderate-income.  They also do not distinguish between rental and homeownership units relative to the number of affordable units that have to be provided.

During the debate, Senator Hedlund argued that Chapter 40B hasn’t done a good enough job in producing affordable housing.  He claimed that by increasing the minimum number of affordable units required in each 40B development, the total number of affordable housing units created throughout the commonwealth would increase.

Senators Susan C. Tucker and Brian A. Joyce both opposed the amendment.  They explained that increasing the percentage of units that have to be sold to persons of low and moderate-income would have the effect of making it financially unfeasible for a builder to develop housing using Chapter 40B.  Senator Tucker said that a 40B project must have enough market-rate units to produce sufficient profit to subsidize the affordable units.  Senator Joyce said that due to market conditions many 40B developments are currently unprofitable and that increasing the required number of affordable units would only exacerbate the problem.

The Senate rejected the amendment by a vote of 7 in favor and 32 against (see accompanying roll call).

Senator Hedlund also offered an amendment that would have reduced the allowable profit from a 40B development from a maximum of twenty percent to ten percent.  Senator Hedlund cited the work of the State Inspector General for his contention that some builders were making excessive profits from Chapter 40B.  This amendment would have had the effect of discouraging builders from using the law to develop affordable housing.
The Senate rejected the amendment on a voice vote.  In apparent recognition of the strong support in the Senate for Chapter 40B, Senator Hedlund did not seek a roll call vote.

Chapter 40B has been the primary tool for producing and preserving affordable housing, especially multifamily housing, in Massachusetts for almost forty years.  Due to large lot zoning and other local regulatory barriers, it has increasingly become the only means by which builders can develop market-rate homeownership units in many communities.

SENATE ROLL CALL VOTE ON CHAPTER 40B

(Hedlund amendment relative to percentage of affordable units)
March 27, 2008
 

Yeah (7)

Scott P. Brown (R-Wrentham)
Robert L. Hedlund (R-Weymouth)
Michael R. Knapik (R-Westfield)
Richard T. Moore (D-Uxbridge)
Bruce E. Tarr (R-Gloucester)
Richard R. Tisei (R-Wakefield)
James E. Timilty (D-Walpole)

Neah (32)

Robert A. Antonioni (D-Leominster)
Edward M. Augustus Jr. (D-Worcester)
Steven A. Baddour (D-Methuen)
Frederick E. Berry (D-Peabody)
Stephen M. Brewer (D-Barre)
Stephen J. Buoniconti (D-West Springfield)
Gale Candaras (D-Springfield)
Harriette L. Chandler (D-Worcester)
Robert S. Creedon Jr. (D-Brockton)
Cynthia S. Creem (D-Newton)
Benjamin B. Downing (D-Pittsfield)
Susan C. Fargo (D-Lincoln)
Anthony D. Gallucccio (D-Cambridge)
John A. Hart Jr. (D-Boston)
Patricia Jehlen (D-Somerville)
Brian A. Joyce (D-Milton)
James J. Marzilli Jr. (D-Arlington)
Thomas M. McGee (D-Lynn)
Joan M. Menard (D-Fall River)
Mark C. Montigny (D-New Bedford)
Michel W, Morrissey (D-Quincy)
Robert A. O’Leary (D-Barnstable)
Marc R. Pacheco (D-Taunton)
Steven C. Panagiotakos (D-Lowell)
Anthony Petruccelli (D-East Boston)
Pamela P. Resor (D-Acton)
Stanley C. Rosenberg (D-Amherst)
Karen E. Spilka (D-Ashland)
Steven A. Tolman (D-Brighton)
Susan C. Tucker (D-Andover)
Marian Walsh (D-West Roxbury)
Dianne Wilkerson (D-Boston)

N.B. The Senate President does not customarily vote unless there is a tie.