FREE MARKET AFFORDABLE RENT
A Model Zoning Bylaw Alternative to Rent Control
for Massachusetts Towns
Thought Leadership by the New England Legal Foundation
Boston, Massachusetts
July 2024
Executive Summary
Excessive land use regulations add costs, uncertainty, and delays in housing construction that drive up the cost of housing for purchase or rent. In response to this self-inflicted injury, Massachusetts previously allowed communities to impose government-mandated rent control which caused owners to shift units away from the rental market, among other harmful effects. Massachusetts’ experience with rent control was so negative that voters repealed it in 1994. While some state politicians admit that rent control is not a solution to our state’s housing crisis, local authorities once again are urging the Legislature to authorize government control of rental prices.
There is an alternative to government-mandated rental price controls. By removing excessive local regulations, increasing certainty and reducing timing of local permit approvals, and accelerating the process from proposal to construction, Massachusetts towns can create massive market-based incentives for landowners and developers to increase the supply of attainable rental units.
Implementation of model Free Market Affordable Rent zoning could have a widespread impact in Massachusetts. Nearly two-thirds of Massachusetts’ 351 communities are organized as towns where the local legislative branch is the Town Meeting. 260 Massachusetts towns have Open Town Meeting, where any registered voter can participate in direct democracy as a citizen legislator. 32 Massachusetts towns have Representative Town Meeting, where citizens are represented by locally elected Town Meeting Members. Both forms of Town Meeting create an opportunity for interested citizens to use this model as a guide to prepare proposed zoning bylaw amendments by petition at the local level.
The model consists of several components:
- The model creates a definition of “Free Market Affordable Rent” use in the zoning bylaw that incorporates a deed restriction which limits the monthly rent that can be charged per bedroom to a price that is affordable (consisting of no more than 30% of gross income) based on the Annual Median Income as published and most recently updated by HUD.
- Overlay Zone. Rather than weaving the model Free Market Affordable Rent zoning reform into existing zoning bylaws, the model creates a stand-alone overlay zone that carves out Free Market Affordable Rent development from all other existing zoning regulations. The overlay district will allow towns to specify which of their zoning districts they wish to allow Free Market Affordable Rent as a matter of right along with inclusion of such housing as a mixed use above the ground floor in business or commercial districts. The overlay significantly removes existing zoning restrictions regarding lot size and configuration, frontage, setbacks, height, coverage, and other dimensional restrictions.
- Compliance. The Free Market Affordable Rent model is self-policing as a zoning bylaw with information published and provided to tenants in such housing by the local housing boards and enforced by the Zoning Enforcement Officer.
- Process. For towns that are reluctant to allow Free Market Affordable Rent use as a matter of right, the model includes a general administrative provision that will accelerate any required local approval process by requiring the applicant’s consent to continue any public hearing and causing any application that is not denied within 60 days after completion of the public hearing to be deemed approved.
Read the full paper here: FREE-MARKET-AFFORDABLE-RENT-Final-072024