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HomeMy WebLinkAbout2023-01-10 Select Board Packet Town of Reading Meeting Posting with Agenda This Agenda has been prepared in advance and represents a listing of topics that the chair reasonably anticipates will be discussed at the meeting. However the agenda does not necessarily include all matters which may be taken up at this meeting. Page | 1 2018-07-16 LAG Board - Committee - Commission - Council: Select Board Date: 2023-01-10 Time: 7:00 PM Building: Reading Town Hall Location: Select Board Meeting Room Address: 16 Lowell Street Agenda: Purpose: General Business Meeting Called By: Caitlin Nocella on behalf of Chair Mark Dockser Notices and agendas are to be posted 48 hours in advance of the meetings excluding Saturdays, Sundays and Legal Holidays. Please keep in mind the Town Clerk’s hours of operation and make necessary arrangements to be sure your posting is made in an adequate amount of time. A listing of topics that the chair reasonab ly anticipates will be discussed at the meeting must be on the agenda. All Meeting Postings must be submitted in typed format; handwritten notices will not be accepted. Topics of Discussion: This Meeting will be held in-person in the Select Board Meeting Room at Town Hall and remotely on Zoom. It will also be streamed live on RCTV as usual. Join Zoom Meeting https://us06web.zoom.us/j/89609287888 Meeting ID: 896 0928 7888 One tap mobile +16465189805,,89609287888# US (New York) +16465588656,,89609287888# US (New York) Dial by your location +1 646 518 9805 US (New York) +1 646 558 8656 US (New York) Meeting ID: 896 0928 7888 Find your local number: https://us06web.zoom.us/u/kdV2MtqxMF PAGE # 7:00 Overview of Meeting 7:05 Public Comment 7:15 SB Liaison and Town Manager Reports 7:20 Public Health Update 7:45 Presentation and Discussion on Housing Production Plan Town of Reading Meeting Posting with Agenda This Agenda has been prepared in advance and represents a listing of topics that the chair reasonably anticipates will be discussed at the meeting. However the agenda does not necessarily include all matters which may be taken up at this meeting. Page | 2 8:15 Discuss/ Vote to Terminate Inter-Municipal Agreement with Wakefield for POST Program effective 6/30/2023 8:30 Discussion on Town Manager Annual Review, including approval of documentation and process 8:45 Discussion on Affordable Housing Trust Fund Board and Start-Up Process 9:00 Preview FY2024 Budget 9:15 Discuss future agendas 9:30 Approve Meeting Minutes Office of the Town Manager 781-942-9043 16 Lowell Street townmanager@ci.reading.ma.us Reading, MA 01867 www.readingma.gov/town-manager To: Select Board From: Fidel A. Maltez Date: January 5, 2023 RE: Town Manager Memo for January 10th, 2023 Meeting Happy New Year Select Board! I cannot believe that I signed my contract to be Reading’s third Town Manager one-year ago. In the packet you will see my written self-assessment, highlighting our achievements this year, as well as some of our challenges. I remain extremely optimistic about our future and know that this year will be even better than the last! I wanted to report to the Select Board that Governor Baker, on his last day in office, signed the home rule petitions to extend the employment of our Assistant Fire Chief and the home rule petition for a 3 -year extension of our senior tax abatement program. This was done thanks to the incredible work and advocacy of our State Delegation. Please thank them for their incredible work at your convenience. We also received two major wins over the Holidays: we received a $500,000 from MassDOT to do sidewalks on Auburn Street and Parkview Road, and a $2,000,000 federal earmark to complete our work on the Maillet, Sommes, Morgan Resource Area. We will continue making earmarks and grants a priority, since they allow us complete critical projects without using Town resources. At our meeting, we will preview the FY2024 Town Operating Budget. We will be finalizing the budget numbers and budget report over the next few weeks and look forward to reviewing it with the Finance Committee ahead of April Town Meeting. FAM PUBLIC HEALTH UPDATE TOWN OF READING 1/10/2023 JANUARY S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 2023 Information obtained from Massachusetts Virtual Epidemiologic Network (MAVEN)2023 Information obtained from Massachusetts Bureau of infectious disease Infectious illness in RPS So far this year: 289 Reported COVID + student cases 75 Reported COVID + staff cases Also, student and staff absence due to influenza, influenza like illness, gastrointestinal illness, and respiratory syncytial virus. Many individuals not being tested, receiving supportive care at home for viral illnesses Increase in reported COVID and flu cases noted between Thanksgiving and Christmas. What are school illness guidelines? Children can return to school once they are fever free for 24 hours, without use of fever reducing medications such as tylenol or ibuprofen If they have not had vomiting or diarrhea in 24 hours If they have a bacterial infection such as strep throat and have been on antibiotics for at least 12 hours. On day 6 following + COVID test (see below) What are current DESE/DPH COVID guidelines? Antigen (rapid home test) positive does not need PCR followup 5-day isolation from start of symptoms or positive test Must be fever free for 24 hours and symptoms resolved to return on day #6 Must wear a mask around others day #6-10 unless test negative. Students who are close contacts may stay in school if asymptomatic and test negative, but should mask around others for 10 days from exposure. Symptomatic students may stay in school if test negative, should mask if able until symptoms resolve What data do we follow? As home kits are more prevalent, and fewer tests are reported to the state, how do we track increases in COVID-19 prevalence? •Number of cases reported to nurses or diagnosed through school testing •Community rates, hospitalizations and deaths according to DPH and CDC •Wastewater COVID tracking through MWRA…has reflected upticks in our case numbers How do we follow influenza? •Flu view influenza tracking •Number of cases reported in MAVEN, as well as school nurses What resources do we have in place? Large supply in stock of masks available to all staff and families Testing supplies: at home test kits and Binax tests, do not expire until end of January. Staffing: have added District Nurse, as well as sub nurses to support our school nurses, Monthly Vaccination clinics: school based in collaboration with Reading Public Health, VaccinateRx. By the numbers: vaccinations NUMBER of VACCINE DOSES given at school based clinics since July: (open to families, staff and community)Total vaccines:1045 Preschool COVID (3&4 year olds): 58 Pfizer aged 5-12 COVID: 37 Pfizer/Moderna COVID Primary 12+: 20 Bivalent COVID booster 5-11: 50 Bivalent COVID Booster 12 & up: 412 Flu age 3-64: 419 65+ Flu:49 What to expect for the rest of 22-23 school year We now know to expect the unexpected! Things to consider: How will we continue to respond to new variants? Will there be another winter COVID surge? How will the flu season effect COVID? Will COVID become endemic? Still present, perhaps more predictable? What will be the new CDC/public health guidance? Recommendations In addition to basic health and hygiene practices, like handwashing and respiratory etiquette, CDC recommends: Staying Up to Date with COVID-19 & Flu Vaccines Improving Ventilation Getting Tested, If Needed Following Recommendations for What to Do If You Have Been Exposed Staying Home If You Have Suspected or Confirmed Influenza Like Illness (ILI) Seeking Treatment If You Have COVID-19 and have symptoms Avoiding Contact with People Who Have Suspected or Confirmed cases Wearing a mask in public settings or when the COVID-19 Community Level is high, if you are at a high risk for severe illness Vaccine clinics will be hosted at least once a month through Vaccinate RX. Additional clinic will be hosted on January 20th QUESTIONS Town of Reading Housing Production Plan Public Forum January 9, 2023 WELCOME! Opening Remarks & Acknowledgments Agenda and Objectives 1.What is a Housing Production Plan 2.Where are we in the process 3.Survey Results 4.SHI additions since 2018 plan 4. Closing Remarks + Next Steps What is a Housing Production Plan An HPP is a community’s proactive strategy for planning and developing affordable housing. An HPP accomplishes the following for a municipality: 1)Creates a strategy to enable it to meet its affordable housing goals 2)Produces housing units in accordance with the HPP. 3)Each community in Massachusetts is required to meet a goal of 10% of all housing units to be dedicated as affordable to those earning 80% AMI or less 4)Allows community participation in planning for the future 5)Must be updated every 5 years 6)Reviewed and approved by DHCD An HPP serves as the community’s proactive strategy in determining the type and pace of housing growth. •Identifies housing needs in the community and identifies sites for development, the community will be providing guidance and direction for the types of development most responsive to local conditions; •The HPP can serve as the housing element of an overall comprehensive plan (“master plan”) and/or capital improvement plan that may be required as a companion to the HPP in order to attract the types of development and housing opportunities the community needs; and There are many advantages for a community to create an HPP. For example: Are there enough “starter homes” for those forming new households? Is there adequate workforce housing? What are the options in the community for empty nesters? How are the needs of the elderly being met? Are there options for residents with physical and mental disabilities? Are there options for both rental and home ownership? It provides an opportunity to understand current housing conditions and then to determine both the projected housing needs of both the current population and the growth/change in composition of the population (e.g. more families, more elders). SHI Units Developed Since 2018 Development Address Total # of Units SHI Affordable Units (80%)Ownership Rental Reading Village (The Metropolitan)31-41 Lincoln Street 68 17 (@ 80% AMI)X Schoolhouse Commons 172-180 Woburn Street 20 4 (@ 50% AMI)X Postmark Square (The Postmark)8 Sanborn Street 10 10 (@ 80% AMI)X Ace Flats 20-24 Gould Street 55 14 (@80% AMI)X Rise475 467 Main Street 31 8 (@ 80% AMI)X construction TBD Chute Street 29 8 (@ 80% AMI)X under construction/permitted Easton Lakeview 74 Rental 19 (@ 80% AMI)X under construction/permitted Easton Lakeview 12 Owner 3 (@ 80% AMI)X 3 ownership units should be added back to SHI, RNUF has been submitted under construction Johnson Woods Phase II 6 more ownership units to add when Cos issued X Comprehensive Housing Needs Assessment Development constraints & limitations Capacity for growth & Plan to mitigate development constraints Demographic and housing stock data & projections Affordable Housing Goals Numerical goal for annual housing production Assessment of types of housing needed Implementation Strategies Identification of specific sites for future development Identification of zoning and/or policy changes Public Forums October 24, 2022 –Hybrid session at Public Library November 29, 2022 –Zoom meeting January 9, 2023 –CPDC Meeting – Hybrid Forums are recorded and are available on the Town’s website January 10, 2023 –Select Board - Hybrid Needs Assessment Findings/Survey & Feedback Takeaways 793 Responses Final Survey Results as of November 18, 2022 5:00 p.m. 1 11% 2 10% 3 12% 4 12% 5 16% 6 12% 7 12% 8 11% N/A 4% Responses per Precinct 1 2 3 4 5 6 7 8 N/A Reading By the Numbers Out of all 793 Respondents the following information highlights some demographic data 92.74% of respondents identify as Caucasian 52.4% of respondents identify as Female 54.45% of respondent households make over $150,000 p/yr 95.8% of respondents are Non-Veterans 89.17% of respondents Own their Home 80.34% of Home-Owners live in Single Family Homes 59.61% of Home-Owners currently have a mortgage 65.78% of respondents plan to stay in their current home as they age The Most common household sizes were –2 persons at 35.27% and 4 persons at 23.26% Reading Statics Overview Total Population: 25,510 Total Households: 9,952 Median Household Income -$133,300 Median Single-Family Home Sales Price -$825,500 Monthly Payment for Median Priced Home -$4,242 Annual Income Needed to Afford Median Sales Price -$150,000* (*to avoid being cost burdened) Homeowners: 84.6% Renters: 15.4% 2 Bedroom FMR: $2,635 Annual Income Needed to Afford 2 Bedroom FMR Rent: $105,400 Affordable Purchase Price Calculation Assumptions Interest Rate –3.5% Down payment –3.5% down Taxes -$5,000 Debt -$500 month Insurance -$2,000 year HUD Fair Market Rents (FMR) for 2023: Actual Rents in Reading (based on units listed for rent as of 8/31/2022) $39.00 $42.27 $50.67 $61.67 $68.08 EFFICIENCY 1 BEDROOM 2 BEDROOM 3 BEDROOM 4 BEDROOM HOURLY WAGE NEEDED TO AFFORD FMR Hourly Wage Hourly Wages Needed to Afford FMR in Reading Assumptions: HUD Fair Market Rent for each unit size Does not include utilities Rent calculated using 30% of income Affordable Purchase Price Calculation Assumptions Interest Rate –3.5% Down payment –3.5% down Taxes -$5,000 Debt -$500 month Insurance -$2,000 year Affordable Purchase Prices by Income Level Income Level Income Affordable Purchase Price Estimated Affordable Monthly Payment Gap +/-from Median Sales Price 2022 Median Sales Price Estimated Monthly Mortgage Payment for Median Priced Home Reading Median Income $133,300 $567,002 $3,018 $258,498 $825,500 $4,242 Low Income (80 AMI%)$100,700 $431,812 $2,378 $393,688 (3-person HH) Very Low Income (50 AMI%)$63,100 $257,342 $1,551 $568,158 (3-person HH) In General Respondents Support the Following Methods to Develop Affordable Housing: Rehabilitation of Vacant/Foreclosed Property Development of Town Owned Land Development of Mixed-Use Buildings In General Respondents Support the Following Types of Development: Single Family Housing Two-Family Housing 55+ Communities Assisted Living/Senior Housing Accessory Dwelling Units/In-Law Apartments Goals & Strategies Goals & Strategies Three Area’s of Focus: •Regulatory and Development •Zoning, Regulations, Development Tools, Geography, etc. •Funding and Resources •Revenue Sources, Support, Incentives, Opportunities/Use, etc. •Leaderships, Partnerships and Education •Collaborations, Trainings, Inclusivity, Programming, etc. Regulatory and Development Strategies Adopt/Amend zoning that would comply with MBTA Communities legislation 1 Identify Zoning Districts/geographies in which current regulations can be modified to allow the development of SHI eligible housing units 2 Strengthen and expand Inclusionary Zoning to further promote/develop affordable housing opportunities 3 Amend Zoning Bylaw to define and permit congregate housing. Identify existing sites with the potential to convert to congregate housing use. 4 Allow for redevelopment or conversion of pre- existing non-conforming residential uses by- right/make permitting path of such easier 5 Consider zoning amendments to allow Accessory Dwelling Units by-right and/or lessen restrictions 6 Regulatory and Development Strategies 7. Continue Continue to provide technical support for 40R, 40B and Local Permit applications 8. Preserve Preserve existing affordable housing stock to ensure they remain affordable and qualify for SHI. 9. Maintain Maintain Safe Harbor designation by maintaining, tracking and continuing affordable developments to achieve 10% SHI target. 10. Enhancement Require through regulations items such as Open Space, connectivity, energy efficiency, transit- oriented development. Affordable Housing Funding and Resources Strategies First-Time Homebuyer Program w/ RHA and local institutions Develop/ Enhance Use of Affordable Housing Trust Fund and how to increase revenue sourcesStrategize Funding and opportunities to support local aging-in-place program/supportSeek Opportunities to provide/increase Veteran’s Affairs Supportive Housing VouchersInvestigate Affordable Housing Funding and Resources Strategies Build support for Community Preservation Act adoption to strengthen local financesBuild Maintain Housing Choice Initiative status for future grant and funding opportunitiesMaintain Consider implementing Commercial Linkage fees to fund affordable housing needsConsider Develop strategy to developing additional affordable units off-siteDevelop Consider tax incentives to develop deeply affordable homesConsider Plan for cases of emergency housing needsPlan Leadership, Partnership, & Education Strategies Foster partnership initiatives with landlords to upgrade existing apartment complexes and convert to affordable apartments 01 Seek proposals from private developers or property owners to upgrade developments or units in return for long-term affordability restrictions. 02 Maintain and continue to build Interested Buyers List 03 Leadership, Partnership, & Education Strategies 4. Continue Continue public engagement and education on housing needs 5. Continue Continue to support the work of the Metro North Regional Housing Services Office (MNRHSO) 6. Collaborate Collaborate with community organizations Q&A NEXT STEPS Contact Us! Andrew MacNichol: amacnichol@ci.reading.ma.us Town of Reading Housing Production Plan, 2023 Renewal Page 1 Housing Production Plan Town of Reading Prepared for the Town of Reading By: Anser Advisory (Nicole Lambert, Project Manager; Andrea Lombardi, Senior Director VP) With the assistance from the Town of Reading: Fidel Maltez, Town Manager; Jean Delios, Assistant Town Manager; Julie Mercier, Community Development Director; Andrew MacNichol, Senior Planner; Sudeshna Chatterjee, Director of Equity and Inclusion; Kathryn Gallant, Reading Housing Authority Director; Catrina Meyer, Community Planning and Development Commission; Jacqueline McCarthy, Reading Select Board Date: February 13, 2023 Town of Reading Housing Production Plan, 2023 Renewal Page 2 Table of Contents Introduction ....................................................................................................................................... 3 Executive Summary ......................................................................................................................... 5 Summary of Demographic and Housing Characteristics ............................................................... 6 Goals for Affordable Housing Production ........................................................................................... 7 Section 1: Comprehensive Housing Needs Assessment ...................................................... 9 A. Demographic Analysis .......................................................................................................................... 9 1. Total and Projected Populations .................................................................................................................. 9 2. Household Types ................................................................................................................................................. 9 3. School Enrollment and Projections ........................................................................................................... 13 4. Race and Ethnicity ............................................................................................................................................ 14 5. Residents with Disabilities ............................................................................................................................ 14 6 Income Analysis .................................................................................................................................................. 15 B. Housing Stock Analysis ...................................................................................................................... 19 1. Housing Units and Types ............................................................................................................................... 19 2. Housing Tenure.................................................................................................................................................. 19 3. Year Housing Units Constructed ................................................................................................................ 20 4. Housing Market Conditions .......................................................................................................................... 20 5. Housing Affordability Analysis .................................................................................................................... 22 6. M.G.L. Chapter 40B Subsidized Housing Inventory ............................................................................ 26 C. Affordable Housing Efforts................................................................................................................ 29 1. Adoption of Smart Growth Districts (40R)............................................................................................. 30 2. Challenges and Constraints to the Development of Affordable Housing ................................... 32 Section 2: Affordable Housing Goals and Strategies ...........................................................41 Housing Goals ............................................................................................................................................. 41 Housing Strategies .................................................................................................................................... 42 Reaching 10% ............................................................................................................................................ 42 Regulatory Strategies .............................................................................................................................. 43 Local Initiative Strategies ...................................................................................................................... 48 Action Plan ........................................................................................................................................................... 55 Appendices ........................................................................................................................................56 Housing Profile ................................................................................................................................56 Interagency Policy ..........................................................................................................................57 Commented [MA1]: Andrew and Nicole to check this meets format/sections below Town of Reading Housing Production Plan, 2023 Renewal Page 3 Introduction A Housing Production Plan (HPP), defined in regulations at 760 CMR 56.03 and administered by the Department of Housing and Community Development (DHCD), is a proactive strategy for planning and developing affordable housing. The HPP identifies the housing needs of a community and the goals and strategies it will use to identify and achieve or maintain the 10% Subsidized Housing Inventory (SHI) threshold mandated by M.G.L. Chapter 40B. The Town’s status relating to this 10% threshold is documented on the SHI, also administered by DHCD. This HPP Program enables municipalities to develop a strategy to meet its affordable housing needs in a manner consistent with the MGL Chapter 40B statute, produce housing units in accordance with that plan, and demonstrate progress towards their affordable housing production. By taking a proactive approach in the adoption of a HPP, cities and towns are much more likely to achieve both their affordable housing and community planning goals. HPPs give communities that are under the 10% threshold of Chapter 40B, but are making steady progress in producing affordable housing on an annual basis, more control over comprehensive permit applications for a specified period of time. HPPs give communities over the 10% threshold a framework to maintain the statutory minima in accordance with local needs and community goals. The Town of Reading places great importance on planning for affordable housing development through the HPP process. The Town of Reading’s current Housing Production Plan was approved by DHCD on March 20, 2018 and will expire after a 5-year term on February 13, 2023, and as such, the Town of Reading has updated the Housing Production Plan (“HPP”) herein, in accordance with 760 CMR 56.03(4). Housing Production Plans can create a safe harbor for a community. When a municipality has a certified plan, decisions on comprehensive permit applications by the Zoning Board of Appeals (ZBA) to deny or approve with conditions will be deemed “consistent with local needs” under MGL Chapter 40B. As of December 2022, Reading has achieved a 10% SHI threshold, as a result of meeting its previously planned production efforts. However, because of the fluidity of the SHI continued efforts are needed to maintain the threshold. As summarized below, a municipality may request that the DHCD certify its compliance with an approved HPP if it has created the required number of SHI Eligible Housing units in a calendar year. Housing Production Plans are certified by the following process, as identified in the regulations: • Prepare the HPP: In accordance with the regulations, write the plan, including a public process, and have the plan adopted by the Select Board and Community Planning and Development Commission Town of Reading Housing Production Plan, 2023 Renewal Page 4 • DHCD Approval: Submit HPP to DHCD for approval • Certify the HPP: Communities may seek DHCD certification of the HPP (safe harbor), if in a calendar year, affordable units (AFU’s) are created as follows: o One-year Safe Harbor: – Create at least 0.5% of the total number of housing units in Reading (50 for Reading) o Two-year safe harbor – Create at least 1.0% of the total number of housing units in Reading (100 for Reading) • Renew the HPP: The term of the HPP is five years from approval. The Town of Reading’s Public Services Department updated the Housing Plan with future planned housing, completed projects, census data and other demographic information as required by DHCD. DHCD regulates Housing Production Plans under 760 CMR 56.00, promulgated on February 22, 2008. HPPs are designed to create strategies to meet affordable housing needs that are consistent with Chapter 40B requirements. In order for the HPP to qualify for approval from DHCD, the plan must be comprised of three components: (1) Comprehensive Needs Assessment; (2) Affordable Housing Goals; and (3) Implementation Strategies. (1) Comprehensive Needs Assessment – an evaluation of a community’s demographics, housing stock, population trends, and housing needs. The assessment will include a review of the development capacity, as well as constraints, to ensure that current and future needs can be met. (2) Affordable Housing Goals – defined housing goals consistent with both community character and the local housing market. This section will identify strategies that can be used to produce the required number of annual housing units needed to obtain the 10% statutory minima and safe harbor certification from DHCD. (3) Implementation Strategies – recommendations and targeted areas for future development that will enable a community to reach the affordable housing goals. This may include identifying sites for development or redevelopment, investigating re-zoning options to encourage the production of affordable housing units, and establishing other tools such as regional collaborations that can foster the development of affordable housing. Once a community has achieved safe harbor certification, within 15 days of the opening of the local hearing for a Comprehensive Permit application, the Zoning Board of Appeals (ZBA) shall provide written notice to the Applicant, with a copy to DHCD, that a denial of the permit or the imposition of conditions or requirements would be consistent with local needs, the grounds that it believes have been met, and the factual basis for that position, including any necessary supporting documentation. If the Applicant wishes to challenge the ZBA's assertion, it must do so by providing written notice to the Department, with a copy to the Board, within 15 days of its receipt of the ZBA's notice, including any documentation to support its position. DHCD shall thereupon review the materials provided by both parties Commented [MA2]: While true I need to confirm how it applies to 10%, if at all. We may wish to include language on Friendly 40Bs? Town of Reading Housing Production Plan, 2023 Renewal Page 5 and issue a decision within 30 days of its receipt of all materials. The ZBA shall h ave the Town of Reading Housing Production Plan, 2023 Renewal Page 6 burden of proving satisfaction of the grounds for asserting that a denial or approval with conditions would be consistent with local needs, provided, however, that any failure of the DHCD to issue a timely decision shall be deemed a determination in favor of the municipality. This procedure shall pause the requirement to terminate the hearing within 180 days. Affordable Housing Highlights Since 2018 HPP • Continued lead of the Metro North Regional Housing Services Office to administer affordable requirements, including preserving existing affordable units, along with North Reading, Saugus and Wilmington. The City of Woburn joined the regional collaboration in 2019. • Downtown Smart Growth District (DSGD) under Chapter 40R: Adopted in 2009 and expanded in 2017, five (5) 40R projects have been completed and occupied resulting in 192 total units, 43 of which (22.4%) are deeded as affordable units. A number of additional 40R development projects continue to go through permitting and construction; see Section B below for more information. • 40B Project Approvals: In February 2017, the Zoning Board of Appeals (ZBA) approved a 68-unit rental housing project known as Reading Village, proposed next to the Reading Commuter Rail Station downtown. In July 2017, the ZBA approved a 20-unit rental housing project outside of the downtown area known as Schoolhouse Commons – an adaptive re-use of the former school building associated with St. Agnes church. In 2019 the Eaton Lakeview 40B was approved for a combination of 12 ownership units and 74 rental units. • Through all of its planning efforts, Reading has added 177 units (and 1.77%) to its Subsidized Housing Inventory (SHI) since the 2018 HPP was implemented. Executive Summary The Town of Reading continues to be a desirable place to live and work. It is characterized by a traditional New England center, surrounded by Commented [MA3]: Can likely expand with our general language used in many other plans. Town of Reading Housing Production Plan, 2023 Renewal Page 7 family-oriented neighborhoods. It has evolved over time from largely an outlying community with a strong agricultural presence to a modern residential su burb just north of Boston. Reading’s proximity to Boston has added to its attractiveness. The Town has worked to shape housing development and growth that complements the character of the community. The HPP identifies tools for Reading to use that will encourage the development of affordable housing while maintaining the distinct town character. Summary of Demographic and Housing Characteristics The following summarizes the notable findings from the need ’s assessment section of the Housing Production Plan. The Bottom Line: Reading has grown slightly since 2010, with increases in population, the number of households, and housing units. In particular, the projected growth of the 65+ population is noted. Reading’s median income has risen significantly, but 33.1% of the population is low- income. Housing cost burdened is an indicator that a household may be unable to afford other critical and nondiscretionary costs such as health and child care, food, and transportation. Locally, a total of • 49.4% of Renters at or below 30% AMI are Cost Burdened • 24.5% of Renters between 30% and 50% AMI are Severely Cost Burdened • 22.7% of Owners at or below 30% AMI are Cost Burdened • 8.8% of Owners between 30% and 50% AMI are Severely Cost Burdened Population • As of the 2020 US Census, the population of Reading is 25,510, an increase of 3% since 2010. In 2020, the largest age group of Reading’s populations was 35-59 year old’s (35.8% of total population). There was a 5.4% decrease in the 60+ year- old grouping but such is expected to rise in future years as residents in the 35-59 age cohort continue to age. • The 2020 Census illustrates that 35.7% of Reading’s households have children under 18 -years old, and 13.5% have persons age 65+. • The median age increased from 41.6 years old in 2010 to 44.1 years old in 2020. • Racial make-up is predominantly white, at (87.2%) and the largest racial minority group in Reading is the Asian population (5.1%) followed by the Hispanic or Latino population at 2.8%. Only 1.3% of the population identifies as Black or African American.; 0.1% of the population are American Indian/Alaskan Native; .8% of the population identify as other; and 3.5% of the population identifies as Hispanic or Latino. Town of Reading Housing Production Plan, 2023 Renewal Page 8 Income • The Town of Reading’s 2020, median household income was $133,300; approximately a 25% increase from 2015, and slightly lower than the Boston-Cambridge-Quincy Metro Area ($140,200) but 10.7% higher than the state as a whole ($120,400). (HUD) • An estimated 32.7% of Reading households have incomes at or below 80% of AMI (Low/Moderate Income). • 3% of Reading’s population is below the poverty line (annual income below $27,750 for a household of 4 based on 2022 FPL Guidelines), much lower than Middlesex County (7.1%) and Massachusetts (9.4%). • Of the 7,560 of Reading households who own their homes, 22.5% are cost-burdened (spending over 30% of their income on housing), while 49.3% of Reading’s renters are cost-burdened. 64.7% of Reading’s low-income households are cost-burdened. Housing Stock, Sales and Prices • 84.6% of Reading’s housing units are owner occupied, with 15.4% renter occupied. • The Town’s housing stock remains primarily single-family at 76.7% of total housing units. The remaining 23.3% is: 6.4% of units are in two to four family buildings, 6.7% of units in 5-19 unit buildings, and 10.5% of units in multi-family buildings with 20 or more units. • Currently, 10.49% (1,044 units) of Reading’s total housing stock (9,952 units) is counted as affordable on the State’s Subsidized Housing Inventory (SHI), which falls just above the State’s minimum affordability goal of 10% by 74 units. • Reading’s 2022 median sale price of $825,500 would require an annual income of approximately $150,000 to not be considered cost-burdened, over $16,700 higher than Reading’s median household income of $133,300. • The 2022 median price of single-family homes in Reading was $825,500. The 2022 median price of all homes, including condos, was $557,500. After a dip in prices during the national recession in the mid-2000’s, housing prices have been rising steadily since 2012 and are now the highest they have ever been. Prices have increased by 72.2% since 2016. • Based on the 2022 median single-family sale price, Reading’s ownership affordability gap is $258,498 for median income households, $393,688 for low- income households, and $568,158 for very-low-income households. • Based on current median rents, Reading rentals are out of reach for low income households. In addition, there are not very many rentals available. Goals for Affordable Housing Production Reading has identified housing goals that are the most appropriate and most realistic for the community. These goals were developed by reviewing previous studies and documents (including the Reading Housing Plan of 2018), analyzing the current housing situation in Reading, and through public input from town citizens and officials. The goals, and recommended strategies to achieve such, as provided in Section 2 of this report. Town of Reading Housing Production Plan, 2023 Renewal Page 9 Town of Reading Housing Production Plan, 2023 Renewal Page 10 The Housing Needs Assessment examines demographic and population data and trends from available sources such as the Census, regional planning agencies, media, etc., that illustrates the current demographic and housing characteristics for the Town of Reading. Assessing needs will provide the framework for the development of housing production strategies to meet affordable housing goals. A. Demographic Analysis The purpose of analyzing demographics is to look at quantitative and qualitative trends and use the data for future planning. This section provides an overview of Reading’s demographics and how they have changed over time. As the demographics change in the future, the housing needs of the community can also change. The size and type of families as well as householder age and economic status all influence the needs of the community. The analysis of the Housing Needs Assessment will provide a guide to identify goals and strategies for this plan. 1. Total and Projected Populations: In the last ten years, the Town of Reading has had a 3% increase in population. Over the next 10 years, the population is expected to experience a slight decline before having a minor increase by 2030 as well as another increase in 2040. The total number of households in Reading has increased and is expected to only have minor increases through 2030 and 2040. Similar to the national trend, Reading’s average household size has decreased in the past ten years. In 1999 the average household size was 2.84 and decreased to 2.71 in 2010. In 2020 the average household size was 2.67. Smaller household size is consistent with communities experiencing slow but steady growth. Table 1: Total and Projected Populations: 2000-2040 Source: 2020 US Census and MAPC MetroFuture 2050 Update, January 2014, May 2022, Donahue Institute at UMASS Year Population % Change Households % Change 2000 23,708 5% 8,688 10% 2010 24,747 4.4% 9,305 7.0% 2020 25,510 3% 9,374 .7% 2030 26,222 2.7% 10,806 8.7% 2040 28,139 6.8% 11,221 3.84% Section 1: Comprehensive Housing Needs Assessment Town of Reading Housing Production Plan, 2023 Renewal Page 11 2. Household Types: There were a total of 9,952 households in Reading in 2020, with 70.7% family households, and 28% non-family households in Reading. The non-family households include single person households or persons living in the same household who are not related. The presence of a mix of family and non-family households indicates that there is likely a need for a variety of housing types that may not fit the traditional single-family home model. The data reflects 2,789 non-family households. This may suggest a need for affordability options for non-family households who may have special housing needs. Table 2: Household Types: 2020 Household Type 2020 Percentage Family Households: 7,032 70.7% With own Children under 18 years 6,187 62.2% Married, Husband-wife family: 5,580 56.1% With own children under 18 5,560 55.9% Male householder, no wife present 89 .9% With own children under 18 years 31 .3% Female householder, no husband present 365 3.7% With own children under 18 years 341 3.4% Nonfamily households: Householder living alone 2,789 28% Householder 65 and over living alone 1,263 12.7% Average household size 2.67 Average family size 3.16 Total Households 9,952 Source: 2020 US Census Other important factors to consider when assessing housing needs are household size and the age composition of residents. Household size is an important factor as it can help determine the demand for certain types of housing. Similarly, analyzing the age composition of a community over time can help develop trends for housing needs. For example, established families with children living at home have different housing needs than an empty nester and or someone who is over 65. MetroFuture is a regional plan developed by the Metropolitan Area Planning Council (MAPC) that addresses future growth in the Boston metropolitan region until 2030. Figure 1 summarizes Reading’s age composition from 2020 and includes MetroFuture projections until 2030. Table 3 illustrates this in more detail. Town of Reading Housing Production Plan, 2023 Renewal Page 12 Figure 1: Age Composition of Residents, 2000 – 2030 Source: 2020 US Census and MAPC MetroFuture 2050 Update, January 2014, May 2022, Donahue Institute at UMASS 0 to 9 yrs 10 to 19 yrs 20 to 24 yrs 25 to 34 yrs 35 to 59 yrs 60 to 74 yrs 75+ yrs 2000 3,464 3,141 830 2,671 9,309 2,676 1,617 2010 3,297 3,349 1,053 2,433 9,661 3,134 1,820 2020 3,115 3,472 647 2,399 9,239 4,390 2,248 2030 3,022 2,792 888 2,687 9,176 5,014 2,643 0 2,000 4,000 6,000 8,000 10,000 12,000 Age Composition 2010 to 2030 2000 2010 2020 2030 Town of Reading Housing Production Plan, 2023 Renewal Page 13 Table 3: Current and Projected Age Distribution of Residents: 2000-2030 Age Cohorts 2000 2010 2020 2030 % Change from 2000- 2030 Number % Number % % Change Number % % Change Number % % Change 0 to 9 years 3,464 14.6 3,297 13.3 -4.8 3,115 12.3 -5.5 3,022 11.5 -3.0 -12.8 10 to 19 years 3,141 13.2 3,349 13.5 6.2 3,472 13.8 10.5 2,792 10.6 -19.6 -11.1 20 to 24 years 830 3.5 1,053 4.3 26.9 647 2.6 -22.0 888 3.4 37.2 7.0 25 to 34 years 2,671 11.3 2,433 9.8 -9.0 2,399 9.4 -11.0 2,687 10.2 13.1 .6 35 to 59 years 9,309 39.3 9,661 39.0 3.8 9,239 36.2 -1.8 9,176 35.1 .4 -1.4 60 to 74 years 2,676 11.3 3,134 12.7 17.1 4,390 17.2 62.2 5,014 19.1 15.5 87.4 75+ years 1,617 6.8 1,820 7.4 12.6 2,248 8.5 32.8 2,643 10.1 23.0 63.5 Total Population 23,708 100 24,747 100 25,510 100 26,222 100 Source: 2020 US Census and MAPC MetroFuture 2050 Update, January 2014, May 2022, Donahue Institute at UMASS MAPC’s MetroFuture plan suggests that Reading’s population will have a minor increase in overall population for the next 10-20 years. However, it is anticipated that a significant change in the composition of the age groups will occur. Based on the MetroFuture projections, the youngest age groups are expected to continue to decline by 2030; ages 0-9 (-3%), and ages 10-19 (-19.6%). The age groups from 20-24 and 25-34 are expected to increase by (37.2%) and (13.1%) respectively. However, the 35-59 age group is expected to remain the largest age group in Reading and is projected to comprise 35.1% of the population in 2030, with the 60-75+ age group following close behind at approximately 29.2% of Reading’s population in 2030. In 2020 the largest age cohort in Reading was those aged 35-59 (36.2%). People in this age group are likely to be in an established family household with a larger home than the younger age groups. The next concentration of residents was the next age group; those aged 60-74 years (17.2%) and those aged 10-19 years (13.8%) made up the third largest age cohort. The following age groups experienced a decline in 2020: 0-9 years, 20-24 years, and 25-34 year old’s between 2010 and 2020. The elderly population also increased from 2010 to 2020. Persons aged 60-74 experienced a population increase of 17.2% and those aged 75+ increased by 8.5%. Town of Reading Housing Production Plan, 2023 Renewal Page 14 The data shows that the second largest age group in 2030 will be those aged 60-74 with an increase of 60% from 2010 to 2030. Even though the childhood age groups of 0-9 and 10-19 are expected to decrease by 2030, collectively they will make up almost one-fourth of the population (22.2%). Adults who will be aged 25-34 are expected to grow slowly by 2030, only increasing by .6%. By contrast, the elderly population (ages 75+) which comprises 8.5% of Reading residents is expected to increase by 23% in the next 10 years. When combined with the 60-74 age group (29.2%), the 60-75+ age group will consist of approximately 38.5% of Reading’s population. This is not surprising as the “baby-boomer” population is contained within this age group. It is important to be aware of this trend as this population tends to prefer smaller housing units with less upkeep. Elderly residents could have special housing needs such as nursing homes and assisted living facilities. Adults aged 20 to 24 years and 25 to 34 years are expected to make up approximately 13.6% of the population in 2030. These age groups are more likely to make up younger families who will purchase a starter home that is smaller and more affordable. In the next twenty years, as the 35-59 age group moves into the next age group, the stock of larger traditional family homes (detached, single-family units) may become more available. This may allow the younger population to trade up or take advantage of the larger homes. The analysis of population projections is vital for planning and determining future housing needs. With the expected increase in the older population, planning efforts should consider the need for smaller housing units with less maintenance, senior housing or assisted living facilities. As the middle-age population shifts into the older age groups the demand for larger, traditional family housing units will be reduced and will increase the opportunity for younger families looking to trade-up to more of those homes now available. 3. School Enrollment and Projections The 2018 HPP included projections on enrollment which were available at that time. Figure 2 provides six years of enrollment data which is the only data that is available for inclusion in the updated 2023 HPP. Figure 2 illustrates public school enrollments from 2017 through 2023* (*projection for the current school year). Overall, Reading school enrollment numbers have remained somewhat stable in recent years with an overall decrease of 10.3% since 2017. Although total population projections predict a continuing decrease in school aged children by the year 2030, this age group will still comprise 22.2% of the total population. Town of Reading Housing Production Plan, 2023 Renewal Page 15 Figure 2: Reading Student Enrollment Source: Reading School Committee yearly School Budgets and FY 2022 School Budget *Reading School Department as of 8/16/2022 4. Race and Ethnicity: • According to the 2020 U.S. Census, the majority of Reading residents are white (87.2%) and the largest racial minority group in Reading is the Asian popu lation (5.1%) followed by the Hispanic or Latino population at 2.8%. Only 1.3% of the population identifies as Black or African American. • 0.1% of the population are American Indian/Alaskan Native; .8% of the population identify as other; and 3.5% of the population identifies as Hispanic or Latino. 0 500 1000 1500 2000 2500 3000 3500 4000 4500 2017 - 2018 2018 - 2019 2019 - 2020 2020 - 2021 2021 - 2022 2022 - 2023 *Projection Reading Student Enrollment PK-K Elementary 1-5 Middle 6-8 High School 9-12 Total School Year PK-K Elementary 1-5 Middle 6-8 High School 9-12 Total 2017 - 2018 387 1,552 1,039 1,235 4213 2018 - 2019 440 1,529 990 1,251 4210 2019 - 2020 423 1,574 924 1,230 4151 2020 - 2021 335 1,500 894 1,222 3951 2021 - 2022 393 1,427 891 1,135 3846 2022 - 2023 *Projection 352 1,465 859 1,102 3778 % Change -9% -5.60% -17.30% -10.8% Town of Reading Housing Production Plan, 2023 Renewal Page 16 5. Residents with Disabilities According to the 2014-2018 American Community Survey, 3,026 people in Reading reported living with a long duration condition or disability. Of those people, approximately 73.1% were aged 65 and older. As this population continues to increase, it is assumed that the number of disabled individuals within this age group will also rise. Many disabled residents require special housing needs, including certain accommodations for housing design (physical accessibility) and reasonable access to goods and services. Consideration for these types of housing options is necessary, as the demand will continue to increase. Racial Makeup White Asian Hispanic Black/African American Two or More Races Other Town of Reading Housing Production Plan, 2023 Renewal Page 17 Table 5: Residents with Disabilities 5-17 350 11.6 18-64 464 15.3 65 +2,212 73.1 Total Population of Disabled Residents 3,026 100 Percent of All Disabled ResidentsAgeNumber Town of Reading Housing Production Plan, 2023 Renewal Page 18 6 Income Analysis: 1. Median Household Income: In 2022 Reading’s median household income of $133,300 represented an increase of 42.4% from 2010. Median household income in Reading was one of the highest among adjacent neighboring communities and exceeded the median for the Boston-Cambridge- Quincy Metro area, as well as the median for the Commonwealth of Massachusetts and the US. All the adjacent neighboring communities also experienced significant increases in household income from 2010. Table 6: Median Household Income: 2010-2022 Town 2010 2015 2022 % Increase 2010- 2022 Reading 77,059 106,764 133,300 42.2% North Reading 76,962 145,366 138,237 44.3% Wilmington 70,652 116,155 114,394 38.3% Woburn 54,897 78,242 97,895 43.9% Stoneham 56,650 80,703 102,542 44.8% Wakefield 66,117 85,097 107,898 38.7% Lynnfield 80,626 120,680 143,661 43.9% Boston-Cambridge- Quincy, MA Metro Area1 62,700 98,500 140,200 55.3% Massachusetts 50,502 87,300 120,400 58.1% US 41,994 56,516 67,521 37.8% Source: 2020 US Census & 2014-2018 American Community Survey FY 2022 Income Limits Documentation System -- Summary for Reading town, Massachusetts (huduser.gov), Policy Map 2. Median Income of Senior Households: Although Reading’s overall population has experienced a large increase in income in the past 12 years and is earning in line with the surrounding communities (as displayed in Table 6 above), Reading’s 65+ households are not doing nearly as well. Unfortunately, in 2022 we see that Reading’s senior households have significantly lower incomes than households overall. As displayed in Table 7 below, Reading senior households earn less than all of the surrounding communities and just slightly more than Massachusetts and the country overall. In fact, households earning the median senior income of $56,276 would qualify for certain affordable housing based on the income limit guidelines described in Section 4 below, “Area Median Income.” This data makes clear that affordable housing for the senior population will be a significant need in the coming years due to the projected increase in the senior Town of Reading Housing Production Plan, 2023 Renewal Page 19 population in Reading as demonstrated in Figure 1 and Table 3 above, and due to the limited income of this group. Table 7: Median Income of 65+ Households: 2020 Source: 2020 Census 3. Income Distribution: Table 8 identifies and compares the distribution of Reading household incomes from 2010 and 2020. In 2010, nearly half of all households (48.2%) earned less than the household median of $77,059. In 2020, 41.2% of households earned less than the household median of $133,300. Of the households earning over the median income in 2020, 64.2% of households had an income of over $100,000in 2020. Reading households earned much more in 2020. Approximately 46.5% earned more than $150,000 which was over the 2020 median income of $133,300. Of those earning more than $100,000 approximately 29.7% are earning more than $200,000, a 100.2% increase from 2010. By 2020, the number of households in the highest income brackets have increased, with those making between 150,000 - $199,999 increasing by 17.7% since 2010. However, there have been significant decreases in the lower income brackets ($15,000-$24,999, $25,000-$34,999, and $35,000-$49,999) between 2010 and 2020. Approximately 1,520 Reading households (16.3% of all households) earned less than $50,000 in 2020. Town 2020 Reading 56,276 North Reading 66,321 Wilmington 69,825 Woburn 58,447 Wakefield 71,537 Lynnfield 70,859 Massachusetts 52,973 US 46,360 Commented [MA4]: I am a bit confused by this statement – do we mean they made $100k over the median income? If they are over the median income of $133,000 they would all be over $100,000 in general, no? Town of Reading Housing Production Plan, 2023 Renewal Page 20 Table 8: Income Distribution: 2010, 2015, 2020 Income Category 2010 2015 2020 % Change 2010-2020 # of Households Percent # of Households Percent # of Households Percent Less than $10,000 231 2.4 218 2.4 67 .7 -71.0% $10,000 to $14,999 251 2.8 224 2.4 30 .3 -88.0% $15,000 to $24,999 386 4.3 446 4.9 369 4.1 -4.4% $25,000 to $34,999 470 5.3 553 6.0 219 2.3 -53.4% $35,000 to $49,999 620 7.0 623 6.8 835 8.9 -34.7% $50,000 to $74,999 1,214 13.7 974 10.6 1039 11.1 -14.4% $75,000 to $99,999 1,327 15.0 1,158 12.6 783 8.4 -41.0% $100,00 to $149,999 2,158 24.3 2,250 24.5 1653 17.7 -27.6% $150,000 to $199,999 1,086 12.2 1,345 14.7 1583 16.8 17.7% $200,000 or more 1,157 13.0 1,377 15.0 2757 29.7 100.2% Total Households 8,882 100.0 9,168 100.0 9,335 100.0 Source: 2020 and 2010 US Census, 2014-2018 American Community Survey 4. Area Median Income One way to determine the need for affordable housing is to evaluate the number of households that qualify as low/moderate income by the U.S. Department of Housing and Urban Development (HUD). The Area Median Income (AMI) is a number that is determined by the median family income of a Metropolitan Statistical Area (MSA) and thresholds established by HUD are a percentage of AMIs. Reading is included in the Boston-Cambridge-Quincy Metropolitan Fair Market Rent (FMR) area. FMRs are gross rent estimates that include the rent plus the cost of tenant-paid utilities2. Section 8 of the United States Housing Act of 1937 authorizes housing assistance to lower income families and the cost of rental homes are restricted by the FMR thresholds established by HUD. 2 U.S. Department of Housing & Urban Development Office of Policy Development & Research July 2007 (rev.) Commented [MA5]: Andrew and Nicole to review in more detail. It does use our incorrect total household number as well (not sure we can fix this though). Commented [NL6R5]: There was no info on households earning over $200K. We know from the survey results that there are quite a few households that earn above $200K Commented [NL7R5]: I was able to use Census data to come up with a number here. Town of Reading Housing Production Plan, 2023 Renewal Page 21 Typically, thresholds are 80%, 50% and 30% of AMI and vary depending on the household size. HUD defines low/moderate income as follows: • “low income” - households earning below 80% of AMI; • “very low income” – households earning below 50% of AMI; • “extremely low income” - households earning lower than 30% of AMI. Table 9: Income Limits by Household Size, Boston-Cambridge-Quincy, Reading: 2022 Income Limit Area Median Income Income Limit Category 1 Person 2 Person 3 Person 4 Person 5 Person 6 Person Boston- Cambridge- Quincy Metropolitan MSA $140,200 Low (80%) Income Limit $78,300 $89,500 $100,700 $111,850 $120,800 $129,750 Very Low (50%) Income Limit $49,100 $56,100 $63,100 $70,100 $75,750 $81,350 Extremely Low (30%) Income Limit $29,450 $33,650 $37,850 $42,050 $45,450 $48,800 Source: U.S. Department of Housing and Urban Development http://www.huduser.org/portal/ As shown in Table 9, the AMI for the Boston-Cambridge-Quincy FMR area, effective April 18, 2022, is $140,200. Using this number, the income thresholds for various household sizes were determined. For a 3-person household, household incomes lower than $37,850 are considered extremely low income, household incomes lower than $63,100 are considered very low income, and household incomes lower than $100,700 are considered low income. The Reading income category data presented in Table 8 is not available by household size, but assuming a 3-person household, as of the 2018 ACS, there were probably about 3,000, or almost one-third of households, that were likely eligible for subsidized housing according to HUD. 3 AMI data for 2022 was used in this plan to compare to 2014-2018 ACS income data. AMI data for 2022 can be found at: www.huduser.org/portaldatasets Town of Reading Housing Production Plan, 2023 Renewal Page 22 7. Housing Stock Analysis 1. Housing Units and Types The predominant housing type in Reading continues to be single -family homes. In 2015, there were approximately 9,653 total housing units, 70.7% of which were 1-unit, detached homes (single-family homes). Only 10.6% of housing structures contained 20 or more units; however, this type of housing was the second largest in Reading in 2015. Similarly, in 2020 single unit detached homes remained the predominant housing type, though the percentage of total homes dropped a bit. Meanwhile, the number of housing units in structures with 20 or more units dipped from 1,027 units (10.6% of total units) in 2015 to 1,007 units (10.5% of total units) in 2020. Table 10: Total Number of Housing Units by Structure: 2015 and 2020 Housing Units Per Structure 2015 2020 Number Percent Number Percent 1-unit, detached 6,827 70.7 7,217 72.5 1-unit, attached 395 4.1 248 2.5 2 units 535 5.5 341 3.4 3 or 4 units 192 2.0 279 2.8 5 to 9 units 280 2.9 290 2.9 10 to 19 units 397 4.1 350 3.5 20 or more units 1,027 10.6 1,227 12.4 Mobile Home 0 0 0 0 Total 9,653 100.0 9,952 100.0 Source: 2020 US Census and 2014-2018 American Community Survey Town of Reading Housing Production Plan, 2023 Renewal Page 23 2. Housing Tenure According to the 2020 US Census, there were a total of 9,584 occupied housing units, 84.6% of which were owner-occupied, and 15.4% of which were renter-occupied. By 2020, the percentage of owner-occupied housing units increased to 6.4% above the 2015 numbers, and the percentage of renter-occupied housing units have decreased by 6.4% to 15.4%. Section B of this HPP discusses household types and the prevalence of non-family households in Reading. In particular, ACS and 2020 Census data shows that non-family households, specifically elderly, non-family households are growing in number. The data also show that non-family households are more likely to be renters, so these demographic changes could provide some of the reason for the recent increase in renter-occupied units. The demand for rental housing is likely to continue increasing as the population continues aging and this aging population is likely to include many who are looking to down -size or spend less on housing related costs. Town of Reading Housing Production Plan, 2023 Renewal Page 24 3. Year Housing Units Constructed Reading has a large stock of older and historic homes. Over half of the housing units were constructed prior to 1960 and of that 33% were constructed prior to 1940. The production numbers have been on a steady decline since 1970, there was a small increase between 2000-2009 and have dipped again after the housing market crash of 2008. As these homes contribute to the town’s character, many of them are also in need of repairs and renovations. Multi-generational living is now an easier option due to recently adopted zoning changes that facilitate creating accessory dwelling units in single-family homes. Figure 3: Year Housing Constructed Pre 1939 1940-1949 1950-1959 1960-1969 1970-1979 1980-1989 1990-1999 2000-2009 2010-2019 Housing Units Constructed 2530 1006 1571 1056 1057 502 596 543 685 0 500 1000 1500 2000 2500 3000 Year Housing Units Constructed Town of Reading Housing Production Plan, 2023 Renewal Page 25 Source: 2020 US Census 4. Housing Market Conditions: a. Median Selling Prices Since 2012 Reading has seen a steady rise in sales prices. Figure 4 indicates the median single-family home price in 2016 was $525,000. Prices have steadily increased year over year since 2016. In 2020 the median single-family sales price was $665,000, in 2022 through August 31, the median sales price has skyrocketed to $825,500. Condominium sales followed a similar pattern with a few years of lower prices followed by a steady increase in prices beginning in 2012. Figure 4: Median Sales Price of Single-family Homes and Condos 2016-2022 2016 2017 2018 2019 2020 2021 2022 Single Family $525,000 $595,000 $620,000 $624,900 $665,000 $722,500 $825,000 Condo $437,890 $453,750 $400,000 $414,500 $450,000 $545,000 $627,000 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 Median Sales Price Single Family and Condo Single Family Condo Town of Reading Housing Production Plan, 2023 Renewal Page 26 Source: Massachusetts Association of Realtors b. Home Sales As shown in Figure 5 below, Reading home sale numbers of both single-family homes and condominiums have held steady since 2016. Then, in 2018, the number of sales began to increase at the same time that prices began to increase. The number of condo sales have decreased consistently since 2016. Figure 5: Total Number of Single-family Home and Condo Sales 2016-2022* Source: Massachusetts Association of Realtors - * Sales through August 2022 c. Rental Prices: The cost of rental units is an important factor to consider when evaluating the housing market. Back in 2010 the median rent in Reading was $1,032, the second lowest of all the neighboring communities that abut Reading. By 2020, median rent increased by 32.1% to $1,363, the second highest increase amongst neighboring communities. One possible reason for the substantial rent increase may be due to the increase in the population group more likely to rent, creating more demand for rental units. High home prices may also force more households to rent. This trend is seen in the neighboring communities as well as all experienced substantial increases in median rent between 2010 and 2020. 2016 2017 2018 2019 2020 2021 2022 SINGLE FAMILY 223 255 221 267 227 253 134 Condo 151 135 95 76 91 134 78 0 50 100 150 200 250 300 Single Family and Condo Sales 2016 -2022* SINGLE FAMILY Condo Town of Reading Housing Production Plan, 2023 Renewal Page 27 Table 11: Median Rent 2010, 2015, 2020 for Reading and Neighboring Communities Median Rent 2010 2015 2020 % Change, 2010 to 2020 Reading 1,032 1,282 1,363 32.1% North Reading 1,289 1,482 1,696 24.0% Wilmington 1,567 1,624 2,009 22.0% Woburn 1,187 1,331 1,763 32.7% Stoneham 1,161 1,289 1,522 23.7% Wakefield 1,042 1,203 1,513 31.1% Lynnfield 623 1,443 1,742 279.1% Source: 2020 US Census, 2011-2015 and 2014-2018 American Community Survey 5. Housing Affordability Analysis: 1. Cost Burden One way to evaluate housing affordability is to examine the ability of households to pay mortgage or rent as a percentage of annual income. Households who pay 30% or more of their annual income on housing costs 5 are considered to be housing cost- burdened. Households who pay 50% or more of their income on hous ing costs are considered severely burdened. This analysis may help determine how “affordable” it is to live in a particular community. The US Census Bureau prepares custom tabulations of American Community Survey (ACS) data that demonstrate the extent of housing problems and housing needs. These data tabs are known as the Comprehensive Housing Affordability Strategy or CHAS data. Table 13 below uses CHAS data to show housing cost burden for renters and homeowners. Approximately 22.5% of owner-occupied households, and 50.3% of renter households, in Reading are paying more than 30% or more of their annual household income on housing related costs. Therefore, a total of 2,510 of 9,335 households (26.9%) in Reading may have difficulty paying their housing-related costs and are considered moderately to severely housing cost-burdened. Commented [MA8]: 5 Costs for homes with a mortgage include all forms of debt including deeds of trust, land contracts, home equity loans, insurance, utilities, real estate taxes, etc. Source: US. Census 6 Figures derived using a Mortgage Calculator, including a 5% down payment, 30-year fixed mortgage at 4.1% interest rate, and Reading’s 2021 tax rate. Town of Reading Housing Production Plan, 2023 Renewal Page 28 Table 12: Monthly Housing Cost as a Percentage of Annual Household Income Households in Reading <= 30% of income spent on housing >30% to <=50% of income spent on housing >50% of income spent on housing Number Percent Number Percent Number Percent Owners 7,560 5,830 77.1% 1,055 14.0% 675 8.5% Renters 1,550 760 49.0% 385 24.8% 395 25.5% Source: 2014-2018 CHAS data CHAS data also shows how rent burden impacts households at different income levels. Table 13 below shows a greater percentage of low-income households are housing cost-burdened than higher income households. 3,065 of 6,070 (50.5%) households who earn less than 80% AMI are housing cost-burdened. However, in comparison 760 of 6,070 (12.5%) households who earn more than 100% AMI are housing cost- burdened. This indicates a need for more housing in Reading that is affordable to low-income households, so they do not experience such a substantial level of cost burden. Table 13: Housing Cost Burden According to Income Level Household Income Level Spending >30% of income on housing costs Spending >50% of income on housing costs Total Households <=30% AMI 670 535 1,260 >30% - <=50% AMI 630 275 905 >50% - <=80% AMI 410 155 900 >80% - <=100% AMI 270 25 655 >100% AMI 760 35 6,070 Total 2,740 1,025 9,374 Source: 2014-2018 CHAS data 2. Home Ownership Affordability – Gap Analysis Another way to measure the affordability of a community is to assess the affordability of home ownership. To do so, the income of the buyer must be evaluated against the sales price of the home. The gap between the sales price and the purchasing ability of a potential home buyer is called the “gap analysis”. Town of Reading Housing Production Plan, 2023 Renewal Page 29 As mentioned the median sales price of a single-family home in Reading in 2022 was $825,500. A household would have to earn approximately $199,500 to afford such a home without being cost burdened. This income is above Reading’s median household income of $133,300 in 2020, and higher than the area median income (Boston- Cambridge) of $140,200 by over $59,000. A household looking to purchase a condo would still need to earn approximately $135,000 to afford $450,000 – the 2020 median sales price of a condo in Reading. A household earning the 2020 median income of Reading of $133,300 can afford a single- family home priced at about $567,002, resulting in an “affordability gap” of $258,498. The gap widens for low-income households. A 3-person household earning 80% of AMI or $100,700 could afford a home costing no more than $431,812. A 3-person household earning 50% of AMI at $63,100 could afford a home costing no more than $257,342. Table 15 shows the affordability gap in Reading for households at different income levels. Table 14: Gap Analysis – Single-Family Home Affordable Purchase Price Calculation Assumptions Interest Rate – 3.5% Down payment – 3.5% down Taxes - $5,000 Debt - $500 month Insurance - $2,000 year Town of Reading Housing Production Plan, 2023 Renewal Page 30 Income Level Income Affordable Purchase Price Gap +/- from 2022 Median Sales Price Median Income $133,300 $567,002 $258,498 Low Income (80%) (3-person HH) $100,700 $431,812 $393,688 Very Low Income (50%) (3-person HH) $63,100 $257,342 $568,158 Source for income limits: U.S. Department of Housing and Urban Development http://www.huduser.org/portal/ Median Sales price used from 2022 MAR data - $825,500 3. Rent Another measure of housing affordability is whether local rent exceeds HUD-determined Fair Market Rents (FMR) which were established as guidelines for Section 8 voucher holders. HUD does not permit voucher holders to rent apartments above the FMR because HUD has determined the FMR to be a fair and reasonable price for the geographic area. Table 16 below identifies the FY22 FMRs for the Boston-Cambridge- Quincy, MA-NH HUD Metro FMR Area. As Table 11 above shows, the median rent paid by Reading households in 2020 as reported by the Census was $1,363, indicating that households are paying less than the FMR for the Boston -Cambridge-Quincy area (assuming a 1-bedroom). However, the 2020 Census indicates that 44.2% of renters in Reading were paying $1,500 or more in monthly rent, of that number 16.4% of renters were paying more than $2,000 in monthly rent. Town of Reading Housing Production Plan, 2023 Renewal Page 31 Table 16: Fair Market Rents, Boston-Cambridge Quincy, MA-NH HUD Metro Area Efficiency 1-Bedroom 2-Bedroom 3-Bedroom 4-Bedroom Fair Market Rent 2018 $1,253 $1,421 $1,740 $2,182 $2,370 Fair Market Rent 2023 $2,025 $2,198 $2,635 $3,207 $3,540 % Change 2018 vs. 2023 61.6% 54.7% 51.4% 47% 49.4% Source: U.S. Department of Housing and Urban Development, http://www.huduser.org/portal/ Since ACS data looks at all current renters, including some who may have been renting for a long time without a rent increase, they do not necessarily paint an accurate picture of the current rental market. An examination of rental listings on Trulia on August 31, 2022, gives a more accurate assessment. Based on these listings in Table 17 below, we can see that there is not much available rental housing – there were only 14 listings on Trulia on August 31st, 2022. In addition, the median rents of homes currently listed are slightly higher than the median rent reported by ACS, and also slightly higher than the HUD FMRs for 1, 2, and 3-bedroom units. Table 17 Reading Units listed for rent on Trulia.com, 8/31/2022 Bedroom size Median Rent 1-bedroom units (1 listings) $2,667 2-bedroom units (7 listings) $3,300 3-bedroom units (6 listings) $4,000 Source: Trulia.com, August 31, 2022 Reading households would have to earn over $78,000 to afford the 2022 FMR rent in Reading according to HUD. However, using the current rental listings from Trulia.com, a household would have to earn at least $105,000 to afford a one-bedroom at the median price. Therefore, a 3-person low-income household earning $100,700 would not even be able to afford a one-bedroom rental at the median price without cost burden based on the recent listings. Town of Reading Housing Production Plan, 2023 Renewal Page 32 Another measure of housing affordability is whether local rent exceeds HUD-determined Fair Market Rents (FMR) that were established as guidelines for Section 8 voucher holders. HUD does not permit voucher holders to rent apartment units above the FMR because HUD has determined the FMR to be a fair and reasonable price for the geographic area. In Figure 7 below, the upward trend reflects the annual adjustment factor intended to account for rental housing market demands. Given the constraints on the Greater Boston rental housing market, rising FMR’s are unsurprising and point to the need for more rental housing at multiple price points. Although HUD determines a certain level of rent in an area to be fair, FMR’s do not take into account household income, so even an apartment at the FMR is not necessarily affordable to people at all levels of income. Figure 7: Fair Market Rent Comparison 2015-2023 6. M.G.L. Chapter 40B Subsidized Housing Inventory Under M.G.L. Chapter 40B, affordable housing units are defined as housing that is developed or operated by a public or private entity and reserved by deed restriction for income-eligible households earning at or below 80% of the AMI. In addition, all marketing and placement efforts follow Affirmative Fair Housing Marketing guidelines per the Massachusetts Department of Housing and Community Development (DHCD). Housing that meets these requirements, if approved by DHCD, is added to the subsidized housing inventory (SHI). Chapter 40B allows developers of low- and moderate-income housing to obtain a comprehensive permit to override local zoning and other restrictions if a community has less than 10% of its housing stock included on the SHI. 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 2015 2016 2017 2018 2019 2020 2021 2022 2023 FMR Comparison 2015 -2023 Efficiency 1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom Town of Reading Housing Production Plan, 2023 Renewal Page 33 A municipality’s SHI fluctuates with new development of both affordable and market- rate housing. The percentage is determined by dividing the number of affordable units by the total number of year-round housing units according to the most recent decennial Census. As the denominator increases, or if affordable units are lost, more af fordable units must be produced to reach, maintain, or exceed the 10% threshold. Within the past 5 years, Reading has continued to make progress with increasing the number of affordable units within the Town. According to the state’s Subsidized Housing Inventory (SHI), approximately 10.5% of year-round housing units in Reading are included on the SHI as of December 2020. Table 18 on the following page illustrates the status of subsidized housing in Reading from December 2017 to December 2021. Town of Reading Housing Production Plan, 2023 Renewal Page 34 Table 18: Reading SHI Units Time Period Total SHI Units Difference in Units from Previous Period Percent Affordable December 2017 896 212 9.35% December 2020May 2022 1,011 115 10.16% The XXX increase in units is comprised of: • Reading Housing Authority Units -13 units (affordability period expired) Table 19 compares the number of SHI units with neighboring communities that abut Reading. As identified in the table, Reading has a percentage of affordable housing units that is higher than all but one neighboring community. Table 19: Total Subsidized Housing Units for Reading and Neighboring Communities Community Year Around Housing Units 2020 Total Subsidized Housing Units Percent SHI Units Dec 2017 Dec 2020 Percent Change Dec 2017 Dec 2020 Reading 9,952 896 1,004 12% 7.74% 10.5% North Reading 5,875 540 538 -.37% 1.72% 9.2% Saugus 11,303 732 756 3.28% 6.47% 6.7% Wilmington 8,320 799 766 -4.13% 8.61% 9.2% Woburn 17,540 1419 1,706 20.23% 9.72% 9.7% Stoneham 10,159 495 498 .61% 5.35% 4.9% Wakefield 11,305 758 703 -7.3% 7.35% 6.2% Lynnfield 4,773 495 494 -2.0% 1.84% 10.3% Source: 2020 Census, and Department of Housing and Community Development, Chapter 40B Subsidized Housing Inventory (SHI) 5. Existing Subsidized Housing Stock Table 20 below identifies the existing subsidized housing units currently included on the SHI list (through December 2020). This information is regularly gathered and reported by the Department of Housing and Community Development (DHCD). The properties are listed by property type (not chronological). Commented [MA9]: We can change this to units added since 2017-18 only. Commented [NL10]: Add table of new units sent by Julie Town of Reading Housing Production Plan, 2023 Renewal Page 35 Table 20: Reading Subsidized Housing Inventory Properties Development Name SHI Units Property Type Subsidizing Agency Zoning Permit Affrd End RHA: Senior housing 80 Age Restricted Rental DHCD/PHA Local Perp RHA: Family Scattered Site 12 Family Rental DHCD/PHA Local Perp RHA: Scattered Site 6 Family Rental DHCD/PHA 40B Perp RHA: Pleasant Street 2 Family Rental FHLBB Local 2020 RHA: Wilson Street 2 Family Rental FHLBB Local 2021 EMARC Reading 12 Supportive Housing HUD Local 2036 Reading Community Residence 3 Supportive Housing HUD Local 2037 Hopkins Street Residence 4 Supportive Housing HUD Local 2042 DDS / DMH Group Homes 52 Supportive Housing DDS Local NA Cedar Glen 114 Age Restricted Rental MassHousing 40B Perp Peter Sanborn Place 74 Age Restricted Rental MassHousing 40B Perp Residences at Pearl 86 Assisted Living MassHousing Local 2046 Reading Commons (Archstone) 204 Family Rental FHLBB 40B Perp Oaktree 11 Family Rental DHCD/40R 40R Perp Reading Village 68 Family Rental MassHousing 40B Perp Schoolhouse Commons 20 Family Rental MHP 40B Perp 20-24 Gould Street 55 Family Rental DHCD/40R 40R Perp Sumner/Cheney 1 Ownership FHLBB 40B Perp George Street 3 Ownership MassHousing 40B Perp Maplewood Village 9 Ownership DHCD/LIP 40B 2054 Governor's Drive 2 Ownership DHCD/LIP 40B 2103 Johnson Woods 11 Ownership DHCD/LIP Local Perp Johnson Woods Phase II 19 Ownership DHCD/LIP Local Perp Reading Woods 43 Ownership DHCD/40R 40R Perp Postmark Square 10 Ownership DHCD/40R 40R Perp TOTALS 896 Census 2010 Units 9.35% Commented [MA11]: Will use 2022 local SHI inventory. Town of Reading Housing Production Plan, 2023 Renewal Page 36 Key to Subsidizing Agency: MHP – Massachusetts Housing Partnership DHCD/PHA: Department of Housing and Community Development, Public Housing Authority DHCD/LIP: Department of Housing and Community Development, Local Initiative Program Commented [NL12]: Cross reference with Julie's list. Town of Reading Housing Production Plan, 2023 Renewal Page 37 DHCD/40R: Department of Housing and Community Development, 40R DDS: Department of Developmental Services FHLBB: Federal Home Loan Bank of Boston HUD: Federal Housing and Urban Development Public Housing Authority B. Affordable Housing Efforts Reading has pursued a proactive planning-based strategy in an effort to increase the supply of affordable housing and meet the 10% minimum statutory requirement. The Town has made strides towards meeting that goal through adopting zoning changes and utilizing current planning best practices. The Town’s 2018 HPP created a roadmap to follow as the Town worked towards meeting its affordable housing goals. Safe Harbor – As reported earlier, in 2020 the Town achieved a 10% stock on the Subsidized Housing Inventory (SHI), the inventory used by the Commonwealth of Massachusetts to monitor the affordable housing statutory requirements. As a result, the Town secured a safe harbor designation. The Town should continue to monitor units that may fall off of the SHI due to permitting timelines and if applicable re-seek Safe Harbor designation as needed. Town of Reading Housing Production Plan, 2023 Renewal Page 38 1. Adoption of Smart Growth Districts (40R) Gateway Smart Growth District (GSGD) In December 2007, Reading adopted the Gateway Smart Growth District under MGL Chapter 40R and 760 CMR 59.05(4). The overlay district is located at the southern town line, near Interstate 95/Route 128 and Route 28 (Reading’s Main Street). The 424 unit Reading Woods project is currently completed and fully occupied. The GSGD zone includes 200 of the 424 units. Of those 200 units, 43 are affordable and are included on the SHI. This site was formerly a commercial use owned by the Addison Wesley Corporation. Downtown Smart Growth District (DSGD) In November 2009, Reading adopted the Downtown Smart Growth District (DSGD) under MGL Chapter 40R and 760 CMR 59.05(4). This zoning change was also a response to the 2007 Housing Plan which identified downtown as an area for future housing opportunities. At that time, the DSGD overlay district did not encompass the downtown in its entirety and allowed for 203 additional housing units by right. The first project that was permitted and constructed within the DSGD was the Oaktree Development located at the former Atlantic Market site on Haven Street. This project is a mixed-use development with retail uses on the ground floor and 53 residential units above. At 53 units, this project exceeded the maximum density allowed, but was granted a waiver from the CPDC for a density of 73 units per acre. A total of 11 units are affordable and are listed on the SHI. In September 2017, Postmark Square, an adaptive re-use of the historic Reading Post Office, received 40R Plan Review approval from the Reading Community Planning and Development Commission (CPDC). Postmark Square is a mixed- use project with 50 ownership residential units, 10 of which are affordable units. Town of Reading Housing Production Plan, 2023 Renewal Page 39 Expanded Downtown Smart Growth District (DSGD) In April of 2017, Town Meeting adopted and the AG’s office approved, an expansion of the DSGD to include approximately 21 additional acres, with a potential for 113 new by- right residential units. At this time Town Meeting also adopted, and the AG’s office approved, increasing the affordable housing requirement from 20% to 25% for rental projects within the DSGD. Pursuant to MGL Chapter 40B, the increase to 25% allow s the Town to count all of the units in a rental project versus only the actual number of affordable units. In November 2017, 20-24 Gould Street, a redevelopment of the former EMARC site received 40R Plan Review approval from the Reading Community Planning and Development Commission (CPDC). The mixed-use project includes 55 residential units, 14 of which are deed restricted affordable. As a rental project for which at least 25% of the units are affordable, all 55 units qualified for listing on the SHI. Another mixed-use 40R redevelopment project was approved for the redevelopment of the former Sunoco station property along Main Street. This 31-unit rental project is currently fully occupied and as a rental project for which at least 25% of the units are affordable, the total number of units in the project will qualified for listing on the SHI. In 2022 the CPDC approved a mixed-use, 29-rental unit development at the property 6-16 Chute Street. The development will include 8 deed restricted affordable units, though all 29 units will qualify for the SHI. A number of additional 40R development projects have been approved, though they did not trigger the affordability threshold of 13 units or more. This includes the 3-unit townhouse development along Chapin Avenue; the 7-unit re-development of the Reading Chronicle building at 531 Main Street; and the 6-unit development at 18 Woburn Street. Town of Reading Housing Production Plan, 2023 Renewal Page 40 Planning Efforts 2016-2022 Economic Development Action Plan (EDAP) - The EDAP recommendations include expanding housing and mixed use in identified Priority Development Area’s across the Town. A key recommendation was to expand the DSGD and allow mixed-use development in areas around Town. A future plan update is under consideration. The 2015-2022 EDAP link can be found on the Town’s Economic Development webpage at readingma.gov. Metro North Regional Housing Office (MNRHSO) – In 2015, Reading established the MNRHSO comprised of the towns of Reading, North Reading, Wilmington, and Saugus. The City of Woburn joined the regional group in 2019. The MNRHSO now shares the expenses of a full- time housing consultant agency (Anser Adviosry, 2022) who monitors Town of Reading Housing Production Plan, 2023 Renewal Page 41 existing affordable housing stock across the municipalities and provides expertise related to affordable housing development and needs. Massachusetts has only a handful of RHSO’s and Reading is proud to have developed this for the Metro North region. Comprehensive Update/Accessory Apartments Update to the Reading Zoning Bylaw (ZBL) – In 2014, the ZBL was updated to clarify, simplify, and modernize zoning for ease of use by developers. Some development of Accessory Apartments we made “by-right” if performance standards are met and if the unit is located in an existing single-family structure. A special permit is required for accessory apartments in detached structures or involving increases in gross floor area through new construction. Permitting checklists have been developed to further simplify the zoning. Mixed-use Bylaw addition to Reading ZBL – In 2019 the Town proposed and adopted a Mixed-Use Bylaw for its Business-A Zoning District. The Mixed-Use Bylaw allows mixed-use development through a Special Permit granted by the CPDC and requires certain amounts of commercial floor area. Affordable dwellings units are required for projects 10-units and more at 10% of the total units and required for at least 80% AMI. 40R Zoning Amendments to Reading ZBL – In 2021-22 Town Meeting requested by Instructional Motion that the CPDC and Town Staff review the existing DSGD 40R Bylaw for improvement. Reading contracted with the Metro Area Planning Council (MAPC) to help lead public engagement around 40R and to learn what was working and what was not. Found desired imp rovements included requiring open space, additional design criteria, reduced density, setbacks and parking solutions. The CPDC proposed a series of holistic changes to address the needs and developed a ‘tiered schedule for density waiver requests’ – requiring certain improvements and amenities for higher density projects. The Bylaw amendments were approved at April 2022 Town Meeting. 2. Challenges and Constraints to the Development of Affordable Housing a. Existing Housing Allowances The Reading Zoning Map illustrates residential uses taken from the Reading Zoning Bylaw effective as of November 2021. The tables below identify which types of residential and business uses are allowed in each zoning district. “YES” indicates uses allowed by right. “SPP” means the use requires a Special Permit from the Community Planning and Development Commission and “SPA” means the use requires a Special permit from the Zoning Board of Appeals. “No” denotes a use that is not allowed. Table 21: Uses for Residential Districts Principal Uses RES S-15 S-20 S-40 RES A-40 RES A-80 PRD-G PRD- M PUD-R Residential Uses Single Family Dwelling Yes Yes No SPP SPP Two Family Dwelling No (1) Yes No SPP SPP Multi-Family Dwelling No Yes Yes SPP SPP Town of Reading Housing Production Plan, 2023 Renewal Page 42 Age Restricted Multi- Family Dwelling No SPP SPP SPP SPP Boarding House No Yes No No No Table 22: Uses for Business and Industrial Districts Principal Uses Bus A Bus B Bus C IND PUD-B Overlay PUD-I Overlay Residential Uses Single Family Dwelling Yes No No No No No Two Family Dwelling Yes No No No No No Multi-Family Dwelling Yes No Yes (1) No No No Age Restricted Multi- Family Dwelling No No Yes No No No Boarding House No No No No No No Other Uses Mixed-Use SPP No SPP No No No Town of Reading Housing Production Plan, 2023 Renewal Page 43 Source: Town of Reading Zoning By-Law, Tables 5.3.1 and 5.3.2, Table of Uses, September, 2017 Although Reading is primarily zoned for single family homes, other zoning districts including A-40, A-80 and Business A allow for other forms of residential development such as apartments or multi-unit homes. Additional zoning overlay districts such as PUD, PRD, and Smart-growth 40R also allowed for multi-family and/or mixed-use development. Table 23 below identifies the base and overlay zoning districts in Reading. Table 23: Reading Base Zoning Districts Zoning District Short Name Area (sq miles) Acreage Percent Single Family 15 District S-15 3.3 2,120.1 33.2% Single Family 20 District S-20 4.1 2,643.2 41.3% Single Family 40 District S-40 1.9 1,235.1 19.3% Apartment 40 District A-40 0.0 30.8 0.5% Apartment 80 District A-80 0.0 12.8 0.2% Business A BUS A 0.1 48.4 0.8% Business B BUS B 0.1 55.2 0.9% Business C BUS C 0.1 38.8 0.6% Industrial Ind 0.3 209.1 3.3% Totals 10.0 6393.4 100.0% Source: Town of Reading Zoning By-Law, April 2017 In addition to the base zoning districts, Reading has several overlay districts. Table 24 on the following page is a comprehensive list of all the zoning districts, including overlays within the Town of Reading. Town of Reading Housing Production Plan, 2023 Renewal Page 44 Table 24: Town of Reading Zoning and Overlay Districts Source: Town of Reading Zoning By-Law, April 2022 b. Development Capacity and Constraints: Residential development is constrained by many factors including availability of land, land use regulations, natural resources such as wetlands and threatened and endangered species, and limitations on infrastructure capacity. In order to evaluate the potential development capacity, the availability of land must be evaluated against potential development constraints. Available Land: The Town of Reading is approximately 10 square miles in size and contains 6,388 acres of land. Using a GIS analysis it was estimated that 1,756 acres (27.5%) of land in Reading is undeveloped or Chapter 61 Land. Of that, 372 acres are potentially developable, and only 139 acres of developable land remain after regulatory constraints7 are applied. This results in approximately 262 buildable lots based on the minimum lot size of 15,000 square feet required in the S-15 residential zoning district. However, this build-out is for Type Full Name Short Name Residence Single Family 15 District S-15 Residence Single Family 20 District S-20 Residence Single Family 40 District S-40 Residence Apartment 40 District A-40 Residence Apartment 80 District A-80 Business Business A District Bus. A Business Business B District Bus. B Business Business C District Bus. C Industrial Industrial Ind. Overlay Aquifer Protection District AQ Overlay Municipal Building Reuse MR Overlay Planned Residential Development General PRD-G Overlay Planned Residential Development Municipal PRD-M Overlay Planned Unit Development Business PUD-B Overlay Planned Unit Development Industrial PUD-I Overlay Planned Unit Development Residential PUD-R Overlay Gateway Smart Growth District GSGD Overlay Downtown Smart Growth District DSGD Overlay Planned Unit Development - Residential Corona PUD-R-C Overlay National Flood Insurance Flood Management Dist. NF Overlay Flood Plain District F Town of Reading Housing Production Plan, 2023 Renewal Page 45 undeveloped land and does not take into account previously developed land that could be subdivided to yield more homes. Using the same GIS analysis and regulatory constraints, it is estimated that a potential of 513 new homes could be built on currently develop ed land. However, the actual number is likely to be significantly less when taking into account infrastructure costs, lot shape, or other geological conditions, as well as particular zoning district (specifically S-20 or S-40). As identified above, Reading has several overlay districts. Overlay districts are zoning districts which may be placed over the underlying districts. The provisions for the overlay district may be more stringent or flexible based on the purpose of the particular overlay. The followi ng are overlay districts that relate to housing development and the provision of affordable housing in Reading. Some of the overlays allow for other forms of development, increased density in development, and may have requirements for affordable housing. Planned Unit Development – Residential Denoted as PUD-R this overlay district allows, by a Special Permit from the CPDC, single family, two family, apartments, elderly housing, among other uses. At least ten percent of all residential units in the PUD-R must be affordable. The affordable percentage requirement increases to 15% for property within 300-feet of a municipal boundary. It should also be noted that the Planned Unit Development – Industrial (PUD-I) overlay district also allows residential development when the proposed development is within 200-feet of another residential district. Planned Residential Development (PRD) A PRD district is an overlay zoning district which may be applied to parcels within the S-15, S- 20, S-40 and A-80 residential zoning districts and must be approved through Town Meeting. Upon approval of the overlay, the CPDC may issue a Special Permit for residential development. In Reading, there are two types of PRD districts; General (PRD-G) and Municipal (PRD-M). The PRD-G requires a minimum lot size of 60,000 square feet and encourages affordable unit development. PRD-M development is allowed on current or former municipally-owned land of at least eight acres and requires a certain percentage of affordable units. 7 Only residentially-zoned parcels were included in the analysis. Constraints include FEMA 100 year flood zones, 100' buffers around wetlands, streams, and vernal pools, and 200' buffers around perennial streams. Aquifer protection district and slope were not included as constraints. Infrastructure needs were not considered in calculating potential lots. Town of Reading Housing Production Plan, 2023 Renewal Page 46 Municipal Building Reuse District The Municipal Building Reuse District is an overlay district that allows for the redevelopment or reuse of surplus municipal buildings. At least ten percent of the residential units must be affordable. Smart Growth Districts (40R) Reading has adopted two Smart Growth 40R Districts. The Downtown Smart Growth (DSGD) District is an overlay district that allows for mixed-use or multi-family residential within the downtown area via plan approval by the Community Planning and Development Commission. This overlay district requires a minimum of 20% affordable units (homeownership projects) and a minimum of 25% affordable units if the development is rental or limited to occupancy by elderly residents. As described above the DSGD has seen a number of success in revitalizing the downtown area with both new commercial space and residential growth. The Gateway Smart Growth District (GSGD) is also an overlay district located at the intersection of Route 28 (Main Street) and Interstate 128/95. This district is fully developed with one 424-unit project (200 of the units are technically within the GSGD) and includes 43 affordable units (10%). Natural Resource Limitations: Wetlands and other natural resources such as endangered species habitats can place constraints on development. As mentioned above, many lots are considered unbuildable due to the presence of some of these resources. Almost one-fourth of the land in Reading is considered wetland or within the jurisdictional buffer zones of resource areas. Another 6% of land is within the 100-year flood zone. Reading is located within the Aberjona, Ipswich and Saugus river watersheds and many of Reading’s wetland areas are located in associated floodplains. Rare and Endangered Species: There are three areas in Reading which contain rare or endangered species. These areas are protected under the Massachusetts Endangered Species Act and the Massachusetts Wetlands Protection Act. Any development within these areas is subject to review by the Massachusetts Natural Heritage and Endangered Species Program (NHESP). The three areas of designation include a large tract of land within the western side of the Town Forest and two separate tracts of land within the Cedar Swamp near the Burbank Ice Arena located on the eastern side of the town. Commented [MA13]: Nicole to add map. Town of Reading Housing Production Plan, 2023 Renewal Page 47 c. Infrastructure Public Water: The Town of Reading’s water distribution system is comprised of 110 miles of distribution main, 2 water booster stations and 2 storage facilities; one 0.75 M gallon elevated tank located at Auburn Street and one 1.0 M gallon standpipe located at Bear Hill. Since 2006 Reading purchases all of its drinking water from the Massachusetts Water Resource Authority (MWRA) which is supplied into the Town’s distribution system via a 20” water main located on Border Road. Construction of a second 36” redundant supply pipe line was completed by the MWRA which provides a second supply source to the Town’s distribution system at Leech Park on Hopkins Street. The Town also has 5 emergency water connections with 3 of the bordering communities. Prior to purchasing water from the MWRA, Reading operated a water treatment plant adjacent to the Town Forest which drew water from nine wells within the Town Forest and Revay Swamp, all contained within the Ipswich River Watershed. Following the temporary closure of wells as a precautionary measure to avoid contamination from an overturned petroleum vehicle on Rte. 93 and to aid in relieving stress to the Ipswich River aquifer, the Town decommissioned the treatment plant in 2006 and began purchasing 100% of the Town’s drinking water from the MWRA. Reading continues to maintain the wells as a backup water supply until the redundant MWRA water supply source is on-line. Reading has established a strong water conservation program offering residents rebates for the installation of low flow fixtures and appliances, irrigation sensors and rain barrels. The program has been extremely successful and has lowered water consumption by 10% over a 10-year period. In 2016 the average daily water consumption equaled 1.7 MGD with a maximum daily demand of 2.2MGD. All water purchased from the MWRA is metered at the supply mains through meters owned by the MWRA and the Town of Reading. Residential and Commercial meter reading is modern and efficient, with an automatic system that uses radio transmitters for optimal accuracy and efficiency. Water rate changes are established by the Board of Selectmen based on recommendations from staff. Reading’s water distribution system is maintained on a GIS mapping and database system. The operation of the water system is overseen by the Department of Public Works, and is on an enterprise basis, through which the full costs of operations are borne by the water users, and not paid for by local property taxes. Water supply is considered adequate for any new development, and it no longer impacts the Ipswich River resource. Commented [MA14]: Confirming this language with Engineering Dpt. Town of Reading Housing Production Plan, 2023 Renewal Page 48 Public Sewer: The sewer system is owned and operated by the Town and serves approximately 98% of all properties within the Town. While 149 individual properties throughout the Town are not yet connected to available public sewer, the only major unsewered areas are portions of Main Street north of Mill Street, and the westerly portion of Longwood Road. The system consists of 107 miles of sewer main, 12 wastewater pump or lift stations, and approximately 7,800 local service connections. All sewage from the Town’s system discharges into the MWRA’s regional collection system through 2 major outfalls; one along Rte. 93 in the west adjacent to Arnold Avenue, and one at the end of Summer Avenue in the south. An isolated collection system servicing Border Road and a small portion of the West Street area discharges into the regional sewerage system via the City of Woburn. The regional sewerage system is operated by the MWRA, with principal treatment at Deer Island facility. Water usage meters measure outfall flows and discharges. Sewer rate changes are established by the Board of Selectmen based on recommendations from staff. The Town’s connection policy requires all new development to tie into the public sewer system and requires conversion to public sewer when residential septic systems fail. In addition, the Town sewer connection policy requires that all new developments perform system Inflow/Infiltration improvements or that equivalent contributions of twice the new flow multiplied by $4.00 are made to the Town. Reading’s sewer system is maintained on a GIS mapping and database system. The operation of the sewer system is overseen by the Department of Public Works, and is on an enterprise basis, through which the full costs of operations are borne by the sewer users, and not paid for by local property taxes. Stormwater System: Reading is located in the upper reaches of three (3) separate drainage basins; the Ipswich River basin to the north, Saugus River basin to the southeast, and Aberjona River basin to the southwest. All stormwater is collected through a series of approximately 3,400 catch basins, 80 miles of piped system, numerous open water bodies and 450 outfalls. The GIS mapping of the stormwater system was updated in 2016. The town has evaluated problematic areas of the Aberjona and Saugus River basins and has developed a capital plan for the improvements. The system is operated and maintained by the Department of Public Works and is funded partially through local property taxes and the balance through enterprise funds. Following the authorization of the MS4 permit program by the EPA in 2003, the Town established a stormwater Town of Reading Housing Production Plan, 2023 Renewal Page 49 enterprise in 2006 to fund the additional operation and maintenance of the stormwater system mandated by the MS4 permit. The enterprise funding is apportioned based on the extent of impervious area within the parcel. Through the policies established under the Town’s MS4 permit program, all new developments are required to install and maintain stormwater management systems. Each system must include a long-term operation and maintenance plan which includes annual reporting to the Town. Roadway Network: Reading contains approximately 102 miles of streets and roads, however, the Town only maintains approximately 92.7 miles. The remainder of roadways not maintained by the Town are state-owned or privately-owned roadways. The Town is bordered by Interstate Highway 95 (also known as state Route 128) on the south and southeast, and Interstate Highway 93 on the west. Reading’s roadway system consists of several arterial, collector and local roadways. Arterial streets, carrying large traffic volumes and serving as principal local routes as well as regional routes, include: Main Street (Route 28), and Salem Street and Lowell Street (Route 129). These three main arterials intersect at the Common in the middle of Town, and are lined almost uninterruptedly with commercial and densely developed residential uses. Minor arterial streets include: Haverhill Street (residential), Walkers Brook Drive (commercial and industrial), Washington Street (residential), Woburn Street (commercial through Downtown and otherwise residential) and West Street (almost entirely residential). Collector streets, serving traffic from neighborhood streets and feeding into the arterial streets in Town, include: Franklin Street, Grove Street, Forest Street, Charles Street, Washington Street, High Street, Summer Avenue, South Street, Hopkins Street, and Willow Street. Since 2000, Reading has utilized a computerized pavement management system to assist in developing a roadway capital improvement plan. In 2011 the system was converted to a GIS based management system. The system enables the Town to reliably develop cost effective roadway maintenance plans. Based on roadway inspections, each roadway is given a pavement condition index (PCI) that is used to identify the overall condition of the roadways. PCI values range from 0 to 100 and the 2016 average PCI of all roadways was 77. Every 3-4 years, each roadway is physically inspected to update the database for pavement distresses factors, which are used to determine pavement longevity in the program. Through the use of the computerized program, state Chapter 90 roadway funds and the general operating funds (which is a result of a proposition 2 ½ override ), the Town’s planned annual expenditure of roadway maintenance will insure an overall Town of Reading Housing Production Plan, 2023 Renewal Page 50 increase in the roadways PCI value for the next 10 to 15 years. Commuter Rail: Reading is served by the Massachusetts Bay Transportation Authority (MBTA) Commuter Rail system. The current MBTA schedule has 19 commuter rail trains each weekday inbound to North Station in downtown Boston. A total of 23 commuter trains travel outbound to Reading each weekday from North Station and of those 13 continue on to the final destination of Haverhill. The Reading train station is located in the heart of downtown at the “Depot”. There is a mix of MBTA/Town parking available at the Depot. The 113 MBTA - owned spaces are available for a rate of $6.00/weekday, $2.00/weekend day or $105 for a monthly pass. There are also several Town-owned parking spaces limited to resident permit only from 6:00AM-9:30AM, for an annual fee of $150. The town-owned spaces are unregulated after 9:30AM and open to any user. The most current ridership data available is contained in the MBTA “Blue Book” dated July, 2014. The 2014 Blue Book statistics show a typical weekday station boarding (inbound) at Reading station as of April, 2013 was 799 commuters. The average boarding count for the period 2007 – 2013 for Reading Station (inbound) was 834 with a high of 1010 in 2011 and a low of 444 in 2012. The 2009 ridership in Reading was higher than any other station on the Haverhill/Reading MBTA line. Lawrence had the second highest ridership at 722. Bus Service: The MBTA operates one bus route from Reading to the Malden Center Orange Line subway station through Bus 137. Bus 137 travels from the Reading Depot, continues along Woburn Street and Salem Street where it then travels south through Wakefield and continues south through Melrose on Main Street and terminates at the Malden Center subway station. The entire route from Reading to Malden takes approximately 40-45 minutes. Electrical – Reading Municipal Light Department (RMLD): In 1891, the Massachusetts Legislature passed a law enabling cities and towns to operate their own gas and electric plants. Following several years of study and Special Town Meetings, Reading began producing electricity for 47 streetlights and 1,000 incandescent lamps on September 26, 1895. Special legislation was enacted on April 8, 1908 authorizing the Town of Reading to sell and distribute electricity to Lynnfield, North Reading and Wilmington. As a result, RMLD began delivering power to Lynnfield Center on December 10, 1909; to North Reading in 1910 and to Wilmington in 1912. There have been decades of advancement and achievement since those early days of electricity, but some things have remained constant. After more than 125 years, RMLD is still committed to reliable service at competitive rates, but maintaining that commitment requires astute planning, innovative ideas and close attention to detail. The Gaw substation on Causeway Road in Reading was constructed in 1969-1970 allowing RMLD to connect to the grid and purchase power from almost anywhere on the northeast power pool. In June 2000, construction was completed on a distribution substation connected to 115,000-volt transmission lines in North Reading in order to accommodate Town of Reading Housing Production Plan, 2023 Renewal Page 51 growth and enhance the entire system's efficiency and reliability. To ensure reliability, RMLD has an ongoing preventative maintenance program aimed at solving problems before they occur. Today, RMLD serves more than 70,000 customers in its four-town service area. A professional staff of 75+ employees bring a broad scope of utility experience to RMLD's daily operation, including an up-to-date understanding of the evolving energy market. With its peak demand for electricity at more than 156 megawatts, RMLD purchases electricity from a number of different sources through long-and-short-term contracts. Recent technological advances at RMLD include a fiber optic cable network that links all substations for state-of-the-art system monitoring and control. Computer systems are also state-of-the-art, and now include a sophisticated website. Meter reading is modern and efficient, with an automatic system that uses radio transmitters for optimal accuracy and efficiency. RMLD supports in-lieu-of-tax payments, community development and energy education programs. This includes energy efficiency programs, energy conservation programs, school safety projects, school-to- work partnerships, outreach to senior groups, community support, and active memberships in local civic groups. Infrastructure Capacity for Planned Production: Reading’s overall infrastructure contains adequate capacity and capital facilities for existing build out and anticipated future development. The Town also periodically reviews and assesses its 10-year Capital Plan to ensure that infrastructure will be maintained and sustained for projected growth. The Town expects to continue the policy and practice of requiring mitigation from developers, financial or otherwise, for the impacts of their proposed projects, including infrastructure improvements. Therefore, as needs are identified through staff level and consultant review of individual permitting applications, the Town expects to require - as conditions for approval - adequate improvements and upgrades to systems, resources and capacity to allow for development under this Housing Production Plan, while protecting and enhancing natural, cultural and historical assets consistent with the 2005 Master Plan. Town of Reading Housing Production Plan, 2023 Renewal Page 52 The housing goals and strategies included in this section are aimed primarily at creating more housing choice and affordable housing in Reading. The goals and their related strategies also support the Town’s ability to achieve other interrelated community goals, including goals for economic development as well as protecting quality of life and community character. Housing Goals and Strategies In reviewing the previous Reading Housing Plan of 2018, other Reading related documents, analyzing the current housing situation in Reading, and in discussing housing issues with town citizens and officials, the Town has identified three priority areas to establish overarching goals that are the most appropriate and most realistic for the community. Each of the three priority areas includes a series of strategies to help achieve the vision. The goals and strategies are listed immediately below and discussed in more detail on the following pages. 1. Development and Regulatory Goals a) Increase, diversify and promote a mix of housing options in Reading for low- to middle-income households. b) Create and maintain housing that is available and accessible to aging and disabled populations. Support housing development needs for most vulnerable residents. c) Proactively plan for and manage the integration of housing growth to mitigate impacts and enhance the existing residential character of the Town. d) Provide equitable access to housing opportunities, public spaces, green spaces and healthy/safe environments. e) Maintain Reading’s Safe Harbor designation by retaining pace of Affordable Housing development in order to remain above 10% on Subsidized Housing Inventory. Strategies 1) Adopt/Amend zoning that would comply with MBTA Communities legislation 2) Identify Zoning Districts/Geographies in which current regulations can be modified to allow the development of SHI eligible housing units (including previously identified Priority Development Areas) 3) Strengthen and expand Inclusionary Zoning to further promote/develop affordable housing opportunities 4) Amend Zoning Bylaw to define and expressly permit Congregate Housing. Identify Section 2: Affordable Housing Goals and Strategies Town of Reading Housing Production Plan, 2023 Renewal Page 53 sites with the potential to convert to congregate housing use. 5) Allow for redevelopment or conversion of pre-existing non-conforming residential uses by-right and/or make the permitting path for such easier 6) Consider zoning amendments to allow Accessory Dwelling Units (ADUs) by-right and/or lessen restrictions on such 7) Require installation of Open Space in a flexible manner on new multi-family developments. Require installation or improvements of sidewalks, bike paths, trails/connections, and/or transit-oriented development for multi-family and mixed-use developments 8) Ensure future Net Zero and energy efficiency requirements are met in new development that provide cost savings to the end user (residents) 9) Preserve existing affordable housing stock to ensure they remain affordable and continue to qualify for SHI 10) Maintain Safe Harbor designation by maintaining, tracking and continuing to add affordable developments to SHI 2. Funding and Resources Goals a) Support vulnerable, low- and middle-income populations through programming and services. b) Ensure appropriate maintenance and upkeep of existing affordable housing stock. Continue to look for opportunities to increase affordable units within existing properties. c) Maintain and see national/state/local designations that provide grant and financial opportunities to develop/maintain/support affordable housing development and residents. d) Ensure equitable access to financial/support services and programming. Strategies 1) 3. Partnerships, Education and Leadership Goals a) Initiate and strengthen local and regional relationships. Work in cooperation and collaborate with community partners/organizations to promote enhanced understanding of housing needs and support for creation of housing development. b) Increase capacity to produce housing through leadership developments, advocacy, staffing, funding, established goals and diverse relationships. Provide education and support to local staff, boards/commissions and public. c) Ensure access, support, outreach and inclusion to social and vulnerable populations across the Town and region. Commented [MA15]: We should also include language to partner to raise awareness of programming and services available. Town of Reading Housing Production Plan, 2023 Renewal Page 54 Strategies Town of Reading Housing Production Plan, 2023 Renewal Page 55 Housing Strategies This section includes descriptions of local regulatory strategies, local initiative strategies and an action plan, all of which are intended to assist the Town of Reading in meeting its affordable housing goals above. Reaching and Maintaining 10% The Housing Production Plan guidelines require that the HPP set an annual goal for housing production, pursuant to which there is an increase in the municipality’s number of SHI Eligible Housing units by at least 0.50% of its total units during every calendar year included in the HPP, until the overall percentage exceeds the 10% Statutory Minimum. There should be a direct link between the setting of these goals and the results of the needs assessment. The numerical goal should be based on the total year-round number of housing Town of Reading Housing Production Plan, 2023 Renewal Page 56 units. The total year-round housing units is the total number of units for the community in the latest U.S. Census including any changes due to demolition or new construction. The Table below projects the Town of Reading SHI. Note that the unit counts for projects on the first three lines are forecast. The denominator of Year-round housing units will be updated by the Census and then reported by DHCD in 2023. These projections are not included in this update, but will be included in the future updates. FY18 FY19 FY20 FY21 FY22 FY23 Johnson Woods 7 Eaton Lakeview 40B 120 467 Main Street 40R 31 SHI Units Created 896 0 38 120 0 0 Cumulative SHI Units 896 896 934 1054 1054 1054 Year Round Units (2010 Census) 9584 9584 9952 9952 9952 9952 SHI % 9.35% 9.35% 9.75% 11.00% 11.00% 11.00% 10% Requirement 958.40 958.40 958.40 958.40 958.40 958.40 +/- 10% -62.4 -62.4 -24.4 95.6 95.6 95.6 Development and Regulatory Strategies Regulatory strategies refer to recommendations that entail amendments to local zoning bylaws or other local development regulations to help encourage development of more housing options including affordable housing. 8 More information about MassHousing’s Housing Production Program: www.masshousing.com/portal/server.pt/community/planning programs/207/planning_for_housing_produc tion Town of Reading Housing Production Plan, 2023 Renewal Page 57 Strategy 1: Adopt/Amend Zoning to comply with MBTA Communities legislation MBTA Communities legislation is the requirement codified as Section 3A of Massachusetts General Law (MGL) Ch. 40A. The law requires designated MBTA Communities to have at least one zoning district of reasonable size in which multi- family housing is permitted as of right and meets other criteria set forth in the statute, including but not limited to: a minimum gross density of 15 units per acre, locations not more than 0.5miles from a MBTA station, no age restrictions and zoning suitable for families with children. On August 10, 2022 DHCD issued the final guidelines to determine if an MBTA Community is in compliance with the Section 3A language. In total, 175 MBTA Communities are subject to the new requirements. More information and resources are available at the State webpage. Locally, Reading is designated as a Commuter Rail Community. Based on its designation (and other local factors) the Town must zone to allow the Unit Capacity of 1,493 multi-family units across a Reasonable District Size of 43 acres of area. It also requires that 40% of the Unit Capacity and District Area be located within 0.5miles of the local Reading Train Depot (598 units and 17.3 acres respectively). There are potentially many paths to compliance with the legislation but new zoning adoption or amendment of existing zoning districts will be needed, that much is certain. Reading will have until December 31, 2024 to comply with the requirements or it may face impacts to funding as described in Section 3A. The Town should engage its leaders and community as a whole to determine a method of compliance that addresses and meets the local need without dramatically changing the existing character of the community. Technical Assistance should be sought and steps to achieve compliance be planned. Compliance would help address shortfalls identified in this HPP update and identified for the region. Strategy 2: Identify Zoning Districts/Geographies in which current regulations can be modified to allow the development of SHI eligible housing units, including previously identified Priority Development Area’s (PDA’s). As part of the Reading Economic Development Action Plan 2016- 2022 (EDA Plan), the town identified four regionally-significant Priority Development Areas (PDAs). As described in the EDA Plan, redevelopment in these PDAs will help meet projected Commented [MA16]: https://www.mass.gov/info- details/multi-family-zoning-requirement-for-mbta- communities Town of Reading Housing Production Plan, 2023 Renewal Page 58 regional demands for housing and commercial uses and strengthen existing places by improving the mix of development types in areas where development already exists. The PDAs are sited in areas defined as having major growth potential and near existing transportation resources including public transit, bike, and trail facilities, thus contributing to the creation of more walkable communities. The four PDAs are described below, as excerpted from the EDA Plan (page 6): PDA #1 - Downtown Reading. PDA #1 is a nine-acre area consisting of 46 parcels – the Town’s 40R Smart Growth Overlay District was expanded to include a portion of this area (PDA #1A) in April 2017. PDA #1A is bounded by Haven Street, Main Street, Washington Street, and High Street and includes mixed use, commercial, and residential development. Since the EDAP was adopted in 2015 the Ace Flats 40R (24 Gould Street), located in PDA #1A, has reached completion. PDA #1B is adjacent to the Commuter Rail and is bounded by Lincoln and Prescott streets and includes commercial and residential development – this property is the location of an approved and completed Comprehensive Permit project – The Metropolitan at Reading Village. Commented [MA17]: New number needed with Ace Flats and Reading Village completed. We also had a MF project on South Main St completed. Town of Reading Housing Production Plan, 2023 Renewal Page 59 PDA #2 – South Main Street. PDA #2 is a 26-acre area consisting of 82 parcels located south of the downtown on South Main Street. PDA #2A presently contains primarily low- density commercial development and underutilized parcels. PDA #2B consists primarily of low-density residential development. The Town is interested in facilitating more retail and mixed-use development and implement streetscape and road reconfigurations that will enhance safety and the street’s overall connectivity to downtown. In 2019 the Town proposed and adopted a Mixed-Use Bylaw in the Business-A Zoning District, included in PDA #2A and #2B. The Mixed-Use Bylaw allows a mixed-use development through a Special Permit granted by the CPDC and requires both commercial floor area and affordable units for projects 10 units or more. Affordable units are required for 10% of the project units and required for at least 80% AMI. PDA #3 – New Crossing Road Redevelopment District and Ash Street Parcels. PDA #3 consists of the five- acre New Crossing Road Redevelopment District, which consists of four parcels and includes vacant lots, derelict buildings, sites with industrial uses, and adjacent parcels on Ash Street. In 2019 the Town used an awarded Massachusetts Downtown Initiative (MDI) Grant to facilitate conversation around future uses and development in this priority area. Gamble Associates was contracted with and proposed visioning renderings for the area designated as ‘The Eastern Gateway/The Yard’. Numerous public engagements, workshops and discussions were held. Desired vibrant uses and pedestrian improvements/connections were noted – and while mixed-use development can facilitate improvements concerns of losing too much commercial area were noted. Future zoning additions or amendments should look to address the need for vibrant commercial uses without limiting the market for development. PDA #4, - 1 General Way. PDA #4 is one large 20-acre parcel with a mix of single-story commercial uses and ample parking. The Town is interested in facilitating a more vibrant mix of uses and structures of different densities in this area. Conceptual improvements extended and derived from the Eastern Gateway Initiative described above may be extended to this parcel in future discussions. Consider zoning changes to promote more compact, mixed-use development A Mixed-Use Bylaw for PDA #2 (South Main Street) was adopted in 2019. The Bylaw language allows for Mixed-Use development by Special Permit and includes an Inclusionary Zoning requirement for projects 10-units or more. The Bylaw includes commercial space requirements to maintain a level of commercial development on the Town’s main corridor; parking requirements for residential and commercial uses; and, dimensional controls. However, it also allows the ability to apply for a waiver of these dimensional requirements to promote design flexibility and to achieve appropriate densities. The Bylaw has not been utilized since its inception, though important to note that the Covid-19 pandemic and high inflation occurred in the subsequent years after adoption. Future improvements to the bylaw may be considered to further promote development. Consider zoning changes to parking requirements to promote more compact, mixed-use and/or multi-family development In accordance with the recommendations of the Reading Economic Development Action Plan 2016-2022, evaluate parking requirements and consider zoning amendments to make parking requirements consistent with best practices. Commented [NL18]: Is this still a target? Has it been developed yet? Commented [MA19R18]: It is a target but no redevelopment or new zoning/visioning has been done here.. Town of Reading Housing Production Plan, 2023 Renewal Page 60 Strategy 3: Adopt and/or Strengthen Inclusionary Zoning bylaw The purpose of inclusionary zoning bylaws (IZ) is to ensure that production of affordable housing units keeps pace with construction of new dwelling units. IZ mandates that developers provide affordable housing units in addition to market-rate housing. Section 9 of the Zoning Act authorizes communities to adopt bylaws that require a developer to provide a certain portion of affordable units (usually 10% to 25%) within an overall development. To help offset the cost of providing these units, the bylaw may offer an incentive, most commonly a density bonus. Other incentives include a waiver of zoning requirements or permit fees, fast-track permitting, local tax abatements, and subsidized infrastructure.9 Many variations of inclusionary zoning provisions have been adopted in Massachusetts communities with varying levels of success at producing affordable units. IZ provisions include: ● a unit threshold that triggers the affordable unit requirements ● minimum percentage of affordable units required ● maximum household income targets (e.g., at or below 80 percent of the area median income) ● eligibility for the state’s Subsidized Housing Inventory ● density bonuses, if applicable For example, density bonuses are sometimes offered to encourage deeper affordability of units (e.g., units affordable to extremely low-income households) or a higher percentage of affordable units. The Town should consider including language in its IZ to allow for cash payments, off-site units, and/or donated buildable land as an alternative in lieu of construction of affordable units. The monetary payments and donated buildable land could be allocated to the Reading Affordable Housing Trust to create or preserve affordable housing. It will be important to examine the most current information regarding best practices for Inclusionary Zoning provisions and to customize/improve Reading bylaws to ensure a successful outcome. Strategy 4: Amend the Zoning Bylaw to explicitly permit and define Congregate Housing Congregate housing is a shared living environment designed to integrate the housing and services needs of elders and disabled individuals. The goal of congregate housing is to increase self-sufficiency through the provision of supportive serv ices in a residential setting. Some types of congregate housing are often in converted single-family homes; however, the Reading zoning bylaw restricts dwelling units to “families” o f not more than four unrelated individuals, and this restriction may pose an issue in certain situations for congregate housing, which will often house up to 16 people. Commented [MA20]: 9 Excerpted from the Housing Toolbox for Massachusetts Communities: https://www.housingtoolbox.org/zon ing-and-land-use/adaptive-reuse Town of Reading Housing Production Plan, 2023 Renewal Page 61 In addition, congregate housing sometimes provides small kitchen facilities in each private unit in addition to the shared common facilities, which may constitute multi -family housing under the current bylaw’s use regulations and thus be prohibited in certain residence districts (S-15, S-20, and S-40). Reading’s zoning bylaw does not appear to explicitly define or permit congregate housing (a.k.a. group homes), which can be an important housing choice to accommodate later life stages for an older population and provide supportive housing for individuals with disabilities. The Reading zoning bylaw provides the below definition for “family,” which presents Fair Housing considerations. Policies that require relations by blood/marriage and/or have a limit of unrelated adults in a household may be considered discriminatory if they have an adverse impact on a protected class including people with disabilities. For example, limiting the number of unrelated persons in a dwelling can impact group home uses, foster families, or other alternative household composition. Family: One or more persons living together in one dwelling unit as a single housekeeping unit; provided, however, that a group of more than four individuals who are not related by blood, marriage, or legal adoption shall not be deemed to constitute a family. Dwelling, single family: A detached dwelling unit arranged, intended or designed to be occupied by only one family. However, it is important to note that despite these limiting definitions and lack of zoning provisions for congregate housing or group homes, the Dover Amendment exempts educational uses from local zoning and programs and services that provide support, training, and skill building for persons with disabilities have been found to be educational in nature. Many congregate living and group home facilities provide such services to residents and would qualify as educational in nature. In addition, federal laws prohibit municipalities from discriminating against persons with disabilities through their land use and zoning policies.10 The zoning bylaw should be amended to ensure consistency with these laws and to explicitly permit congregate housing in all residential districts. This strategy would help to support the local initiative Strategy 8 to identify existing houses with potential for conversion to congregate housing. Identify existing houses with potential for conversion to congregate housing. Congregate housing, a shared living environment designed to integrate the housing and services needs of elders and disabled individuals, is often created by converting larger single- family homes to house up to 16 residents with private bedrooms and shared common areas including kitchen, living, dining, and outdoor space. Congregate housing will often also have a resident manager with a small (accessory) apartment within the house or in an outbuilding on site. In addition, it is often beneficial for congregate housing to be in a walkable neighborhood that is close to community Commented [MA21]: 10 Federal laws referenced here includes Section 504 of the Rehabilitation Act of 1973, the Fair Housing Amendments Act of 1988, and the American with Disabilities Act of 1990. Town of Reading Housing Production Plan, 2023 Renewal Page 62 services, shops, and public transportation including bus and commuter rail. The town, perhaps working through the AHTF and in conjunction with community partners, should inventory existing single-family properties to identify potential for conversion to congregate housing. AHTF funds could support acquisition and/or rehabilitation costs of community partners to facilitate such conversions. Strategy 5: Review and amend zoning requirements as necessary for pre- existing non-conforming residential uses. Reading Zoning Bylaw Section 7 regulates non-conforming lots, uses, buildings and structures, as provided in Section 6 of Chapter 40A of the Massachusetts General Laws. This Bylaw relates heavily to non-conforming single- and two-family uses/structures and how to regulate them, most commonly through a Special Permit granted by the local Zoning Board of Appeals (ZBA). The Bylaw does not clearly articulate how to allow for the improvement or re-development of pre-existing non-conforming multi-family uses in the single-family zoning district and thus a Special Permit process is typically required and, in many cases, a subsequent Site Plan Review process is triggered. It has been noted that the Special Permit process is a deterrent to owners who look to rehabilitate the outdated structures. There are a number of three-, four- or greater unit structures in the single-family districts of Reading. And while many of these dwellings were developed prior to the current zoning they would not be allowed under the current use regulations. The Town may wish to consider more directly addressing “other non-conforming uses” in Section 7 such as multi-family structures and provide opportunity for redevelopment, by- right improvements on pre-existing multi-family structures, or other. Strategy 6: Consider zoning amendments to allow Accessory Dwelling Units (ADU’s) by-right and/or lessen restrictions on such. Section 5.4.7 of the Reading Zoning Bylaw provides the terms and limitations on the establishment of Accessory Apartments across Reading. Reading adopted the ADU bylaw in 1983 (revised 2017) and has continued to promote the development of such units to offer a means of increasing housing options without adverse impacts on community character. Reading allows for both attached and detached accessory apartments on single-family dwellings. Section 5.4.7.3 includes ‘performance standards’ each ADU is subject to, including maximum square footage, number of occupants allowed, a requirement that the homeowner reside in the principal dwelling or ADU, and more. While ADU’s within (attached) principal dwellings that require no increase in Gross Floor Area are allowed by-right, many other variants require a Special Permit process through the Reading Zoning Board of Appeals. Accessory apartments that require new Gross Floor Area, or those within existing accessory buildings, trigger the Special Permit process. During many of the public hearings for such it has been noted by applicants (generally homeowners and/or their designers) that the process is time consuming and delays contracting the work. Commented [MA22]: I will try to find out how many we have permitted as well. Town of Reading Housing Production Plan, 2023 Renewal Page 63 Many ADU’s are originally proposed to support small family needs and the public has asked to make the process less cumbersome. However, it is important to note that the public hearing/special permit process allows for the notice of such uses and for discussion/education on concerns such as use as short-term rentals, parking needs, design, etc. It also allows for the conditioning of approvals as needed. The Town may wish to consider reviewing the bylaw for potential improvements for local homeowners. Strategy 7: Continue to provide necessary support for 40R, 40B/Comprehensive and Local Permit applications. The Town has had multiple development proposals in recent years that can help to create a more diverse housing stock including affordable and mixed-income units. The Town should continue to provide technical and political support for appropriate projects that further the Town’s housing and economic development goals. These projects could be developments in Town of Reading Housing Production Plan, 2023 Renewal Page 64 40R Smart Growth Districts, 40B Comprehensive Permit applications, or local permi t applications. Strategy 8: Preserve existing affordable housing stock to ensure they remain affordable and qualify for SHI. Explore partnership opportunities with the Reading Housing Authority to create and preserve public housing units The Reading Housing Authority (RHA) was established in 1963 and has been developing and operating housing for low-income elderly/handicapped persons, families, and people with special needs throughout the Town of Reading. The Authority owns and manages public housing units for both families and seniors. The RHA owns fourteen (14) or so units of housing that it leases to income eligible tenants. These units are currently unrestricted, despite efforts to work with the RHA to preserve units on the SHI. Some units have expired restrictions, and were recently lapsed from the SHI. In 2017, the Housing Authority hired a new director, which presents an opportunity for the Town to revisit collaborative efforts to restore the affordability of these units by regulating them as Local Action Units under the Local Initiative Program. The Town has identified locations of these fourteen units as follows: Summer/Main (6), Sanborn Schoolhouse (4), 13 Pierce (1), and Gazebo Circle (3). The Housing Authority owns property on Waverly Road, which could have some potential for development of additional units. In addition to exploring the development potential of the Housing Authority’s existing properties, the Town plans to work collaboratively with the Housing Authority to identify other properties for possible expansion of the public housing inventory—possibly through the development or redevelopment of tax - foreclosed, foreclosed, and/or surplus public Commented [NL23]: Is this unit count still the same? Commented [NL24R23]: Have any of the properties listed been able to regain their affordability restrictions? Commented [MA25R23]: Will need to check with Katie Town of Reading Housing Production Plan, 2023 Renewal Page 65 properties, as described above. Town-owned land along Oakland Road has been under consideration for the development of affordable housing; however further public engagement around the site and use is recommended. Strategy 9: Maintain Safe Harbor designation by maintaining, tracking and continuing pace of affordable housing development to exceed 10% SHI target. The Subsidized Housing Inventory (SHI) is a fluid number that is subject to constant change. This is because units on the SHI may fall off of the list if a unit’s deed restriction expires; if building permits have not been received in the required timeline from project approval; or, if occupancy is not reached one-year after building permit issuance. These items are often out of Town control. Reading does have multiple properties on its SHI that will expire at varying points in the future. Units on the SHI should continue to be tracked, and property owners communicated with, to ensure the units do not relinquish their status on the inventory and request for new units should be submitted as soon as projects become eligible. Strategy 10: Preserve/protect/enhance existing parks, open space and conservation land for long-term accessibility and use by residents. Require open space, trails and/or path connection (sidewalk, bike path, trails, transit-oriented improvements) in new residential, multi-family and mixed-use developments. The Town recently adopted an updated Open Space and Recreation Plan in 2022, which includes a series of recommendations for the preservation, acquisition and/or development of open space. And while the plan covers open space and recreation in a broader sense across the entire Town, it also includes the recommendation for connecting open space to new development(s). The Town should continue to use the plan, and its recommendations, to ensure long-term protection and accessibility to the public. During the 40R Bylaw update in 2022 it was strongly expressed that the downtown 40R and nearby 40B developments need more green space, open space, connections and/or shading (as well as other desired improvements). Efforts were made to require open space in future 40R application in a flexible manner to achieve a mix of desired improvements. New open space may be considered public or private; may be green space or urban space (to allow for uses such as outdoor dining); or, may include sidewalk and path connections to heavily utilized areas nearby. It should also be noted that private amenity space such as balconies, courtyards and shared terraces are a desirable ‘open to the air’ use in urban developments and may be considered open space. Reading also looks to encourage Low Impact Design (LID) and the use of green infrastructure to manage stormwater impacts of housing and urban developments. Green infrastructure, such as green roofs, bioswales and raingardens, as well as strategies to reduce development footprint on the environment, are strongly encouraged but not always Town of Reading Housing Production Plan, 2023 Renewal Page 66 explicitly required. Regulatory documents can require such open space improvements or LID infrastructure and the Town should review the Zoning Bylaw, Stormwater Bylaw, Stormwater Regulations, and Subdivision Regulations to ensure the desired standards are included. The Town should also continue its efforts to require, expand or promote the installation of bike paths and pedestrian trails where on-site establishment of open space is not available. Strategy 11: Ensure future Net Zero and energy efficiency requirements/standards are met in new development that provide cost savings to end users (residents). The Town plans to undergo a Net Zero Plan process during 2023 to effectively strategize greenhouse gas reduction across a number of sectors (i.e. transportation, building, waste, etc.). The Net Zero Plan would help align the Town with State initiatives and requirements. The Town should expect recommendations on how to include energy efficiency and renewable infrastructure requirements for new development; as well as ways to ensure development of affordable housing has access to financing sources that will help cover the cost of net zero construction. The Net Zero Plan should also target strategies to improve existing homes and affordable unit efficiency. The Town should secure funding resources needed to conduct building retrofits to meet the future goals of the plan. Existing sources related to the initiative, such as MassSave or RMLD programs, should be highlighted in the Net Zero Plan. The Town should consider how to partner, support and market such programs equitably as they continue to grow. Funding and Resources Strategies Local initiative strategies refer to recommendations that the town can undertake to foster the creation of more housing options, especially affordable housing. These initiatives are not regulatory in nature – they deal with allocation of town resources including staff time, funding, and property. Strategy 1: Strategize use of Affordable Housing Trust Fund (AHTF) and look to increase revenue sources dedicated to AHTF. The town adopted the Reading Affordable Housing Trust (AHTF) through a special act in 2001. In 2001 the Reading Town Meeting passed a warrant article which authorized the Selectmen to petition the Massachusetts General Court to establish an Affordable Housing Trust Fund for creation and preservation of affordable housing. The State legislature approved the special legislation. The Board of Selectmen act as the Trustees of the Trust.12 The AHTF is required to submit an allocation plan to Town Meeting annually indicating how Trust funds will be utilized in the coming year and accounting for how the prior year’s funds were allocated. The AHTF requires a majority vote of the full combined membership of the Board of Selectmen and Housing Authority for all expenditures. Commented [MA26]: Though we did update these in 2021-22 for MS4 permitting needs. Commented [NL27]: Nicole to update adding CHAPA, Emergency Task Force. Commented [MA28]: This needs to be updated. Commented [MA29]: 12 Mitchell, Robert P., FAICP, Affordable Housing Trust Funds: A Report to the Town of Reading, MA. 2013. Town of Reading Housing Production Plan, 2023 Renewal Page 67 Secure additional funding for the AHTF Adoption of an Inclusionary Zoning bylaw with provisions for cash payments in lieu of units can provide a source of revenue for the AHTF, in addition to other potential sources (see side bar above). The current balance of the AHTF is approximately $263,000. The AHTF’s past funding sources included the buy-out of an affordable unit at Sumner Cheney and the sale of surplus lands. No Town-generated funds have been allocated to the AHTF. Collaboration with Community Partners The AHTF funds can be leveraged by working in collaboration with community partners including non-profit housing organizations to create and preserve affordable housing. The AHTF funds could support a first-time homebuyer program (see below), locally - initiated developments, or other local initiative strategies. Note: There is a new state funding source—MassHousing’s Planning for Housing Production Program8—that could help to support Reading’s efforts to implement the plan’s regulatory strategies. The Program provides municipalities with funding for additional technical capacity to implement recommendations of the housing production plan and deliver new mixed - income housing. Strategy 2: Explore Creation of a First-Time Homebuyer Program AHTF funds can be used to support the programmatic and administration costs of homeownership assistance programs, which assist low - to moderate-income households to purchase a home. The programs can be designed in a variety of ways including the following three examples: 1) Down Payment Assistance: Down payment assistance programs provide financial support to assist with down payment and closing costs. This assistance is provided in the form of deferred payment loans with recapture provisions. However, this type of program does not create units that would count on the state’s Subsidized Housing Inventory because the subsidy provided is modest and would not create a deed-restricted unit—therefore, Reading would benefit from considering alternative models, as described below. 2) Purchase/Rehab Model: In this model, the sponsoring entity, such as the AHTF or a non- profit organization, acquires property, rehabilitates it as necessary, and sells it to a qualified buyer for an affordable price with a deed restriction to secure ongoing affordability. It is important to determine an acceptable level of rehabilitation for the subject properties which stays within the program’s budget and does not place unreasonable repair costs on the new homebuyer. These units may be eligible for inclusion on the state’s Subsidized Housing Inventory. 3) Subsidy Model: In this model, the sponsoring entity, such as the AHTF or a non -profit organization, qualifies potential buyers, who then locate a market rate home to purchase Commented [MA30]: Partial List of Potential Funding Sources for Affordable Housing Trusts Inclusionary Zoning payments, including 40R incentive payments Payments in lieu of providing affordable units Voluntary developer payments Proceeds from sales of surplus municipal or tax - foreclosed properties Private donations Revenue from the lease of municipal land for cell towers Proceeds from resale of affordable units Commented [NL31]: Has any of this changed? Commented [MA32]: To confirm. Commented [NL33]: Was this completed? Commented [MA34R33]: To my knowledge we have not used such to date but we should include it as a potential strategy under Funding/Resources strategies! Commented [MA35R33]: https://www.masshousing.co m/en/programs-outreach/planning-programs/planning- housing- production#:~:text=MassHousing's%20Planning%20for%20 Housing%20Production,deliver%20new%20mixed%2Dincom e%20housing. Town of Reading Housing Production Plan, 2023 Renewal Page 68 with the help of a subsidy from the sponsoring entity which buys -down the cost of the mortgage to an affordable price. A permanent deed restriction is then executed for the property to secure ongoing affordability. It is critical to set program parameters, including Town of Reading Housing Production Plan, 2023 Renewal Page 69 maximum subsidy per unit, maximum property acquisition cost, and minimum property condition/rehabilitation needs with quality standards, at the start of the process to ensure the sustainability of the program. These units may also be eligible for inclusion on the state’s Subsidized Housing Inventory. In all of these homeowner assistance models, the sponsoring entity must create a transparent, fair, and affirmative process to market the program and select qualified buyers to ensure compliance with federal Fair Housing laws and the Massachusetts Anti - Discrimination Act. For the units to count on the state’s Subsidized Housing Inventory, the program guidelines and marketing plan must meet with the requirements of the D epartment of Housing and Community Development (DHCD) under the state’s Local Action Unit program. Units must have a permanent deed restriction, be affirmatively and fairly-marketed, and comply with DHCD’s resident selection criteria. Strategy 3: Seeking sources to create a local aging-in-place program. To help low-income seniors afford to stay in their home as they age, it can be helpful to fund small repairs and safety improvements including handicap accessibility improvements. The town could fund such a program. There are many models. It will be important to design a model program that has limited administrative needs, due to limited staff capacity. As an example, the town of Agawam applied for $85,000 in federal Community Development Funds to create the Agawam Aging in Place Program (AIP Program).13 The AIP Program would provide grants up to $5,000 per qualified senior household to complete non -structural modifications to increase the health and safety of the occupants. To be eligible, owner occupants must be 65 years of age or older, meet HUD income guidelines for low/moderate- income persons, and have home safety needs that fall under the purview of the program. Funding per unit would vary from a few hundred dollars to the maximum $5,000 to support improvements to the health and safety of participants’ homes allowing seniors to remain living independently in their own homes. Specific improvements will include the installation of grab bars, door levers, slip resistant stair treads, dead-bolts, peep holes, smoke and/or carbon monoxide detectors, the cleaning of furnaces and chimneys or other similar work and activities. Strategy 4: Investigate opportunities to provide/increase Veteran’s Affairs Supportive Housing vouchers. Strategy 5: Build support for Community Preservation Act (CPA) adoption Strategy 6: Maintain Housing Choice Initiative (HCI) designation for future grant and funding opportunities. Commented [NL36]: Reading to explore. Has any framework been set up around this since the last plan? Commented [MA37]: 13 Although Agawam did not receive the award of federal funds in FY2018, the city is applying again for FY2019. Commented [MA38R37]: Will need an update or look for a more recent example. Town of Reading Housing Production Plan, 2023 Renewal Page 70 Strategy 7: Consider implementing Commercial Linkage Fees to help support affordable housing needs. Strategy 8: Develop strategy for locally-initiated development of affordable housing. Continue to catalogue, prioritize and target tax-foreclosed, foreclosed, and surplus public properties with development potential Tax-foreclosed, foreclosed, and underutilized surplus public properties can have negative impacts on neighborhoods and municipal finance. These properties can be developed or reused as affordable, mixed-income housing and/or mixed-use development and can present opportunities for neighborhood improvement. The Town has been tracking such properties and should continue to do so to identify properties with development potential for town acquisition and/or or a cooperative effort with non-profit partners. In addition, the Town should adopt a tax title disposition plan or policy that lays out a process for town officials, including the Treasurer, to work collaboratively to foster development/reuse for affordable housing of appropriate properties. Property acquired in tax title foreclosure can be disposed of under Chapter 60 by auction or under Chapter 30B when the tax title custodian transfers the property to another municipal agency (including an Affordable Housing Trust). Such a property disposition through Chapter 30B can specify that the property be developed within a time frame and for a specific purpose, including affordable housing.11 Current Tax Title Inventory: As of October 2017, the town had three tax title properties with existing single-family houses that could have potential for conversion to affordable units (9 Swan Road, 179 Pearl Street, and Brook Street/Redfield Road). Public Property: There are roughly 332 acres of state land including Camp Curtis Guild (25 River Road) with 291 acres (part of which is under consideration for use as a new DPW garage). The property will require further study to determine if there are environmental constraints or contamination. State land also includes a property at 9 Causeway Road (lot 31-9) with 4.7 acres. In addition, the Town declared an approximately 4.3-acre parcel on Oakland Road (near the High School) as surplus in April2017. The Board of Selectmen will establish a fully public process to help determine the future disposition of the land; many options for development or use of this parcel are possible. Strategy 9: Consider tax incentives for inclusion of deeply (i.e. 50% AMI) affordable units. Strategy 10: Plan for cases of emergency housing needs. Commented [NL39]: Do the tax title properties become owned by the Town? Commented [NL40R39]: I have a list Julie sent me a while back. Commented [MA41]: 11 Source: CHAPA, Back on the Roll in Massachusetts: A Report on Strategies to Return Tax Title Properties to Productive Use, 2000. Town of Reading Housing Production Plan, 2023 Renewal Page 71 Town of Reading Housing Production Plan, 2023 Renewal Page 72 Town of Reading Housing Production Plan, 2023 Renewal Page 73 Leadership, Partnership & Education Strategies Strategy 1: Foster partnership initiatives with landlords to upgrade existing apartment complexes and convert to affordable apartments. Reading has a significant stock of rental units in older, mid-size to larger rental complexes of 20+ units. About 40 percent (777) of rental units are in buildings with 20+ units.14 Of these units, about 38 percent are in older buildings that were constructed prior to 1980.15 Community workshop participants supported upgrading older apartment complexes and converting more market-rate rental units to affordable units that would count on the SHI. The Town could work to foster and support private deals to upgrade and convert some of these complexes to affordable apartments. The Town could target local funds (e.g., AHTF) to work with private partners to purchase, upgrade, and convert. The Town could release a Notice of Fund Availability (NOFA) or Request for Proposals (RFP), in accordance with MGL c.30B, to seek proposals from private developers or existing property owners to upgrade the complex and units in return for long- term affordability restrictions. In addition, the Town/AHTF could work collaboratively with property owners and non -profit organizations to encourage use of the state’s new Donation Tax Credit for property donations to non-profit organizations to convert existing buildings to affordable units. As part of the Act Relative to Job Creation and Workforce Development (H.4569), the state created the Donation Tax Credit that provides a credit against Massachusetts income tax liability for property owners who donate existing housing properties or other structures for the conversion of housing to qualified non-profits that commit to long-term affordability. The credit is worth 50 percent of the donated value but may be increased to 65 percent by DHCD. Perhaps in Reading this tax credit could help to encourage conversion of market -rate apartment complexes to affordable units. Strategy 2: Seek proposals from private developers or property owners to upgrade developments or units in return for long-term affordability restrictions. Strategy 3: Maintain and continue to build Interested Buyers List Strategy 4: Work in cooperation with community partners to promote enhanced public understanding of housing needs and creation of affordable housing opportunities The Town, working with community partners, should expand community outreach and education efforts by initiating a public awareness campaign to build and maintain support for local affordable housing initiatives. Towards that end, the Metro North Regional Housin g Services Office could help with this effort by clearly articulating the unmet local housing needs, perhaps through creation of infographics to include in brochures, posters, and online. Commented [MA42]: 14 2012-2016 ACS, B25032: Tenure by Units in Structure. Commented [MA43]: 15 2012-2016 ACS, B25127: Tenure by Year Structure. Commented [NL44]: Offering funds for LL's to do upgrades and incentivize them somehow to keep the rent affordable. Town of Reading Housing Production Plan, 2023 Renewal Page 74 In addition, the Town could solicit the assistance of other organizations to help with this effort, such as the Reading Clergy Associations or other groups invested in issues related to affordable housing. As part of this effort, the Town and Metro North Regional Housing Services Office could consult a variety of publications exploring a variety of concerns and debunking myths related to multifamily housing development and density. For example, the Massachusetts Housing Toolbox may provide ideas to help gain support and address fears of new development, specifically around affordable housing initiatives, including strategies for community engagement and dispelling misperceptions: https://www.housingtoolbox.org/ There are multiple organizations working to create or preserve affordable housing and to provide needed services in Reading and the region such as Habitat for Humanity and Mystic Valley Elder Services. The Town has established strong dialogue with these organizations and should continue to have regular dialogue with non-profit entities to promote the creation of affordable housing opportunities, possibly in combination with fostering local initiative projects, as described earlier in this section. Strategy 5: Continue to support the work of the Metro North Regional Housing Services Office The Town of Reading is the host town for the Metro North Regional Housing Services Office (MNRHSO). The MNRHSO includes the towns of Reading, North Reading, Wilmington, Woburn and Saugus. The MNRHSO provides affordable housing support and information to member communities and citizens looking to live in our region. Its primary task is monitoring the more than 3,800 units in the five-member towns with the mission of expanding low- and moderate-income housing options and ensuring that owners of affordable properties are in compliance with their restrictions. The MNRHSO maintains a website with useful information for current and future residents of the member towns including housing opportunities, refinancing instructions, and current inventory presentations. https://www.readingma.gov/regional-housing-services-office Strategy 6: Continue public engagement and education on regional/local housing needs. By expanding community outreach and education practices the Town can better help residents understand the regional housing need and how such impacts the local area. Initiating a public awareness campaign to build and maintain support for local affordable housing initiatives, whether locally initiated or private development, is recommended. By clearly articulating the unmet housing needs through infographics, brochures, online information, etc. support can be built. Improved outreach practices to vulnerable residents and geographies should be planned for and prepared. This may include specific working group meetings, language translation services and Opportunities to partner with local and regional organizations should also be sought to help. For example, the Citizen’s Housing and Planning Association (CHAPA) programs the Municipal Engagement Initiative Commented [NL45]: Are there any other local housing developers/providers that we can also partner with? Commented [MA46]: Mnrhso.org Town of Reading Housing Production Plan, 2023 Renewal Page 75 (MEI) Lite Community Program to build support for affordable housing production across the State. Commented [MA47]: https://www.chapa.org/about/pro grams/municipal-engagement-initiative Commented [MA48R47]: Are there other programs like this Reading can explore? Town of Reading Housing Production Plan, 2023 Renewal Page 76 Town of Reading Housing Production Plan, 2023 Renewal Page 77 Action Plan The Reading Public Services Department, specifically the Planning Division, having spearheaded this planning effort, will be the natural entity to oversee all a spects of its implementation and to provide regular updates on progress to the Board of Selectmen and Community Planning and Development Commission. The matrix below provides more specific assignment of responsible entity, supporting entity, and timeframe to implement the housing strategies. Housing Strategies FY2018 FY2019 FY2020 FY2021 FY2022 Responsible Entity Supporting Entities Strategy 1: Encourage mixed-use development in the Priority Development Areas by considering adoption of various regulatory tools CPDC Town Meeting Planning Division Strategy 2: Adopt an Inclusionary Zoning bylaw CPDC Town Meeting Planning Division Strategy 3: Amend the Zoning Bylaw to explicitly permit congregate housing CPDC Town Meeting Planning Division Strategy 4: Provide necessary support for 40R, 40B/Comprehensive and Local Permit applications. Planning Division Boards, Committees & Commissions Strategy 5: Seek opportunities for locally-initiated development of affordable housing BOS RHA Planning Division Strategy 6: Strengthen the Affordable Housing Trust Fund with additional sources of revenue and further collaboration BOS Town Meeting Town Manager RHA Strategy 7: Explore creation of a First-Time Homebuyer Program Planning Division Local banks Strategy 8: Identify existing houses with potential for conversion to congregate housing Planning Division State Strategy 9: Seek funding to create a local aging-in-place program Planning Division Human Elder Services Division BOS Council on Aging Strategy 10: Foster partnership initiatives with landlords to upgrade existing apartment complexes and convert to affordable apartments Planning Division Town Manager State Strategy 11: Work in cooperation with community partners to promote enhanced public understanding of housing needs and promote creation of affordable housing Planning Division Community Partners Strategy 12: Continue to support the work of the Metro North Regional Housing Services Office Planning Division Town Manager Town Meeting BOS AHT = Affordable Housing Trust CPDC = Community Planning and Development Commission BOS = Board of Selectmen Commented [MA49]: To update. Town of Reading Housing Production Plan, 2023 Renewal Page 78 Appendices Housing Profile READING HOUSING PRODUCTION 9/25/17 S u m m a r y o f H o u s i n g N e e d s & D e m a n d POPULATION & HOUSEHOLDS (Census) • As of the 2010 US Census, the population of Reading is 24,747, an increase of 4.4% since 2000. • In 2010, the largest age group of Reading’s population was 35-54 year olds (35% of total population). • Between 2000-2010, population change by age groups was: • 0-9 years old decreased by 4.8% • 10-19 years old increased by 6.6% • 20-24 years old increased by 26.9% • 25-34 years old decreased by 8.9% • 35-59 years old increased by 3.8% • 60-74 increased by 17.1% • 75+ increased by 12.6% • As of the 2010 Census, 35.9% of Reading’s 9,305 households (a household consists of all those occupying one housing unit), have children under 18 years old, and 26.3% have persons age 65+. • The median age increased from 39.1 years old in 2000 to 41.6 years old in 2010. • Racial make-up is predominantly white, with 93.5% of the population; 4.2% of the population is Asian; 1.5% of the population is Hispanic or Latino. • 9% of Reading’s total population and 37.2% of Reading’s 65+ population reports having one or more disabilities. HOUSEHOLD INCOME & COST OF HOUSING • In 2015, Reading’s median household income was $107,654; a 39.7% increase from 1999, and significantly more than the Boston-Cambridge-Quincy Metro Area ($98,500) or the state as a whole ($68,563). (ACS) • An estimated 26.3% of Reading households have incomes at or below 80% of AMI. (CHAS) • 2.8% of Reading’s population is below the poverty line (annual income below $24,600 for a household of 4), much lower than Middlesex County (8.4%) and Massachusetts (11.6%). (ACS) • The 2016 median price of single family homes in Reading was $525,000. The 2016 median price of all homes, including condos, was $479,600. After a dip in prices during the national recession in the mid-2000’s, housing prices have been rising steadily since 2012 and are now the highest they have ever been. (Warren Group) • Of the 7,405 of Reading households who own their homes, 29.4% are cost-burdened (spending over 30% of their income on housing), while 33.1% of Reading’s renters cost-burdened. 71% of Reading’s low-income households are cost-burdened. (CHAS) • A recent survey of available rentals on Trulia.com shows a median rent in Reading of $2,100. The Census reports a median gross rent in Reading of $1,282. HOUSING SUPPLY (Census & ACS) • The 2011-2015 ACS reports that of Reading’s 9,168 occupied housing units, 78.2% are owner occupied and 21.8% renter occupied. • The number of owner-occupied units increased by 83 while the number of rental units increased by 534 between 2000 and 2010. • The Town’s housing stock remains primarily single-family at 74.8% of total housing units. 7.5% of units are in two to four family buildings, 7% of units in 5-19 unit buildings, and 10.6% of units in multi-family buildings with 20 or more units. AFFORDABILITY (DHCD Sales Price Calculator, Trulia.com, C HAS) • 8.78% (841 units) of Reading’s total housing stock is counted as affordable on the State’s Subsidized Housing Inventory (SHI), which falls short of the State’s minimum affordability goal of 10%. • A low-income 3-person household earning 80% of the Area Median Income (AMI) could roughly afford a home that costs $262,000 or a monthly rent of $1,760. There are 780 Reading households (8.4%) who earn 80%-100% AMI and Trulia.com (as of September 2017) shows that there are 2 homes (both small condos) for sale in Reading under $300,000. There are 3 rental units at this rent. • Reading’s 2016 median sale price of $525,000 requires an annual income of approximately $140,918, over $33,000 higher than Reading’s median household income of $107,654. • Based on the median sale price, Reading’s ownership affordability gap is $125,000 for median income households, and $263,000 for low income households. Based on current median rents, Reading rentals are out of reach for low-income households. In addition, there are not very many rentals available. AFFORDABLE HOUSING STOCK (DHCD SHI & CHAS) • There are 841 units listed on the SHI, 91 ownership and 750 rental units. • Most (87) of the affordable ownership units were built through the Local Initiative Program (LIP) – 34 units, or through Chapter 40R permits as part of smart growth zoning districts – 53 units. • Of the 750 rental units on the SHI, 325 are family units, 268 are age- restricted, 71 are supportive housing units for people with disabilities, and 86 are assisted living units. • Only 109 of the family rental units are affordable to households earning 80% or less of the AMI; the rest are market-rate units. • Approximately 2,445 households (26.3% of total households) are eligible for affordable housing, but there are only 570 housing units in Reading restricted for households at or below 80% of AMI. Reading, MA Housing Profile Commented [NL50]: I will update this page later. READING HOUSING PRODUCTION 9/25/17 Income Limits (2017) PI ublished annually by Housing and Urban Development (HUD) Sources: 2020 Federal Census (Census) 2015-2019 American Community Survey (ACS) 2015-2019 Comprehensive Housing Affordability Strategy (CHAS) Data Massachusetts Association of Realtors Metropolitan Area Planning Council (MAPC) Demographic Profiles Zillow, Zillow.com The Donahue Institute at University of Massachusetts Key to Abbreviations: AMI: Area Median Income set by the Federal Department of Housing and Urban Development DHCD: MA Department of Housing and Community Development Reading, MA Housing Profile READING HOUSING PRODUCTION 9/25/17 SHI: MA Subsidized Housing Inventory Interagency Policy Town of Reading Housing Production Plan, 2018 Renewal Page 57 INTERAGENCY AGREEMENT Regarding Housing Opportunities for Families with Children This Interagency Agreement (this "Agreement") is entered into as of the 17th day of January, 2014 by and between the Commonwealth of Massachusetts, acting by and through its Department of Housing and Community Development ("DHCD"), the Massachusetts Housing Partnership Fund Board ("MHP"), the Massachusetts Housing Finance Agency (in its own right and in its capacity as Project Administrator designated by DHCD under the Guidelines for Housing Programs in Which Funding is Provided By Other Than a State Agency, “MassHousing”), the Massachusetts Development Finance Agency (“MassDevelopment”) and the Community Economic Development Assistance Corporation (“CEDAC”). DHCD, MHP, MassHousing, MassDevelopment and CEDAC are each referred to herein as a “State Housing Agency” and collectively as the “State Housing Agencies”. Background A. DHCD’s 2013 Analysis of Impediments to Fair Housing Choice (“AI”) includes action steps to improve housing opportunities for families, including families with children, the latter being a protected class pursuant to fair housing laws, including the federal Fair Housing Act, as amended (42 U.S.C. §§ 3601 et seq.) and Massachusetts General Laws Chapter 151B. In order to respond to development patterns in the Commonwealth that disparately impact and limit housing options for families with children, such steps include requiring a diversity of bedroom sizes in Affordable Production Developments that are not age-restricted and that are funded, assisted or approved by the State Housing Agencies to ensure that families with children are adequately served. B. The State Housing Agencies have agreed to conduct their activities in accordance with the action steps set forth in the AI. C. This Agreement sets forth certain agreements and commitments among the State Housing Agencies with respect to this effort. Definitions 1) “Affordable” - For the purposes of this Agreement, the term “Affordable” shall mean that the development will have units that meet the eligibility requirements for inclusion on the Subsidized Housing Inventory (“SHI”). 2) “Production Development” - For purposes of this Agreement “Production Development” is defined as new construction or adaptive reuse of a non-residential building and shall include rehabilitation projects if the property has been vacant for two (2) or more years or if the property has been condemned or made uninhabitable by fire or other casualty. Formatted: Highlight Agreements NOW, THEREFORE, DHCD, MHP, MassHousing, MassDevelopment and CEDAC agree as follows: Bedroom Mix Policy 1) Consistent with the AI, it is the intention of the State Housing Agencies that at least ten percent (10%) of the units in Affordable Production Developments funded, assisted or approved by a State Housing Agency shall have three (3) or more bedrooms except as provided herein. To the extent practicable, the three bedroom or larger units shall be distributed proportionately among affordable and market rate units. 2) The Bedroom Mix Policy shall be applied by the State Housing Agency that imposes the affordability restriction that complies with the requirements of the SHI. 3) The Bedroom Mix Policy shall not apply to Affordable Production Developments for age-restricted housing, assisted living, supportive housing for individuals, single room occupancy or other developments in which the policy is not appropriate for the intended residents. In addition, the Bedroom Mix Policy shall not apply to a Production Development where such units: (i) are in a location where there is insufficient market demand for such units , as determined in the reasonable discretion of the applicable State Housing Agency; or (ii) will render a development infeasible, as determined in the reasonable discretion of the applicable State Housing Agency. 4) Additionally, a State Housing Agency shall have the discretion to waive this policy (a) for small projects that have less than ten (10) units and (b) in limited instances when, in the applicable State Housing Agency’s judgment, specific factors applicable to a project and considered in view of the regional need for family housing, make a waiver reasonable. 5) The Bedroom Mix Policy shall be applicable to all Production Developments provided a Subsidy as defined under 760 CMR 56.02 or otherwise subsidized, financed and/or overseen by a State Housing Agency under the M.G.L. Chapter 40B comprehensive permit rules for which a Chapter 40B Project Eligibility letter is issued on or after March 1, 2014. The policy shall be applicable to all other Affordable Production Developments funded, assisted, or approved by a State Housing Agency on or after May 1, 2014. Town of Reading Town Manager Goals Fidel Maltez –Town Manager 4/19/22 Goals “There’s no telling what you can do when you get inspired by them. There’s no telling what you can do when you believe in them. And there’s no telling what will happen when you act upon them.” —Jim Rohn Reading 4/19/22 Select Board Meeting slide 1 Aspirational 1. Earning the Trust of Staff & the Community 2. Schools 3. Economic Development 4. Infrastructure 2 31 Schools Economic Development Earning the Trust of Staff & the Community Infrastructure 4 Reading 4/19/22 Select Board Meeting slide 2 Aspirational Earning the Trust of Staff & the Community Build Strong Relationships with Community Partners -Clergy, Jewish Community, Non- Profits/Volunteers, Business Community, RMLD Enhance Communication/Transparency –Coffee Hour Events, Newsletter, New Website, Social Media Support Staff -Open Door Policy, Establish a Vision, Listen, Celebrate Small Wins, Recognize the importance of Public Safety, Communicate with and Support Dr. Chatterjee Continue Employee Attraction/Retention Efforts -Finalize Personnel Policies, Complete Pay and Class Study, Identify What’s Working/Not Working Lead Responsiveness and Accountability –Culture of Excellence in Delivering Public Services Reading 4/19/22 Select Board Meeting slide 3 Schools Support School Department Initiatives. Participate in Sporting Events, Celebrations, and Classrooms. Continue Excellent Relationship with Superintendent and other School Staff. Work Together to Complete MSBA Eligibility Period for Killam School. Collaborate on Developing a Sustainable and Balanced Plan to Achieve Free Full Day Kindergarten. Reading 4/19/22 Select Board Meeting slide 4 Economic Development Support the Downtown and the “Re-Imagine Reading” efforts –BID, Bistro Table Program, Downtown Parking, Downtown Lighting Demonstration project. Downtown (40R) Smart Growth Zoning District –Next Steps for “Your Downtown” Implementation of Local Rapid Recovery Planning (LRRP) –Next Steps Complete Public Engagement Process for Oakland Road and Symonds Way Encourage Managed Growth –Attracting Commercial/Industrial/Retail and Mixed-Use as outlined in the Economic Development Action Plan (EDAP) and Residential Development per the Housing Production Plan (HPP). Revisit Camp Curtis Guild –Options to Explore? Potential for RMLD Battery? Continue Planning Process for Eastern Gateway –Next Steps for “The Yard” Next phase of Downtown Cultural Initiatives –Art Box program, Porchfest, Art Walk Reading 4/19/22 Select Board Meeting slide 5 Infrastructure Complete the Auburn Water Tank and Pocket Park. Complete Downtown Utility Improvements. Execute Climate Law Initiatives -EV Chargers, Solar Panels in Municipal and School Buildings Increase Public Health Infrastructure; transition into Police Station Continue to Pursue State and Federal Grants. Hold Public Engagement Process for 10-year Capital Improvement Plan ReCalc –Advance Recommendations Birch Meadow Master Plan –Seek Funding For Improvements Support RAAC Process and Execute Decisions Reading 4/19/22 Select Board Meeting slide 6 Thank You! FIDEL MALTEZ TOWN MANAGER Reading 4/19/22 Select Board Meeting slide 7 Office of the Town Manager 781-942-9043 16 Lowell Street townmanager@ci.reading.ma.us Reading, MA 01867 www.readingma.gov/town-manager To: Select Board From: Fidel A. Maltez CC: Personnel Date: January 9, 2023 RE: Town Manager First Year Written Self-Assessment As outlined in Section V of the Town Manager contract, I am submitting a written self-assessment following my first year with the Town of Reading. This first year has been incredibly rewarding to me and my family. Residents have welcomed us warmly and have allowed us to become members of this wonderful community. Reading staff have been exceptional during this transition and I am grateful for their trust and support. We have built tremendous momentum and I am excited about what the future holds for our Town. Accomplishments: (This is a short list and does not include everything achieved by our staff) • Pay & Class Study: this study was funded by Town Meeting prior to my arrival. Our HR Director, Sean Donahue, led the study with our consultant GOVHR, and reviewed all non-union employees. The study included review of job descriptions, employee interviews, and meetings to discuss its implementation. The first round of change was approved by Town Meeting in November, and the second and final round have been incorporated into our FY2024 budget. These changes will make our Town a more attractive employer, and most importantly will adequately compensate our devoted employees. Long term, this will reduce turnover and will increase employee morale. • Personnel Policies Update: From my first Select Board meeting it was clear that this update was a priority of the Select Board, having been last updated in 2009. Our HR Director and I met weekly to review the updates. We also obtained a thorough review by Labor Counsel before bringing the updates to the Select Board. The Select Board adopted the revised policies in September 2022. • ARPA Allocation Process: The Reading ARPA Advisory Committee did a great job this year. There was a significant public outreach effort that should be a model for the future. Our staff was tasked with executing the votes of RAAC and the Select Board, and this has been flawless. A highlight was issuing premium pay to all employees before the holidays and issuing the payment to the Reading Food Pantry. A final highlight is the increased services provided by our Pleasant Street Center to our Seniors. • Maillet, Sommes, Morgan Wetlands Area: This resource area has been a tremendous story this year! This summer the Town was awarded a $2.1 million grant from the State, and just a few days ago, we received the amazing news that we received a $2 million federal earmark for this project. This means that this transformational project may be completed without the need of Town Funds. This project will be completed in calendar year 2024. • Grants & Earmarks: Our team has done a phenomenal job applying for grants and earmarks. In fact, the Town has obtained close to $5.8 million in grants and earmarks in the past 12 months. We are awaiting a decision on a major grant to improve walkability and traffic on Oakland Road through MassDOT’s Safe Routes to School program. Additionally, we are preparing a grant application for MassWorks to complete infrastructure projects on Haven Street. • Killam School Building Process: The Town received notification that the Killam School had been accepted into the MSBA process in March 2022. There were many critical milestones in the process, including a vote of Town Meeting to fund the Feasibility Study. The Town worked collaboratively with the School Department to ensure all deadlines were met. In addition, there was a lot of preparation to the Town Meeting vote, including tours of the building and public meetings. All milestones have been met and the Town will be allowed to the next phase of the MSBA process. • Killam School Building Process: The Town received notification that the Killam School had been accepted into the MSBA process in March 2022. There were many critical milestones in the process, including a vote of Town Meeting to fund the Feasibility Study. The Town worked collaboratively with the School Department to ensure all deadlines were met. In addition, there was a lot of preparation to the Town Meeting vote, including tours of the building and public meetings. All milestones have been met and the Town will be allowed to the next phase of the MSBA process. • New Website and Social Media Presence: I am excited to report that we will be receiving the “Website of the Year” award from the MMA at this year’s annual conference in late January. Our new website has greatly improved how we communicate with our residents. We have also expanded our social media presence, press releases, and publicity events such as ribbon cuttings and press conferences. • General Operation of the Town: Most importantly, the Town has not seen an impact in services during this leadership transition. This is due to our dedicated employees who provide great services to our residents. In addition, this year we were able to hold several community events that were paused by the COVID-19 pandemic. These events included the tree lighting, several beer gardens on the common, among others. These events are critical as we rebuild a sense of community, following a tragic pandemic. Challenges: • Service Interruption from Solid Waste Contractor: One of the biggest challenges this year was the service interruption caused by the transition from JRM to Republic Services. Some of our residents had no trash pick-up for almost three weeks. Luckily, our staff was able to jump in to fix the situation. We also had many calls and meetings with Republic Services to restore services. Finally, we coordinated with our neighboring communities and the Attorney General’s office to increase pressure on Republic Services. Service has been restored with only routine complaints coming to our Public Works Department. • Future Cost of Solid Waste Contract: Our staff sought quotes from five solid waste contractors in case Republic Services couldn’t restore service. The results were shocking: quotes ranged from $800,000 to $1,000,000 above our current contract. Our current contract is up in 2026; hopefully market corrections lower prices as we near the termination. • First Amendment Auditors: This year we received three visits from first amendment auditors in Town Hall. We also received countless calls and emails from similar entities. Every visit and call bring a lot of unnecessary stress to our employees. • Staff Turn-Over: Turn over and difficulty in hiring is affecting a lot of industries, and our Town is not immune to this trend. This past year, we have lost a lot of tenure and expertise due to departures or retirements. We will continue hiring aggressively, and the changes implemented as part of our pay & class study will give us competitive advantage in the future. Opportunities: • Roll-Out of Trash and Recycling Barrels: Over the next few months, we will seek to communicate with Town Meeting members, the Select Board, and our residents on the benefits of standardized trash and recycling barrels. Many communities around us have successfully rolled out town-issued trash and recycling barrels. These barrels decrease litter in our streets, reduce rodents and allow haulers to automate pick-up. Automated pick-up will help us when we seek a new contract. • Symonds Way Exploratory Committee: SWEC will be an exciting opportunity for the Town to engage in community outreach for what should be on this property. This property is an asset of the Town and could provide tremendous benefit for our community. • Affordable Housing Trust Board: November Town Meeting approved the creation of a new Affordable Housing Trust to oversee the expenditures in this fund. This Board could have a great impact on our community. One potential project to take on is affordable housing for seniors and families on the vacant Town-Owned property on Oakland Road. • MBTA Communities Compliance: Our Director of Community Development will submit a first plan to reach compliance with the MBTA Communities Legislation. The legislation requires that the Town adopt any zoning changes by December 31, 2024. Reaching compliance will be a huge priority over the next 12 months for our planning staff and CPDC. Conclusion: In conclusion, this has been an exciting year with a lot of accomplishments, but also a lot of challenges. The Town of Reading also has significant opportunities to pursue in this coming year. I look forward to working with the Select Board on achieving our goals for this coming year. Fidel Maltez TOWN OF READING Town Manager Evaluation FY 2023 Select Board Member: ________________________ Date: ________ (Deadline: January 24, 2023) 1 Town Manager’s FY’2023 Goals Provide comments for each goal. (Refer to appendix) Area / Goal(s) Description Comments Community Earning the Trust of Staff & the Community Community Goal Comments: 2 Provide comments for each goal. (Refer to appendix) Area / Goal(s) Description Comments Schools Support School Department Schools Goal Comments: 3 Provide comments for each goal. (Refer to appendix) Area / Goal(s) Description Comments Economic Development Economic Development Work in Reading Economic Development Goal Comments: 4 Provide comments for each goal. (Refer to appendix) Area / Goal(s) Description Comments Infrastructure Infrastructure Work in Reading Infrastructure Goal Comments: 5 Town Manager’s Performance Rating for Standard I: Leadership and Professional Culture Ratings are from 1 (Exemplary) to 5 (Unsatisfactory). Check one box for each indicator and circle the overall standard rating. 1 2 3 4 5 I-A. Leadership: Demonstrates strong leadership practices in the exercise of executive functions and personnel management. I-B. Communication: Demonstrates strong interpersonal, written, and verbal communication skills. I-C. Commitment to High Standards: Fosters a shared commitment to high standards of public service delivery by staff, professional interaction with the public, and professional development, with high expectations for achievement for all. I-D. Assessment: Ensures that all department and division heads use a variety of formal and informal methods and assessments to measure employee growth and understanding and make necessary adjustments to their practice when employees are not performing. I-E. Evaluation: Ensures effective and timely supervision and evaluation of all staff in alignment with town policies, state regulations and contract provisions. I-F. Managing Conflict: Employs strategies for responding to disagreement and dissent, constructively resolving conflict and building consensus throughout all Town departments. Overall Rating for Standard I (Circle one.) The Town Manager demonstrates strong leadership and promotes a strong professional culture. 1 2 3 4 5 Comments and analysis (recommended for all ratings; required for any rating of 4 or 5): 6 Town Manager’s Performance Rating for Standard II: Management and Operations Ratings are from 1 (Exemplary) to 5 (Unsatisfactory). Check one box for each indicator and circle the overall standard rating. 1 2 3 4 5 II-A. Environment: Develops and executes effective plans, procedures, routines, and operational systems to address a full range of financial, safety, health, and social needs. II-B. Human Resources Management and Development: Implements a cohesive approach to recruiting, hiring, development, and career growth that promotes high-quality and effective organization. II-C. Scheduling and Management Information Systems: Uses appropriate systems to ensure optimal use of data and time for staff productivity and collaboration, while minimizing staff disruption and distraction. II-D. Law, Ethics, and Policies: Understands and complies with state and federal laws and mandates, Select Board policies, collective bargaining agreements, and ethical guidelines. II-E. Fiscal Systems: Develops a budget that supports the Town’s vision, mission, and goals; allocates and manages expenditures to balance goals vs. available resources. Overall Rating for Standard II (Circle one.) The Town Manager uses resources to implement appropriate staff operations and facility management. 1 2 3 4 5 Comments and analysis (recommended for all ratings; required for any rating of 4 or 5): 7 Town Manager’s Performance Rating for Standard III: Community Engagement Ratings are from 1 (Exemplary) to 5 (Unsatisfactory). Check one box for each indicator and circle the overall standard rating. 1 2 3 4 5 III-A. Sharing Responsibility: Collaborates with citizens and community stakeholders to formulate and support the Town’s goals. III-B. Communication: Engages in regular, two-way, proficient communication with citizens and community stakeholders about Town government performance. III-C. Community Concerns: Addresses community problems and concerns in an equitable, effective, and efficient manner. Overall Rating for Standard III (Circle one.) The Town Manager forms effective partnerships among town employees, citizens , community organizations, and other stakeholders that address citizen concerns and build support for the mission of Town. 1 2 3 4 5 Comments and analysis (recommended for all ratings; required for any rating of 4 or 5): 8 General/Overall Comments/Feedback: Suggestions/Ideas for the Future: Town Manager Comments on Review: FY24 Budget Summary SELECT BOARD DECEMBER 13, 2022 FY24 General Fund Budget Revenues $119.2 million + 4.0% (includes $3.28 mil. Free Cash) Accommodated Costs $ 43.5 million +3.8% Operating Budgets $ 75.6 million +3.75% (63.4% School and 36.6% Town) School Operating $ 48.2 million +4.33% Town Operating $ 27.7 million +4.00% Total Budgets School Total $ 54.1 million +4.5% Town Total $ 33.6 million +4.4% (balanced budgets for Town DH) FY24 Budget Summary Next Steps Town Manager will send Select Board overview to solicit input Schedule FY24 budget review agenda item at SB meeting (1/10/23) January 31, 2023 –School Committee to deliver FY24 budget to Town Manager (Charter requirement) Town Manager to send FINCOM balanced FY24 budget late February 2023 (Charter requirement) Town Manager meets with FINCOM March 2023 and prepares April 2023 Annual Town Meeting budget presentations FY24 Enterprise Fund Budget Summary Next Steps Schedule Water/Sewer rates preview agenda item at SB meeting (1/24/23) Discuss remaining uncertainty (MWRA charges; other) Discuss use of reserves to offset increases Discuss potentially switching to Tiered Water and Sewer Rates Schedule Water/Sewer/Storm Water Rates Public Hearing -Town Manager May 17,2022; June 1, 2021; June 3, 2020; March 12, 2019; March 13, 2018; March 7, 2017; March 22, 2016; March 24, 2015 FY24 Budget Summary Questions? SELECT BOARD DECEMBER 13, 2022 FY24 Spending Scorecard Line Category FY23 Budget revised % Grand Total FY24 Budget Town Manager FY24 Budget Finance Committee FINCOM votes % chng % Grand Total B99 Benefits $19,837,500 15.1%$20,682,688 $20,682,688 4.3%15.2% C99 Capital $2,886,000 2.2%$2,963,000 $2,963,000 2.7%2.2% D99 Debt service $5,983,550 4.5%$6,066,806 $6,066,806 1.4%4.5% E99 Education - Vocational $870,000 0.7%$904,800 $904,800 4.0%0.7% F99 Finance Committee Reserves $200,000 0.2%$200,000 $200,000 0.0%0.1% Total Shared Costs $ 29,777,050 22.6% $ 30,817,294 $ 30,817,294 3.5%22.7% G91 Administrative Svcs wages $1,651,475 1.3%$1,664,175 $1,664,175 0.8%1.2% G92 Administrative Svcs expenses $2,015,600 1.5%$2,102,460 $2,102,460 4.3%1.5% H91 Public Services wages $1,497,150 1.1%$1,429,100 $1,429,100 -4.5%1.1% H92 Public Services expenses $260,500 0.2%$302,000 $302,000 15.9%0.2% I91 Finance wages $887,050 0.7%$931,750 $931,750 5.0%0.7% I92 Finance expenses $155,650 0.1%$159,150 $159,150 2.2%0.1% J91 Public Safety wages $12,759,675 9.7%$13,307,475 $13,307,475 4.3%9.8% J92 Public Safety expenses $703,250 0.5%$728,151 $728,151 3.5%0.5% K91 Public Works wages $3,019,925 2.3%$3,106,600 $3,106,600 2.9%2.3% K92 Public Works expenses $907,200 0.7%$950,700 $950,700 4.8%0.7% K93 Public Works Snow & Ice $675,000 0.5%$675,000 $675,000 0.0%0.5% K94 Public Works Street Lights $130,000 0.1%$135,000 $135,000 3.8%0.1% K95 Public Works Rubbish $1,975,000 1.5%$2,034,250 $2,034,250 3.0%1.5% L91 Library wages $1,619,850 1.2%$1,698,150 $1,698,150 4.8%1.2% L92 Library expenses $399,450 0.3%$406,875 $406,875 1.9%0.3% M91 Core Facilities $3,283,600 2.5%$3,633,780 $3,633,780 10.7%2.7% M92 Town Buildings $376,550 0.3%$369,650 $369,650 -1.8%0.3% Total Municipal Gov't $ 32,316,925 24.6% $ 33,634,266 $ 33,634,266 4.1%24.8% U99 School Department $51,783,363 39.4%$54,006,623 $54,006,623 4.3%39.7% VOTED GENERAL FUND $ 113,877,338 86.5% $ 118,458,183 $ 118,458,183 4.0% State Assessments 780,054$ 0.6%799,555$ $799,555 2.5%0.6% TOTAL $ 114,657,392 87.1% $ 119,257,738 $ 119,257,738 4.0% W99 Water Enterprise Fund $8,151,447 6.2%$7,973,000 $7,973,000 -2.2%5.9% X99 Sewer Enterprise Fund $7,332,050 5.6%$7,508,425 $7,508,425 2.4%5.5% Y99 Storm Water Enterprise Fund $782,325 0.6%$470,325 $470,325 -39.9%0.3% Z99 PEG Access Enterprise Fund $625,250 0.5%$622,000 $622,000 -0.5%0.5% ZZ9 Landfill Enterprise Fund $37,000 0.0%$37,000 $37,000 0.0%0.0% TOTAL ENTERPRISE FUNDS $16,928,072 12.9%$16,610,750 $16,610,750 -1.9%12.2% GRAND TOTAL VOTED 130,805,410$ 99.4%135,068,933$ 135,068,933$ 3.3%99.4% 3.20%3.85%4.00%3.00%3.00% Town of Reading Budget Summary One Yr One Yr One Yr One Yr One Yr 1/4/23 6:36 PM Final Chng Projected Chng Projected Chng Projected Chng Projected Chng No.FY22 FY22 FY23 FY23 FY24 FY24 FY25 FY25 FY26 FY26Revenues A1 Total Property Taxes 81,570,163 4.5%84,397,951 3.5%87,348,419 3.5%89,158,564 2.1%91,150,836 2.2% A2 Total Other Local Revenues 6,995,000 -2.6%7,790,000 11.4%8,775,000 12.6%9,480,000 8.0%9,970,000 5.2% A3 Total Intergov't Revenues 14,777,471 1.6%15,165,883 2.6%15,545,030 2.5%15,933,656 2.5%16,331,997 2.5% A4 Total Transfers & Available 3,882,684 -3.4%4,178,657 7.6%4,309,289 3.1%4,332,480 0.5%4,394,635 1.4% A98 Revs before Free Cash 107,225,318$ 3.28%111,532,491$ 4.02%115,977,738$ 3.99%118,904,700$ 2.52%121,847,468$ 2.47% A5 Free Cash 2,640,052 26.8%2,539,000 -3.8%2,580,000 1.6%2,750,000 6.6%2,850,000 3.6% A6 Extra for Capital 760,000 0.0%686,000 -9.7%700,000 2.0%750,000 7.1%0 -100% A99 Net Available Revenues 110,625,370$ 4.46%114,757,491$ 3.74%119,257,738$ 3.92%122,404,700$ 2.64%124,697,468$ 1.87%Accommodated Costs B Benefits 19,088,534 3.6%19,837,500 3.9%20,682,688 4.3%21,762,666 5.2%22,917,330 5.3% C Capital 3,955,000 71.6%3,086,000 -22.0%2,963,000 -4.0%3,009,500 1.6%2,994,000 -0.5% Debt (inside levy)1,963,844 -8.5%3,250,958 65.5%3,380,694 4.0%3,538,338 4.7%2,958,275 -16.4% D Debt (excluded)2,792,043 -2.0%2,727,408 -2.3%2,686,112 -1.5%1,279,700 -52.4%0 -100.0% E Energy 2,010,550 0.5%2,035,000 1.2%2,290,500 12.6%2,561,218 11.8%2,657,939 3.8% F Financial 1,010,000 -1.9%1,092,000 8.1%1,132,000 3.7%1,157,000 2.2%1,182,000 2.2% G Education - Out of district 5,446,250 2.3%5,580,000 2.5%5,803,200 4.0%6,035,328 4.0%6,276,741 4.0% H Education - Vocational 788,000 43.3%870,000 10.4%904,800 4.0%1,140,992 26.1%1,186,632 4.0% J Miscellaneous 3,340,650 -5.6%3,430,054 2.7%3,508,805 2.3%3,589,822 2.3%3,698,169 3.0% K Community Priorities 150,000 0.0%0 0.0%150,000 0.0%150,000 0.0%150,000 0.0% L1 Accommodated Costs 40,544,871$ 3.72%41,908,920$ 3.36%43,501,799$ 3.80%44,224,564$ 1.66%44,021,086$ -0.46% L2 Net Accommodated Costs 40,544,871$ 3.72%41,908,920$ 3.36%43,501,799$ 3.80%44,224,564$ 1.66%44,021,086$ -0.46% 9,229$ 3,022$ 1,610$ 2,500$ Operating Costs OC1 Municipal Gov't Operating 23,888,374 3.20%25,262,939 3.85%26,457,537 4.00%27,251,263 3.00%28,069,931 3.00% adjustments 438,000 177,000 1,097 adjustments (EF+RF)1,150,727 3.20%1,196,040 3.94%1,243,882 4.00%1,281,199 3.00%1,319,635 3.00% TOTAL Muni Govt OPER 25,477,101 5.01%26,635,979 4.55%27,701,419 4.00%28,533,558 3.00%29,389,565 3.00% OC2 School Operating 44,249,748 3.20%45,953,363 3.85%48,051,498 4.00%49,493,042 3.00%51,134,317 3.00% adjustments 250,000 151,925 150,000 TOTAL School OPER 44,249,748 3.20%46,203,363 4.41%48,051,498 4.00%49,644,968 3.32%51,284,317 3.30% OC4 Operating Budgets 69,726,849$ 3.85%72,839,343$ 4.46%75,752,916$ 4.00%78,178,526$ 3.20%80,673,882$ 3.19% Municipal Gov't Operating 36.5%36.6%36.6%36.5%36.4% School Operating 63.5%63.4%63.4%63.5%63.6% TOTAL SPENDING 110,271,719$ 3.80%114,748,263$ 4.06%119,254,715$ 3.93%122,403,090$ 2.64%124,694,968$ 1.87%` Muni Govt OPER 25,477,101$ 5.01%26,635,979$ 4.55%27,701,419$ 4.00%28,533,558$ 3.00%29,389,565$ 3.00% Muni Govt ACCOM 5,401,050$ -2.41%5,577,000$ 3.26%5,931,750$ 6.36%6,288,495$ 6.01%6,498,075$ 3.33% Muni Govt TOTAL 30,878,151$ 3.63%32,212,979$ 4.32%33,633,169$ 4.41%34,822,053$ 3.53%35,887,640$ 3.06% School OPER 44,249,748$ 3.20%46,203,363$ 4.41%48,051,498$ 4.00%49,644,968$ 3.32%51,284,317$ 3.30% School ACCOM 5,446,250$ 2.28%5,580,000$ 2.46%5,803,200$ 4.00%6,035,328$ 4.00%6,276,741$ 4.00% School TOTAL 49,695,998$ 3.10%51,783,363$ 4.20%53,854,698$ 4.00%55,680,296$ 3.39%57,561,058$ 3.38% A Town of Reading One Yr One Yr One Yr One Yr One Yr Revenues - Details Projected Chng Projected Chng Projected Chng Projected Chng Projected Chng No.1/4/23 6:36 PM FY22 FY22 FY23 FY23 FY24 FY24 FY25 FY25 FY26 FY26 Property Taxes Tax levy (within levy limit)77,955,852 3.9%81,558,766 4.6%84,536,301 3.7%87,623,459 3.7%90,941,545 3.8% New Growth 1,613,676$ 66.8%915,674$ -43.3%950,000 3.7%1,100,000 15.8%1,075,000 -2.3% Tax levy (debt exclusion)2,784,925 -2.2%2,727,408 -2.1%2,686,112 -1.5%1,279,700 -52.4%- -100.0% Abatements and exemptions (784,290)4.7%(803,897)2.5%(823,995)2.5%(844,595)2.5%(865,709)2.5% A1 Total Property Taxes 81,570,163 4.5%84,397,951 3.5%87,348,419 3.5%89,158,564 2.1%91,150,836 2.2% Other Local Revenues Motor Vehicle Excise 3,750,000 1.4%3,945,000$ 5.2%4,180,000 6.0%4,480,000 7.2%4,675,000 4.4% Meals Tax 365,000 46.0%440,000$ 20.5%515,000 17.0%560,000 8.7%585,000 4.5% Penalties/interest on taxes 200,000 25.0%270,000$ 35.0%325,000 20.4%355,000 9.2%380,000 7.0% Payments in lieu of taxes 375,000 -2.6%400,000$ 6.7%435,000 8.7%465,000 6.9%475,000 2.2% Charges for services 1,870,000 -6.5%2,125,000$ 13.6%2,300,000 8.2%2,475,000 7.6%2,650,000 7.1% Licenses & permits 125,000 -10.7%165,000$ 32.0%180,000 9.1%195,000 8.3%215,000 10.3% Fines 30,000 -60.0%80,000$ 166.7%100,000 25.0%110,000 10.0%125,000 13.6% Interest Earnings 200,000 -46.7%235,000$ 17.5%585,000 148.9%675,000 15.4%700,000 3.7% Medicaid Reimbursement 80,000 -20.0%130,000$ 62.5%155,000 19.2%165,000 6.5%165,000 0.0% A2 Total Other Local Revenues 6,995,000 -2.6%7,790,000 11.4%8,775,000 12.6%9,480,000 8.0%9,970,000 5.2% Intergovernmental Revenue State Aid 14,777,471$ 1.6%15,165,883 2.6%15,545,030 2.5%15,933,656 2.5%16,331,997 2.5% A3 Total Intergov't Revenues 14,777,471 1.6%15,165,883 2.6%15,545,030 2.5%15,933,656 2.5%16,331,997 2.5% Operating Transfers and Available Funds Cemetery sale of lots 25,000 0.0%25,000 0.0%25,000 0.0%25,000 0.0%25,000 0.0% RMLD payment 2,300,000 -6.8%2,527,442 9.9%2,587,000 2.4%2,575,000 -0.5%2,600,000 1.0% Enterprise Fund Support 1,150,727 3.2%1,196,040 3.9%1,243,882 4.0%1,281,199 3.0%1,319,635 3.0% School Revolving Funds 100,000 100%100,000 0.0%100,000 0.0%100,000 0.0%100,000 0.0% Premiums Reserve for Debt 6,957 -20%5,175 -26%3,407 -34%1,281 -62%0 -100% Overlay surplus 300,000 -14.3%325,000 8.3%350,000 7.7%350,000 0.0%350,000 0.0% A4 Total Transfers & Available 3,882,684 -3.4%4,178,657 7.6%4,309,289 3.1%4,332,480 0.5%4,394,635 1.4% OPERATING REVENUES 107,225,318 3.28%111,532,491 4.02%115,977,738 3.99%118,904,700 2.52%121,847,468 2.47% A5 Free Cash 3,400,052 63.3%3,225,000 -5.1%3,280,000 1.7%3,350,000 2.1%2,600,000 -22.4% TOTAL REVENUES 110,625,370 4.46%114,757,491 3.74%119,257,738 3.92%122,254,700 2.51%124,447,468 1.79% Town of Reading Acc. Costs - Summary One Yr One Yr One Yr One Yr One Yr 1/4/23 6:36 PM Projected Chng Projected Chng Projected Chng Projected Chng Projected Chng No.FY22 FY22 FY23 FY23 FY24 FY24 FY25 FY25 FY26 FY26 B Benefits 19,088,534 3.6%19,837,500 3.9%20,682,688 4.3%21,762,666 5.2%22,917,330 5.3% C Capital 3,955,000 3,086,000 2,963,000 3,009,500 2,994,000 Debt (inside levy)1,963,844 33.0%3,250,958 7.1%3,380,694 0.1%3,538,338 3.2%2,958,275 -9.1% D Debt (excluded)2,791,882 2,727,408 2,686,112 1,279,700 - E Energy 2,010,550 0.5%2,035,000 1.2%2,290,500 12.6%2,561,218 11.8%2,657,939 3.8% F Financial 1,010,000 -1.9%1,092,000 8.1%1,132,000 3.7%1,157,000 2.2%1,182,000 2.2% G Education - Out of district 5,446,250 2.3%5,580,000 2.5%5,803,200 4.0%6,035,328 4.0%6,276,741 4.0% H Education - Vocational 788,000 43.3%870,000 10.4%904,800 4.0%1,140,992 26.1%1,186,632 4.0% J Miscellaneous 3,340,650 -5.6%3,430,054 2.7%3,508,805 2.3%3,589,822 2.3%3,698,169 3.0% K Community Priorities 150,000$ 150,000$ 150,000$ 150,000$ TOTAL Accomm. COSTS 40,544,710$ 3.7%41,908,920$ 3.4%43,501,799$ 3.8%44,224,564$ 1.7%44,021,086$ -0.5% Town of Reading One Yr One Yr One Yr One Yr One Yr Acc. Costs - Details Projected Chng Projected Chng Projected Chng Projected Chng Projected Chng B FY22 FY22 FY23 FY23 FY24 FY24 FY25 FY25 FY26 FY26 B1 Contributory Retirement 5,568,534 6.5%5,785,500$ 3.9%6,140,000 6.1%6,539,100 6.5%6,964,142 6.5% B3 OBRA fees & OPEB study 40,000 0.0%40,000$ 0.0%40,000 0.0%40,000 0.0%40,000 0.0% B4 OPEB contribution 100,000 0%500,000$ 400.0%500,000 0.0%500,000 0.0%500,000 0.0% B5 Workers Compensation 375,000 6.5%385,000$ 2.7%390,000 1.3%400,000 2.6%405,000 1.3% B6 Unemployment Benefits 75,000 -21.1%75,000$ 0.0%75,000 0.0%80,000 6.7%85,000 6.3% B7 Group Health / Life Ins.11,800,000 2.7%11,922,000$ 1.0%12,397,688 4.0%13,048,566 5.3%13,753,189 5.4% B8 Medicare / Social Security 1,000,000 1.3%1,000,000$ 0.0%1,005,000 0.5%1,015,000 1.0%1,025,000 1.0% B9 Police / Fire Indemnification 130,000 1.6%130,000$ 0.0%135,000 3.8%140,000 3.7%145,000 3.6% B99 Acc. Costs - Benefits 19,088,534$ 3.6%19,837,500$ 3.9%20,682,688$ 4.3%21,762,666$ 5.2%22,917,330$ 5.3% C99 Acc. Costs - Capital 3,955,000$ 71.6%3,086,000$ -22.0%2,963,000$ -4.0%3,009,500$ 1.6%2,994,000$ -0.5% D1 Debt Service - Principal 4,085,000 -1.7%4,919,000 20.4%5,220,000 6.1%3,900,000 -25.3%2,200,000 -43.6% D2 Debt Service - Interest 670,726 -19.2%1,059,366 57.9%846,806 -20.1%918,038 8.4%758,275 -17.4% D3 Excluded debt (2,791,882) -2.0%(2,727,408) -2.3%(2,686,112) -1.5%(1,279,700) -52.4%- -100.0% Total Included Debt 1,963,844$ -8.1%3,250,958$ 65.5%3,380,694$ 4.0%3,538,338$ 4.7%2,958,275$ -16.4% Premiums for general fund -$ -100%-$ #DIV/0!-$ #DIV/0!-$ #DIV/0!-$ #DIV/0! D99 Acc. Costs -Debt 4,755,726$ -4.8%5,978,366$ 25.7%6,066,806$ 1.5%4,818,038$ -20.6%2,958,275$ -38.6% E1 Street Lighting (DPW)150,000 3.4%130,000$ -13.3%135,000 3.8%140,000 3.7%145,000 3.6% E2 Electricty (FacCORE)873,000 -0.2%890,000$ 1.9%1,080,000 21.3%1,112,400 3.0%1,156,896 4.0% E3 Natl Gas (FacCORE)635,000 0.0%650,000$ 2.4%676,000 4.0%899,080 33.0%935,043 4.0% E4 Water/Sewer (FacCORE)187,550 4.2%200,000$ 6.6%209,500 4.8%214,738 2.5%221,000 2.9% E6 Fuel - vehicles (DPW)165,000 0.0%165,000$ 0.0%190,000 15.2%195,000 2.6%200,000 2.6% E99 Acc. Costs - Energy 2,010,550$ 0.5%2,035,000$ 1.2%2,290,500$ 12.6%2,561,218$ 11.8%2,657,939$ 3.8% F1 Casualty Ins (AD SVC)660,000 17.9%767,000$ 16.2%787,000 2.6%807,000 2.5%827,000 2.5% F2 Vet's Assistance (PUB SVC)150,000 -11.8%125,000$ -16.7%145,000$ 16.0%150,000$ 3.4%155,000$ 3.3% F3 FINCOM Reserve Fund 200,000 -33.3%200,000$ 0.0%200,000 0.0%200,000 0.0%200,000 0.0% F99 Acc. Costs - Financial 1,010,000$ -1.9%1,092,000$ 8.1%1,132,000$ 3.7%1,157,000$ 2.2%1,182,000$ 2.2% G1 SPED transp OOD (Sch)1,391,250 5.0%1,035,000$ -25.6%1,076,400 4.0%1,119,456 4.0%1,164,234 4.0% G2a SPED tuition OOD (Sch)5,355,000 5.0%5,575,000$ 4.1%5,798,000 4.0%6,029,920 4.0%6,271,117 4.0% G2b SPED contingency 470,000$ 100.0%488,800 4.0%508,352 4.0%528,686 4.0% G3 SPED offsets OOD (Sch)(1,300,000)18.2%(1,500,000)$ 15.4%(1,560,000)4.0%(1,622,400)4.0%(1,687,296)4.0% G99 Acc. Costs - OOD SPED 5,446,250$ 2.3%5,580,000$ 2.5%5,803,200$ 4.0%6,035,328$ 4.0%6,276,741$ 4.0% H1 Voc School - NERMVS 572,000 25.7%640,000$ 11.9%665,600 4.0%892,224 34.0%927,913 4.0% H2 Voc School - Minute Man 46,000 31.4%50,000$ 8.7%52,000 4.0%54,080 4.0%56,243 4.0% Voc School - Essex North 170,000 183.3%180,000$ 5.9%187,200 4.0%194,688 4.0%202,476 4.0% H99 Acc. Costs - Vocational 788,000$ 43.3%870,000$ 10.4%904,800$ 4.0%1,140,992$ 26.1%1,186,632$ 4.0% J1 Rubbish (DPW)1,905,500 3.0%1,975,000$ 3.6%2,034,250 3.0%2,095,278 3.0%2,158,136 3.0% J2 Snow and Ice Control (DPW)675,000 0.0%675,000$ 0.0%675,000 0.0%675,000 0.0%700,000 3.7% J3 State Assessments 760,150 3.4%780,054$ 2.6%799,555 2.5%819,544 2.5%840,033 2.5% Cemetery (DPW) J99 Acc. Costs - Misc.3,340,650$ -5.6%3,430,054$ 2.7%3,508,805$ 2.3%3,589,822$ 2.3%3,698,169$ 3.0% 2023 DRAFT - SELECT BOARD AGENDAS 1/5/2023 Staff Responsibility Estimated start time January 10, 2023 Tuesday Overview of Meeting Dockser 7:00 Public Comment Board 7:05 SB Liaison & Town Manager Reports Board 7:15 Public Health Update Solarin 7:20 Presentation and Discussion on Housing Production Plan MacNichol 7:45 Discuss/Vote to Terminate Inter- Municipal Agreement with Wakefield for POST Program effective 6/30/2023 Board 8:15 Discussion on Town Manager Annual Review, including approval of documentation and process Board 8:30 Discussion on Affordable Housing Trust Fund Board and Start-up Process Board 8:45 Preview FY2024 Town Budget Board 9:00 Discuss Future Agendas Board 9:15 Approve Meeting Minutes Board 9:30 January 24, 2023 Tuesday Overview of Meeting Dockser 7:00 Public Comment Board 7:05 SB Liaison & Town Manager Reports Board 7:15 Discuss/Vote to Authorize Debt from the MWRA Local Financial Assistance Program Board 7:20 Discussion and Vote to Approve Reading's Housing Production Plan MacNichol 7:45 Discusion and Vote on Town Manager Annual Review Board 8:00 Potential Executive Session on Multiple Topics: RFP responses, Town Manager Contract, etc. Board 8:30 Discuss Future Agendas Board 10:00 Approve Meeting Minutes Board 10:15 February 7, 2023 Tuesday Overview of Meeting Dockser 7:00 Public Comment Board 7:05 SB Liaison & Town Manager Reports Board 7:15 Town Counsel Discussion Board Discussion and Vote to Sign Lease Extension for the Reading Ice Arena Authority Board 7:25 Discussion on a Master Plan for Reading Board 8:45 Discuss Future Agendas Board 10:00 Approve Meeting Minutes Board 10:15 February 21, 2023 Tuesday Overview of Meeting Dockser 7:00 Public Comment Board 7:05 SB Liaison & Town Manager Reports Board 7:15 Discuss Future Agendas Board 10:00 Approve Meeting Minutes Board 10:15 March 7, 2023 Tuesday March 21, 2023 Tuesday April 4, 2023 TOWN ELECTION April 18, 2023 Tuesday April 24, 2023 ANNUAL TOWN MEETING April 27, 2023 ANNUAL TOWN MEETING May 1, 2023 ANNUAL TOWN MEETING May 4, 2023 ANNUAL TOWN MEETING May 9, 2023 Tuesday May 23, 2023 Tuesday June 6, 2023 Tuesday June 20, 2023 Tuesday July 11, 2023 Tuesday August 1, 2023 Tuesday August 22, 2023 Tuesday September 12, 2023 Tuesday September 26, 2023 Tuesday October 10, 2023 Tuesday October 24, 2023 Tuesday November 7, 2023 Tuesday November 13, 2023 SUBSEQUENT TOWN MEETING November 16, 2023 SUBSEQUENT TOWN MEETING November 20, 2023 SUBSEQUENT TOWN MEETING November 21, 2023 Tuesday Novmeber 27, 2023 SUBSEQUENT TOWN MEETING December 5, 2023 Tuesday Vote to approve annual licenses (delegated to TM Office) Vote to approve Liquor Licenses December 6, 2023 Wednesday Department Budget Presentations December 12, 2023 Tuesday Department Budget Presentations Future Meetings - Agenda Items VASC Policy Changes and Recommendations VASC Discuss Early Sunday Hours at Recreational Fields & Parks Rec Comm Discuss/Vote to adopt Birch Meadow Master Plan (discuss with Town Counsel in advance) Rec Comm Public Safety Quarterly updates Board Air BnB update CPDC Update on 186 Summer Ave / Review of Select Board role (consult with Town Counsel) Town Counsel Discuss Police Department Policies with respect to Police Reform Legislation & Department Accreditation Board Discuss and Approve Flag Policy Board Discuss Tree Lawn Pesticide Policy BOH Recurring Agenda Items Close Warrant: Annual Town Meeting March 3/1/2022 Close Warrant: Subsequent Town September 9/27/2022 Appoint Town Accountant March Annual HEARING Approve Classification & May Annual Appointments of Boards & Committees May/June Annual HEARING Approve Tax Classification October Annual HEARING Approve Licenses December Annual Liaison: RCTV members Report Annual Liaison: CAB (RMLD) member Report Annual Liaison: MAPC member Report Annual Liaison: Reading Housing Authority Annual Liaison: Reading Ice Arena Report Annual Town Accountant Report Qtrly Economic Development Director Semi-ann Parking/Traffic/Transportation Task Town Board & Committee visits Town Department visits Review Select Board Goals Review Town Manager Goals Select Board Draft Minutes December 6th, 2022 Public Comment Carl McFadden informed the board of a movie that is going to be made about Hal Croft. Reverend Amelia Atridge from the First Congregational Church and the Reading Clergy hopes to inspire people to be welcoming and nice to all people of all faiths. Linda Snow Dockser expressed her thoughts about the last meeting and how difficult it was for some people. She also wanted to clarify her letter to the editor. She would like the common to be a space of shared beliefs. Casey Moulten wanted to express her concerns with Karen Herricks treatment of Carl McFadden when he visited the board to discuss the ice arena lease. She noted other incidents of unacceptable behavior as well. Liaison Reports Haley noted the School Committee finalized school improvement plans. Bacci noted the ice arena board met last Wednesday. Dennis Hughes will be the new president of that board. McCarthy noted she attended a webinar on affordable housing. She also met with the new RMLD General Manager. Cultural Council met and they are going through applications for grants. Herrick attended the ribbon cutting of the Reading Animal Clinic. Dockser noted UMass submitted the survey results regarding a senior center. Council on Aging met and noted more people are going to the senior center now than pre-pandemic. They are in support of a new center and programming. Commissioner of Trusts met last night. Town Manager Report Maltez noted Town Meeting wrapped up. The last meeting with the MSBA will be next week to wrap up the submittal process for the Killam School. Neighbors of the water tank received notice that blasting would be taking place but that was sent by the contractor without the towns consent. The town has asked the contractor to put a hold on the blasting until a neighborhood meeting can happen. The first SWEC meeting is scheduled for December 12th. Vote to Authorize Short Term Debt – Auburn Water Tank Town Accountant Sharon Angstrom was present for this item. She first introduced Diane Morabito who is our new Treasurer. She explained they are going to do a short-term borrowing BAN until Bond Counsel has time to review documents and we could do internal borrowing later in the year if we wish. McCarthy noted she will abstain from this vote as she is an abutter to this project. Haley began the motion: I, the Clerk of the Select Board of the Town of Reading, Massachusetts, certify that at a meeting of the board held December 6, 2022, of which meeting all members of the board were duly notified and at which a quorum was present, the following votes were unanimously passed, all of which appear upon the official record of the board in my custody: Herrick moved to suspend the reading of the full motion; this was seconded by Bacci and approved with a 4-0-1 vote with McCarthy abstaining. Herrick seconded the original motion, and it was approved with a 4-0-1 vote with McCarthy abstaining. Holiday Display Discussion There was a request for an atheist symbol or flag on the common. Dockser noted the discussion in the packet regarding holiday displays and amplifying what was said at the last meeting. Haley reiterated government speech vs public speech and read an email he wrote to Fidel asking to discuss the atheist symbol as a part of being inclusive on the common this holiday season. McCarthy feels the law tells us we need to handle every request individually and she disagrees with the notion if they put a menorah and Christmas tree on the common that they then must include every symbol requested. She doesn’t feel this is the time or manor to approve this request. Bacci feels this is a much bigger discussion because the process is flawed. He agrees with McCarthy this is not the time for this request. The board discussed the permitting process and asked about civic function permits and the parameters of that. The board noted they need to discuss this process further. ReCalc Final Survey Update Caitlin Coyle and Ceara Somerville from UMass Boston gave the board a presentation on the final survey results regarding a new center for active living. The presentation can be found in the Select Board packet on the town website. Director of Equity and Social Justice Update Sudeshna gave the board a presentation about what she has been working on since coming aboard. She created a new group called PAIR which stand for Partner and Allies for Inclusive Reading. Sgt. Pat Silva, the Civil Rights Officer and member of PAIR, gave the board a short presentation on what PAIR does. He was accompanied by other PAIR members Angela MacIntosh, Michelle Cropper, Carolyn Johnson and Jordyn Fani. These presentations can be found in the Select Board packet on the town website. Annual Liquor License Renewals 1. Haley moved that the Select Board renew the All Alcoholic Package Store Liquor Licenses for: • HT Reading Liquors LLC d/b/a Baystate Liquors, 345 Main Street • Raksha, Inc. d/b/a Square Liquors, 13 High Street • Jay and Ricky, Inc. d/b/a Reading Liquors, 214 Main Street • Anastasi Brookline Inc. d/b/a Reading Fine Wine and Spirits, 25 Walkers Brook Drive • Kajal and Kevin LLC d/b/a The Liquor Junction, One General Way • Pamplemousse Inc. d/b/a Pamplemousse, 26 Haven Street for a term expiring December 31, 2023 subject to the following conditions: All Bylaws, Rules and Regulations of the Town of Reading and of the Commonwealth of Massachusetts shall be followed, and subject to a satisfactory inspection of the establishment by the Town Manager or his designee. The motion was seconded by Herrick and approved with a 5-0 vote. 2. Haley moved that the Select Board renew the All Alcoholic Club Liquor Licenses for: • Meadow Brook Golf Corp. of Reading, MA d/b/a Meadow Brook Golf Club, 292 Grove Street • Home Building Corp. d/b/a Knights of Columbus, 11 Sanborn Street for a term expiring December 31, 2023 subject to the following conditions: All Bylaws, Rules and Regulations of the Town of Reading and of the Commonwealth of Massachusetts shall be followed, and subject to a satisfactory inspection of the establishment by the Town Manager or his designee. The motion was seconded by Herrick and approved with a 5-0 vote. 3. Haley moved that the Select Board renew the All Alcoholic Veteran Club Liquor Licenses for: • Reading Veterans’ Association, Inc. d/b/a American Legion Post 62, 37 Ash Street for a term expiring December 31, 2023 subject to the following conditions: All Bylaws, Rules and Regulations of the Town of Reading and of the Commonwealth of Massachusetts shall be followed, and subject to a satisfactory inspection of the establishment by the Town Manager or his designee. The motion was seconded by Herrick and approved with a 5-0 vote. 4. Haley moved that the Select Board renew the All Alcoholic Restaurant Liquor Licenses for: • Anthony’s Coal Fired Pizza of Reading LLC d/b/a Anthony’s Coal Fired Pizza, 48 Walkers Brook Drive • Mecom, Inc. d/b/a Café Capri, 355 Main Street • CAC Foods, Inc. d/b/a Venetian Moon Restaurant, 680 Main Street • Pepper Dining Inc. d/b/a Chili’s Grill & Bar, 70 Walkers Brook Drive • HJB Restaurant Company LLC d/b/a Fuddruckers, 50 Walkers Brook Drive • RARE Hospitality International, Inc. d/b/a Longhorn Steak House, 39 Walkers Brook Drive • Boston Foods Inc. d/b/a Zucca Italian Restaurant and Bar, 601 Main Street • The VI Incorp. d/b/a Public Kitchen, 530 Main Street • KOK, Inc. d/b/a Oye’s, 26 Walkers Brook Drive • Bistro Concepts, Inc. d/b/a Fusilli’s Cucina, 107 Main Street • RKR Corporation d/b/a Bunratty Tavern, 622 Main Street • Bertucci’s Restaurant Corp, d/b/a Bertucci’s Brick Oven Ristorante at 45 Walkers Brook Drive • Mandarin Reading Inc, d/b/a Mandarin Reading Restaurant at 296 Salem Street • Haven Street PO, LLC d/b/a The Common District Meeting House at 136 Haven Street • Reading Foods LLC d/b/a Half & Half at 607 Main Street for a term expiring December 31, 2023 subject to the following conditions: All Bylaws, Rules and Regulations of the Town of Reading and of the Commonwealth of Massachusetts shall be followed, and subject to a satisfactory inspection of the establishment by the Town Manager or his designee. The motion was seconded by Bacci and approved with a 5-0 vote. 5. Haley moved that the Select Board renew the Wine and Malt Restaurant Liquor License for: • Palatat Pattenesuan d/b/a Bangkok Spice Thai Restaurant, 76 Haven Street for a term expiring December 31, 2023 subject to the following conditions: All Bylaws, Rules and Regulations of the Town of Reading and of the Commonwealth of Massachusetts shall be followed, and subject to a satisfactory inspection of the establishment by the Town Manager or his designee. The motion was seconded by Bacci and approved with a 5-0 vote. Future Agendas The board discussed future agenda items. Executive Session Haley moved to go into Executive Session at 10:13 PM, including staff members Fidel Maltez, Caitlin Nocella and Ivria Fried from Town Counsel’s office, under Executive Session Purpose 6 to discuss the acquisition and value of 17 Harnden Street, as the Chair declares that an open meeting could have a detrimental effect on the bargaining position of the body; and that the board will not reconvene in open session. The motion was seconded by Herrick and approved with a unanimous roll call vote.