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HomeMy WebLinkAbout897 Route 28 Project Eligibility Letter PEL 10.23.23 October 23, 2023 NSG, Mattacheeset Village, LLC 3301 NE 32nd Avenue, Suite 602 Fort Lauderdale, Florida 33308 Attention: Stephen Cleary Re: Mattacheeset Village, Yarmouth Project Eligibility/Site Approval MassHousing ID No. 1187 Dear Mr. Cleary: This letter is in response to your application as “Applicant” for a determination of Project Eligibility (“Site Approval”) pursuant to Massachusetts General Laws Chapter 40B (“Chapter 40B”), 760 CMR 56.00 (the “Regulations”) and the Comprehensive Permit Guidelines issued by the Executive Office of Housing and Livable Communities (“EOHLC”) (the “Guidelines” and, collectively with Chapter 40B and the Regulations, the “Comprehensive Permit Rules”), under the New England Fund (“NEF”) Program (“the Program”) of the Federal Home Loan Bank of Boston (“FHLBank Boston”). Nantucket Sound Group, Inc. submitted an application with MassHousing pursuant to Chapter 40B. You have proposed to build twenty-three (23) units of rental housing (the “Project”) on approximately 1.09 acres of land located at 897 Route 28 (the “Site”) in Yarmouth (the “Municipality”). In accordance with the Comprehensive Permit Rules, this letter is intended to be a written determination of Project Eligibility by MassHousing acting as Subsidizing Agency under the Guidelines, including Part V thereof, “Housing Programs In Which Funding Is Provided By Other Than A State Agency.” MassHousing has performed an on-site inspection of the Site, which local boards and officials were invited to attend, and has reviewed the pertinent information for the Project submitted by the Applicant, the Municipality and others in accordance with the Comprehensive Permit Rules. After an initial review of the Site, the proposed plans, and several meetings with Town Officials a clear consensus and prevailing sentiment was reached to reposition the commercial aspect of the project to the front portion of the Site on Route 28. Simultaneously, the consensus was to establish the proposed apartments to the rear of the Site where the former Cape Cod Laundry Center building sat, requiring that building to be demolished. Municipal Comments Pursuant to the Regulations, the Municipality was given a thirty (30) day period in which to review the Site Approval application and submit comments to MassHousing. At the request of the Municipality, this time was extended an additional 30 days, for a total of 60 days. The Board of Selectmen submitted a letter expressing areas of concern regarding the proposed development: • The Municipality is concerned with water capacity found at the Site and requests that the Applicant conduct a detailed study to determine water capacity and pressure needs of the proposed Project. • The Municipality is concerned that the proposed Project would lead to increased traffic volume and congestion on and around Route 28. In addition, the Municipality noted the need for improved pedestrian access in and out of the Site and a pedestrian connection to adjacent streets and sidewalks. • The Municipality expressed concern about potential drainage and stormwater management impacts on abutting properties. • The Municipality stressed that the Project must be designed to ensure the maximum level of emergency access and fire protection. They outlined a variety of requirements for the Project including fire lanes, sufficient roadway widths and intersection radii to accommodate public safety vehicles, hydrants, interior fire suppression systems, elevators, etc. • The Municipality has noted the lack of any usable open space for residents and has recommended that the site plan include additional areas left for open space features. MassHousing carefully considered the Municipality’s concerns and, to the extent appropriate within the context of the Site Approval process, has offered responses in the following “Recommendations” section of this letter. MassHousing Determination and Recommendation MassHousing staff has determined that the Project appears generally eligible under the requirements of the Program, subject to final review of eligibility and to Final Approval.1 As a result of our review, we have made the findings as required pursuant to 760 CMR 56.04(1) and (4). Each such finding, with supporting reasoning, is set forth in further detail on Attachment 1 hereto. It is important to note that Comprehensive Permit Rules limit MassHousing to these specific findings in order to determine Project Eligibility. If, as here, MassHousing issues a determination of Project Eligibility, the Applicant may apply to the Zoning Board of Appeals (“ZBA”) for a comprehensive permit. At that time local boards, officials and members of the public are provided the opportunity to further review the Project to ensure compliance with applicable state and local standards and regulations. Based on MassHousing’s site and design review, and considering feedback received from the Municipality, the following issues should be addressed in the application to the ZBA, and the Applicant should be prepared to explore them more fully during the public hearing process: • Development of this Site will require compliance with all state and federal environmental laws, regulations and standards applicable to existing conditions and to the proposed use related to 1 MassHousing has relied on the Applicant to provide truthful and complete information with respect to this approval. If at any point prior to the issuance of a comprehensive permit MassHousing determines that the Applicant has failed to disclose any information pertinent to the findings set forth in 760 CMR 56.04 or information requested in the Certification and Acknowledgment of the Application, MassHousing retains the right to rescind this Site Approval letter. building construction, stormwater management, wastewater collection and treatment, and hazardous waste safety. The Applicant should expect that the Municipality will require evidence of such compliance prior to the issuance of a building permit for the Project. • The Applicant should be prepared to provide detailed information relative to proposed water use and potential impacts on existing capacity and pressure and respond to reasonable requests for mitigation. • The Applicant should engage with the Municipality’s Fire Department to review and modify plans as needed and to ensure adequate access is provided for emergency vehicles and responders. • The Applicant is encouraged to work with its design team to address concerns related to pedestrian circulation, open space elements and providing safe connections to existing sidewalks. • The Applicant should be prepared to respond to Municipal concerns relative to potential off- site traffic impacts on area roadways and intersections and to respond to reasonable requests for mitigation. MassHousing has also reviewed the application for compliance within the requirements of 760 CMR 56.04(2) relative to Application requirements and has determined that the material provided by the Applicant is sufficient to show compliance. This Site Approval is expressly limited to the development of no more than twenty-three (23) rental units under the terms of the Program, of which not less six (6) of such units shall be restricted as affordable for low- or moderate-income persons or families as required under the terms of the Guidelines. It is not a commitment or guarantee of financing and does not constitute a site plan or building design approval. Should you consider, prior to obtaining a comprehensive permit, the use of any other housing subsidy program, the construction of additional units or a reduction in the size of the Site, you may be required to submit a new Site Approval application for review by MassHousing. Should you consider a change in tenure type or a change in building type or height, you may be required to submit a new site approval application for review by MassHousing. For guidance on the comprehensive permit review process, you are advised to consult the Guidelines. Further, we urge you to review carefully with legal counsel the M.G.L. c.40B Comprehensive Permit Regulations at 760 CMR 56.00. This approval will be effective for a period of two (2) years from the date of this letter. Should the Applicant not apply for a comprehensive permit within this period this letter shall be considered to be expired and no longer in effect unless MassHousing extends the effective period of this letter in writing. In addition, the Applicant is required to notify MassHousing at the following times throughout this two- year period: (1) when the Applicant applies to the local ZBA for a Comprehensive Permit, (2) when the ZBA issues a decision and (3) if applicable, when any appeals are filed. Should a comprehensive permit be issued, please note that prior to (i) commencement of construction of the Project or (ii) issuance of a building permit, the Applicant is required to submit to MassHousing a request for Final Approval of the Project (as it may have been amended) in accordance with the Comprehensive Permit Rules (see especially 760 CMR 56.04(07) and the Guidelines including, without limitation, Part III thereof concerning Affirmative Fair Housing Marketing and Resident Selection). Final Approval will not be issued unless MassHousing is able to make the same findings at the time of issuing Final Approval as required at Site Approval. Please note that MassHousing may not issue Final Approval if the Comprehensive Permit contains any conditions that are inconsistent with the regulatory requirements of the New England Fund Program of the FHLBank Boston, for which MassHousing serves as Subsidizing Agency, as reflected in the applicable regulatory documents. In the interest of providing for an efficient review process and in order to avoid the potential lapse of certain appeal rights, the Applicant may wish to submit a “final draft” of the Comprehensive Permit to MassHousing for review. Applicants who avail themselves of this opportunity may avoid significant procedural delays that can result from the need to seek modification of the Comprehensive Permit after its initial issuance. If you have any questions concerning this letter, please contact Michael Busby at (617) 854-1219. Sincerely, Colin M. McNiece General Counsel cc: Ed Augustas, Secretary, Executive Office of Housing and Livable Communities The Honorable Julian Cyr The Honorable Kip A. Diggs The Honorable Christopher R. Flanagan Michael Stone, Chair, Board of Selectmen Attachment 1 760 CMR 56.04 Project Eligibility: Other Responsibilities of Subsidizing Agency Section (4) Findings and Determinations Mattacheeset Village, Project #1187 MassHousing hereby makes the following findings, based upon its review of the application, and taking into account information received during the site visit and from written comments: (a) that the proposed Project appears generally eligible under the requirements of the housing subsidy program, subject to final approval under 760 CMR 56.04(7); The Project is eligible under the NEF housing subsidy program and at least 25% of the units will be available to households earning at or below 80% of the Area Median Income, adjusted for household size, as published by the U.S. Department of Housing and Urban Development (“HUD”). The most recent HUD income limits indicate that 80% of the current median income for a four-person household in Yarmouth is $92,050. Proposed rent levels of $1,522 for a studio affordable unit, $1,631 for a one- bedroom affordable unit and $2,261 for a three-bedroom affordable unit accurately reflect current affordable rent levels for the Barnstable HMFA under the NEF Program, less utility allowances of $190, $219 and $379. The Applicant submitted a letter of financial interest from Martha’s Vineyard Bank, a member bank of the FHLBank Boston under the NEF Program. (b) that the site of the proposed Project is generally appropriate for residential development, taking into consideration information provided by the Municipality or other parties regarding municipal actions previously taken to meet affordable housing needs, such as inclusionary zoning, multifamily districts adopted under c.40A, and overlay districts adopted under c.40R, (such finding, with supporting reasoning, to be set forth in reasonable detail); Based on a site inspection by MassHousing staff, internal discussions, and a thorough review of the application, MassHousing finds that the Site is suitable for residential use and development and that such use would be compatible with surrounding uses and would address the local need for housing. The Town of Yarmouth does not have a current EOHLC-approved Housing Production Plan. According to EOHLC’s Chapter 40B Subsidized Housing Inventory, updated through June 29, 2023, Yarmouth has 615 SHI units (4.96% of its housing inventory), which is 624 units below the statutory minima requirement of 10%. (c) that the conceptual project design is generally appropriate for the site on which it is located, taking into consideration factors that may include proposed use, conceptual site plan and building massing, topography, environmental resources, and integration into existing development patterns (such finding, with supporting reasoning, to be set forth in reasonable detail); Relationship to Adjacent Building Typology (Including building massing, site arrangement, and architectural details): The Mattacheeset Village development will provide a total of 23 units in a three-story, wood framed residential apartment building. The proposed plan will allocate at least 44 parking spaces. In addition, resident amenities include electric vehicle and bicycle parking, with DC charging stations. The site layout is designed to consolidate the development area required for parking and buildings in order to protect existing vegetative buffers on all sides of the project traditional and natural building materials. Varied exterior finishes and paint colors will work to reduce the visual bulk of the new buildings. The basic massing is defined by flat roofs, inset balconies, and projected bays and the color palate consists of warm grey tones and medium earth tones. The design incorporates energy-efficient or “green” architecture into each residential unit. Within the buildings, the typical floor plan provides access to units off a central double-loaded corridor that is framed on each end by egress stairs and support spaces. Elevators are centrally located for convenient access. Typical studio, one, and three-bedroom units are designed with open kitchen/living areas and comfortable bedroom and bathrooms as well as large walk-in closets. Large windows provide abundant natural light at each unit. In addition to high-quality finishes and individual environmental control, each unit will contain modern energy-efficient appliances, in-unit laundry, and low-energy lighting fixtures add to an overall sense of luxury and quality at Mattacheeset Village Relationship to adjacent streets/Integration into existing development patterns The Site is in the Village of South Yarmouth, on the south side of State Highway Route 28, approximately two miles west of the West Dennis town line at Bass River. This stretch of Route 28 in South Yarmouth is highly commercialized, mainly catering to the tourist industry, with numerous restaurants, gift shops, motels, and miniature golf courses. This area has Cape Cod’s largest concentration of lodging facilities. The Site is zoned Business 1, Business 2, Hotel/Motel Overlay District 1, and Village Center 3. These districts allow for a wide variety of uses. The immediate area is improved with a mix of mostly commercial along Route 28 and residential properties along Pine Grove Road. Density The Applicant proposes to build twenty-three (23) rental units on approximately 1.09 acres, all of which are buildable. The resulting density is 21.10 units per buildable acre, which is acceptable given the proposed housing type. Conceptual Site Plan The 1.09-acre property is improved with a 3,600 square foot, one-story, wood framed structure that was historically utilized as a laundromat (Cape Cod Laundry Center). The original plan was to complete new construction of a three-story residential building along Route 28, while repurposing the existing 3,800 square foot building into a restaurant, with coworking space. Post Site Approval application meetings with Town Officials lead to a clear consensus and prevailing sentiment of a desire to reposition the commercial aspect of the Project on Route 28. Simultaneously, the consensus was to establish the new apartments at the site of the former Cape Cod Laundry Center. The design change includes the demolition of the existing building. In April 2023, Yarmouth voters approved a $200 million sewer expansion project and treatment plant, which will connect thousands of homes and businesses to sewer and address excessive nitrogen in nearby waterways. The proposed Project will be eligible to connect upon completion. Environmental Resources The property does not contain any area of critical concern or areas of estimated or priority habitat of rare species, wildlife or vernal pools. Topography The site is irregular in shape and is level at street grade. The topographic features of the site have been considered in relationship to the proposed development plans and do not constitute an impediment to development of the Site. (d) that the proposed Project appears financially feasible within the housing market in which it will be situated (based on comparable rentals or sales figures); According to the appraisal report for the Site, Yarmouth’s residential market appears stable and strong, with an overall upward trajectory in sales volume and prices in the last decade. MassHousing’s Appraisal and Marketing team (A&M) performed a Competitive Market Analysis and found that proposed market rents for each unit type fall within the range of adjusted comparable market rents. (e) that an initial pro forma has been reviewed, including a land valuation determination consistent with the Department’s Guidelines, and the Project appears financially feasible and consistent with the Department’s Guidelines for Cost Examination and Limitations on Profits and Distributions (if applicable) on the basis of estimated development costs; MassHousing has commissioned an as “As-Is” appraisal which indicates a land valuation of $550,000. Based on a proposed investment of $7,105,491 in equity and permanent financing the development pro forma appears to be financially feasible and within the limitations on profits and distributions. (f) that the Applicant is a public agency, a non-profit organization, or a Limited Dividend Organization, and it meets the general eligibility standards of the housing program; and MassHousing finds that the Applicant must be organized as a Limited Dividend Organization. MassHousing sees no reason this requirement could not be met given information reviewed to date. The Applicant meets the general eligibility standards of the NEF housing subsidy program and has executed an Acknowledgment of Obligations to restrict their profits in accordance with the applicable limited dividend provisions. (g) that the Applicant controls the site, based on evidence that the Applicant or a related entity owns the site or holds an option or contract to acquire such interest in the site, or has such other interest in the site as is deemed by the Subsidizing Agency to be sufficient to control the site. The Applicant controls the entire 1.09-acre Site through a Deed of Ownership found in Book 31764, Page 268 at the Barnstable Registry of Deeds.