1. Zoning Tools for Strong Mixed-Use Districts & Economic Development
Compact
Neighborhoods
40R & Compact Neighborhoods are two smart growth zoning tools that are available to cities and towns interested in creating or strengthening mixed use districts as part of their economic development strategy.
Many of you are probably familiar with 40R. There are 3 40R Districts in the ICC sub-region (Belmont, Boston and Chelsea). CN is a newer program, modeled after 40R, and may be less familiar.
I’ll provide a very brief overview of the concept behind these programs, the participation and activity that we’ve seen to date, and touch on some recent regulatory changes with respect to 40R

2. Program Overview & Comparison
40R & Compact Neighborhoods
Features
Chapter 40R
Smart Growth
Compact Neighborhoods
Eligible Location
Near Transit Station
Commercial District
Highly Suitable Location
Min. Allowable, by-right Density (d.u./acre)
Multifamily: 20
2&3-Family: 12
Single-Family: 8
Multi-Family: 8
Single-Family: 4
Min. # of zoned units
N/A
1% of housing stock
Required % of Affordable Units
20% (projects =/> 13 units & district as a whole)
10%
(projects =/> 13 units)
State Incentives
Funding Preference
Potential 40B Relief
Direct Payments
40R & CN are both voluntary programs intended to encourage cities and towns to adopt and implement inclusionary smart growth overlay zones in certain eligible locations by offering direct and indirect financial incentives and the potential for greater local control over land use decisions.
This table summarizes the respective requirements and incentives of the two programs. The red text highlights the key differences. 40R which is perhaps the more applicable of the two programs with respect to the Inner Core has greater affordability and density requirements but also offers more substantial incentives.
Both programs share the same 3 Eligible Locations – ½ mile from transit station; ACD = city or town center or other existing commercial district; HSL captures other locations that don’t fall into either of the first 2 categories but nonetheless are places that make sense to grow.
Densities – minimum allowable, CN fewer categories, design standards
Incentives – Discretionary state $; 40B relief; 40R ZIP, DB & 40S

3. Requirements: Minimum District Size
Compact Neighborhoods
Requirements: Minimum District Size
City/Town
Min.
Units/ Size
Units/
Size
Beverly 65
Marblehead 85
Stoneham 94
Burlington 96
Middleton 30
Swampscott 58
Danvers
111
Nahant 16
Topsfield 22
Essex 15
N. Reading 56
Wakefield
105
Gloucester
133
Peabody
221
Wenham 14
Hamilton 28
Reading
Wilmington 78
Ipswich 57
Rockport 35
Winchester 79
Lynnfield 43
Salem
190
Woburn
162
Manchester 23
Unlike 40R there’s a modest minimum district size.
For all but the 3 largest cities (which have caps) the minimum district size is 1% of the total year round housing units in the community.
District need not consist of contiguous land
Minimum # of Units = 1% of Year-Round Housing Units with caps for 3 largest cities: Boston (700), Worcester & Springfield (500)

4. 40R Participation / Activity
33 Districts in 31 municipalities
Activity has been mostly concentrated eastern MA & PV
Districts range in size from as small as 15 units associated with the adaptive-reuse of a church in Norwood to over 1,000 in large multi-parcel districts in Brockton and Lawrence.
These districts have resulted in zoning changes allowing for the development of well over 12,000 housing units. To date, approximately 2,136 units have received building permits and are either completed or under construction.
Interest in new districts evaporated with the crash of the housing market but is picking up again particularly as the suburban market has returned.
Communities we’ve worked recently (either directly or indirectly) on potential district proposals include Adams, Amesbury, Haverhill, South Hadley, Malden, Tyngsboro.

5. Highly Suitable Location Underutilized Land Mixed Use Density
40R Regulatory Changes
Effective Nov. 22, 2013
Highly Suitable Location
Underutilized Land
Mixed Use Density
Highly Suitable Location - The presumption of eligibility if a location was identified for high-density housing or mixed use development was amended requiring “satisfactory evidence” in all cases that the location is consistent with the statutory SG goals while identification in a local plan is one of a series of factors that’s considered.
Underutilized Land -Underutilized land is “developable land” (and therefore counted in incentive payments) even though already developed in whole or in part. The old regulations required that the parcel is “no longer necessary to support the current use” which made it difficult for DHCD to count land that was in use (e.g. an industrial yard, storage space or parking lot). The new language substitutes a two-part standard: 1) “marginal or significantly declining use,” and 2) as “demonstrated by existing or anticipated market conditions,” may reasonably be converted.
Mixed Use Density - This clarifies that if the zoning is mixed use, the residential density requirement is proportional. This clarification was supported by stakeholder groups because the existing language seemed to discourage mixed use development.

6. Existing 40R Districts: Reading Downtown
TOD/Downtown
26 acres
256 Units
Active Project
Mixed Use
Town’s 2 active districts provided 40B relief
Vertical mixed-use
multi-parcel, mixed-use district encompassing a significant portion of downtown
Density only applies to parcels designated as DL

7. Existing 40R Districts: Northampton
Village at Hospital Hill
Redevelopment
16-acre; 156 units
Mix of Housing
WalkScore: “Car Dependent”
Redevelopment of former State Hospital
Diversity of housing types; ~156 units total
Zoning allows for vertical mixed-use
Nearing build-out

8. Existing 40R Districts: Haverhill
WalkScore: “Very Walkable”
53 Acres
Hamil Mill Lofts: 305 Units
Hayes Building: 57 Units
40R supports effort to create a more lively 24-hour downtown by increasing residential use.
considering another district
~526 units
2 completed projects

9. The Process / How to Participate
40R & Compact Neighborhoods
The Process / How to Participate
Give us a call!
Recommend site visit/ pre-application mtg.
Submit an application
DHCD Letter of Eligibility
Local Zoning Adoption
Evidence of Adoption
DHCD Letter of Approval
Local Project Approval
Often preliminary, informal consultation w/ DHCD.
submit application for eligibility
DHCD reviews draft zoning for eligibility
DHCD issues a determination / Letter of Eligibility
Zoning adopted in usual manner (e.g., TM) & submitted to / approved by the AG.
Back to DHCD for final review to insure still consistent w/ the regs & statute.
W/ Letter of Approval district goes into effect
Locally-designated board (e.g. PB) can begin reviewing and approving 40R Projects.

10. 40R & Compact Neighborhoods
Thank You!
Bill Reyelt / Elaine Wijnja
Dept. of Housing
& Community Dev.
100 Cambridge St.
Boston, MA 02114
/1360
Thank you
Questions? /