local action units (local initiative program)
TRANSCRIPT
Local Action Units
(Local Initiative Program)
Rieko Hayashi
May 4, 2018
Janelle Chan, Undersecretary
What is LIP?
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A housing program administered by the Department of
Housing and Community Development that encourages
locally – driven efforts to create affordable housing
The Local Initiative Program (LIP) supports two approaches
to providing affordable housing: 1) projects permitted under a
comprehensive permit (LIP 40B) and 2) Local Action units
which are developed through a municipality’s local zoning or
other “local action”.
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What IsThe Subsidized
Housing Inventory
A list of the number of subsidized units in each
community and the percentage of all units.
Generally units count if:
—Developed under an eligible state or federal subsidy
program
—Affordable to households at or below 80% of area
median income – asset limit for ownership
—Have long term use restrictions
—Are subject to an Affirmative Fair Housing Marketing
and Resident Selection Plan in accordance with DHCD
guidelines
See section II and III of the 40B guidelines at
https://www.mass.gov/files/documents/2017/10/10/guidecompre
hensivepermit.pdf for further detail.
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About LIP Local Initiative Program
Established nearly 30 years ago
Non-financial subsidy program
Locally initiated development projects
Chief Executive Officer or designee must
endorse
Two Types of LIP Projects
Projects permitted with a Comprehensive Permit
(LIP 40B) or “friendly 40B”
Municipality must support – letter signed by
CEO
Projects approved as “Local Action Units”
Municipal Action
Municipality submits application
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Local Action Units- What is Counted on the SHI?
What: Same as for 40B
Rental If at least 25% of the units are at 80% of
AMI or below, or at least 20% at 50% of AMI or
below, and such units meet LAU criteria, all units
count.
Ownership—only affordable units meeting LAU
criteria count
When: If LIP LAU approval has been issued, the earliest the units may
counted is upon zoning approval, and if no zoning approval then upon
building permit issuance, subject to time lapses under the guidelines
(see pg. II-7 of the 40B guidelines). If LAU approved, a copy of the
required recorded deed rider may also be provided.6
Local Action Unit Application
Key Requirements:
Application submitted by
municipality
Evidence of Local Action
Affirmative Marketing
Plan and Lottery Agent
Regulatory Agreement
LIP/Local Action UnitsProject Types
New construction
Building
conversion
Substantial
rehabilitation
Examples of Local Action Unit Projects
Large and small rental projects
First Time Homebuyer Buydown Programs
Habitat for Humanity Single Family Homes
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LIP/Local Action UnitsProject TypesNew Construction/ Site
Reuse/New Construction
12 out of 24 affordable 2
and 3 bedroom homes
Town re-zoned land
Housing Trust and HOME
funds
Mixed-Use
First floor commercial, 60 1
Bedroom apartments on 2nd
and 3rd floor
Special permit
LIP/Local Action UnitsProject Types
Habitat /Sweat Equity
Single Family Homes –
Serving 30-60% AMI
Town CPA Funds
Housing Trust/Donated
Labor
3 Bedroom House
Housing Trust Funds and
Local Vocational School
built
Marketing Plan Contents
A description of marketing and outreach
Sample ads/publications, social media
Application materials
Informational materials
Eligibility Requirements
Lottery and resident selection procedures
If there is a local preference include a clear description of the preference used
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Marketing Must be Affirmative
Required listings of available units with:
The Boston Fair Housing Commission’s Metrolist, for units located in the Boston Metro Area (Boston-Cambridge-Quincy MSA)
Massachusetts Accessible Housing Registry
CHAPA and MAHA lottery websites
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Fair Housing Framework
Obligation to affirmatively further fair
housing
maximum opportunities for persons
protected under fair housing laws through
marketing, application process, and
selection polices and procedures
Managing the Selection or Lottery Process
A local preference may be allowed for up to 70% of the units for initial occupancy in a Project IF
Town provides a demonstration of need for local preference.
Need to demonstrate how the proposed preference will not have a discriminatory effect on protected classes. 15
After the house is built
Monitoring – Municipality or Contracted 3rd
Party
Resale, Refinance – Contact DHCD &
Municipality
Legal documents/regulations
Will provide guidance for you and the
homeowner16
Helpful Hints
Contact DHCD prior to submitting
application
Review LAU requirements in 40B guidelines
Hire experienced Team
Application should provide a complete
picture, site plan, rehab specifications, and
clear explanation of the project.
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Contact Information
Rieko Hayashi, LAU Coordinator
Phone: 617.573.1426
Alana Murphy, LIP Coordinator
Phone: 617.573.1301