Town of Lancaster
Housing Production Plan Executive Summary

The number of households in Lancaster has been growing at a rate of 2.3% a year since 2010

Production of 295 units in the next 5 years is recommended for a healthy housing market

This production target combines demand driven by net household growth as well as other factors detailed at right which also contribute to maintaining a suitable housing supply over time.

A household with a median income cannot afford the median home price due to escalating home prices and interest rates despite rising incomes

In Lancaster, low-income households are more cost burdened. Households earning >80% AMI are less cost burdened.

Create an inclusionary zoning (IZ) option for deeper affordability at 60% AMI

The Town should amend its Inclusionary Zoning bylaw to create an option for deeper affordability at 60% AMI immediately after achieving Safe Harbor status. Specifically, the Town should introduce a provision allowing developers to provide fewer total affordable units if those units are restricted to households earning 60% of Area Median Income (AMI) or less.

To implement this strategy, the Town should maintain the existing inclusionary zoning requirements as a baseline while adding the new option. The amendment should carefully calibrate the reduction in total required units to ensure it provides a meaningful incentive for developers while still producing an adequate number of deeply affordable units.

This approach can address the needs of Lancaster's most housing cost-burdened residents while still encouraging overall affordable housing production. This strategy also provides developers with more flexibility in meeting inclusionary zoning requirements.

Zone South Lancaster at the Railroad Bridge to be a mixed-use walkable district

The Town should rezone the area of South Lancaster near the Railroad Bridge to create a mixed-use walkable district. The Town should amend the zoning map to designate this target area as a mixed-use district that facilitates the development of cost-effective and efficient housing while incorporating commercial uses on the ground floor of buildings.

To implement this strategy, the Town should develop new zoning regulations that allow for higher density residential development, require or incentivize ground-floor commercial uses, establish design standards promoting walkability, and reduce parking requirements. These regulations should include provisions to encourage a mix of housing types and affordability levels, while ensuring that cost-effective construction methods are permitted to promote housing affordability.

This approach can create a vibrant, mixed-use area in South Lancaster that provides both housing options and commercial amenities in a pedestrian-friendly setting. By encouraging a diverse mix of uses and housing types, the Town can address its housing needs while fostering a dynamic and walkable neighborhood.

Fund the Lancaster Affordable Housing Trust (LAHT) with a variety of sources

The Town should capitalize the Lancaster Affordable Housing Trust (LAHT) through a variety of funding sources. This strategy aims to ensure a stable and robust financial foundation for the Trust, enabling it to effectively pursue its affordable housing initiatives.

Potential funding mechanisms include adjusting upwards the Fee-In-Lieu of providing inclusionary zoning units; sale of public surplus properties; and one time revenues such as Free Cash that is unspent at the end of the fiscal year.

By implementing this multi-faceted funding approach, the Town can strengthen the LAHT's capacity to support affordable housing development, preservation, and programs. This strategy aligns with the overall goal of increasing affordable housing options in Lancaster and provides the Trust with the financial tools necessary to address the community's housing needs effectively.

Increase CPA from 1% to 2%

The Town should consider a gradual increase in Lancaster's Community Preservation Act (CPA) rate from 1% to 2% over the next five years to generate additional funding for affordable housing initiatives.

However, recognizing that Lancaster's tax base is predominantly residential, this increase could significantly impact the overall cost of living for residents. To address this concern, the Town should make the CPA rate increase contingent upon expanding the town's commercial and industrial tax base as outlined in Lancaster’s Master Plan fiscal strategy. This will diversify revenue sources and reduce the burden on residential taxpayers. The proposed CPA increase would maintain current exemptions for income-eligible residents, ensuring it doesn't adversely affect those most vulnerable to rising living costs.

Looking ahead, if Lancaster successfully expands its commercial and industrial sectors, the plan proposes considering a further increase in the CPA rate to the maximum of 3%. This balanced approach seeks to address affordable housing needs while promoting sustainable economic growth and considering the financial well-being of Lancaster residents.

Town land disposition for affordable housing

The Town should leverage its land assets to advance affordable housing goals. Specifically, the Town should identify municipally-owned parcels that are suitable for residential development, with a focus on locations within walking distance of essential amenities and services. Examples for potential affordable housing development include the 4 developable acres at the Kilbourne Road site and the 0 Old Union Turnpike parcel.

To implement this strategy, the Town should issue Requests for Proposals (RFPs) for the development of these parcels. These RFPs should be structured to align with Lancaster's affordable housing objectives, potentially specifying requirements for the number of affordable units, target income levels, and other community benefits. By offering town-owned land for development, Lancaster can reduce land acquisition costs for affordable housing projects, making them more financially feasible and thereby indirectly finance housing that might not otherwise be feasible.

This approach can be an effective way to increase the town's affordable housing stock without requiring direct financial investment from the municipality. It also allows the Town to maintain a degree of control over the development process.

View a high resolution map of Town-owned property (35MB PDF).

Expand public utility capacity on Main Street to accommodate more housing

The Town should expand public utility capacity on Main Street to accommodate more housing development. Specifically, the Town should address the current constraints on water and sewer capacity that are limiting housing growth in this area.

This approach can effectively remove a significant barrier to housing development in a key area of Lancaster. By proactively addressing infrastructure limitations, the Town can encourage developers to pursue housing projects that align with community goals. Additionally, improved utility capacity can benefit existing residents and businesses.

Ensure that housing that achieve the Town’s goals is in the redevelopment program for the Former Atlantic Union College and DCAMM property

The Town should ensure that housing achieving Lancaster's goals is included in the redevelopment programs for both the Former Atlantic Union College and DCAMM property. Specifically, the Town should actively influence the development process for these key sites to incorporate housing that aligns with community objectives.

To implement this strategy, the Town should engage proactively with the owners and potential developers of these sites. This engagement should involve clearly communicating Lancaster's housing goals and priorities, potentially through design guidelines, zoning overlays, or development agreements. The Town should also consider offering incentives or beneficial permitting processes for projects that meet or exceed affordable housing targets.

This approach can leverage significant redevelopment opportunities to address Lancaster's housing needs. By guiding the development of these large properties, the Town can ensure that new housing contributes to affordability.