One notable topics discussed was the extensive delay in housing development projects and the financial implications of such delays. A notable point raised was that every year’s delay in a project could increase construction costs by approximately $3 million. This issue was compounded by protracted zoning processes, exemplified by a project that faced a year and a half of delays due to a lengthy zoning board of appeals process. The conversation highlighted the need for balancing necessary procedures with their financial implications, as ongoing changes to codes during development processes could further escalate costs.

The meeting emphasized the importance of achieving viable scales for affordable housing projects in small towns like Amherst, where developers are often encouraged to build smaller units rather than larger complexes. The use of Chapter 40B, a tool that allows developers to request waivers from local zoning, was noted as a common practice in Amherst to facilitate development. However, this process can be extensive, involving community engagement, which often prolongs timelines and increases costs. It was noted that localities could support affordable housing development through streamlined permitting processes, local funding, and identifying suitable town properties, although some properties could become burdensome due to high redevelopment costs.

A key case study presented was the Amethyst Brook Apartments in Pelham, which highlighted the complex financing required for affordable housing projects. The development, which aims to provide 34 units for households earning up to 60% of the area median income, faced a lengthy development timeline, spanning from site acquisition in 2018 to construction financing finalized in October 2023. The discussion resonated with earlier sentiments about the detrimental impact of extended development processes on developer willingness to participate in affordable housing projects.

The meeting also addressed the broader regional context, with a projected housing shortfall of 19,000 units by 2025 within the region encompassing Hampshire and Franklin counties. The urgency of addressing this shortage was underscored by partnerships with government entities to secure rental and financial subsidies essential for project development. The necessity of preserving existing housing stock, particularly units built before 1970, was emphasized as a vital component of the housing strategy, alongside new developments.

The conversation highlighted the significant opposition faced by affordable housing projects and the impact of such resistance on development timelines and costs. Despite overcoming opposition, there was disappointment in the town’s decision to prioritize a fire station over affordable housing without adequate public input. The creation of a 40R overlay district was proposed as a potential solution to streamline the development process by allowing for denser housing in designated areas, providing developers with a more straightforward path through the planning process.

The financial aspects of housing development were scrutinized, with construction costs now representing around 75% to 80% of total project budgets. The high costs were attributed to both construction and soft costs, with developers highlighting that many projects were stalled due to rising prices and interest rates. The necessity of public subsidy to make housing affordable for residents was reiterated, as developers faced challenges in meeting high energy and design standards while managing legal costs associated with long-term deed restrictions.

The discussion concluded with a focus on advancing the real estate transfer fee, despite previous unsuccessful efforts. A statewide campaign was suggested to generate support for this initiative, highlighting the need for continued advocacy. Additionally, the feasibility of modular construction as a means to reduce costs was examined, with panelized construction identified as a cost-effective option due to its factory-built panels with pre-installed insulation and electrical work.