(a)

Generally. No new dwelling unit created by the conversion of an existing dwelling into a greater number of units or by the addition or enlargement of an existing dwelling shall be permitted unless the requirements of minimum lot area for each dwelling unit, maximum ratio of floor area to lot area, usable open space and off-street parking are satisfied for all dwelling units in existence and proposed in the dwelling after the conversion or enlargement.

(b)

Open space. The requirements for usable open space may be waived to provide areas for off-street parking provided that such a waiver is requested in writing and approved by the building inspector and provided that all other requirements of this section are met.

(Ord. of 6-20-2005, § 7.1)

(a)

Purpose. Planned development may be authorized by special permit for the following purposes:

(1)

To encourage intensive development in the waterfront area along Chelsea Creek;

(2)

To provide a mix of uses and activities, which in turn provide a healthy economic environment;

(3)

To provide and preserve views of the Boston skyline and waterfront activity;

(4)

To provide waterfront access and view areas;

(5)

To ensure development which is compatible with the waterfront plan;

(6)

To maximize the locational advantage of proximity to Boston and to Logan International Airport;

(7)

To encourage appropriate development;

(8)

To encourage efficient allocation, distribution, and maintenance of open space;

(9)

To ensure economical and efficient street, utility and public facility installation, construction, and maintenance;

(10)

To ensure land use harmonious with natural features; and

(11)

To promote purpose enumerated in the Everett Avenue urban renewal project.

(b)

Special permit. A special permit may be granted for a planned development, subject to the provisions of this section and subject to site plan approval, for the purposes set forth in subsection (c) of this section; provided, however, that where the planned development is located in the Everett Avenue urban renewal area, it shall be subject to the provisions of this subsection and subsections (c) to (i) of this section.

(c)

Eligible uses. Any combination of the following uses is eligible for consideration, subject to the approval of the zoning board of appeals upon a recommendation by the department of planning and development:

(1)

Apartment buildings and townhouses;

(2)

Residential care facility;

(3)

Adult day care facility, small or large;

(4)

Hotels, motels;

(5)

Restaurants with or without alcoholic beverages;

(6)

Trade and craft shops;

(7)

Professional, business and governmental offices;

(8)

Retail and personal service establishments;

(9)

Live/work studio;

(10)

Work/live studio and work only studios;

(11)

Indoor commercial recreation;

(12)

Uses accessory to permitted uses, including accessory business uses, onsite parking, and off-street loading.

(d)

Minimum acreage.

(1)

The site for a planned development shall have a minimum of four contiguous acres above the high-water line in the Residential R1 and Residential R2 Districts, except where the residential districts are located within the Everett Avenue urban renewal area where the two acre minimum shall apply.

(2)

The site for a planned development shall have a minimum of two contiguous acres above the high-water line in all other Districts and in the Everett Avenue urban renewal area.

(3)

Such acreage shall be of a shape deemed reasonable for the purpose by the department of planning and development in accordance with the provisions of subsections (g) and (h) of this section, or in the case of a planned development in the Everett Avenue Urban Renewal District in subsection (g) of this section.

(e)

Bulk and dimensional requirements. Notwithstanding any other provision of this chapter, the bulk and dimensional requirements for a planned development, including, without limitation, square foot per unit, floor area ratio, setbacks, height, lot coverage and open space requirements, shall be determined by the zoning board of appeals in the planned development special permit process after a recommendation from the department of planning and development in accordance with the provisions of subsections (g) and (h) of this section. In addition, the zoning board of appeals may grant relief in a planned development special permit from the requirements otherwise applicable under this chapter related to the number of structures per lot, signage, parking and landscaping after a recommendation from the department of planning and development in accordance with the provisions of subsections (g) and (h) of this section.

(f)

Miscellaneous conditions.

(1)

The site for a planned development may include any parcel or set of parcels held in common or separate ownership which are contiguous and have the minimum acreage required under subsection (d) of this section. If the application for a planned development special permit involves land in more than one ownership, each owner of land included in the planned development site shall be or become a party to the application. The zoning board of appeals, in its discretion, may issue an individual special permit to each landowner within the planned development. In issuing a planned development special permit for a project that includes multiple landowners, the zoning board of appeals may impose conditions and obligations that are applicable to all parcels, and/or it may allocate conditions and obligations among the various parcels. These conditions may include a requirement, in appropriate circumstances, that one or more of the property owners record covenants and/or restrictions that shall run with the land, in order to assure that subsequent owners comply with the terms of the original planned development special permit.

(2)

If the planned development is to be constructed in phases, each phase after the first must be constructed contiguous and adjacent to a preceding phase or phases. Phases separated only by streets or ways shall be considered contiguous.

(g)

Procedures.

(1)

An applicant for approval of a planned development shall apply to the department of planning and development for design review and recommendation in accordance with the provisions of subsection (h) of this section, prior to submission to the special permit granting authority.

(2)

The application for site plan approval can be filed simultaneously with the application for design review, if in the opinion of the applicant such filing will expedite processing of the application.

(3)

A developer desiring to obtain a special permit to construct a planned development may, prior to submitting an application for the special permit, request a preapplication conference. The purpose of the conference is for both parties to become familiar with the proposed planned development. The proponent shall not be required to present any written or graphic materials at the preapplication conference.

(4)

At the preapplication conference, the department shall familiarize the proponent with the process for obtaining a special permit for a planned development and explain issues that should be considered in planning the project. The proponent may discuss the range of options concerning development and inform the department of the development concept.

(5)

A developer who wishes to apply for a special permit for a planned development must submit to the department of planning and development an application obtained from the department and a development proposal. The purpose of the development proposal shall be to provide the department with an opportunity for a preliminary but substantive review of the planned development prior to making a recommendation to the special permit granting authority.

(6)

The written and graphic information specified in subsection (h) of this section, and for planned development in the Everett Avenue Urban Renewal District, must be submitted for the entire proposed planned development when applying for a special permit.

(7)

No building permit shall be granted until the design approval and recommendations are given, and a site plan approval and a special permit have each been granted. Where the special permit attaches conditions which necessitate modification of site plan approval, a revised site plan must be approved.

(h)

Design review.

(1)

Design review shall be required for all uses in a planned development except for construction, reconstruction or repair which does not involve a change in design, material, color or the outward appearance of an existing building; or construction, reconstruction or alteration of any feature which the building inspector shall certify is required for the public safety because of an unsafe or dangerous condition.

(2)

Within a period of 30 days after the filing of the plans and application for the design review, the department of planning and development shall determine whether the proposed construction, reconstruction, alteration, restoration, or moving of the buildings, structures or appurtenant fixtures involved will be appropriate in terms of the purposes and conditions contained in this section, and will report to the special permit granting authority with or without recommendations.

(3)

In considering such application for a design review, the department of planning and development may consult an architect, city planner or urban designer at the expense of the applicant, providing that in no case the applicant is charged by the department of planning and development more than one percent of the construction costs for the costs of processing an application for a design certificate.

(4)

Application for a design review shall be made on a form supplied by the department of planning and development and shall be accompanied by the following items in addition to the items required for site plan and special permit submissions:

a.

A performance bond of sufficient amount to install improvements which will be dedicated to the city; and a performance bond to guarantee landscaping plant material survival or a contract with a landscaping firm which adequately provides such guarantees.

b.

A plan for the phasing of the development and the reasonable time of completion of each phase.

c.

Hydrological, soil, flooding and subsurface studies evaluating the site for development.

d.

A circulation plan showing the street system and circulation patterns within and adjacent to the proposed development including any special engineering features, such as, but not limited to, median strips, overpasses and underpasses and major pedestrian paths.

e.

As-built plans will be filed with the building inspector within 30 days after the completion of construction pursuant to a design certificate.

(i)

Design standards. When considering plans submitted for design review for a planned development, the following factors shall be considered by the department of planning and development:

(1)

Orientation and views.

a.

Heights of buildings shall be recommended by the department of planning and development after consultation with the fire department and shall be determined with due regard to maintaining existing view lines.

b.

Buildings shall be sited to maintain existing view lines, and to relate to one another and adjacent developments to insure adequate light, air and privacy.

(2)

Public access to the waterfront.

a.

An area shall be provided at least 14 feet wide adjacent to the mean high tide water edge for the purpose of providing continuous access for pedestrian traffic along the waterfront and for the purpose of providing an easement for underground utilities unless the department of planning and development determines that such an area would be hazardous. It shall be designed to connect with adjacent developments for this purpose. This corridor may not extend over piers, bulkheads, breakwaters or extensions into the creek, where, in the opinion of the department of planning and development the best interests of the public safety would not be served thereby.

b.

A 30-foot setback from the water edge as defined in subsection (i)(2)a of this section shall be required. In relation to the waterfront pedestrian corridor, the department of planning and development will encourage, but not require, an additional area adjacent to the 30-foot required minimum setback to enhance the corridor by creating plazas, malls or green areas. The applicant will be encouraged to make maximum use of the waterfront and Boston skyline and also to respect these views for other affected developments.

c.

Adequate privacy, light, air and access will be considered in the development of side, rear and front yard setbacks.

(3)

Scale.

a.

Arrangement of new facilities should be compatible with existing developments landward of the district. The building line should be maintained in infill projects.

b.

In the Waterfront (W) District and the Industrial (I) District, from the shoreline, the silhouette shall follow the general slope of the topography so that on the shore one- or two-story structures are to be desired.

(4)

Landscaping. There shall be a sufficient amount of landscaping, as determined by the board of zoning appeals upon recommendation by the department of planning and development to ensure protection of and to enhance the quality of the neighborhoods and, where applicable, to enhance the view from Boston and from the water.

(5)

Parking/loading/service.

a.

Parking and loading areas shall be designed and landscaped in accordance with the provisions of sections 34-106 to 34-108 unless otherwise recommended by the department of planning and development to accommodate the mix of uses in the planned development.

b.

Any point of vehicular access for delivery of goods will be encouraged to respect the character of the pedestrian corridor, where it exists.

c.

In the Waterfront (W) District and the Industrial (I) District, water-oriented commercial facilities requiring the movement of goods across the pedestrian corridor shall provide controlled points of access. Service may be permitted utilizing the pedestrian corridor. However, this service may be restricted to nonpeak pedestrian hours.

(6)

Signs. All signs shall be reviewed and approved by the department of planning and development. The department shall review signage in relation to size, color, shape, design, number and scale. All signage shall be in scale with the site, buildings and with pedestrians and motorists. Care shall be taken to minimize the number of signs and to locate signs such that they do not block view lines, motorist and pedestrian sight lines, and special natural or manmade features of the development. Signage shall be located so as to avoid safety and maintenance issues.

(7)

Activity.

a.

When a planned development has more than one category of use (e.g., residential, business, industrial) the percentage of each use shall be determined by the special permit granting authority based on recommendations from the department of planning and development. If necessary to determine the appropriate mix of uses, or in the case of residential use, the size and type of dwelling units, the department of planning and development may require the applicant to submit supporting data and/or studies.

b.

In appropriate cases, the special permit granting authority on a recommendation from the department of planning and development may require a set aside of not more than ten percent of the dwellings units, if any, for low and moderate income housing.

c.

In the Waterfront District and the industrial districts, facilities which make provisions for the periodic outdoor use of waterfront areas by the pedestrian public are desirable. Mixed uses should be encouraged. Activity corridors and linkages with Chelsea Square should be encouraged.

(Ord. of 6-20-2005, § 7.2; Ord. of 9-27-2010(01), § 4;  6- 3-2013(1))

(a)

Purpose and intent. The purpose of this section is as follows:

(1)

To ensure that affordable housing is made available to eligible households on a non-discriminatory basis in accordance with the federal Fair Housing Act of 1968 and M.G.L. c. 151, as amended, and any regulations promulgated under federal and state law;

(2)

To ensure that such housing remains affordable over the long term, and that to the extent allowed by law, preference is given to Chelsea residents;

(3)

To increase the production of affordable housing units to meet existing and anticipated housing and employment needs within the city;

(4)

To mitigate the impacts of commercial and residential development on the availability and cost of housing and especially housing affordable to low and moderate income households;

(5)

To provide a mechanism by which an applicant can contribute in a direct way to increasing the supply of affordable housing through the creation of affordable housing units and fee-in lieu contributions from the application of this section.

(b)

Definitions. [The following words, terms and phrases, when used in this chapter shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:]

Affordable housing restriction (AHR) means a deed rider, covenant, contract, mortgage agreement, and/or other legal instrument, acceptable in form and substance to the city, that effectively restricts occupancy of an affordable housing unit to a qualified purchaser or renter, and that provides for the administration, monitoring, and/or enforcement of the restriction during the term of affordability. An AHR shall be placed on the land in perpetuity or for the maximum period that is legally permissible by Massachusetts General Laws (M.G.L.), and entered into as an agreement under the provisions of M.G.L. c. 184, §§ 31 to 33 or other equivalent state law.

Affordable housing trust fund (AHTF) means the fund administered by the affordable housing trust fund board (AHTFB).

Affordable housing trust fund board (AHTFB) means pursuant to part II, section 18 of the City of Chelsea Code of Ordinances, the AHTFB shall serve as the municipal affordable housing trust fund organized under M.G.L. c. 44, § 55C. The AHTFB advises and assists in the creation of a new affordable housing and the preservation, rehabilitation and maintenance of existing affordable housing in the City of Chelsea. The AHTFB is authorized to receive and accept contributions to the AHTF. The board ensures the monies in the AHTF are used appropriately.

Affordable housing unit (AHU) means a residential unit that is restricted by deed in its sale, lease, and/or rental to a qualified income-eligible household at specific price limits not to exceed 30 percent of their income that may qualify such residential unit for inclusion in the DHCD subsidized housing inventory (SHI).

Area median income (AMI) means the median household income as defined by HUD pursuant to section 3 of the 42 U.S.C. 1437 (the Housing Act of 1937), as amended, adjusted for household size.

DHCD means the Massachusetts Department of Housing and Community Development and its successors, as established and currently existing pursuant to M.G.L. c. 23B and c. 6A.

HUD means the United States Department of Housing and Urban Development.

Inclusionary housing project means any new construction or substantial improvement of an existing structure(s) where the proposed development or redevelopment will result in ten or more dwelling units on one or more contiguous parcels, whether such units are proposed as-of-right, under a special permit process, or proposed pursuant to "the Subdivision Control Law" M.G.L. c. 41, §§ 81K to 81GG inclusive, including divisions of land that do not require subdivision approval (ANR plans).

Local action unit (LAU) means affordable housing units that are created through local municipal action other than comprehensive permits; for example, through special permits, inclusionary zoning, conveyance of public land, utilization of Community Preservation Act (CPA) funds, etc.

Local initiative program (LIP) means state housing initiative administered by DHCD to encourage communities to produce affordable housing for low- and moderate-income households. The program provides technical and other non-financial assistance to cities or towns seeking to increase the supply of housing for households at or below 80 percent of the area median income. LIP-approved units are entered into the subsidized housing inventory (SHI) pursuant to chapter 40B. Low or moderate income housing means any units of housing for which a subsidizing agency provides a subsidy under any program to assist the construction or substantial rehabilitation of low or moderate income housing, as defined in the applicable federal or state statute or regulation, whether built or operated by any public agency or non-profit or limited dividend organization. If the applicable statute or regulation of the subsidizing agency does not define low or moderate income housing, then it shall be defined as units of housing whose occupancy is restricted to a household of one or more persons whose maximum income does not exceed 80 percent of AMI, or as otherwise established by the guidelines for the subsidized housing inventory and 760 CMR 56.00, as amended.

Market-rate housing means a residential unit that is not restricted in its sale, lease, and/or rental at specific price limits.

Qualified income-eligible household means a household with combined incomes that do not exceed the following area median income limits for the Boston-Cambridge-Quincy MA-NH HUD Metro FMR Area, published annually by the U.S. Department of Housing and Urban Development, in accordance with the following:

Rental projects. Inclusionary housing units that will be available for rent shall be affordable to low- and moderate-income households, as defined below, adjusted to the applicable household size:

30 percent AMI households are defined herein as households earning an annual household income that does not exceed 30 percent of the area median income;

50 percent AMI households are defined herein as households earning an annual household income that does not exceed 50 percent of the area median income; and

80 percent AMI households are defined herein as households earning an annual household income that does not exceed 80 percent of the area median income.

Ownership projects. Inclusionary housing units that will be available for purchase shall be affordable to low-moderate and moderate income households, as defined below, adjusted to the applicable household size:

80 percent AMI households are defined herein as households earning an annual household income that does not exceed 80 percent of the area median income.

Qualified purchaser means qualified income-eligible household that purchases and occupies an affordable housing unit as its principal residence.

Qualified renter or qualified tenant means a qualified income-eligible household that rents and occupies an affordable housing unit as its principal residence.

Subsidizing agency means any agency of state or federal government that provides a subsidy for the construction or substantial rehabilitation of low or moderate income housing. If the subsidizing agency is not an agency of state government, the DHCD may appoint a state agency to administer some or all of the responsibilities of the subsidizing agency with respect to 760 CMR 56.00.

Subsidy means assistance provided by a subsidizing agency to assist the construction or substantial rehabilitation of low or moderate income housing, including direct financial assistance; indirect financial assistance through insurance, guarantees, tax relief, or other means; and non-financial assistance, including in-kind assistance, technical assistance, and other supportive services. A leased housing, tenant-based rental assistance, or housing allowance program shall not be considered a Subsidy for the purposes of 760 CMR 56.00.

Subsidized housing inventory ("SHI") means a list compiled by the DHDC by city or town containing the count of low or moderate income housing units consistent with the provisions of 760 CMR 56.00.

SHI eligible housing means solely for the purposes of 760 CMR 56.03, (a) any unit of low or moderate income housing, (b) such other housing units in a project as may be so defined under the DHCD's guidelines, and (c) any other housing unit as may be allowed under the DHCD's guidelines, provided that such housing unit is subject to a use restriction and affirmative fair marketing plan, and regardless of whether or not such unit received a subsidy

Substantial improvement means any repair, reconstruction, modernization or improvement of a structure, the cost of which equals or exceeds 50 percent of the market value of the structure either: (1) before the improvement or repair is started; or (2) if the structure has been damaged, and is being restored, before the damage occurred. Substantial improvement is not defined as a project for improvement of a structure to comply with existing state or local health, sanitary or safety code specifications that is solely necessary to assure safe living conditions. The market value of the structure shall be calculated by the applicant, and submitted to the department of planning and development for review and approval.

(c)

Applicability. The provisions of this section shall apply to any new construction or substantial improvement of an existing structure(s) where the proposed development or redevelopment will result in ten or more dwelling units on one or more contiguous parcels, whether such units are proposed as-of-right, under a special permit process, or proposed pursuant to the Subdivision Control Law M.G.L. c. 41, §§ 81K to 81GG inclusive, including divisions of land that do not require subdivision approval (ANR plans). The following provisions shall be required for all inclusionary housing projects.

(1)

In any development subject to this section, at least 15 percent of the dwelling units shall be affordable housing units (AHU). For ownership projects, AHUs within a development shall be affordable for 80 percent AMI households, as defined above. For rental projects, developers or property owners shall provide a mix of AHUs within a development that shall be affordable for households, based on the above definition, and provided according to the following distribution:

The first AHU shall be affordable to a 30 percent AMI household;

The second AHU shall be affordable to a 50 percent AMI household;

The third AHU shall be affordable to a 80 percent AMI household;

The fourth AHU shall be affordable to a 30 percent AMI household;

The fifth AHU shall be affordable to a 50 percent AMI household; and

The sixth AHU shall be affordable to a 80 percent AMI household.

A mix of AHUs shall be provided, pursuant to the distribution above. When applicable, this distribution shall be equally applied and repeated for all subsequent AHUs, in excess of six AHUs. For example, in cases where two AHUs are required, there shall be one unit at the 30 percent AMI level and one unit at the 50 percent AMI level. In cases where five AHUs are required, there shall be two at the 30 percent AMI level, two at the 50 percent AMI level, and one at the 80 percent AMI level.

For inclusionary housing projects that require fractional units please see subsection (e)(4). Nothing in this section shall preclude an applicant from providing more AHUs than the number required.

(2)

Each AHU created under this section shall be sold or rented to a qualified income-eligible household, in accordance with subsection (c)(1).

(3)

No occupancy permit shall be issued for any unit in the development until the director of inspectional services/zoning enforcement officer receives verification that the AHR has been approved the City of Chelsea Department of Planning and Development and has been recorded with the Suffolk County Registry of Deeds.

(d)

Exemptions.

(1)

This section shall not apply to the rehabilitation of any building or structure wholly or substantially destroyed or damaged by catastrophe, provided that no rehabilitation or repair shall increase the number of bedroom or dwelling units on the lot as existed prior to the damage or destruction thereof, except in conformance with this section.

(2)

New construction or substantial improvement of an existing structure(s) where the proposed development or redevelopment will result in ten or more dwelling units, and the project includes a subsidy for at least 15 percent of the total units from a subsidy program which is considered by DHCD as eligible for the purposes of M.G.L. c. 40B, §§ 20-30, 760 CMR 56.00, as may be modified. Evidence of funding commitments must be provided prior to the issuance of a building permit.

(e)

Mandatory provision of affordable units. The department of planning and development shall require that the applicant comply with the following provisions for inclusionary housing projects.

(1)

Siting. Affordable housing units shall be dispersed and sited throughout a development so as not to be in less desirable locations than the development's market-rate units.

(2)

Design and construction. Affordable housing units shall be comparable to and indistinguishable from market-rate units in interior and exterior building materials and finishes, windows, appliances, and other improvements related to the energy efficiency of the units.

(3)

Rights and privileges. Owners and tenants of AHUs and market-rate units shall have equal rights and privileges to access and use of the development's amenities and facilities.

(4)

Fractional units. Where the required number of AHUs results in a fraction the applicant shall round up to the nearest whole number or make a fee in lieu contribution equal to but not less than that fraction multiplied by the fee outlined in [subsection] (f)(2) of this section.

(5)

Phasing. Affordable housing units shall not be the last units to be built in any development and/or redevelopment covered by this section.

(6)

Non-avoidance by phasing or segmentation. A development shall not be phased or segmented in a manner to avoid compliance with this section. The zoning board of appeals or planning board shall not approve any application for new construction or substantial improvement to a structure(s) where the development or redevelopment results in ten or more dwelling units if the land or parcels of land were held in common ownership (including ownership by related or jointly controlled persons or entities) and were subdivided or otherwise modified within the previous five years to avoid compliance without complying with this section. This section shall also be enforceable against purchasers of land previously held in common ownership with land that received, after the date of adoption of this section, approvals or permits for development, to the effect that units developed under such previous development shall be counted toward the calculation of number of units under this section.

(f)

Fees-in-lieu-of affordable housing units.

(1)

As an alternative to the requirements of subsections (c) and (e) of this section, and at the sole discretion and majority vote of the city council upon a recommendation of the city manager, the developer or property owner shall contribute a fee to the city's AHTF in lieu of providing all or a portion of the required AHUs within the proposed development.

(2)

The fee in lieu of providing one or more AHUs shall be a minimum of $400,000.00 per required AHU not provided within the development. This fee may be adjusted upward by a majority vote of the city council.

(3)

Any payment to the AHTF as an in lieu contribution for AHUs shall be made as follows: at least 50 percent of the total owed prior to the issuance of a building permit; and the remaining total owed prior to the issuance of an occupancy permit.

(g)

Restrictions.

(1)

Restrictive documents. To ensure unit affordability, AHUs shall be rented or sold subject to applicable AHR, acceptable to the, or such additional programs as may be adopted by the commonwealth or its agencies, restricting the use and occupancy, rent level, and sales price of such AHUs. All restrictive documents shall include all rights and obligations stipulated in subsection (h) and subsection (i).

(2)

Term of affordable housing restriction. An AHR shall ensure that AHUs created under this section shall remain affordable in perpetuity or for the longest period of time as legally permissible. All AHRs, deed riders, and covenants shall be enforceable and renewable by the city pursuant to applicable law.

(3)

Initial sale/lease. The initial sales or lease period for AHU's shall not commence until the developer or property owner, and/or an appointed compliance agent, has prepared and furnished an affirmative fair housing marketing plan, which is in conformance with all applicable local, state, and federal laws, and has been approved by the department of planning and development. The department of planning and development shall calculate the initial sales price or initial rent, in accordance with state and federal guidelines, and pursuant to the AHR. Prior to the issuance of any occupancy permit, the developer or property owner shall fulfill all requirements under this subsection.

(4)

Subsequent resale/lease. An AHU shall be restricted in its initial and any subsequent sale, lease, and/or rental to a qualified income-eligible household at a specific price limit that will qualify such residential unit for inclusion in the DHCD SHI. The department of planning and development shall calculate and verify the subsequent resale price or rent, in accordance with state and federal guidelines, for all AHUs created under this section.

(5)

Selection of eligible tenants and homeowners. The applicant shall conduct a fair and reasonable procedure in compliance with fair housing laws for the selection of tenants for affordable rental units and for the selection of homeowners for affordable homeownership units. Current Chelsea residents, or former Chelsea residents recently displaced within 24 months, families with children under 18, elderly populations above the age of 65 years old, and populations with disabilities shall be given a local preference for AHUs provided under this section, to the maximum extent allowable under law. Prior to implementing such procedures, the applicant shall submit an affirmative fair housing marketing plan, specifying the requirements of this subsection, to be reviewed and approved by the department of planning and development.

(6)

Income and asset limits. The applicant shall verify and provide evidence to the department of planning and development that the income of prospective qualified income-eligible households shall not exceed the income limits set forth in subsection (c)(1), of AMI based on household size, as determined by HUD. A qualified purchaser or qualified renter shall also be required to demonstrate that total household assets, other than income, are not so high that a household has no substantial need of a rental unit with a reduced rent or of an ownership unit with a reduced purchase price.

(7)

Occupancy. The AHR for AHUs shall require, whether the unit initially is sold or rented, that the occupant of that unit must be a qualified income-eligible household. This provision shall prohibit a unit initially designated as owner-occupied from being leased.

(h)

Monitoring and enforcement.

(1)

Monitoring. Affordable housing units shall be subject to an AHR that contains limitations on use, occupancy, resale price and rents, and provides for periodic monitoring to verify compliance with and enforce said restriction. The developer or property owner of rental developments, which include rental AHUs, must submit to the City of Chelsea Department of Planning and Development a statement characterizing the initial sales or rental period, followed by an annual statement of rent level, rental income, and verification of tenant income. The owner shall be responsible for funding the appropriate third-party compliance services, in order to fulfill all obligations set forth in subsection (g)(3). Prior to issuance of any occupancy permit, the developer or property owner shall execute an inclusionary housing memorandum of understanding (MOU), specifying the entity responsible for compliance, and memorializing all obligations set forth in this section.

(2)

Monitoring of AHUs for sale and for rent. If the owner shall desire to sell, dispose of, rent, or otherwise convey a unit governed by an AHR, the owner shall notify the City of Chelsea, c/o the department of planning and development, prior to listing the property for-sale or for rent to ensure compliance with the AHR's resale provisions.

(3)

Eviction. Nothing in this section shall be construed to permit eviction of a qualified purchaser or qualified tenant of an AHU due to a change of a household's income status or size during the time of ownership or term of lease or rental.

(4)

Transfer of AHU. The restrictions governing an AHU shall remain upon resale, re-rental, and/or renewal of lease of the AHU. For owner-occupied units, the use restriction shall ensure that units may only be resold to qualified income-eligible household who are qualified purchasers consistent with the then applicable income qualifications process and approved by the department of planning and development.

(5)

All restrictions remain in effect. Nothing in this section shall be construed to permit any AHR, deed rider, covenant, agreement, and/or other mechanism restricting such items as the use and occupancy, rent level, or resale price of AHUs, and the enforcement thereof to expire prior to any maximum limitations set forth by applicable state law. It is intended that the restrictions required herein shall survive, to the limit allowed by law, including, but not limited to, bankruptcy and foreclosure.

(6)

Timing of commitments. All AHRs required hereunder and any documents necessary to ensure compliance with this section shall be approved as to content by the City of Chelsea Department of Planning and Development and Chelsea City Solicitor prior to the issuance of any building permit.

(7)

Approval of form and content of legal documents. The applicant shall be responsible for preparing any documentation required by DHCD in order to secure LIP approval of the AHU and ensure their eligibility for the DHCD SHI. Furthermore, the applicant shall prepare all AHR and/or legal instruments required to comply with this section, and such documents shall be in a form satisfactory to the Chelsea City Solicitor. The applicant shall reimburse the city for reasonable legal expenses incurred by the Chelsea City Solicitor.

(8)

Recording of restrictions. All AHRs required pursuant to this section shall be recorded at the Suffolk County Registry of Deeds or filed with the registry district of the land court, as applicable, with evidence of recording transmitted to the department of planning and development, prior to the issuance of any occupancy permit for the development.

(i)

Right of first refusal and foreclosure. The AHTFB reserves the right of first refusal or option to purchase all "affordable" for-sale AHUs at the point of original sale or any subsequent resale. This also applies to any subsequent sale of a rental property or units within a rental property. The purchase price shall be the lesser of the price that a household earning no more than 30 percent, 50 percent or 80 percent of the AMI could afford and pay no more than 30 percent of household income in housing costs, depending on the affordability level assigned to the unit at the time of sale, or 90 percent of the then documented appraised value at sale time. The appraisal shall be performed by the applicant after written review and approval by the department of planning and development. In the event of a foreclosure, the property owner and the holder of record of any mortgage on an AHU subject to this section shall notify the department of planning and development and law department, through a foreclosure notice, in the event of any default for which the mortgagee intends to commence foreclosure proceedings or similar remedial actions pursuant to the mortgage, not less than 120 days prior to the foreclosure sale or the acceptance of a deed in lieu of foreclosure. The city retains a right of first refusal on AHUs subject to foreclosure and remedial actions, upon receipt of a foreclosure notice, within 120 days of receipt of such notice. All requirements promulgated in this subsection shall be included in any MOU and deed for AHUs subject to this section.

(j)

Needs assessment review. The City of Chelsea Department of Planning and Development, in cooperation with appropriate boards and commissions, shall undertake a housing market assessment not less than every fifth calendar year from the date of enactment of this section. The purposes of said assessment shall be to assess the performance of the provisions herein in terms of resultant AHUs, to assess any need for improved rules and regulations regarding implementation, and to ascertain the need for revision of any provisions of this section relative to the provision of AHUs in the city.

Provisions subject to review shall include, at minimum: revisions to applicability requirements of this section, revisions to percentage requirements of AHUs in inclusionary housing developments, and revisions to methodologies for monetary payments or other in lieu of means of compliance with provision of on-site units.

Upon completing its assessment the City of Chelsea Department of Planning and Development, shall recommend to the city council any amendments to this section deemed necessary to improve the means of providing AHUs in the city.

(Ord. of 3-13-2017(2); Ord. of 9-9-2019)