Press Release: 5/22/2023

DHCD releases Economic Feasibility Analysis Materials for Inclusionary Zoning under Section 3A

DHCD releases Economic Feasibility Analysis Materials for Inclusionary Zoning under Section 3A

May 19, 2023

Dana LeWinter 

Municipal Engagement Director

The Department of Housing and Community Development (DHCD) recently released materials for submitting an economic feasibility analysis for inclusionary zoning that requires a compliance submission under Section 3A, or the Multi-Family Zoning Requirement for MBTA Communities.

The Compliance Guidelines of Section 3A of the Zoning Act make allowances for zoning that requires some affordable units, so long as the zoning requires 1) not more than 10 percent of the units in a project to be affordable units, and 2) the cap on the income of families or individuals who are eligible to occupy the affordable units is not less than 80 percent of area median income. DHCD may, in its discretion, approve a greater percentage of affordable units, or deeper affordability for some or all of the affordable units, when 1) they are part of a DHCD-approved 40R Smart Growth District, or 2) the affordability requirements are supported by an economic feasibility analysis.

To review the Economic Feasibility Analysis Materials, including an Economic Feasibility Analysis Guide, Economic Feasibility How-To, and an Economic Feasibility Analysis Pro Forma Assumptions Checklist, go to https://www.mass.gov/info-details/resources-for-mbta-communities#economic-feasibility-analysis-materials-