When Massachusetts lawmakers passed the state's 40B zoning law in 1969, their goal was to increase dramatically the quantity of affordable housing units in the state.

Since that time, the legislation has been responsible for a massive increase in affordable housing, which swelled in number from 524 units per year in the 1990s to 6,026 in 2005, according to a new report from the Citizens' Housing and Planning Association (CHAPA).

Point/Counterpoint on a Thorny Issue

Affordable units have been fueled by 40B because the law allows developers to set aside local zoning laws—typically for density and maximum overall size—in exchange for earmarking 25 percent of their units for buyers who earn less than a specified income limit. While affordable housing is seen as essential to keeping the state economically competitive, 40B has created far more enemies than friends.

Well-publicized run-ins between towns and 40B developers have become a staple of real estate news in recent years.

Critics of 40B say the law allows developers to run roughshod over local zoning laws and ram large, unwanted developments down the throats of towns across the state.

Not as well known about 40B, and not generating any headlines, is the "friendly 40b" variety, in which towns and developers take off their fighting gloves and work in tandem to shape the development.

It's All in the Approach

One such friendly 40B development, Blanchard Place, is currently under construction in Acton, Massachusetts, a bedroom community 25 miles outside of Boston where most developers are busy constructing single-family homes priced at a whopping $900,000.

What makes a friendly 40B different from its more common sibling are the state agencies and order of procedures involved, says Nancy Tavernier, Chairman of the Acton Community Housing Corporation (ACHC).

In the more commonly-used 40B that can lead to conflict, says Tavernier, the developer applies directly to MassHousing and that agency "sends out a notice to the community saying, 'We've just received this [40B] application and if you'd like to comment on it, fine.' They issue a letter of eligibility and that's all the developer needs for a 40B. So the community really doesn't have the opportunity to negotiate up front."

In stark contrast, she says, a friendly 40B works in reverse, with the town boards first approving the development and only then sending it to the State Department of Housing and Community for approval.

The "friendly 40B" process, also known as a Local Initiative Program (LIP), opens a window to negotiation and compromise between the developer and the town, with the result being a development with mutually agreed-upon changes.

In Acton, the LIP process covered all aspects of Blanchard Place, from its aesthetic to the number of proposed units. By the end of the negotiations, Acton had secured a community that blended with its historical past, and the developer, Jim D'Agostine, of Blanchard Place, LLC, in Acton, was able to fulfill his vision of providing three-bedroom affordable housing for larger families.

A Developer Reaches Out

For years, D'Agostine felt that the needs of families had been ignored by most new housing in the area.

"The problem I've seen lately, over the past couple of years, is that most builder/developers are taking the path of least resistance—the over 55 community, two-bedroom townhouses. They're doing large apartment complexes, one- and two-bedrooms," says D'Agostine, an Acton native who wanted to give back to his town. "These are for singles, young professionals, and retirees. So no one's really looking out for the children or families," he says.

To accommodate the needs of families, D'Agostine designed four-level townhouses with three bedrooms to reduce congestion in the family unit. "The parents can be on the main level, then there are two bedrooms on the next floor, and on the top floor there's a 22' by 18' bedroom. So if you're a teenager, you can be in the top bedroom and have a separate space. Just like in a [single-family] house, there are separate areas you can go to to get away from each other. With a family, you need that."

With larger families in mind, D'Agostine—who holds a degree in architectural engineering and a broker's license—designed extra-large 2,600-square-foot units with three large bedrooms, extra amenities, and more bathrooms to keep sibling squabbling to a minimum.

"In most townhouses in this area, you find 1.5 baths. You buy a single-family home, and they're all 2.5 baths. So we tried to include the features that you find in a more expensive home, and the quality, too," he says.

Every home in Blanchard Place is equipped with a plethora of amenities as a matter of course. Included in the long list are 2.5, hardwood floors in main rooms, a media room with plasma TV and surround sound, fireplaces, tiled baths, nine-foot ceilings in main areas, oversize windows, gourmet kitchens with stainless steel appliances, granite countertops, and built-in coffee makers and microwaves.

The Town's Side of the Dialogue

Acton's concerns about Blanchard Place's original plans centered on its townhouse-heavy design, which it felt was overdone and didn't fit in with the nature of the parcel.

"This is not a historic site per se, but there are older historic houses on the street where this is being built," says Tavernier. Also of concern to Acton was the number of similar townhouses around town that were outfitted with garages underneath the units. "We didn't want that [townhouses over garages] to become the 'design-of-the-day' kind of thing," she adds.

A final worry for Acton was D'Agostine's commitment to building three-bedroom units, and the overall size of the project, which was slated to include 16 units. Because Acton's list of people waiting for affordable housing included so many who were looking for two-bedrooms, the town was more interested in having the those type of units built, says Tavernier.

Back to the Drawing Board

To accommodate the town's desire for something that would blend in with the historic neighborhood, D'Agostine went back to the drawing board and designed a replica of an 1800s historic farmhouse to front the development. The replica's facade and wraparound porch offer no clue that the structure actually contains two two-bedroom units and two three-bedroom units.

He also designed a New England—style house that contains four units. The townhouse design that so concerned the town of Acton was relegated to the back of the development.

In the course of the LIP process, the number of buildings was dropped from four to three, the overall units were shaved from 16 to 12, and the number of three-bedrooms was cut by two.

"We worked hard with them to get an acceptable design, and I think we came up with one," says Tavernier.

D'Agostine is also satisfied with the outcome and feels that by retaining most of the three-bedroom units, he was able to stay true to his original vision of helping families.

"We worked with the town to listen to the needs of the town. The one [issue] we fought on was the three bedrooms. I really wanted three-bedroom units," says D'Agostine. "I honestly felt that families were the ones being left out. Families don't want to buy the two-bedroom townhouse; they want space. They want a family room or a rec room or a media room for the kids. They want three bedrooms, and not a teeny bedroom just big enough to put in a bed."

Realistic Pricing to Attact Local Residents

The three affordable units at Blanchard Place will be sold to lucky parties whose names are drawn in a town-run lottery, says Tavernier. The one two-bedroom affordable unit will sell for $171,000, and the two three-bedroom units will sell for $191,000 each. To qualify for the lottery, applicants can earn no more than 80 percent of the area's median income ($66,150 for a family of four), not have owned a home during the past three years, and have assets that don't exceed $50,000, says Tavernier. At least one of the lotteried units, and possibly two, will go to Acton residents, adult children of Acton residents, or those who work in town, she says.

An additional benefit for Acton is that the market-rate units at Blanchard Place will carry price tags that are also considerably less expensive than pricing on comparable new housing in the area. This issue is of particular concern to the town's middle class, many of whom may be priced out of the current market, says Tavernier. Full-priced units at Blanchard Place will start at $550,000.

"To get a brand new construction, a three-bedroom upscale unit—granite counters and all that—in that price range, you're not going to find that in a single-family home," she says. "So it's a good opportunity, especially for someone who doesn't want to do yard work and all that stuff."

Touring the construction site on a spring day, D'Agostine was obviously proud of his friendly 40B.

Pointing to a bowling alley and tennis courts, a variety of retail, and three public schools in the immediate area, D'Agostine says the site's location just called out for a development geared toward families.

"This particular site was not in East Oshkosh. Kids can walk to school, Kmart, the bowling alley, all this stuff. So this was great for families," says D'Agostine. "Kids like to walk places. I grew up on the other side of the high school. We walked to these places as a kid. It's important for kids to walk."

Walking, skateboarding, or riding bikes, the new kids from Blanchard Place are sure to be welcomed as part of the new friendly 40B in Acton.