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HomeMy WebLinkAbout9. Project Eligibility Letter - Comprehensive Permit - Application - 0 Prescott Street 9/16/2025 F. Determination of Project Elligibility See attached Project E i ibilit 'Letter issua d MassHiousin ,,dated September 16, 2025, 0 010 AtO -A�ASS H OU SING Massachuse,fts Housing Finance Agency One Beacon,Street Rasion,MA 02110:8 Teh 6117-854-1000 Relay 711 Lax.617-854-I W I vVww September 16, 2025 East Mill Housing LIX c/o RCG LLC 17 lvaloo Street, Suite 100 Somerville,MA 02143 Attention: David Steinbergh Re: Zero Prescott Pr(kiect Eligibility/Site Approval MassHou.sing FD No. 1281 Dear Mr. Steinbergh: This letter is in rcsponse to your application, as "Applicant", for a determination of project Eligibility ("Site Approval") pursuant to Massachusetts General Laws Chapter 40B ("Chapter 4013"), 760 ("MR 56,00(the"RegUlatiOTIS") and the Comprehensive Permit Guidelines issued by the, Executive 01fice of Housing and Livable C'oniniumlies ("E01-11k,"') (the "Guidelines" and, collectively with Chapter 40B and the l<egUlafions, the "Cornprehensive Flermit Rules"), under the New England Fund ("NET") program ("the Pro grani")of the Federal Horne Loan Bank of Boston ("I'11LBank Boston"). East Mill Housing LLC (the "Applicant") has submitted an application, with MassHousing pursuant to Chapter B. You have proposed to bu:ild two hundred nincty-six (296) units of rental hoosing (the "Prqject") on approximately 6.13 acres of'land located at the comer of Prescott and High Street (the ,"Site)") in North Andover(the"Municipality"), In accordance with the Comprehensive permit Rules,this letter is intended to be a writtert determination of Pro lect Eligibililyy M by acting S, as u y u bsidizing Agencnder the (3uidelirles, including j! wart' thereof,"Housing Programs In Which Funding Is Provided By Other Than A State Agency." MassHousing has perfortned an on-site inspection of the Site, which local boards and officials were invited to attend,and has reviewed the pertinent inforniation for the 11rqject submitted by the Applicant, d1le Municipality and others in accordance with,the Contprehensive Pennit Rules. Municipal C,omments: Pursuant to the Regulations, the Municipality was given a thirty(30)day period in, which to;review the Site Approval application: and submit comments to 1'v"lass1loosing. The Municipality submitted a letter dated July 17,2025 reflecting comments and concerns from various boards and!departments,Additional conitnents were suboititted by the, Planning Board in a letter dated July 15, 2025, "]"he letters identified the following comments and concems: Maura Healey,Goverwr Jeanne Pinado,Chair chrystal Karnegay, Kim Driscoll,Lt.Gove"im Carolina Aveflaneda,Vice Chair � Chief Ex"wive officer • '['he Municipality raised concerris about traffic impacts on Prescott Street, High Street and the Rome 125 Corridor,and requested a traffic impact study addlresshig� o filtersection operations and sight lines o Trip generation o Quetring at key access points o Ernet-geney vehicle circulation, • The Municipality is concerned drat tic proposed Project's access drive and associated suit-face parking is too narrow and will create potential obstructions for emergcll:ry access. • The Municipality noted that the proposed project is located within the Machine Shop Village District that experienced a significant I 00-year flooding event in 2023. The Municipality recently commissioned the Cochichewick Brook Floodiplain Management Report(Jerre 2025) to identif y and prepare for flood risks in the area, and requests that Ore proposed Project take the report's hydraulic modeling and findings into consideration, • The Municipality is concerned about the scale of the proposed Project, including building height, bulk, and setbacks, particularly where the Site abuts one-farnily homes, Additional concern, about the rettioval of mature trees and the reduction ot'natural screening adjacent to existing homes was expressed, • The Municipality is concerned about the finpact of the proposed Pro�lect ott Municipal Services, including water,sewer, and emergency, • The Municipality highlighted various ob ec(ives froni the town's 2018 Master Plan that niay be inconsistent with the proposed Project, ject, particularly relative to strategies guiding local infi-astructure and economic: development, i Mass Housing Determination and Recommendation MassHousing staff has determined that the Project appears generally eligible under,the reAluirenrents of the Program, subject to final review of eligibility and to Final Approval.1 As a result of our review,we have made the findings as required pursuant to 760 CMR 5&04(l) and (4), Each such finding, with, supporting reasoning, is set forth in further detail on Attachnient I hereto, It is important to note that Comprehensive Permit Rules,firnit Massliousing(c.)these specific findings in order to determine Project Eligibility. It', as here, MassUciusing issues a determination of Project Eligibility, the Applicant inay apply to,the Zoning Board of Appeals("ZBA") 'for a comprehensive permit. Atthat time local boards, officials and members of the public are provided the opportunity to further review the Project to ensure compliance with applicable star(,, and local standards and regulations, Based on Massf-lousing's site and design review, and considering feedback received front tire Municipality, the following issues should be addresse-,id in the application to the ZBA,and the Applicant should be prepared to explore them: more fully during the public hearing process: Maw lousing has refied on the Apl,)ficani lo pwvide 1ruthful and complete infimation vvith rvspcct to Oiis approval. if at any poor prior to Oie issusancc of a Comprehensive pcii-mit Mas's Hous ing deierinines that the Applicant has tailed to disclose ani infonnalion perfinent to the findings set ibrth in 760 CM R 56,04 or ird6nimfion requested in the Cmificzition and Acknowledgrment rate%e Applicalion,MaisHousing relains the right lo rescind this Site Approval licuer, • Development of this Site will require compliance with all state and federal environmental laws, regulations and standards applicable to existing conditions and to the proposed use related to building construction, storruwater inanagernent, wastewater collection and treatment, and hazardous waste safety. 'The Applicant should expect that the Municipality will require, eVidellCC OfAlCll:COulplianCe prior to the issuance of a building,permit for the Project. • The Applicant should be prepared to submit detailed inforniation relative to traffic impacts and transportation demand" rnanagement as part of their C,ornprehensive Permit application. • The Applicant should continue to engage with (lie Municipality and, North A,ndover Fire Depattment officials to review the plans,and address public safety concerns, particularly those pertaining to access of fire apparatus and other ernergency vehicles to the building, • The Applicant should review the Municipality's Cochichewick Brook Floodplain Management Repcirt (Jurle 2025) and be prepared to address how the proposed Protect takes into consideration flood risk in the area. • The Applicant should be prepared to, work closely with its design teanr to address concerns, regarding the desig,n, of the proposed Project, particularly as it relates to mitigating concerns about building height, bulk, and opportunities for screening. • The Applicant should work with the Municipality to address water supply,sewer capacity,and other local service concerns it) (lie area. The Applicant should cooperate with Municipal requests for load capacity analysis of water and sewer systems, as well emergency response analysis. MlassHousing has also reviewed the:application for compliance within the requirements of 760 CMR 56,04(2 relative to Application requirements and has determined that the material provided by the Applicant is sufficient to show coinpliance, This Site Approval is expressly limited to the development of no inore than two hundred ninety'-six (296)rental units under the terms of the Program,of which not less than wvenly-four(74)ofsuch unit's shall be restricted as affordable for low-or moderate-income persons or families as recluliredunder the terms or the Guidelines. It is not a commitment or guarantee of financing and does not constitute as site plan or building design approval. Should you consider, Prior to obtaining a comprehensive pennit,the use of any other housing subsidy program,the construction of additional units or a reduction in the size of the Site,you may be required to submit a new Site Approval application for review by Massfionsing. Should you consider as change in tenure type or a change in building type or height,you may be required to subillit a new Site Approval application for review by Massliousing. For guidance on the comprehensive pernin review process, you are advised to consult the Guidelines, Further, we, urge you to review carefully with legal counsel the c,40B Comprehensive Permit Regulations at 760 CMR 56M. This approval Nvilli be effective for a period of two, (2) years frorn the date of"this letter. Should the Applicant not apply for a comprehensive permit within this Period this letter shall be considered, to be expired and,no longer in effect unless Massi-lousing extends the effective period ofthis letter in writing. In addition,the Applicant is required to notify Mass Hous ing at the followingtitnes throughout this two- year period-. (I)when the Applicant applies,to the local ZBA fear a Comprehensive Permit,(2)when the ZBA issues a decision and (3) if applicable, when any appeals are filed. Should a comprehensive permit be issued, please note that prior to (i)commencement of construction of the Project or(ii) issuance of"a building permit, the Applicant is required to submit to Massi-lousing a request for Final Approval of the project as it may have b�een: amended) in: accordance with the Comprehensive Permit Rules(see especially 760 CMR 56.04(07)and the Guidelines includi ng,'with o Lit !urination, Part III thereof concerning Affirmative Fair Housing Marketing and Resident Selection). Final Approval Nvill not be issued unless MassHousing is able to make the same findings at the time Of issuing Final Approval as required at Site Approval. Please note that MassHousing may not issue Fitial: Approval if the Coluprehensive Permit contains any conditions that are inconsistent with the regulatory requirements of the New England Fund Program, of the FULBank Boston, for which MassHousing serves as Subsidizing Agency, as reflectedi in the applicable regulatory documents. In the interest of providing for an efficient review process and in order to avoid the potential lapse of certain appeal rights, the Applicant may wish to submit a "filial draff" of the Comprehensive Permit to MassHousing for review. Applicants who avail themselves of this opportunity may avoid significant, Procedural delays that can result from the need to seek modification of the Comprehensive Permit after its initial issuance. If you have any qUCStiOn$COuCerning this letter,please contact bunt Miller at .................. or(617) 854-121T Sincerely, W440940t, G �Iessica Ma m Senior Manager of Planning and Programs cc, Ed Augustus, Secrctanr, E04-1LC The Honorable Barry R. Fine old The Flonorable Adrianne Pusateri Ramos Janice Phillips, Chair,North Andover Select Board Michael Y Lis, Chair,North Andover Zoning Board of Appeals Melissa Rodrigues, North Andover Town Manager Aridrew Shapiro, AssistanitTown Manager and Director of'Coinnitinity& Ecanouiic Development Jean Enright, Director of Planning Attachnient 1 7'60 CMR 56 04 Project Eli, ibility. Other Responsibilities of Subsidizing Agency Secticm(4) Findings and Detenninations Zero Prescott,North Andover,MA #1281 MassHousing hereby makes the following findings,based,upon its review of the application,and taking into account information received during the site visit and firm written cornments: (a)that doeproposed Prqjecl appearsgeneragy efiAihle under the requirements p/Wie,housing subsh#, progra m,subject le fin al appreval under 76 0 CAIR 56.04(7); The Project rs eligible under the NEF housing subsidy, prograin and at least 25%o of dic units will be available to houscholds earning at or below 80%, of the Area Median Income, adJustcd for household size, as published by the U.S. Department ot' llousing and Urban Development ("HUD"). The niost recent IJUD incorne firnits,indicate that 80%of the current niedian income for as four-person household in North Andover is$104,200, Proposed rent levels,net ul i:l I ity,a I lowances for the area,,of$1,5 84 for a studio,$1,,643 for a onc-bedrooni affordable un:it, $1,940 for a tivo-bedroorn aff6rdable unit and $2,2,01 tear a three-bedroom affordable unit, are within cur tent affordable rent levels for the Lawrence ITMFA under the NEF Program. The Applicant submitted a letter of financial interest from Berkshire Bank, a rnernber bank of tile FRLBank Boston under the NEF Progranil, (h) that the site f)j'the proposed Pro y. el is generally aI)proprialefor residential development, taking e into consideration iqli)rnsation provided b the Municiluility or other parties regarding nrunicipal actions previouslY taken to meet qffiWable housing needs, such as inclusionary zoninAn muldfamily ofistricts adopted under e.40,4, rand overlay districty adopted under c.40R, (such finding, with supporling reasoning, to be selfiorth,in reasonable detail); Section IV-A (3) (a) of the Guidelines provide guidance to Subsidizing Agencies for evaluating a municipality's actions intended to ineet affordable housing needs. Comnients ftorn the Municipality highlighted the l'ollowing recent zoning aclion&� • Adoption of Inclusio-nary Zoning Bylaw(2022); • MBTA Communities M ultifamily Overlay District(20 4); and • Accessory Dwel ling Unit Bylaw(2025), Massliousing commends the Municipality's efforts and progress towards addressing local housing needs; however, municipal actions to date have not been of a character and scale chat meets the municipality's need for affordable housing as measured by the Statutory Minima. The Town of North Andover has an, EOFILC%approved Housing Production ]"]an, According to E,0HLC's Chapter 4013 Subsidized Housing Inventory, updated through August 29, 2025, North Andover has 958 Subsidized Housing Inventory (SHI)units(8,07%of its housing inventory), which is 230 units below,the statutory minima requ i rernent of 10%, Based on a site inspection by Mass[lousing staff,, internal discussions, and a thorough review of the application, Massliousing finds that the Site is suitable for residential use and development and that such use would be compatible with SUIT01unding uses and; would address the local need,for housing. (c) that Ilse conceptual project design is, generally appropriate Jor the site on which it is located, taking into consideration factors that nigy include proposed use, conceptual she plan and building massing, lopogrqpAy, en Ormstmenral resources, and integration into ewisting developflient patterns (suchfinding, with supporting reasoning,to be set, rth in reasonable eletail); Relationship to adjacent strects/Integration into existing development patterns North Andover is characterized by its tnix of small to ntediurn sized apartment buildings and single- family honies with a high-rate of owner-occupancy. The town is largely in de tip of residential development centered on as downtown area,, which 'features as variety of retail improvements that are clustered around Route 125.The subject Site sits on land located at the convergence of High Street and Prescott Street, within a mixed-use conitnercial mill district which has been undergoing redevelopment over the last 18 years, Development mirrounding tine subject includes single family dwellings and small condonliniunt conversions along Prescott Street. Along High Street and directly across front the subject is as commercial office building with over 40 commercial condominiums. Adjacent to the subject on the south side is converted as ill property wilich has been redeveloped into ruixed use land including 27 residential units along with several other niulti-unit commercial buildings. To the rear and eastern side of the property is as id-unit garden style condotniniurn; development, Over-all, the subject is lo ated in a well populated nursed-use neighborhood worth excellent access to maJor highways rewil centers. Relationship to Adjacent Building Typology(Including building massin;g,site arrangernent,and archilectural details): The Site is currently improved by a very large 2-story parking garage that is underutilized and in poor condition. The proposed Project includes demolishing the existing garage and replacing it will) a new 415 stoiry garage structure that is flanked by 2 lour-Aive-story nitultifantily residential buildings to 296 urtits,(Building One,with 150 units and Building Iwo with 1461.1nils). Each building mass fornis a C-shape oriented away from t ic central garage structure, creating interior courtyards. The buildings incorporate architectural elements, referencing the adjacent historic mills, particularly along the south; elevations facing (lie campus, such as brick cladding, repetitive bays, and brick articulation that suggests structural pilasters, The buildings also respond t.o the adjacent residential context along Prescott Street to the north by stepping down in height and eiriployhIg traditional inaterial's and residential-scale features including claphoa,rd siding, as sofiened color palette, and upper-floor stcpbacks. Density The Developer untrids to build two hundred ninety-six (296) rental apartments on 6.13 acres of land, all ofwhich,are buildable.The resulting density is 48.29 units per buildable acre.The proposed density is acceptable given the proposed housing type and its location near a mix of UseS. Conceptual Site Plan The Site is organized around the central parking garage, wrapped by the 2 residential buildings- Building I to the west and Building 2 tc)the east. Building I and Building 2, form C-shapes that create landscaped,courtyards with sealing areas, grilling stations and play areas. Access and egress to the Site, is firorn Higli Street,via at)existing subdivision road for the mill conifillex that connects to the proposed Project's entry drive,surface parking,garage entrance, A total of 493 parking spaces will be provide& 96 surface parking spaces and 397 garage parking spaces, including if handicap spaces and electric vehicle charging spaces as required, by the state building code. 'There will be shared parking arrangements with, businesses in the n611 complex. "me entry drive extends to the northeast side of BuiIdingTwt'#,providing a lire truck lurnaroundarea,All utilities,including public water, public sewer, stamp Sewer, electricity and gas services are available to the site troni the street or the rnill coniplex. The project has been designed to meet.the Massachusetts Department of Eiivironniental Protection's (IDEP's) Stornimater Management Standards as outlined in DEP's Ston-riwaterflandbook. Envirourneutal Resources Inforniatkni provided by the Applicant indicates that no wetlands or significant natural or cultural resources,endangered species habitat,or areas of flood hazard are present on the Site. Topography The Site's topography slopes upward from; High Street towards the black,of the Sitc� The design niakes eft ctive use of this grade change by nestling the partial levels of the building into the sloping topography, which serves to further rillitigate the perceived heiglit from uphill neighbors. (d) that the proposed Project al,rpe(irsfinant,�iiilll,,ftaviblt, within tire housing market in which it will he situated(based on comparabk retrials or salesfigures); According to market information for the area, the residential niarket is healthy with continued derriand i and strong rent growth, (3verall,the subject property's use as a inulti-family building is well-positioned and outlook is good fbr the long term.. The Applicant proposes 2,96 rental apartnients to be financed under the NEE Prograrn, There will be Is of$2:,300 ,for the studios, $2,650 for the one- 74 inarket-rate units with proposed average rent levels bedroom units; $3,,2SO for the two-bedrooni units; and $4,200 for tile three-bedroom units, MassHousing's Appraisal and Marketing tearn (A&M) leer t"onned a inarket analysis and found that proposed market rents fall above comparable niarket rent averages and should be further reviewed prior to niarketin g/lease-tip, (e) that an initial prof ornia has been reviewed, including a land valuation determination vonsivient with the Secreturiat's Guidelines,and titan Project apj)earsfinancial�jafeasible and consistenrivith,the, 'YeerelaritWy Guidelines for Cost Examination and Limitations on Profits and Distributions (if applic-able) on Ike hasiv(if,estimated development cosis; Massliousing cornalissioned an "As-Is" appraisal which indicates a land valuation of $6,700,000. Based on a proposed investment ol'$114,307,556 in equity and permanent financing,tile dievelopillent pro fornia appears to be financially feasible and within the Innilations on profits and distributiollis. (/) that the Applicant is a public agent:y, a non-I)rqfit organization, or at Limited Dividend Organization, and it meetv the general eligibili(y standards of the housing progrom;and Massilousing finds that the Applicant must be organized as a Limited Dividend Organization. Massflousing sees no reason this requirement could not be rnet given inforn-tation: reviewed to date, The Applicant meets the general eligibility, standards cal"the NEF housing subsidy prograni, and has executed an Acknowledgment of Obligations to restrict their profits in accordance with the applicable limited dividend provisions. (g) that ether Applicant controls the site, baseil on evidence Mal Me Applicant or a related entily owns lire site or hotels an option or contrad to acquire such interest in the site, or has such other interest in the sile as is deemed bj,Me Subsidizing Agenq to he sqf Ivient it)control Me site. A related eWity to the Applicant controls th ite by virtue of a Quitclaim Deed recorded at the Northem Essex Registry ol'Deeds is') Book 1060 1; Page 340.