Smart Growth Zoning Districts (commonly known as “40R districts” after the state statute that enables them) can increase the supply of housing and decrease its cost by zoning land for dense housing.  40R provides incentive payments to municipalities for establishing each district and bonus payments for each unit built.  There is a requirement that 25% of new units are deed-restricted and affordable.  A companion statute (40S) provides “school cost insurance” for municipalities by making up the difference between actual tax revenue and the cost of educating students who live in new 40R developments.  Together, these two programs can encourage more municipalities to zone for and permit higher density development in appropriate locations.  

As of October 2008, eight MAPC municipalities had an approved 40R District: Belmont, Boston, Chelsea, Lynnfield, North Reading, Natick, Norwood, and Reading.  These districts are zoned to produce up to 1,690 units, 402 of which would be affordable to households at or below 80% of the area median income.

Also, see Strategy 5, Recommendation 4 for further suggestions in regard to Chapter 40R.

9.a    The Commonwealth, through DHCD, should expand technical assistance programs to support creation of 40R Districts

9.b    The Legislature should secure a guaranteed long-term funding stream for the school-cost reimbursement program (40S)

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