Board and counsel clarify limits on rent control and local preference under Chapter 40B
The ZBA was told it lacks authority to set tenant rents; state subsidizing agencies and EOHLC control affordability rules. The board discussed allowing an initial local-preference lottery (up to 70% of restricted units) subject to state approval and using regulatory agreements to extend affordability beyond the state regulatory term.
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Housing advocates asked whether the board could condition rents to remain below 30% of area median income (AMI). Town consultant Judy Barrett and board counsel explained that the ZBA does not have the authority to set rent levels; the subsidizing agency and state (EOHLC) typically control rent-setting and lottery rules under Chapter 40B. Counsel advised that local preference can sometimes be permitted for an initial lottery (the draft language cited an initial-lottery local preference for up to 70% of Chapter 40B units subject to EOHLC and fair-housing review), but ongoing tenant selection and income-restriction enforcement are governed by state rules and the sponsor’s regulatory agreement.
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