RKG presents housing needs assessment; study warns expanding inclusionary zoning risks harming development in current market
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Summary
Consultant RKG Associates presented an updated housing needs assessment and financial feasibility analysis showing market constraints across most of Somerville and recommending tradeoffs (reduced set‑aside, incentives, or area‑specific policy) if the council seeks deeper affordability targets.
RKG Associates presented an updated housing needs assessment and a financial feasibility review of Somerville’s inclusionary zoning (IZ) policy, warning councilors that current regional market conditions make expanding IZ without countermeasures risky.
Kyle Talenti, president of RKG, summarized the study’s findings: much of the city’s income‑controlled housing is concentrated in East/Central Somerville; construction costs remain high while demand has cooled in some sectors; and the combination of high development costs and selective equity investors reduces feasibility for many non‑subsidized projects. “One of the things we learned is much of your income controlled housing is located East Central Somerville,” Talenti said, and he recommended the council consider policy trade‑offs if it wants deeper affordability targets.
RKG tested options including removing the 110% AMI tier, adding a 30% AMI tier, changing set‑asides from percentages of units to percentages of square footage, adjusting fee‑in‑lieu multipliers, and using targeted financial inducements (tax abatements or trust fund investments). The analysis found that eliminating higher‑AMI tiers without relief would increase infeasibility for developers; an alternate approach would be to reduce the set‑aside percentage (for example, from 20% to 16%) to stay revenue‑neutral or to couple deeper affordability with vouchers or subsidies.
Councilors asked detailed follow‑ups about demolition review, permitting timelines, unit mix (three‑bedroom family units), and the feasibility impact of different construction typologies (wood‑frame vs. podium or concrete). The administration said it will use the study and RKG’s modeling to craft public engagement and policy options over the next several months.
What’s next: The city will use the study as a baseline for public engagement and zoning work; staff pledged to model policy scenarios and return with proposals for council and community review.
