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Commission coalesces around higher fee‑in‑lieu and expanded FAR options for inclusionary projects
Summary
BFJ presented fee scenarios and FAR bonus options; commissioners agreed in the meeting to recommend raising the inclusionary fee‑in‑lieu to 500% of the state median income (subject to FY2026 confirmation) and expressed consensus to allow an FAR bonus up to 1.5 for inclusionary projects with unit‑size and design controls.
At the April 9 special meeting, the Planning & Zoning Commission reviewed proposed changes to the town's inclusionary housing approach, including both the fee‑in‑lieu formula and the density/FAR incentives that make inclusionary projects feasible.
BFJ explained that the existing fee formula is 300% of the state median income for a family of four (in FY2025 that equaled $373,800). Consultants presented options to raise the multiplier to 400%–500% (and discussed higher ranges raised by the housing authority), noting that construction costs and recent multifamily acquisitions in other jurisdictions suggest substantially higher per‑unit replacement costs. After discussion about market impacts and the town’s goal to incentivize on‑site affordable units rather than fee payments, commissioners directed staff to proceed with a recommendation of 500% of the state median income as the fee formula, subject to confirmation of FY2026 median income figures.
Commissioners also debated FAR (F) bonus levels for inclusionary projects in the business zone. Options discussed included granting up to 1.0 F for inclusionary developments, or permitting bonuses up to 1.5 F that would support much higher unit yields but would typically require structured or underground parking. Commissioners expressed concern about excessively large unit footprints downtown (penthouse units), and supported controls on unit size — for example a proposal that no unit exceed 2,000 sq ft and that no more than 30% of units exceed that threshold. After weighing the tradeoffs (parking, coverage, environmental runoff, and design review constraints under the state’s 'summary review' framework), the commission indicated a working consensus in favor of allowing a bonus up to 1.5 FAR while building in distribution and size controls to limit outsized luxury units.
What happens next: staff will confirm state median income data for FY2026 and will incorporate the 500% fee recommendation and FAR bonus guidance into the redline and the public workshop materials. Commissioners stressed that the fee level may be adjusted later if new fiscal data suggest a different multiplier is appropriate.
Ending: The commission directed staff to include these recommendations in distributed drafts prior to the April 21 workshop and to highlight the tradeoffs and unit‑size protections in public materials.
