Consultant urges pairing inclusionary zoning with housing trust fund; Canton commissioners debate 15% requirement

Don Poland, a land-use consultant with Doman York, told the Canton Planning and Zoning Commission on Jan. 14 that the town's current inclusionary-zoning rules (a 15% affordable-unit requirement with splits at 80% and 60% of area median income) risk making market-rate projects financially infeasible. He urged the commission to pair any inclusionary requirement with an affordable housing trust fund or fee-in-lieu mechanism, and recommended dropping 60% AMI from the regulation and aiming for a roughly 10% requirement at 80% AMI.

The recommendation came during a consultant-led review of three memoranda the firm had prepared on zoning, design regulations and a master-plan overlay. "Fifteen percent is a high number as an expectation," Poland said, adding that the combined effects of a high percentage and low AMI thresholds can produce steep reductions in net development value. He illustrated the point with a worked example comparing market rents and the long-term loss of revenue from restricted units versus a one-time fee paid into a trust fund.

Commissioners pushed back that the 15% figure was adopted deliberately in past deliberations and said policy goals — including whether the town wants to favor deeply subsidized units or market-based mixed-income projects — should drive any changes. "I was pushing for more affordable housing with the assumption we were working with developers that would use subsidy," said Elizabeth Fennec, a commissioner who asked the panel to consider the role of subsidized projects versus market-driven ones. Commissioner Lance Perry said the materials arrived late and asked that the commission receive more time and a clearer schedule before adopting substantive direction.

Poland described several tools the town could use alongside an inclusionary rule: a municipal Affordable Housing Trust Fund to collect fees and donations, targeted permit-fee waivers or tax abatements, and a fee-in-lieu calibrated to the market impact of a deed restriction. "The fee-in-lieu can let you build up a kitty that allows you to intervene in other projects," Poland said. He also urged caution on requiring deep affordability (60% AMI) for market projects, calling it "near impossible to actually financially pull together" without additional subsidy.

Commissioners and staff raised implementation questions: who would administer a trust fund, whether there would be enough permit volume to generate meaningful revenue in a small town, and whether a regional trust could provide economies of scale. Staff said some communities contract out administration or form steering committees; commissioners suggested exploring regional options and a deliverables/status table so the public and commission can track next steps.

Poland also presented an alternative regulatory approach: a master-plan overlay or expanded design-district mechanism that would allow applicants to present a concept and receive commission feedback early in the process, with possible incentives for projects that meet preapproved design palettes. Supporters said preapproved design portfolios could lower upfront costs for small developers; critics warned that discretionary design review can become burdensome and subjective.

Next steps: staff agreed to circulate an itemized table of deliverables and a short timeline ahead of the regular meeting next Wednesday, and Poland said draft materials from the consultant's designer ("Dusty") were expected soon. Commissioners directed staff and the consultant to return with revised materials and more numerical analysis, including clearer fiscal and administrative implications for a trust fund or fee-in-lieu.

The discussion was procedural rather than regulatory: no binding zoning changes were adopted at the meeting. The commission scheduled follow-up and asked that the next meeting packet include a concise statement of the scope, timeline and draft materials so members and the public can review before taking formal action.