Chelsea Housing Development Policy Change: New Zoning Rules

City Manager Fidel Maltez revised Chelsea's Inclusionary Zoning Policy following feedback from City Councilors and residents at a March 30 subcommittee meeting, aiming to spur new development while maintaining the city's affordable housing stock.

Chelsea ranks third in Massachusetts for affordable housing but faces a school budget deficit from losing 350 students. The city also confronts $1 million in annual healthcare premium increases and $4 million in additional debt obligations to regional vocational and charter schools.

"The current policy has made it difficult for Chelsea to raise new growth revenue because it creates too many barriers for new housing development projects," Maltez said. Under Proposition 2½, the city cannot easily raise revenue through taxes, making development-based growth critical.

The revised policy raises the threshold for inclusionary zoning from 10 units to 50 units per project. Maltez originally proposed 100 units but adjusted after Council feedback. Developers must choose between providing 10 percent of units at 80 percent of area median income or 7 percent at 60 percent AMI, matching Everett's structure.

The fee-in-lieu option drops from $400,000 to $200,000 per unit. Chelsea has collected no such fees in nine years under the current policy, which requires City Council approval for each payment.

The city will review the policy every two years with a third-party firm. Affordability restrictions remain permanent, deed restrictions and tenant protections unchanged.

Maltez asked the City Council to accept the amendment, refer it to the Planning Board for a public hearing, and schedule its own vote. Residents can email [email protected] or attend Planning Board and City Council hearings. Dates have not been announced.