On May 9, 2023, the Worcester community took an important step toward creating a more inclusive and equitable city when the City Council approved Worcester's first Inclusionary Zoning Ordinance. This ordinance is designed to promote the creation of affordable housing units for rent or sale, encourage economic diversity and help prevent the displacement of low- to moderate-income residents.
Inclusionary Zoning creates affordable housing by requiring developers to include a certain percentage of affordable units within their new residential developments, subdivisions, conversions, adaptive reuse projects and expansions of existing structures. It is a key tool in the City's toolbox of policy options to increase access to affordable housing opportunities for residents.
The Inclusionary Zoning Ordinance applies to any development in Worcester that results in the net production of twelve (12) or more residential units, whether through new construction, adaptive reuse or the expansion of existing structures. If you are a developer or a property owner planning a project with 12+ units, you have options to meet the inclusionary zoning requirements:
Complying with the Inclusionary Zoning Ordinance doesn't just benefit the community - it can also provide incentives for developers. Projects that allocate 5% or more of the total units for households earning no more than 60% of AMI, while still meeting baseline requirements for affordability, qualify as "Eligible Developments." These projects can access additional benefits:
Enter basic project information into the DPRS Inclusionary Zoning Density Bonus Worksheet (Spreadsheet File) to calculate potential density bonuses and parking relief. All Inclusionary Zoning related density bonuses should be applied after any other bonuses/adjustments/reductions provided by other articles of the Zoning Ordinance.
To support understanding and complying with the Inclusionary Zoning Ordinance, the City has developed an Inclusionary Zoning Guide. This guide includes detailed information about the ordinance's requirements, the application process and other useful resources.
Here are some documents and forms you might need:
A deed restriction, contract, mortgage agreement, or other legal instrument, acceptable in form and substance to the city solicitor that effectively restricts occupancy of an affordable housing unit to a qualified purchaser or qualified renter that provides for administration, monitoring and enforcement of the restriction during the term of affordability and conforms to the requirements of chapter 184, sections 26 or sections 31-32 of the General Laws.
A fund account established by the City of Worcester and stewarded by the Affordable Housing Trust Fund Board of Trustees.
The executive board established pursuant to Article 3, section 18 of the Revised Ordinances of 2015, Organization of City Agencies, under the authority of chapter 44, section 55 of the General Laws.
A dwelling unit that is affordable to and occupied by a low- or moderate-income household and meets the requirements for inclusion in the Subsidized Housing Inventory (SHI) of the Massachusetts Executive Office of Housing and Livable Communities (EOHLC).
The median household income for the metropolitan area that includes the City of Worcester, as defined in the annual schedule of low- and moderate-income limits published by the U.S. Department of Housing and Urban Development (HUD), adjusted for household size.
Fair Market Rents (FMRs) are estimates of rent plus the cost of utilities, except telephone. FMRs are housing market-wide estimates of rents that provide opportunities to rent standard quality housing throughout the geographic area in which rental housing units are in competition. The level at which FMRs are set is expressed as a percentile point within the rent distribution of standard quality rental housing units in the FMR area. HUD publishes FMRs annually.
A household with annual earnings no greater than the eighty percent (80%) percent income limit of the Worcester, MA HUD Metro FMR Area Median Family Income, as determined by HUD in its most recent Income Limits Summary.
A dwelling unit that is free from any income-based restrictions for the occupant.
If you have questions about this guide or are still looking to discuss the specifics of a project, please email planning@worcesterma.gov with your questions and a planner will be in touch with you soon.
Economic Development
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Worcester, MA 01608
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