Building on Properties Restricted Under
the Yard Sale Program
July, 2021
Background
In 1997 the Public Facilities Department, now known as the Department of Neighborhood
Development, initiated the Yard Sale program, through which lots considered to be non-
buildable were sold to adjacent property owners. Lots sold through this program were
deed restricted for use only as open space, parking or for addition(s) to existing
structures. The program’s objective was to provide additional ownership opportunities
to neighborhood residents while efficiently and equitably removing these lots from
public ownership. To date, DND has sold roughly 598 parcels as part of the Yard Sale
program.
Policy Objective: Enable Development of Yard Sale Parcels
The rising demand for housing has led many constituents to reevaluate the
development potential of Yard Sale sites, and several owners have requested that the
deed restriction on lots they purchased under the program be waived or amended to
allow new development. This policy outlines the process and requirements by which
DND will amend deed restrictions on Yard Sale sites.
Policy and Procedures
The intent of this policy is to assure that there is community support for the change
in use, to ensure that any development meets DND affordable housing standards, and
that the City secures a public benefit from the change.
Application Process
DND may amend deed restrictions on parcels purchased under the Yard Sale program
to further the City’s goal of creating affordable housing. Parcel owners must submit a
written request to DND to amend the existing Yard Sale restrictions. The conditions
under which DND may approve a request are outlined below:
1.
Homeownership developments of 1-3 units must restrict one unit to households
earning 80% of AMI or below. Those larger than three units must restrict one
third of units to households earning between 80% and 100% AMI, with at least
half restricted to 80% AMI or below. The affordability restriction for ownership
units will have a term of 30 years with 20-year extension option to the City.
2.
Rental development shall restrict one third of units to households earning 60% of
AMI or below. The affordability restriction for rental units will be in perpetuity.
3.
Affordable unit(s) must be provided on-site. The number of restricted units and
any additional payment to DND shall be determined according to the following
formula, in which A= number of affordable units and T= total number of units: A =
0.33 x T. If this calculation results in a remainder of 0.5 or above, an additional
unit must be restricted. If the remainder is less than 0.5, additional payment to
DND shall be calculated based on the City of Boston Inclusionary Development
Policy Zones (d4e05875-9c82-4d23-adbb-417a12da4ceb (bostonplans.org).
Example: For a proposed project
with 7 units A = 0.33 x 7
A = 2.31
Two units are required, and additional payment is calculated
as follows: If in Zone A: 0.31 x $380,000 = $117,800
If in Zone B: 0.31 x $300,000 =
$93,000 If in Zone C: 0.31 x
$200,000 = $62,000
4.
Affordable units must be comparable to market-rate units.
a.
Affordable units cannot be stacked or concentrated on the same floors;
b.
Affordable units must be consistent in bedroom count with the market
rate units and have comparable square footage to market rate units in
the rest of the project.
c.
Affordable units must meet DND design guidelines.
5.
DND does not support demolition of any existing homes in order to enable
new housing development on any Yard Sale sites. If demolition is proposed,
DND may consider such proposals on a case by case basis, with deference to
preservation of existing homes and the existing streetscape.
6.
Developer must present letters of support from abutters and appropriate
community groups. If the parcel is located in a neighborhood that has a working
neighborhood association, then a letter of support from the neighborhood must
be presented.
7.
Developer must hold at least one public meeting to present plans to
abutters and present evidence of notice period and recipients.
8.
Condominium developments must structure condominium fees based on fair
value of the units rather than square footage, and must adhere to DND policy for
affordable condominium fee structure
(https://www.boston.gov/departments/neighborhood-
development/neighborhood- development-housing-policies).
Plans that meet these conditions may be submitted to the Inspectional Services
Department (ISD) for review, at which time they shall also be submitted to DND.
Additional Requirements
●
Affordable units shall be marketed in accordance with DND Fair Marketing
Program guidelines, and cannot be rented, sold or occupied by the owner of the
Yard Sale parcel.
●
The owner of the Yard Sale parcel must have abided by the terms of the
original sale and maintained the parcel as originally proposed.
●
The owner of the Yard Sale parcel must be current on property taxes on the
subject parcel and all other property owned in the City of Boston, have no
outstanding property violations with Inspectional Services, have no outstanding
water and sewer bills, and be current in all obligations with the City.
●
The owner of the Yard Sale parcel must not have any properties that are on the
city’s Problem Properties list.
DND Review
The appointed DND staff will review project plans when submitted concurrently with
submission to ISD. DND will also review documentation of the Application items listed
above to ensure all conditions have been met. The Deputy Director for Real Estate
Management & Sales shall make a recommendation to the Director of DND for approval.
The following should be considered:
Programmatic and Community Considerations
●
Does the developer and the proposal meet the conditions and requirements
described above?
●
Does the project have support from abutters and community groups?
Design Considerations
●
Is the Yard Sale parcel large enough to be/have been buildable by itself? If so, an
RFP of the lot may be required.
Income Restriction
For rental projects, the income restricted is for perpetuity. For ownership projects, the
income restriction will be for a period of thirty years with a 20 year extension option to
the City according to DND’s long-term affordability policy
(https://drive.google.com/file/d/13lRbWKVL00y9VsVmTZ3rD4uUvZOlregv/view).
Specific AMI levels for restricted units will be determined based on the Application
criteria outlined above.
This income restriction must be signed in order to secure a building permit, and will be
monitored by the Department of Neighborhood Development. As part of this agreement,
the owner is required to market in accordance with guidelines as established by the
Affirmative Fair Marketing Program and the Boston Fair Housing Commission
(https://drive.google.com/file/d/0B_VQ5qYtwLheOGZlUkhsOXA1c3l5dkYyNF8wOFA5
MGZtOUVr/view). For properties with less than five income restricted units, this entails
advertising through the City of Boston Metrolist.
