GANTS, J.
Hollis Hills, LLC (Hollis Hills), filed an application for a comprehensive permit with the zoning board of appeals of Lunenburg (board) under G. L. c. 40B, §§ 20-23, to build 146 condominium units in attached townhouses (project). The board denied the application, and Hollis Hills appealed the denial to the Massachusetts housing appeals committee (HAC), which set aside the board's decision and directed the board to issue a comprehensive permit.
On appeal, the board claims that the HAC made four errors. First, it claims that the HAC erred in concluding that the availability of affordable, market-rate homes in the town of Lunenburg (town) should not be considered in determining the regional need for low and moderate income housing. Second, it argues that the HAC's finding that the board's local concerns, specifically the project's alleged incompatibility with the town's master plans, did not outweigh the regional need for low and moderate income housing was not supported by substantial evidence. Third, the board contends that the HAC erred in failing to recognize that, under the doctrine of "infectious invalidity," Hollis Hills did not have the requisite site control over a parcel of land in the project where a necessary sewer connection would be located and that the HAC could not waive infectious invalidity because it is matter of State law, not a local concern. Fourth, the board claims that the HAC erred in not staying the proceedings until the Governor had appointed a fifth member to the HAC. We address each claim in turn and affirm the judgment of the Superior Court affirming the HAC's decision.
Legal background and standard of review. Before addressing
The act allows a public agency, or a limited dividend or nonprofit organization, that wishes to construct low or moderate income housing "to circumvent the often arduous process of applying to multiple local boards for individual permits and, instead, to apply to the local board of appeals for issuance of a single comprehensive permit." Board of Appeals of Woburn v. Housing Appeals Comm., supra at 583, quoting Middleborough v. Housing Appeals Comm., 449 Mass. 514, 516 (2007). See G. L. c. 40B, § 21 (organization "may submit to the board of appeals ... a single application to build such housing in lieu of separate applications to the applicable local boards"). The zoning board has "the same power to issue permits or approvals as any local board or official who would otherwise act with respect to such application." Id.
"If the board denies an application for a comprehensive permit, the developer may appeal to HAC." Zoning Bd. of Appeals
"Consistent with local needs" is a term of art under G. L. c. 40B, § 20, defined as follows:
The statute further provides that such requirements and regulations "shall be consistent with local needs ... where ... low or moderate income housing exists which is in excess of ten per cent of the housing units reported in the latest federal decennial census of the city or town or on sites comprising one and one half per cent or more of the total land area zoned for residential, commercial or industrial use." Id.
Under the regulations issued by the Department of Housing and Community Development (department) to administer the act, there is an "irrebuttable presumption" that a board's decision to deny an application for a comprehensive permit is "consistent with local needs" where the board determines that one or more
Where, as here, none of the grounds that would trigger a conclusive presumption is present, the regulations and our cases provide that there is "a rebuttable presumption that there is a substantial Housing Need which outweighs Local Concerns." Id. See Boothroyd v. Zoning Bd. of Appeals of Amherst, 449 Mass. 333, 340 (2007), quoting Board of Appeals of Hanover v. Housing Appeals Comm., supra at 367 ("municipality's failure to meet its minimum [affordable] housing obligations, as defined in § 20, will provide compelling evidence that the regional need for housing does in fact outweigh the objections to the proposal"). Where a town attempts to rebut this presumption, the board bears "the burden of proving, first, that there is a valid health, safety, environmental, design, open space, or other Local Concern which supports such denial, and then, that such Local Concern outweighs the Housing Need." 760 Code Mass. Regs. § 56.07(2)(b)(2) (2008). See Board of Appeals of Hanover v. Housing Appeals Comm., supra ("In cases where the locality has not met its minimum housing obligations, the board must rest its decision on whether the required need for low and moderate income housing outweighs the valid planning objections
Under the act, the HAC's decision may be reviewed in the Superior Court under G. L. c. 30A, which in turn provides that the court may set aside the decision of the agency "if it determines that the substantial rights of any party may have been prejudiced because the agency decision is ... [u]nsupported by substantial evidence; or ... otherwise not in accordance with law." G. L. c. 30A, § 14 (7). See Wellesley I, supra at 657 ("decision of HAC must be upheld if it is supported by substantial evidence," which is "such evidence as a reasonable mind might accept as adequate to support a conclusion"). In this analysis, we give "due weight to the experience, technical competence, and specialized knowledge of the agency, as well as to the discretionary authority conferred upon it," G. L. c. 30A, § 14 (7), and we "apply all rational presumptions in favor of the validity of the administrative action." Middleborough v. Housing Appeals Comm., 449 Mass. 514, 524 (2007), quoting Wellesley I, supra at 654. "A court may not displace an administrative board's choice between two fairly conflicting views, even though the court would justifiably have made a different choice had the matter been before it de novo." Wellesley I, supra at 657, quoting
Discussion. 1. Calculating the regional need for low and moderate income housing. The board contends that the HAC erred in failing to consider the availability of low-cost, market-rate, unsubsidized housing in the town in weighing the housing need. The town points to testimony from its expert, Douglas Ling, that most c. 40B homeownership programs define low or moderate income housing as that which is affordable to households earning no more than eighty per cent of area median income. Based on United States Department of Housing and Urban Development statistics, Ling determined that, within the Lunenburg region, the maximum affordable sales prices for a household earning seventy and eighty per cent of area median income were $140,000 and $160,000, respectively. Ling reported that 11.5 per cent of the homes sold in the town in 2006 and 2007 were purchased for $160,000 or less, and that 8.2 per cent of the homes were purchased at prices at or below $140,000. Ling also analyzed home sales in a seven-community region, which included Lunenburg, and testified that 7.6 per cent of homes in the region were included in the SHI, 14.6 per cent of homes sold for $160,000 or less, and 8.8 per cent of homes sold for $140,000 or less.
The board's argument fails because it conflicts with the plain meaning of the Act's language. Under G. L. c. 40B, § 20, "housing need" is effectively defined as "the regional need for low and moderate income housing considered with the number of low income persons in the city or town affected" because that is the factor that is to be considered in determining whether local requirements or regulations are "[c]onsistent with local needs." This definition is made explicit in the department's regulations,
This interpretation is in harmony with the purpose of the act. It was originally drafted to address "an acute shortage of decent, safe, low and moderate cost housing throughout the commonwealth" (emphasis added). Board of Appeals of Hanover v. Housing Appeals Comm., supra at 351, quoting report of Committee on Urban Affairs (explaining 1967 House Doc. No. 5429). Some market-rate housing may be affordable because the units are neither decent nor safe. Other affordable market rate housing units may be both decent and safe, but may be affordable only temporarily because of a weak housing market. The HAC here found that "the inexpensive market rate housing in Lunenburg identified by the Board's witness included housing that was renovated and expanded, or torn down and replaced with more
In contrast, precisely because such housing is subsidized by a Federal or State government or agency under a program to assist the construction of affordable housing, see note 9, supra, housing that would address the "regional need for low and moderate income housing" under G. L. c. 40B, § 20, typically must satisfy minimum requirements designed to ensure the quality of the housing and the reasonableness of the sale and resale price.
In light of these differences between subsidized affordable housing units and unsubsidized market-rate units, we also agree with the HAC that "evidence of low cost market-rate housing cannot be factored into the consideration of the regional need for affordable housing."
There was substantial evidence to support the HAC's finding that the existing subsidized housing in the region did not adequately address the regional need for housing. Only 1.9 per cent of the town's housing units and only 7.6 per cent of the "year round housing units" in the seven-town region were counted in the SHI.
2. Weighing the town's master planning. The HAC recognized that a town's long-term comprehensive planning efforts, "when
The board does not challenge this analytical framework. Instead, it argues that substantial evidence does not support the HAC's finding that the board failed to meet its burden of proving that the proposed project is inconsistent with the master plan and would undermine the town's master planning. To evaluate this claim of error, we must take a careful look at the town's master plan at the time Hollis Hills applied to the board for a comprehensive permit. See 760 Code Mass. Regs. § 56.02 (defining "[l]ocal [r]equirements and [r]egulations" as those "in effect on the date of the [p]roject's application to the [b]oard").
The town relied on three planning documents to support its argument that the project was inconsistent with local concerns: the April, 2002, Lunenburg, Massachusetts Updated Master Plan for the New Millennium (master plan), the affordable housing plan approved by the department, and the 1999 Lunenburg comprehensive wastewater facilities plan (sewer plan). The master plan contains a "Housing Element" with its primary goal "[t]o provide appropriate housing for Residents of the
The affordable housing plan became effective five days before Hollis Hills submitted its comprehensive permit application on February 13, 2006, with a goal "[t]o develop 22 affordable housing units each year over the next five year[s]." It identified four sites for the location of affordable housing units: Lunenburg Estates, the Tri-Town Drive-in Theater, the Electric Avenue Drive-in Theater, and the Old Primary School building. But when the HAC issued its decision on December 4, 2009, no affordable housing eligible for inclusion in the SHI had yet been built on any of these designated sites.
The sewer plan prioritized three phases of sewer expansion. The phase I sewer expansion that was approved by the town included the town center and the southwest area of town; it originally did not include a sewer along Electric Avenue that could be tied into a sewer line on the proposed project. However, in 2002, the town decided to extend a sewer line up Electric Avenue to take advantage of a State-funded economic development grant for a reconstruction project on Electric Avenue, and the sewer plan was amended to add a 5,000-foot spur from Whalom Road up Electric Avenue, which included the installation of a connection plug directly opposite the proposed project's parcel on Electric Avenue.
In concluding that the project is not inconsistent with and
The HAC recognized that the project site was not within the geographical boundaries of the original sewer district under phase I of the sewer plan, but noted that the town had already modified the sewer plan by expanding sewer access through the spur on Electric Avenue. The HAC found that the town must have contemplated that the expansion would increase the number of residences with legal access to sewer, and had allowed market-rate homes to connect to the Electric Avenue sewer spur. It also found that the town must have anticipated that the project's parcel on Electric Avenue would have access to sewer service because it installed a sewer connection directly in front of the parcel. It also noted that the Electric Avenue Drive-in Theater site, which had been designated for affordable housing but was instead approved for use as a self-storage facility, obtained its sewer connection through the Electric Avenue spur.
3. Infectious invalidity. One of the parcels of land that comprise the project site is the parcel on Electric Avenue that abuts the sewer line (Electric Avenue parcel). In 2002, Fred Laberge owned an adjoining parcel at 321 Electric Avenue, where he operated an automobile salvage business in the name of Sky Cycle, Inc. (Sky Cycle); Sky Cycle owned the Electric Avenue parcel.
The board claims that Sky Cycle's sale of the Electric Avenue parcel to the realty trust violated the common-law principle of infectious invalidity, which provides that "a property owner may not create a valid building lot by dividing it from another parcel rendered nonconforming by such division." 81 Spooner Rd., LLC v. Zoning Bd. of Appeals of Brookline, 461 Mass. 692, 694 n.6 (2012). The HAC, in reaching its decision, assumed, without deciding, that the conveyance of the Electric Avenue parcel to the realty trust violated the planning board's development plan review, and that the Electric Avenue parcel was in zoning nonconformity as a result of the violation.
We find no error in the HAC's denial of the board's motion to dismiss the developer's appeal, which claimed that, because
The HAC correctly recognized that a zoning or planning board violation is a local concern, not a violation of State law that the HAC has no authority to override, noting that, because "it is within the power of the Planning Board to modify its previous condition affecting the Electric Avenue parcels, it is within the power of the [zoning board of appeals] or [the HAC] to determine that the Development Plan Review does not constrain the development of this project." The HAC concluded that this local concern was insufficient to outweigh the regional need for affordable housing, and waived any zoning and planning board violations on the Electric Avenue parcel so that the proposed project may proceed.
We conclude that the HAC's factual findings were supported by substantial evidence and that the HAC did not abuse its discretion in concluding that the balance of interests in these
4. Denial of stay. In a single sentence in its appellate brief that references arguments made to the HAC and included in the record, the board claims that the HAC erred in refusing to stay the proceedings until the Governor had named a fifth member to the HAC. See G. L. c. 23B, § 5A (three members of HAC are appointed by department director and remaining two by Governor). Because the board did not argue this issue in its appellate brief, we need not reach it. Mass. R. A. P. 16 (a) (4), as amended, 367 Mass. 921 (1975) ("The appellate court need not pass upon questions or issues not argued in the brief"). We nonetheless choose to decide it and find it meritless. Three members of the HAC may decide an appeal. See Board of Appeals of Maynard v. Housing Appeals Comm., 370 Mass. 64, 66 (1976). Here, the appeal was decided by four members.
Conclusion. The judgment affirming the order of the HAC is affirmed.
So ordered.
760 Code Mass. Regs. § 56.07(3)(b) (2008).
Additionally, under the Department of Housing and Community Development Comprehensive Permit Guidelines § II.A.1 (2012) (comprehensive permit guidelines), for housing to be included in the subsidized housing inventory (SHI):