Example of how rezoning impacts Tenant Displacement risk Dover Heights Apartment Complex Acton Massachusetts
For another example, see the Central Street page regarding small houses/duplexes
This page is to help explain how rezoning can impact tenants at a LARGE apartment complex. The information on this page is focused on the Dover Heights Apartment Complex at 117 Central Street.
The impact of rezoning on tenants is determined by how much additional profit a land owner can make after the new zoning goes into effect.
To determine how much profit a land owner can make after new zoning goes into effect, we have to do some calculating. If you need help doing these calculations for your own apartment complex, please choose the "contact" button in the menu and write to us and we'll see if we can help.
In the Dover Heights case, the rezoning was being proposed for a vote on May 7, 2024.
We determined that the risk to tenants of the proposed zoning change would be HIGH. We determined that before the zoning change, the land owner's property value was $10 million. AFTER the zoning change, if he evicts tenants and razes the buildings, and builds new luxury condos, the property would be worth over $100 million... a $90 million dollar difference. With one vote at Town Meeting.
To see how we determined the risk to tenants of the proposed zoning change, see below.
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To determine the risk for tenants, we first we determined how many apartment "units" [apartments] are currently at the site. We found that at Acton's town website. Before the rezoning, 72 apartments. That's the "BEFORE" scenario. (We used 70, in the diagram above, because 70 families were living in the apartment complex at the time of the rezoning vote).
Then we calculated how many "condos" would be allowed in the proposed rezoning. That would be our "AFTER" scenario. We chose "condos" because the rezoning was focused on increasing the number of "housing units" at the site. AND in the town of Acton, condos are the most profitable thing a developer can build. And we figured that knowing the "worst case" situation would help tenants decide whether to vote for the rezoning or not.
Then we measured how much buildable land is at the site. We used an online tool that the town of Acton provides on its website. Most towns in Massachusetts have a similar tool. Here's a link to Acton's tool. If you want help figuring out how to use us, pls use the contact button in the menu.
We figured out that the land owner can put hundreds of condos at the site. At least 200 condos, probably more like 300.
Then we used that to calculate that "increased value" that the land owner could get if he razed the buildings and constructed the maximum number of condos.
That told us that the land owner could make $10s of millions by evicting the tenants.
That tenants are at a higher risk of displacement with the new zoning.
In other words, how long do you think tenants will last if the owner can make a lot of money by evicting them?
For the record, the owner of Dover Heights verbally tried to assure tenants that he has "no plans" to do this. But that wasn't a signed commitment, only a verbal assurance. It worked and now the zoning is passed.
With this information, you may want to fight such rezoning [we'll be putting up a page, explaining how to organize a tenants group]. You may also want to seek local protections to protect tenants from no-fault evictions for the purposes of gentrification, or razing buildings and building new, more expensive housing.
Then we calculated how many "condos" would be allowed in the proposed rezoning. That would be our "AFTER" scenario. We chose "condos" because the rezoning was focused on increasing the number of "housing units" at the site. AND in the town of Acton, condos are the most profitable thing a developer can build. And we figured that knowing the "worst case" situation would help tenants decide whether to vote for the rezoning or not.
Then we measured how much buildable land is at the site. We used an online tool that the town of Acton provides on its website. Most towns in Massachusetts have a similar tool. Here's a link to Acton's tool. If you want help figuring out how to use us, pls use the contact button in the menu.
We figured out that the land owner can put hundreds of condos at the site. At least 200 condos, probably more like 300.
Then we used that to calculate that "increased value" that the land owner could get if he razed the buildings and constructed the maximum number of condos.
That told us that the land owner could make $10s of millions by evicting the tenants.
That tenants are at a higher risk of displacement with the new zoning.
In other words, how long do you think tenants will last if the owner can make a lot of money by evicting them?
For the record, the owner of Dover Heights verbally tried to assure tenants that he has "no plans" to do this. But that wasn't a signed commitment, only a verbal assurance. It worked and now the zoning is passed.
With this information, you may want to fight such rezoning [we'll be putting up a page, explaining how to organize a tenants group]. You may also want to seek local protections to protect tenants from no-fault evictions for the purposes of gentrification, or razing buildings and building new, more expensive housing.
See below for info published specific to Dover Heights before the 2024 Acton Town Meeting vote to "upzone" Dover Heights
While this site is committed to educating people about the concerns around zoning that can harm people...Below here and several OTHER PAGES on this site are OLD INFO, Specific to Acton, Massachusts, from before the Acton 2024 Town Meeting vote. NOTE: If there are errors in the Town Meeting info on ResponsibleZoning.org, please know the the authors did not intend to publish errors. The Town refused to provide numbers and we did our best to estimate based on work by local volunteer financial analysts/engineers.
We'll keep the info
for historical purposes.
TENANT DISPLACEMENT RISK
The MBTA Zoning will create an economic incentive to destroy existing affordable housing at Dover Heights VOTE NO! on Article 12!
The MBTA zoning, if passed, will create significant changes to landlord economics that would impact modest income families at Dover Heights apartment complex.
VOTE YES for IMPACT analysis, so we can know for sure whether MBTA Zoning could increase the risk of mass eviction!
At Dover Heights, 72 modestly priced [naturally affordable] apartments currently exist, on close to 9 acres of buildable land. The apartment complex is currently valued at about $10 million, or about $140,000 per apartment.
If the proposed zoning passes, we estimate that at least 250 market-rate [the highest price the market will bear] condos would fit on the property. In Acton, the lowest price for a newly built condo is $700,000. That would make the property worth over $100 MILLION. How long do you believe tenants would be able to stay at Dover Heights once the zoning passes, if the owner can make his $10 million property worth $100 million? The Town of Acton tells us that the current owner has "no plans" to do that. That is NOT enough assurance for these families! Verbal assurances are NOT enough to keep the tenants secure in their homes!
If the proposed zoning passes, we estimate that at least 250 market-rate [the highest price the market will bear] condos would fit on the property. In Acton, the lowest price for a newly built condo is $700,000. That would make the property worth over $100 MILLION. How long do you believe tenants would be able to stay at Dover Heights once the zoning passes, if the owner can make his $10 million property worth $100 million? The Town of Acton tells us that the current owner has "no plans" to do that. That is NOT enough assurance for these families! Verbal assurances are NOT enough to keep the tenants secure in their homes!