Principles for Redeveloping Former and
Current State Hospital and
State School Sites
Citizens’ Housing and Planning Association
July 2006
Primary Author: Charleen Regan, Housing and
Community Development Consultant
Endorsed by:
Adaptive Environments
Citizens’ Housing and Planning Association
Massachusetts Association for Mental Health
MetroWest Center for Independent Living
National Alliance for the Mentally Ill - MA
South Middlesex Opportunity Council
The ARC of Massachusetts
Principles for Redeveloping Former and Current State Hospital and State School Sites
Any state hospital or state school property that closes and is sold must provide benefits for the people with disabilities that once used such facility.
With the advent of more cost-effective, humane, community based services, it is now possible to consolidate these properties and the antiquated physical plants that are costly to maintain. This saves valuable tax dollars and frees the sites for new uses. The sale of these properties offers the opportunity to convert them to a community resource particularly for people with disabilities. Access to housing and jobs is essential to people with disabilities and their families.
The state hospital and school sites should be disposed of in a manner that maximizes benefits to clients of the Departments of Mental Health (DMH) and Mental Retardation (DMR).
The disposition benefits will vary by site. Some sites will include affordable community-based supported housing pursuant to applicable state and federal guidelines and employment opportunities on-site; other sites will generate a sales value that should be captured to support DMH and DMR housing and employment initiatives in the region.
Housing
State hospitals and schools are an important asset that should be used to address the need for affordable housing for DMH and DMR clients in the region.
DMH and DMR have a large, unmet need for affordable housing for clients. State hospitals and schools are significant assets that must be used to address the unmet housing needs of DMR and DMH. DMH estimates that 600 clients need housing placement each year. DMR estimates that 2,700 clients overall have unmet housing needs.
Housing Requirements
The sale of any site previously used for clients of DMH or DMR shall include requirements regarding the provision of housing for clients of those agencies. The hospital/school site asset can meet the housing requirement in a number of ways. 1) Developers can meet it by building affordable community-based supported housing, pursuant to applicable state and federal guidelines, on the grounds of the facility or, 2) by contributing to a fund to be used by the Department(s) to provide the housing off site or 3) the sale or transfer of the property can generate revenue that can be used by the Department(s) to provide housing off site.
The value of the land is a key component of determining the amount that can be captured by the public beneficiaries to meet their housing objectives. DCAM's master planning and disposition process should prioritize gaining maximum benefit from the disposition for community-based housing for the public beneficiaries. Insuring that the site's value is not unduly diminished by reduced density is an important consideration.
The achievement of the housing goals will depend on the value of the site. To the extent that the site's value does not achieve the unit count and affordability, the Department of Housing and Community Development will be asked to step in to meet the housing goals.
The developer may "value" the site based on the cost of achieving the Agencies' goals. The resulting savings from the reduced sales price will be used by the developer to provide the public benefits. DCAM may capture the full, unrestricted value of the site and apply it to sales proceeds to meet DMH/DMR's goals.
On site housing
Number of Units
Fifteen percent of the housing developed on the site, but not less than one
unit, must be set aside for clients of DMH or DMR. To be consistent with fair
housing requirements these units will include specific services unique to
individuals who have severe and persistent mental illness or who are
developmentally disabled and can qualify for services from DMH or DMR. The
appropriate department (DMH or DMR) should be responsible for providing
these services and must provide assurances of a long-term plan to meet the
Commonwealth's obligations to these clients.
With many competing recreation and conservation uses, and other amenities requested by host communities, housing development often is proposed at lower densities than the site can reasonably accommodate. In order to maximize the amount of housing developed, DCAM should require minimum density as part of the master planning and RFP process.1
- Types of units
- The housing units provided must be the type the commissioner(s) determine is needed by the Department's clients or those eligible to be clients. The units shall be designed for independent living, with support services provided by the Department(s) as appropriate for client needs. The Department(s) should provide DCAM and the developer with demographic information on the unit size and accessibility requirements of prospective residents. In addition, DCAM and the Department(s) shall ensure that the units comply with the Massachusetts Architectural Accessibility Code, the Fair Housing Amendments Act of 1988, and Sec. 504 of the Rehabilitation Act if the project receives direct federal funding. DMH/DMR shall provide the developer with clear instructions on physical design requirements and work to insure that they are compatible with the proposed conventional housing.
- Location on site
- The units shall be scattered throughout the site and should blend with the other dwellings in the housing development. Standard amenities similar to other units should be used in the set-aside units.
- Phasing
- The units must be provided in proportion to the number of units built. For example, if the development is planned in phases, the developer must provide 15% of each phase toward meeting the DMH/DMR requirements.
- Affordability of units
- Units set aside as part of the 15% requirement must be affordable to DMH/DMR clients. Clients' incomes are generally well below 30% of the area median income (AMI). Many clients, particularly those who rely on SSI, have incomes below 15% AMI. To be considered affordable for DMH/DMR clients, a unit must rent for no more than 30% of the income of a person whose income is 15% AMI. For example, in 2005 dollars in the Boston SMSA, a person at 15% of AMI makes $8,670 and can afford to pay not more than $216 a month for housing. Developers may utilize a variety of subsidy sources to achieve this level of affordability and should include this requirement in their site valuation analysis.
Deed Restriction
The housing developed on site should have a deed restriction as to use and affordability for the longest term possible.
Alternative Strategies for meeting the DMH/DMR housing requirement
The developer may request, and the agencies may agree, that some or all of the units may be provided off site.2 If the developer and Agencies opt for the off site option, there are a number of alternatives:
- DCAM, after maximizing the value of the site for the public beneficiaries in the planning process, can provide a mechanism for the sales proceeds to be used to create the housing required by DMH/DMR.
- The developer may build, acquire or rehab the units off site in towns that are part of the region that was served by the state hospital. The location, amenities and quality of the off site units must be acceptable to the agencies. The affordability requirements and deed restrictions will remain the same.
- The developer may partner with a non-profit entity to provide the units under the same terms and conditions as above and access the Facilities Consolidation Fund to help to meet the housing obligation.
- The developer may "cash out" the obligations to DMH/DMR by providing a sum of money equivalent to the cost of the units on the site that DMH/DMR would have otherwise been entitled to. The cost calculation may include an analysis of the costs of providing long-term affordability. These monies shall be spent by the Department(s) for the purpose of providing affordable community-based supported housing off site.
Employment and job training
Employment and job training are important benefits to consider as part of disposition process.
Appropriate and meaningful employment and job training may be provided on site, or it may be funded through a developer payment established to fund community support for such services. In addition to employment and job training, adult education and transportation are part of a comprehensive array of services that can be provided through an off site fund mechanism.
The process of disposition must include the Departments and advocates in a formal role.
Although DCAM is the state agency charged with property disposition, and it plays an important technical role, DMH and/or DMR as appropriate, should have a formal role in all master planning, issuing of the RFP for disposition, selection of the developer and a formal sign-off on the final disposition agreement. In addition, the designated agency must have enforcement rights in the Land Disposition Agreement (LDA) to insure compliance with the benefit requirements. The role of DMH or DMR should be statutory and significant.
Because the value of land on which these public benefits depends is determined by the master planning process, DMH and DMR should have more informed participation in the planning process by a designated and empowered party in the Department and be involved in direct negotiations as part of the DCAM team with any interested stakeholders, such as clients, client representatives and their families, municipalities, abutters, or the developer. DMH and DMR should procure the appropriate technical assistance to insure that the interests of the department and clients are clearly articulated and incorporated into master planning documents, RFPs and LDAs.
1 Mass. Gen. L. Ch. 40R density requirements may, depending on the site, provide guidance in achieving this; 40R mandates a density of at least 8 units per acre for single-family homes, 12 units per acre for 2- and/or 3-family homes, and at least 20 units per acre for multi-family housing.
2 While on-site housing is usually the preferred option, there may be circumstances in which the Agencies choose the off-site option due to location, client preference or cost factors.