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APPROPRIATION COMMITTEE-2.020 ATM 25 March 2020 implement the design, including building an alternative transportation node adjacent to the Bikeway, on both town land and also a small portion of this land owned by the LHS. This node would include bike racks, a bike repair station,and seating. The Town's efforts to gain permission from the LHS to build the node on their property culminated in negotiations for sale of the entire parcel to the Town. The selling price was reached by averaging two independent appraisals done by LHS and the Town. The Committee recommends approval by a vote of(8-0). Article 34 Authorize Special Legislation—Development Surcharge for Community Housing (Citizen Petition) Funds Requested Funding Source Committee Recommendation None N/A Pending This article proposes special legislation that attempts to mitigate the loss of moderate-income housing in Lexington by establishing a targeted and measured surcharge on specific residential development activities. This surcharge would fund the creation of community housing to address identified housing gaps, such as the need for housing attainable by Lexington municipal and school employees. The residential housing market in Lexington has been strong for the past ten years due to the abundance of high-paying jobs in greater Boston area, proximity to cultural and historical attractions, high-performing Lexington public schools,and a high level of municipal services.With a declining number of buildable lots and an increasing rate of teardowns for existing old homes, residential houses for sale have tended to be- come bigger and more expensive, putting them out of reach for most low-and moderate-income buyers in the area. To mitigate the loss of moderate-incoming housing resulting from the high demand for buildable parcels of land,this article would establish a residential linkage fee, "the community housing surcharge,"to be added to building permit fees for all new single-and two-family residential construction where an existing single- or two-family dwelling had been demolished. The Select Board would determine the amount of the community housing surcharge. That charge would vary depending on the certified total gross floor area of the structure or structure permitted by a building permit, and/or the specific type of real estate transaction. The Select Board would evaluate and adjust the rate of the community housing surcharge for inflation annually. The Select Board would be authorized to adopt additional requirements,exemptions,and regulations to implement or enforce the community housing surcharge. The Committee notes that the article does not specify a limit on the magnitude of the surcharge, but this could be amended by the Select Board. The building commissioner of the Town of Lexington would not issue a certificate of occupancy for a building until the applicable community housing surcharge required was paid in full. Alternatively, an ap- plicant intending to reside in the home could opt to have the amount of the surcharge added to the real estate taxes on the property,in which case it would not be due and payable until a sale of the home to a third party. If such an election were made, 20% of the surcharge would be abated each year for five years until fully abated. The goal would be to limit the application of the charge to those building on spec. The article contemplates that all received surcharges would be deposited into the Affordable Housing Cap- ital Stabilization Fund (AHCS) for future use. A two-thirds vote of Town Meeting would be required to dedicate such a revenue stream, once established,to the ACHS on an ongoing basis; and a two-thirds vote would be required to remove funds from the ACHS for a particular use or otherwise change the fund. 46