BIDDEFORD — The Biddeford City Council has directed the Planning Board to examine a proposal to change the density bonus in the Main Street Revitalization District (referred to as MSRD) 2 zone to allow more units as long as they are deemed affordable.

In this case, affordable means the units would be aimed at those who earn a maximum of 80 percent of the median income for the area, which in November was pegged at slightly more than $50,000 annually.

That decision, and another that directs the Planning Board to consider a clause that would grant an applicant additional density if the request is within 90 percent of the minimum acreage required per unit, would come back to the council for further discussion and a vote.

The decisions came after a committee of the whole discussion — essentially a general conversation without a vote — of the council’s goals to increase the amount of housing in the city overall and also the amount of affordable housing.

In November, the council adopted goals they’d like to accomplish over five years, including an increase in home ownership from 48 percent to 51 percent; increase the number of available “next” homes for people looking for larger living quarters, and create 200 homes for first-time buyers, with the latter affordable to households earning 80 to 120 percent of Biddeford’s median income of $50,327, by 2026. Another goal is to create or preserve 90 affordable rental units a year over five years, targeted to serve those making 40 to 80 percent of median income, with at least half created through new construction. The council also wants to rehab 65 existing units a year for the next three years, making them lead-free.

Research conducted in 2020 by city staff shows that from 2013 to 2017, the selling price for apartment buildings was around $51,000 per unit. Beginning in 2018, the selling prices — and the corresponding rents charged — increased. In 2020, the average selling price was $94,518 per unit.

Market rates have increased faster than the ability to pay, based on Biddeford’s $50,327 median income, and rents have increased more since the Maine Energy Recovery Company incinerator closed in 2012, according to city documents. City staff report that a market rate apartment renting at $863 a month in December 2012 rented at $1,211 a month in 2020. An apartment deemed affordable at around $730 a month in December 2012 was at $950 in 2020. Some premiere downtown rents exceed $2,000 a month.

City staff began to sort out what tools the city could use to begin to deal with affordable housing issues starting this year and presented ideas to the council on Jan. 19.

Among the ideas broached by the Planning and Development Department are an exploration of potential zoning changes in specific neighborhoods to support the creation of additional housing units. Those changes could include a relaxation of minimum lot size, setbacks, and road frontage requirements, and others, like adopting mixed commercial and residential use provisions in growth areas, Planning and Development Director Mathew Eddy wrote in a memo to the City Council. He also suggested marketing of the city’s accessory dwelling unit ordinance.

“We have some limitations — we can’t do it all at once,” City Manager James Bennett told the council. He also asked for their input and a list will be created to outline potential next steps.

Councilor Marc Lessard suggested Biddeford adopt an ordinance he said is in effect in Saco that addresses “back lots” — existing narrow, deep lots — where an access driveway may be made from the side and a second lot could be created behind the front lot.

“Maybe 50 to 60 houses could be built that way,” said Lessard, noting the back lots wouldn’t have street frontage, so would cost less.

Councilor Amy Clearwater said some tasks that had been suggested could be too difficult to take on in one quarter, and she expressed worry about rezoning at this juncture, while the Comprehensive Plan process is ramping up. “I worry about doing zoning too fast when we have the opportunity to have the discussions and get feedback from the neighborhoods,” she said, referring to an expected public meeting as part of the restarted Comprehensive Plan process.

Councilor Norman Belanger worried about the numbers — noting the stated desire to increase home ownership from 48 percent to 51 percent. “I feel like we’re pulling the numbers out of our hat … is 51 percent really better than 48 percent? (I have) trouble setting in stone certain numbers,” Belanger said, in part.

“I support the goals and strategies as a whole,” said Councilor Michael Ready. But he expressed worry that staff is already stretched thin. “We have a Comprehensive Plan that is almost as old as I am,” said Ready, noting that revamping of the plan was in process when he was assigned to that committee 8 1/2 years ago.

Council President John McCurry agreed, adding that the Planning Board has a lot on its plate at present as well.

Councilor Stephen St. Cyr said he favored the goals, but wanted more specifics on costs and sources of funding.

“If any of this is coming from Biddeford taxpayers, I’d have to look long and hard at this,” he said.

“The affordability issue is accelerating in the wrong direction so fast and beyond anyone’s expectations that another day is another increase,” said Bennett. He agreed staff is busier than ever, but said some measures could be taken now, such as addressing the density bonus.

The City Council approved a density bonus program a couple of years ago, which allowed multi-unit dwelling owners to add additional units if buildings were upgraded to specific standards. Essentially all units created in that district now qualify for the bonus because market conditions have mandated those higher standards, Bennett said. He suggested a density bonus aimed at adding affordable units instead is something that could be accomplished with relative ease.

The affordable clause in the proposed density bonus plan for MSRD 2 also calls for the Planning Board to examine other zones.

Both proposals were directed to the Planning Board for public hearing and review, before returning to the City Council.

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