North Andover’s work on zoning for smaller homes is part of a regional initiative expanding to two more communities.

The Merrimack Valley Planning Commission announced a $63,500 state grant to extend its Chapter 40Y starter-home zoning work to Haverhill and Amesbury. The funding builds on a $109,000 grant awarded in 2025 for analysis in Newbury, North Andover and Merrimac, according to MVPC’s Nov. 2 announcement.

Both awards came through the Executive Office of Housing and Livable Communities’ Community Planning Grant Program.

North Andover’s work so far

North Andover’s Planning Department and MVPC presented Chapter 40Y’s requirements and potential approaches to the Planning Board on June 2, according to the town’s master plan implementation page.

The town’s Housing Production Plan, approved by the state in January 2025, identifies investigating smaller, appropriately sized starter homes as a strategy.

MVPC said participating communities’ housing plans found that new single-family construction often produces larger, higher-priced homes, limiting options for buyers seeking less expensive ownership opportunities.

The commission is using geographic information system mapping to assess potential district locations, environmental constraints and eligibility. It is also helping communities develop zoning language that meets state requirements while reflecting local preferences.

How Chapter 40Y works

Enacted in 2022, Chapter 40Y gives municipalities a voluntary tool to encourage smaller homes through designated starter-home zoning districts.

Qualifying homes are permitted as of right, meaning they do not require a special permit. Projects may still need site plan approval and other applicable permits.

Under the state law:

  • Starter homes cannot exceed 1,850 square feet of heated living area.
  • Districts must allow at least four homes per acre of developable land.
  • At least half the starter homes must have three or more bedrooms.
  • Developments exceeding 12 starter homes must make at least 10% affordable to households earning no more than 110% of area median income.

The program aims to expand lower-cost housing options, but not every home built under it would carry an income restriction.

Next steps

Municipalities adopting qualifying districts can receive state incentive payments.

North Andover’s published implementation update does not identify a Town Meeting date for a starter-home zoning proposal. The work remains focused on evaluating how the program could apply locally.