PEABODY – The city’s legislative delegation is putting its full political support behind a change in the affordable housing law that could stop a controversial Peabody housing project on Bartholomew Street and alter the course of development in the city.

“This is huge,” said Rep. Ted Speliotis, D-Danvers. “ It doesn’t get any bigger.”

The legislation, which is still being drafted, would allow a community to count 50 percent of its total number of mobile home units toward the city’s overall affordable housing count.

Under what is called the Chapter 40B affordable housing law, communities must have 10 percent of their housing stock deemed “affordable” under a state formula. Until communities hit that magic number, developers can pretty much ignore local zoning laws if they set aside a certain number of units as “affordable.”

By counting half of Peabody’s more than 700 mobile home units, Peabody would be well over the 10 percent threshold – it’s at about 9 percent now – and any 40B proposals making their way through the city’s approval process would be stopped cold.

“If we were to reach 10 percent tomorrow, all bets are off with the pending applications,” Peabody Community Development Director Jean Delios said.

That could kill the controversial 88-unit Lichtfield housing project, which is proposed for a hilltop above Bartholomew Street. The plan has met strong neighborhood opposition, including one neighbor who would have an entrance road to the development 40 feet from his bedroom window.

“It wouldn’t be an issue anymore,” said Rep. Joyce Spiliotis, D-Peabody.

The change also would benefit Danvers, which has about 240 mobile home units. But because only 2.5 percent of the town’s housing stock is considered affordable, Speliotis said, this would not put Danvers over the 10 percent threshold.

‘Not Happy’

Chapter 40B was created to encourage development of affordable housing throughout the state, particularly in more affluent communities where zoning restrictions have blocked lower-cost developments. But local officials have been complaining about the law for years, saying it allows communities such as Peabody to be held hostage by developers.

“The city is not happy with 40B,” said Mayor Mike Bonafanti, one of the primary proponents of the change, “in the sense you can have a developer come in and use it as a club to put housing where they want, rather than doing what is best for the residents.”

In response to complaints, the Legislature is set to vote on a bill developed by a joint housing committee. The bill would require 40B proposals to take into account issues such as appropriate design and density, surrounding land uses and the impact on natural resources and wetlands. It also would change how some units are counted.

Senate Majority Leader Fred Berry, D-Peabody, a strong advocate for the 40B law and construction of affordable housing, said he supports the change because it is a fair way to count mobile homes.

“I think it is a safe assumption that 50 percent (of mobile homes) fall into the category,” he said.

Previously, the Legislature had considered having mobile home park owners complete income reporting statements in order to prove the units really were affordable. But Berry said that’s unfair.

“Why should they fill out an income form and reveal their own personal information?” Berry asked.

Good prospects

Berry, Spiliotis, and Speliotis are confident the initiative will pass. With mobile home parks in more than 100 communities in Massachusetts, the legislation should have broad support. And Berry said he has received assurances from the governor’s office that Gov. Mitt Romney will sign the bill.

Tom O’Leary, a Peabody mobile home park advocate, supports the change.

“It is fair to the residents and helpful to our city,” he said.

“We’re hoping that the Legislature is going to be able to get to this before the holiday break, which is Nov. 19,” said Delios.

The mobile home park change is expected to be attached to an amendment to the new 40B bill in the House, Berry said, and it would be included in the text of the bill in the Senate version.

But if it is not considered before the holiday break, it would have to wait until the legislators return in January, which could be too late for the Bartholomew Street project. The project is more than midway through its approval process.