Section 4. (a) The starter home zoning district ordinance or by-law may require individual projects to design site plans in a manner that preserves developable land area as open space; provided, that the zoning ordinance or by-law shall allow for 4 starter homes per acre, including the developable land area preserved as open space. The zoning ordinance or by-law may provide for such open space to be preserved through a conservation restriction as defined in section 31 of chapter 184, by the grant of an easement or restriction to the municipal conservation commission or by such other means as is authorized by general or special law.

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(b) A local historic district may overlap with a starter home zoning district in whole or in part; provided, that the local historic district shall not render the city or town noncompliant with this chapter, as determined by the department.

(c) The zoning ordinance or by-law applicable to a starter home zoning district may include reasonable design standards applicable to individual starter home projects, to ensure that the physical character of development within the starter home zoning district is complementary to adjacent buildings and structures. Such standards may address the scale and proportions of buildings, the alignment, the width and grade of streets and sidewalks, the type and location of infrastructure, the location of building and garage entrances, off-street parking, the protection of significant natural site features, the location and design of on-site open spaces, exterior signs and buffering in relation to adjacent properties. A design standard shall not be adopted if it will add unreasonable costs to starter home developments or unreasonably impair the economic feasibility of proposed starter home projects.

(d) The starter home zoning district zoning ordinance or by-law may provide for site plan review of proposed starter home projects; provided, however, that such review shall be consistent with and subject to the following limitations:

(1) The starter home zoning district ordinance or by-law may require the applicant to pay for reasonable consulting fees to provide peer review of the applications for the benefit of the plan approval authority; provided, that fees shall be held by the municipality in a separate interest-bearing account and used solely for expenses associated with the review of the development application by outside consultants. Any surplus remaining after the completion of such review, including any interest accrued, shall be returned to the applicant.

(2) The starter home zoning district ordinance or by-law may provide for the referral of the plan to municipal officers, agencies or boards other than the plan approval authority for comment; provided, that any such board, agency or officer shall provide any comments to the plan approval authority within 60 days of its receipt of a copy of the plan.

(3) Notwithstanding any provision in the zoning code or by-law to the contrary, the decision of the plan approval authority shall be made, and a written notice of the decision filed with the city or town clerk, not later than 120 days after the receipt of a complete application by the city or town clerk, unless such timeframe for decision is extended by written agreement between the applicant and the plan approval authority. Failure of the plan approval authority to take action within said 120 days or extended time, if applicable, shall be deemed to be an approval of the plan. An applicant who seeks approval of a plan by reason of the failure of the plan approval authority to act within said 120 days shall notify the city or town clerk, in writing, within 14 days after the expiration of said 120 days or extended time, if applicable. Such notice to the city or town clerk shall specify relevant details of the application timeline demonstrating the lack of decision by the plan approval authority.

(4) Notwithstanding any provision of the starter home zoning district ordinance or by-law to the contrary, the plan approval authority may approve a site plan subject only to those conditions that are necessary to: (i) ensure substantial compliance of the proposed project with the requirements of the starter home zoning district ordinance or by-law; (ii) ensure public safety or the safety of persons living in or visiting the proposed project; or (iii) mitigate any extraordinary adverse impacts of the project on nearby properties.

(5) The department may establish additional standards or limitations for site plan review pursuant to this section.