HADLEY — Two options for creating the town’s first smart growth district along the Route 9 corridor, aimed at incentivizing construction of new housing close to public transit, are included in a draft proposal brought forward by a Planning Board subcommittee.

Working closely with consultants from the Pioneer Valley Planning Commission, Planning Board member Mark Dunn, who has chaired the panel, told colleagues that the preliminary 22-page report shows one so-called Chapter 40R district that would encompass the eastern end of the state highway, including the shopping malls, while the other would run from where the Norwottuck Rail Trail passes below Route 9 and extend west to the Coolidge Bridge.

Dunn said the subcommittee has had public input sessions and other ways of getting feedback on the types of housing people would like to see. For the more heavily developed part of Route 9, housing might be denser and built up higher, while that in the historic overlay district would align with the character of the town center.

“We designed them to be a little bit different,” Dunn said.

The goal is to eventually bring a proposed zoning amendment to Town Meeting.

The study is being funded by a grant from the state’s Executive Office of Energy and Environmental Affairs.

Ken Comia, PVPC’s director of land use and environment, said any zoning amendment to create a Chapter 40R district would only require a majority vote due to changes in state legislation that encourages cities and towns to allow more homes to be built.

“It really is to allow or permit ease of housing production,” Comia said.

Comia said the smart growth district allows a formulaic process for housing construction with a model bylaw. The idea, Comia said, is to streamline permitting and as of right housing in the Route 9 corridor.

But the idea of building more housing is a concern for Planning Board member Joseph Zgrodnik, who said what Hadley residents want might be shunted aside for the will of the Legislature.

Dunn said the reality is that most parcels along Route 9 are already developed, there is very little developable land and, even if implemented, future projects may not be realistic.

The Planning Board is expected to have a full-fledged discussion on the proposal at its July 7 meeting.

That 20% of the housing would have to be affordable, providing hopmes for people making 80% of the area’s median income, is another worry for Zgrodnik, who observes this is double the amount of of the 10% requirement under the state’s Subsidized Housing Inventory.

Planning Board Clerk William Dwyer said Hadley could get state money for adopting a smart growth district, and on top of that would get more state money for build out of any units. Comia said there are zoning incentive payments and density bonus payments.

In fact, communities that adopt such districts get an upfront payment from the state, between $10,000 and $600,000, depending on how many projected units could be built, and an additional $3,000 payment for each unit that is brought online.

Dunn said Hadley could also benefit by having more families enroll in the school system.

Select Board member Randy Izer, who is on the subcommittee, said there would not only be more housing, but development of mixed-use projects with commercial on the first floor. if it does come to fruition, the town would see building up, rather than out, getting more property tax value.

Still, Zgrodnik wondered whether this would lead to more housing for area college students, that landlords are seeking so-called “student stuffers.”

“Just because the University of Massachusetts has abdicated its responsibility for its students, should it be our responsibility to build housing for them, too?” Zgrodnik said.

Izer said it’s about making affordable for children and grandchildren of residents.

Ronnie Williams of East Commons Drive, another subcommittee member, said older residents have large houses and nowhere else to move to. If more housing is created on Route 9, she said that some might be able to downsize to those homes, freeing up their larger residences for younger families.