CHAPA Priority Amendments for House Economic Development Bill (H.5007)
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On July 11, the House Committee on Ways and Means released its Economic Development Bill proposal (H.5007), originally filed by Governor Baker and reported out favorably by the Joint Committee on Economic Development and Joint Committee on Bonding. A summary of the housing related provisions in the bill is included below.
The House Ways & Means Committee included the $270 million in capital authorizations for affordable housing programs as originally filed by Governor Baker. The Committee also added additional funding for affordable housing to be funding through state American Rescue Plan Act (ARPA) Fiscal Recovery Funds and funds from the state’s revenue surplus. These housing funds include $100 million to create and support homeownership opportunities to close the racial homeownership gap and $75 million to support affordable housing projects led by developers of color.
House Ways and Means also included provisions to increase the rental tax deduction from $3,000 to $4,000 and increase the maximum senior property tax circuit breaker from $750 to $1,755.
As included in previous versions of the Economic Development Bill, House Ways and Means also included:
The House will vote on the bill later this week. Representatives filed more than 800 amendments to be considered during the bill debate. CHAPA will post a list of our priority amendments that will further strengthen the Economic Development Bill for affordable housing.
Summary of Housing Related Sections in 2022 Economic Development Bill
As reported out by the House Committee on Ways and Means on July 11, 2022
H5077, An Act investing in future opportunities for resiliency, workforce, and revitalized downtowns (FORWARD)
Section & Line Item |
Topic | Description | Amount |
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Funded from ARPA & Budget Surplus | |||
§ 2A – 1599-6060 |
Homeownership Equity |
Reserve for affordable housing and homeownership equity. Directs funds to be expended for creating and enhancing access to homeownership in socially disadvantaged communities. |
$100,000,000 |
§ 2A – 1599-6061 |
Equitable Developer’s Fund |
Reserve for equitable developers’ financing program. Projects must be in a Gateway City, qualified census tract, or community disproportionately impacted by COVID. The developer/sponsor must be controlled by someone who has been socially or economically disadvantaged or disproportionately impacted by COVID, to be defined by MassHousing. To be administered by MassHousing and/or MassDevelopment |
$75,000,000 |
Funded by Capital Spending | |||
§ 3A – 7002-8048 | MassWorks | Capital authorization for infrastructure development program | $400,000,000 |
§ 3A – 7002-8051 | Redevelopment of Blighted Properties | Capital authorization for MassDevelopment program to improve, rehabilitate, or redevelop blighted, abandoned, vacant, or underutilized properties to eliminate blight, increase housing production, support economic development, and other activities | $50,000,000 |
§ 3A – 7002-8052 | Technical Assistance for Planning | Capital authorization for technical assistance grants for municipalities and regional applicants to support planning and local initiatives related to community development, housing production, and other activities | $5,000,000 |
§ 3A – 7002-8054 | Rural Community Grants | Capital authorization for rural and small towns with less than 7,000 residents to support economic development, job creation, and housing and climate resilience initiatives | $10,000,000 |
§ 3B – 7004-0070 | Community Based Housing | Capital authorization for the development of integrated housing for people with disabilities with priority for individuals who are in institutions or nursing facilities or at risk of institutionalization | $32,100,000 |
§ 3B – 7004-0073 | Housing Stabilization Fund | Capital authorization for the acquisition, preservation, and rehabilitation of affordable housing, including foreclosed and distressed properties | $73,100,000 |
§ 3B – 7004-0075 | Public Housing Redevelopment Demonstration Program | Capital authorization for demonstration program that allows public housing authorities to use innovative public housing finance tools to leverage new funds and partners to rehabilitate public housing and reduce ongoing capital costs | $19,300,000 |
§ 3B – 7004-0076 | Housing Innovations Fund | Capital authorization to support the production of innovative and alternative forms of rental housing, including single person occupancy units, transitional and permanent housing for the unhoused, shelters for survivors of domestic violence, supportive housing, and housing for substance abuse recovery | $29,500,000 |
§ 3B – 7004-0079 | Housing at Transit Nodes | Capital authorization for program that supports the creation of smart growth, affordable housing near public transportation | $11,700,000 |
§ 3B – 7004-0081 | Public Housing | Capital authorization to help rehabilitate our state public housing stock. It allows local housing authorities to plan for capital improvements, renovations, abatement of hazardous materials, or to remodel homes for persons with disabilities. | $95,200,000 |
§ 3B – 7004-0084 | Climate Resilient Housing | Capital authorization for program to support production and preservation of sustainable and climate resilient affordable multifamily housing | $1,000,000 |
§ 3B – 7004-8026 | 40R Smart Growth Trust Fund | Capital authorization for the Chapter 40R smart growth trust fund | $6,900,000 |
§§ 7–21 | Brownfields Redevelopment Fund Program Changes |
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§§ 26–70 | 40R Changes | Removes starter home zoning districts from Chapter 40R | |
§ 71 | Starter Home Zoning Districts – Ch. 40Y | Creates Chapter 40Y for Starter Home Zoning Districts (“Districts”). Summary of changes to districts, as compared with 40R:
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§ 73 | Rental Deduction | Increases the rent deduction cap from $3,000 to $4,000 | |
§§ 75–77, 86–91 | Brownfields Tax Credit Extension | Extends the Brownfields Tax Credit program through 2028 | |
§ 78 | Senior Circuit Breaker Tax | Increases the maximum senior circuit breaker tax from $750 to $1,755. Those 65+ are allowed a credit equal to the amount by which the real estate tax payment exceeds 10% of the taxpayer’s total income. | |
§§ 79–82, 89–92 | Housing Development Incentive Program (HDIP) |
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§ 102 | Public Housing Reforms – Capital Funds | Adds definition of “capital funds” to the public housing statute, ch. 121B | |
§ 103 | Public Housing Reforms – Replacement Unit | Adds definition of “replacement unit” to ch. 121B to describe the former public housing units that will be the affordable housing units at the rehabilitated development. | |
§ 104 | Public Housing Reforms – Borrowing Against Capital Funds | Allows LHAs to borrow against their capital funds in order to leverage more resources for rehabilitation projects | |
§ 105 | Public Housing Reforms – Technical Amendment | Technical amendment to ch. 121B that clarifies that an LHA’s power to undertake the disposition of property includes a disposition by a means other than sale (e.g., long-term lease). | |
§ 106 | Public Housing Reforms | Revises the findings that DHCD must make to approve a sale or disposition of a public housing project to create greater opportunity for redevelopment of existing public housing, while adding a requirement for one-for-one replacement | |
§ 107 | Public Housing Reforms | Requires, as a condition of sale or disposition of an existing housing project, that the redevelopment partner enter into a binding land use restriction, requiring compliance with public housing restrictions with respect to replacement units in perpetuity, except in limited circumstances for projects utilizing federal low income housing tax credits. | |
§ 108 | Public Housing Reforms – Technical Amendment | Technical amendment to ch.121B | |
§ 109 | Public Housing Reforms – Technical Amendment | Technical change to ch. 121B to address powers of a housing authority when it is not financially feasible to maintain units to a reasonable program standard for occupancy even if the units have not yet fallen below that standard. | |
§ 110 | Public Housing Reforms – Technical Amendment | Technical correction to make clear that section 26(p) applies to certain types of dispositions as well as demolition. | |
§ 111 | Public Housing Reforms – Vacancy Requirement | Changes the requirement that a unit must be determined to be vacant as of November 1, 2012, in order for a housing authority to seek DHCD approval to dispose of or demolish the unit to a requirement that the unit be vacant for a two year period before disposition or demolition. | |
§ 112 | Public Housing Reforms – Procuring Redevelopment Partners | Adds provisions permitting LHAs to procure developer partners for redevelopment projects through a competitive, qualifications-based procurement process that will allow the disposition of property to the selected developer without having to go through a separate land disposition process. | |
§ 113 | Public Housing Reforms | Exempts LHAs that do not own, lease, or manage any state-aided public housing units from DHCD oversight. | |
§ 114 | Public Housing Reforms – Retaining Proceeds | Allows LHAs to retain the proceeds of the sale of any housing authority land for the purpose of rehabilitating other LHA property | |
§ 115 | Public Housing Reforms – Conforming Change | Conforming change to allow disposition of LHA property | |
§ 116 | Public Housing Reforms – Filed Sub-bid Exemption | Exempts public housing redevelopment projects from ch. 149 filed sub-bid requirements but does not relieve such redevelopment from prevailing wage requirements |
On July 7, the Department of Housing and Community Development (DHCD) posted a Notice of Funding Availability (NOFA) for an American Rescue Plan Act (ARPA) High Readiness Round. The NOFA can be viewed on COMMBUYS, the state’s online procurement record system.
According to the NOFA, DHCD will provide resources from ARPA fiscal recovery funds that the state authorized for affordable housing available to up to five multifamily rental projects that are highly ready to proceed. DHCD will accept applications on September 30. All applications must:
Please review the NOFA for further eligibility requirements for projects.
Letters of Intent to apply are due to DHCD by July 21, 2022. Pre-applications will be due by August 15, 2022, and full applications will be due September 30, 2022. DHCD plans to make awards by November 15, 2022.
Everyone in Massachusetts deserves the opportunity to live in a safe, healthy, and affordable home in the community they choose. By focusing on the production and preservation of affordable homes, equitable planning in all of our cities and towns, and prosperity of our neighbors and communities,
we can begin to undo discriminatory policies and barriers that have perpetuated segregation and hindered generational wealth-building for decades. With these legislative priorities, we can help our state recover from the impacts of COVID-19 while moving forward on long-term solutions to the affordable housing challenges we faced before the pandemic.
Updated June 2022 – pdf version.
Sponsors: Representatives Andy Vargas and Kevin Honan & Senator Brendan Crighton
This legislation will increase the production of affordable homes, remove restrictive zoning barriers, and proposes innovative solutions for land use in Massachusetts by:
Sponsors: Representative Kevin Honan
Decades of underfunding has left Massachusetts at risk of losing our public housing. This legislation will help restore the state’s public housing by allowing housing authorities to leverage new and additional resources for rehabilitation and redevelopment projects. This will help ensure that public housing will remain available for some of our most vulnerable residents.
An Act codifying the Massachusetts Rental Voucher Program (H.1428) An Act relative to the Massachusetts Rental Voucher Program (S.898) Sponsors: Representative Adrian Madaro & Senator Joan Lovely
This legislation would strengthen the Massachusetts Rental Voucher Program (MRVP) that currently serves almost 9,000 households. These bills would codify MRVP into state statute and make program improvements including reducing the tenant payment share, increasing administrative fees, requiring inspections, and improving data collection.
Sponsors: Representative Nika Elugardo & Senator Jamie Eldridge
Massachusetts is facing both an affordable housing crisis and a climate change crisis, unfortunately made worse by COVID-19. This legislation would double the deeds excise tax on the sale of real property and dedicate the estimated $300 million in annual revenue towards affordable housing and climate sustainability. The deeds excise tax is not only directly linked to rising real estate prices but it’s also an affordable and equitable way to generate revenue for the state of Massachusetts.
Sponsors: Representative Michael Connolly & Senator Joanne Comerford
This legislation would allow cities and towns the opportunity to enact a local transfer fee on real estate transactions in order to support affordable housing.
Sponsors: Representative Ann-Margaret Ferrante
This bill would reduce Community Preservation Act (CPA) recording fees for affordable housing in those cities and towns that have enacted the CPA.
Sponsors: Representative Christine Barber & Senator Sonia Chang-Díaz
Massachusetts has high levels of residential segregation. Restrictive local zoning and permitting decisions have helped create and perpetuate these patterns based on race, socioeconomic status, and familial status. These bills would prohibit municipal and state discriminatory zoning bylaws, ordinances, and land use decisions.
Sponsors: Representative Michael Moran & Senator Joseph Boncore
As soon as an eviction case is filed, a tenant has an eviction record that can impact people’s ability to obtain housing, credit, and employment. These eviction records are publicly available forever, regardless of the outcome. This legislation will protect tenants from being unfairly branded with an eviction record if they don’t have a judgment against them, if they weren’t actually evicted, or if they didn’t do anything wrong. H.4505 would require the court to seal an eviction record:
H. 4505 also makes it illegal for a tenant screening company or landlord to use or
report a sealed court record for purposes of screening a tenant.
On June 13, the Joint Committee on Economic Development advanced an Economic Development Bill (H.4864), originally filed by Governor Baker. The committee stripped $2.3 billion in federal American Rescue Plan Act funds from the bill. However, the bill still contains nearly $270 million in capital authorizations for affordable housing programs, a tripling of the Housing Development Incentive Program (HDIP), and reforms to increase housing authorities’ ability to rehabilitate and improve public housing. The bill is now before the Joint Committee on Bonding.
The Economic Development Committee expanded the increase to HDIP, increasing the program’s allocation from $10 million to $57 million for one year and then to $30 million for each year after that. The Committee also added a section that would reform the current receivership statute to allow the sale of properties put into receivership to a nonprofit entity if that nonprofit agrees to rehabilitate the property for affordable sale to a first time home buyer whose income is not more than 120% of the Area Median Income (AMI).
Summary of Housing Related Sections in 2022 Economic Development Bill
As reported out by the Joint Committee on Economic Development and Emergency Technologies on June 13, 2022
H.4864, An Act investing in future opportunities for resiliency, workforce, and revitalized downtowns (FORWARD)
Section & Line Item |
Topic | Description | Amount |
---|---|---|---|
§ 2A – 7002-8048 | MassWorks | Capital authorization for infrastructure development program | $400,000,000 |
§ 2A – 7002-8051 | Redevelopment of Blighted Properties | Capital authorization for MassDevelopment program to improve, rehabilitate, or redevelop blighted, abandoned, vacant, or underutilized properties to eliminate blight, increase housing production, support economic development, and other activities | $50,000,000 |
§ 2A – 7002-8052 | Technical Assistance for Planning | Capital authorization for technical assistance grants for municipalities and regional applicants to support planning and local initiatives related to community development, housing production, and other activities | $5,000,000 |
§ 2A – 7002-8054 | Rural Community Grants | Capital authorization for rural and small towns with less than 7,000 residents to support economic development, job creation, and housing and climate resilience initiatives | $10,000,000 |
§ 2B – 7004-0070 | Community Based Housing | Capital authorization for the development of integrated housing for people with disabilities with priority for individuals who are in institutions or nursing facilities or at risk of institutionalization. Summary of changes to program:
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$32,100,000 |
§ 2B – 7004-0073 | Housing Stabilization Fund | Capital authorization for the acquisition, preservation, and rehabilitation of affordable housing, including foreclosed and distressed properties | $73,100,000 |
§ 2B – 7004-0075 | Public Housing Redevelopment Demonstration Program | Capital authorization for demonstration program that allows public housing authorities to use innovative public housing finance tools to leverage new funds and partners to rehabilitate public housing and reduce ongoing capital costs | $19,300,000 |
§ 2B – 7004-0076 | Housing Innovations Fund | Capital authorization to support the production of innovative and alternative forms of rental housing, including single person occupancy units, transitional and permanent housing for the unhoused, shelters for survivors of domestic violence, supportive housing, and housing for substance abuse recovery | $29,500,000 |
§ 2B – 7004-0079 | Housing at Transit Nodes | Capital authorization for program that supports the creation of smart growth, affordable housing near public transportation | $11,700,000 |
§ 2B – 7004-0081 | Public Housing | Capital authorization to help rehabilitate our state public housing stock. It allows local housing authorities to plan for capital improvements, renovations, abatement of hazardous materials, or to remodel homes for persons with disabilities. | $95,200,000 |
§ 2B – 7004-0084 | Climate Resilient Housing | Capital authorization for program to support production and preservation of sustainable and climate resilient affordable multifamily housing | $1,000,000 |
§ 2B – 7004-8026 | 40R Smart Growth Trust Fund | Capital authorization for the Chapter 40R smart growth trust fund | $6,900,000 |
§§ 12–26 | Brownfields Redevelopment Fund Program Changes |
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§§ 33–81 | 40R Changes | Removes starter home zoning districts from Chapter 40R | |
§ 83 | Starter Home Zoning Districts – Ch. 40Y | Creates Chapter 40Y for Starter Home Zoning Districts (“Districts”). Summary of changes to districts, as compared with 40R:
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§§ 86–88, 94–96 | Brownfields Tax Credit Extension | Extends the Brownfields Tax Credit program through 2028 | |
§§ 82, 89–92, 97–99 | Housing Development Incentive Program (HDIP) |
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§ 105 | Receivership Statute | Reforms the current receivership statute to allow the sale of properties put into receivership to a nonprofit entity if that nonprofit agrees to rehabilitate the property for affordable sale to a first time home buyer whose income is not more than 120% AMI | |
§ 106 | Public Housing Reforms – Capital Funds | Adds definition of “capital funds” to the public housing statute, ch. 121B | |
§ 107 | Public Housing Reforms – Replacement Unit | Adds definition of “replacement unit” to ch. 121B to describe the former public housing units that will be the affordable housing units at the rehabilitated development. | |
§ 108 | Public Housing Reforms – Borrowing Against Capital Funds | Allows LHAs to borrow against their capital funds in order to leverage more resources for rehabilitation projects | |
§ 109 | Public Housing Reforms – Technical Amendment | Technical amendment to ch. 121B that clarifies that an LHA’s power to undertake the disposition of property includes a disposition by a means other than sale (e.g., long-term lease). | |
§ 110 | Public Housing Reforms | Revises the findings that DHCD must make to approve a sale or disposition of a public housing project to create greater opportunity for redevelopment of existing public housing, while adding a requirement for one-for-one replacement | |
§ 111 | Public Housing Reforms | Requires, as a condition of sale or disposition of an existing housing project, that the redevelopment partner enter into a binding land use restriction, requiring compliance with public housing restrictions with respect to replacement units in perpetuity, except in limited circumstances for projects utilizing federal low income housing tax credits. | |
§ 112 | Public Housing Reforms – Technical Amendment | Technical amendment to ch.121B | |
§ 113 | Public Housing Reforms – Technical Amendment | Technical change to ch. 121B to address powers of a housing authority when it is not financially feasible to maintain units to a reasonable program standard for occupancy even if the units have not yet fallen below that standard. | |
§ 114 | Public Housing Reforms – Technical Amendment | Technical correction to make clear that section 26(p) applies to certain types of dispositions as well as demolition. | |
§ 115 | Public Housing Reforms – Vacancy Requirement | Changes the requirement that a unit must be determined to be vacant as of November 1, 2012, in order for a housing authority to seek DHCD approval to dispose of or demolish the unit to a requirement that the unit be vacant for a two year period before disposition or demolition. | |
§ 116 | Public Housing Reforms – Procuring Redevelopment Partners | Adds provisions permitting LHAs to procure developer partners for redevelopment projects through a competitive, qualifications-based procurement process that will allow the disposition of property to the selected developer without having to go through a separate land disposition process. | |
§ 117 | Public Housing Reforms | Exempts LHAs that do not own, lease, or manage any state-aided public housing units from DHCD oversight. | |
§ 118 | Public Housing Reforms – Retaining Proceeds | Allows LHAs to retain the proceeds of the sale of any housing authority land for the purpose of rehabilitating other LHA property | |
§ 119 | Public Housing Reforms – Conforming Change | Conforming change to allow disposition of LHA property | |
§ 120 | Public Housing Reforms – Filed Sub-bid Exemption | Exempts public housing redevelopment projects from ch. 149 filed sub-bid requirements but does not relieve such redevelopment from prevailing wage requirements |