The bill aims to modernize Chapter 40R of the General Laws by amending the zoning incentive payment structure and introducing new payment provisions for cities and towns with approved smart growth and starter home zoning districts. Specifically, it replaces the existing subsections (a) and (b) of Section 9 with a new payment schedule based on the projected number of new construction units, ranging from $20,000 for up to 20 units to $1,200,000 for 501 or more units. Additionally, it establishes a one-time density bonus payment of $6,000 for each housing unit created in these districts, payable upon proof of building permit issuance.

Furthermore, the bill amends Section 12 of Chapter 40R to require an analysis of the incentive payments to ensure they align with housing costs as measured by the Consumer Price Index. This analysis is intended to provide oversight and ensure that the incentive payments remain relevant and effective in addressing housing affordability. The act is set to take effect for tax years beginning on or after January 1, 2026.

Statutes affected:
Bill Text: 40R-9