760 Mass. Reg. 58.02
The UCH TIF Program gives cities and towns the ability to promote residential and commercial development in commercial centers within areas of concentrated development through tax increment financing that provides for property tax exemptions on all or part of the increased value of improved real estate. Tax increment financing may be combined with grants and loans from other local, state and federal development programs. The municipalities and owners may agree on betterments and special assessments to pay all or part of the cost of public infrastructure necessary for the development.
An important purpose of the program is to increase the amount of affordable housing for households with incomes at or below 110% of area median income (AMI). Therefore, improvements to real property undertaken as part of a city or town's UCH TIF Program shall be primarily residential. To the extent such housing is affordable to households with incomes at or below 80% of area median income it will count toward the municipality's goal of 10% low or moderate income housing on the Department's Subsidized Housing Inventory in accordance with Department guidelines. The UCH TIF Program requires owners receiving an exemption to meet certain affordability thresholds in accordance with M.G.L. c. 40, § 60.
In order to take advantage of the program a city or town must adopt a detailed urban center housing tax increment financing plan for certain designated areas which are commercial centers within an area of concentrated development. The plan must show the need for multi-unit housing in the designated area and must contain detailed development plans for the area. The Department must approve each designated area and each plan, as well as each agreement with owners, in order to ensure compliance with program requirements set out in the statute, the regulations and associated guidelines.
760 CMR 58.02