Section 40V:4 - Certified housing development projects; criteria for eligibility; approval of development project designation(a) A project may be eligible to be a certified housing development project under this chapter; provided, however, that the proposed project: (i) contains 2 or more residential units; provided, however, the project may be a mixed-use development that includes commercial uses in addition to residential units;(ii) [Deleted by 2014 amendment];(iii) is located in a designated or proposed HD zone;(iv) contains at least 80 per cent market rate units upon completion of the rehabilitation, to be sold or leased;(v) has received from the municipality a property tax exemption under section 5M of chapter 59; and(vi) involves either new construction or the substantial rehabilitation of an existing property.(b) The department may from time to time certify 1 or more housing development projects, located in HD zones designated under section 2 as certified projects under this section and take any and all actions necessary or appropriate to such a designation, upon compliance with the following: (i) receipt of a project proposal for such a designation requesting such designation from the municipality, submitted in a timely manner, in such form and with such information as the department prescribes, supported by independently verifiable information and signed under the penalties of perjury by a person authorized to bind the sponsors;(ii) receipt of an agreement executed by the municipality that is approved by the department and contains a tax exemption under section 5M of chapter 59 and this section so long as the municipality has determined and incorporated in a formal written determination, based on the information submitted with the project proposal and such additional investigation as the municipality shall make, that the project as described in the proposal and all documentation submitted with the proposal: (A) is consistent with and can reasonably be expected to benefit significantly from the gateway municipalitys plans relative to the project property tax exemption;(B) together with all other projects previously certified and located in the same project HD zone, shall not overburden the municipalitys supporting resources; and(C) together with the municipal resources committed to the project, shall, if certified, have a reasonable chance of increasing residential growth, diversity of housing supply, supporting economic development and promoting neighborhood stabilization in 1 of the municipalitys housing development zones of the municipality as advanced in the proposal; and(iii) receipt with such written approval by the municipality of a request for a designation of the project as a certified housing development project for a specified number of years, which shall be not less than 5 years and not more than 20 years.(c) The department shall evaluate and either grant or deny any project proposal not later than 90 days from the date of its receipt of a complete project proposal and failure to do so by the department shall result in approval of such project for a term of 20 years. Approval of a project due to the departments failure to act within 90 days shall not constitute approval by the department of any tax incentives provided under chapter 62 or 63.(d) The department may impose a fee for the processing of applications for the certification of any project under this section.(e) The department shall review each pending project proposal and completed certified housing development project not less than once every 2 years. The certification of a project may be revoked by the department if: (i)(A) the municipality that approved the project proposal files a petition that satisfies the authorization requirements for a municipal application or the petition of the director of the department; and (B) the department determines, after an independent investigation, that representations made by the sponsors in its project proposal are materially different from the conduct of the sponsors subsequent to the certification and such difference is found to frustrate the public purposes that the certification was intended to advance; or (ii) the project no longer meets the criteria in this section. Upon revocation, the commonwealth and the municipality may bring a cause of action against the sponsors for the value of any economic benefit received by the sponsors prior to or subsequent to such revocation.Under this section, revocation shall take effect on the first day of the tax year in which the department determines that a material variance commenced. The commissioner of revenue may, as of the effective date of the revocation, disallow any credits, exemptions or other tax benefits allowed by the original certification under this section. The commissioner shall issue regulations to recapture the value of any credits, exemptions or other tax benefits allowed by the certification under this section.
Annually, on or before the first Wednesday in December, the department shall file a report detailing its findings of the review of all certified housing development projects that it evaluated in the prior fiscal year to the commissioner of revenue, to the joint committee on revenue and the joint committee on housing and community development. The report shall include, but not be limited to: (i) a list of municipalities with approved HD zones;(ii) a list of housing development projects that have received certification;(iii) information about each housing development project, including the site address, project sponsor, range of rents of the residential units, type of residential units, number of each type of residential unit, number of affordable rental units for persons whose income is not more than 60 per cent of the area median income and the number of affordable owner-occupied units for persons whose income is not more than 80 per cent of the area median income; and(iv) the total amount of qualified project expenditures for which a tax credit was issued or reserved pursuant to section 5 for each housing development project, the year the credit was issued and the completion or estimated completion year of the housing development project.
Mass. Gen. Laws ch. 40V, § 4
Amended by Acts 2020 , c. 358, §§ 51, 52, 53, 54 eff. 1/14/2021 and applicable to tax years beginning on or after 1/1/2021.Amended by Acts 2016 , c. 219, §§ 58, 59, 60, 61 eff. 8/10/2016, op. for tax years beginning on or after 1/1/2017.Amended by Acts 2014 , c. 287, § 40, eff. 8/13/2014.Added by Acts 2010 , c. 240, § 105, eff. 8/1/2010.