THE EVERETT ADVOCATE – FRiDAy, JunE 16, 2023 Page 15 Senate tax bill spurs mixed-income housing production 23 Gateway City mayors and managers write to state legislators for HDiP Note: This info is from a June 12, 2023, post by MassINC staff .. T his week the Massachusetts Senate revealed its much-anticipated tax relief package. Mirroring language from Governor Maura Healey’s proposal, the bill includes provisions increasing the Housing Development Incentive Program (HDIP) to $57 million in FY 24 to clear a lengthy backlog of pending projects, followed by $30 million annually each year thereafter. MassINC anticipates that this expansion could create up to 12,500 homes in walkable downtowns and transit areas in our Gateway Cities, representing an investment of over $4 billion where it’s most needed. To help meet the urgent need for more income-restricted units, the Senate bill also increases the annual cap on the state’s Low Income Housing Tax Credit from $40 million to $60 million. Together, these two programs off er a powerful toolkit to foster more mixed-income neighborhoods. While the House tax plan did not include these changes, House members have long supported increasing the annual HDIP cap. Last July the body unanimously approved an economic development package with a comparable HDIP increase. MassINC encourages the House to embrace the Senate housing provisions as the bodies work together on a compromise package. Gateway City leaders have persistently made the case that HDIP is critical to unlocking the potential of Gateway Cities to address the state’s acute housing shortage and communities that want to build dense multifamily housing and rebuild their historic downtowns, but face diffi cult fi nancing barriers and regulatory challenges. This week mayors and managers from 23 Gateway Cities sent a letter to legislative leaders asking them to increase HDIP so that they can begin construction on dozens of planned housing developments that cannot obtain private capital without the HDIP incentive. Dozens of economic development organizations and housing developers have made a similar appeal. The legislature faces a complex task balancing the tradeoffs of the various tax changes that have been put forward to make the Commonwealth more competitive for businesses and more livable for residents. However, the central role that housing production can play in strengthening our Commonwealth is not up for debate. Massachusetts has not built suffi cient housing to keep pace with the growth of our population for over two decades; Gateway City housing markets have not contributed at their full potential for an even longer span. Each year that we underproduce, the hole gets deeper and the solutions more costly. A tax relief package with provisions that take a meaningful chunk out of the state’s housing crisis will put all businesses in a better position to grow. Equally important, greater housing production will relieve the stress on residents in all parts of the state. Too many parents lie awake concerned that their children will not be able to aff ord to stay here, or that they themselves will be pushed out of Massachusetts by rising rents. A tax package that makes a diff erence on the housing front would be welcome news to all this summer. Dear Senate President Spilka and SWM Chairman Rodrigues: We, the undersigned Mayors and Managers representing Gateway Cities, respectfully ask you to include the Housing Development Incentive Program (HDIP) in the Senate’s forthcoming tax reform package. We support the Healey-Driscoll language contained in H.42, An Act creating tax relief for aff ordability, competitiveness and equity, or the very similar language in H.2724/S.1779 sponsored by Rep. Antonio Cabral and Sen. John Cronin. Both versions include a one-year increase to address the program backlog, and an ongoing increase in the state tax credit cap from $10M to $30M. HDIP has been funded at its original pilot level ($10M) since its creation in 2013. Given its clear success in creating new multifamily housing in our downtowns and transit areas, right-sizing the program to meet the real need has been a top Gateway City priority for several years. We thank you for your past support, having TAX BILL | SEE PAGE 18
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