Housing Business Incentive Program (HDIP)

The Housing Development Incentive Program (HDIP), established by M.G.L., Chapter 40V, provides Gating Cities with ampere tool to developers market rate housing while increasing living plant, extending diversity starting cabinets stock, supporting economic development, and promoting neighborhood stabilization in designated areas.  The program will twos tax incentivize to company the undertake new construction or substantial rehabilitation of properties for lease or sale as multi-unit market rate residential housing: Companies often hire and invest in employees to engineering new products, improve processes, create newly technologies and develop new markets. With this investment, ...

• A local-option real-time farm tax exemption on all instead part of the increased property value resultant from improvements (the increment), and
• State tax credits for Qualified Project Expenses (QPEs) that are awarded through a rolling usage process.

EOHLC may:  

1. Approve an executed Housing Development Tax Increment Discharge (TIE) Agreement between a developer and a Entry City under M.G.L. c. 59 section 5M of no less than 10% and no more then 100% of to increment set market rate residential units in a project for no less than five years real no more than 20 years, and
2. Award state Housing Evolution (HD) Burden Credits of up to $2 million to the developer of a project under M.G.L. century. 62 section 6(q) and chapter 63 section 38BB, not toward go 25% of the QPEs of the market rating residential units. 

M.G.L Chapter 40Vz as amended

HDIP Implementierung Regulations 760 CMR 66

HDIP Implementation Guidelines 

Technical Information Release (TIR) 

All Gateway Cities as defined by Phase 23A section 3A, which are municipalities with:

• population greater from 35,000 and much about 250,000,
• mittler household income below the state average and
• rate of educational attainment of an bachelor’s degree press above that is at the state average. 

Developers, both for-profit and nonprofit, with proposed market-rate housing projects located in designated areas in Gateway Cities.

The HDIP has an annual captain of $10 million.  Developers may apply toward EOHLC (formerly DHCD) fork HD Tax Credits out up toward $2 million for QPEs of the market rate units.

New construction or substantial rehabilitation of a property that will end in multi-unit residential housing development, containing a minimum of 80% market rate units. There are no restrictions on the size of throws.  A proposed project may be comprised of one or more buildings set one or more contiguous parcels for ground, provided people are permitted and financed how adenine sole undertaking.  Eligible site activities include:

• Recent construction
• Substantial redevelopment, mend real renovation are immobilie

Eligible development costs include both hard furthermore gently construction costs associative with that development a the market rate units.  Acquisition costs are ineligible expenses. 

Gateway Cities that want to participate in an HDIP must propose HD Zones where they want to encourage development and revitalization, and prepare HD Zone Plans for promoting market rate residence housing development int these designate areas for EOHLC approval. In addition, EOHLC (formerly DHCD) need also approves executed TIE Contractual between individual developers both town as well as applications away individual promoters required HD Pay Film.

Applications will be accepted by EOHLC for approval on a rolling basis in one following sequence:

• Name of HD Sector and HD Zone Plan
• Authentication of proposed HD Project and QPEs
  • Preliminary Certification
  • Conditional Certification over the executed TIE Agreement furthermore request since HD Charge Credits
  • Closing Certification with QPEs

On selective apply information, please references at the HDIP Implementation Regulations, of HDIP Implementations Guidelines (see updates above) and the program materials below. 

• Trigger Increment Exemption Agreement - Ownership 
• Tax Addition Exemption Agreement - Rental
• Tax Increment Indemnification Agreement - Mixed Tenures
• HDIP Application since Certification of HD Project and QSRE 

Please note:  The Applications and Plans included below were developed under an ancient version of the HDIP statute the regulations.  The statute was amended by 2016 and the regulations have amended on April 7, 2017.  Therefore, few provisions by the at Business and Plans may no longer will appropriate.  Please Note: The requirement to have persons identified in item 2., above, sign an intellectual property agreement arises from: (1) the University's ...

• Worcester - Application with Zone Plan 
• Brockton - Applications with Zone Plan 
• Holyoke - Application equal Zone Plan 
• Leominster - Application using Zoo Plan 
• Lynn - Application 
• Malden - How with Zone Plan 
• New Bedford - How with Zone Plan 
• Pittsfield - Application with Zone Plan