Gov. Baker Introduces $240M Economic Development Package

SALEM, MA—Massachusetts Gov. Charlie Baker announced earlier this week the introduction of a $240-million legislative package geared at producing more housing, building community and regional infrastructure capacity in response to climate change and supporting the creation of new jobs.

The legislative package encourages more market rate housing in Gateway cities by expanding the Housing Development Incentive Program; investing in affordable housing near transit; providing new flexible, responsive tools to build vibrant communities; and facilitating further economic growth and job creation by significantly increasing support for small businesses and industry clusters, state officials noted.

“Building on the success of our two previous economic development bills, An Act Enabling Partnerships for Growth invests in further housing development and supports small businesses and innovative companies throughout the Commonwealth,” said Gov. Baker. “This important legislation, partnered with our Housing Choice initiative, will continue our work to promote growth and success in every region of the state.”

This bill includes $50 million towards the construction of new affordable housing, including units for low- and extremely-low income residents, and housing near transit hubs like train and subway stations, while mitigating traffic congestion. It also invests $10 million in sustainable, climate-resilient affordable housing developments to mitigate climate change impacts and reduce greenhouse gas emissions. The legislation expands HDIP by increasing the incentive cap three-fold from $10 million to $30 million. To improve housing stability, the bill also makes $25 million available to non-profits, municipalities and community development corporations to support the reuse of blighted or vacant properties.

The governor made the announcement of the economic development package on Wednesday near the future BRIX Condominiums, new housing in Salem supported through HDIP. He was joined by Lt. Governor Karyn Polito, Housing and Economic Development Secretary Mike Kennealy and Salem Mayor Kimberley Driscoll. Close to the Salem Commuter Rail Station, BRIX will replace the former Salem District courthouse with 55 market rate condos, six affordable units, and 3,000 square feet of new commercial space as part of Salem’s ongoing effort to transform the northern part of its downtown.

Other highlights of the governor’s proposal include:

• $25 million for neighborhood stabilization to help non-profits, municipalities, and community development corporations return blighted or vacant housing back to productive use;

• $10 million for sustainable and climate-resilient construction in affordable, multi-family housing developments to better respond to climate change and reduce greenhouse gas emissions through use of efficient, sustainable design practices.

• $40 million for revitalizing underutilized properties by supporting the redevelopment of underutilized, blighted or abandoned spaces;

• $15 million for the reauthorization of the site readiness fund to continue assisting communities with site assembly and assessment, predevelopment permitting and other predevelopment activities;

• $10 million for a rural and small town development fund to support community development and infrastructure projects in rural communities and small towns;

• $5 million for a grant program to assist municipalities and regional efforts through planning and community capacity efforts on housing and economic development initiatives;

• $5 million for maintenance of broadband infrastructure in central and western Massachusetts;

• $45 million for a new research and development fund to strategically deploy resources in support of the technology and innovation ecosystems, such as key industry clusters and other emerging areas and leverage public-private partnerships;

• $10 million to expand the advanced manufacturing pipeline by providing state support for advanced manufacturing beyond the Massachusetts Manufacturing Innovation Initiative’s (M2I2) current scope to allow continued growth across the state;

• $10 million to enable community development financial institutions to reach underserved populations, such as women and minority-owned businesses, and leverage federal funding to support lending for small businesses in need of capital;

• $10 million for a matching fund to support large scale capital investments in tourism assets across the state; and

• $5 million for a matching grant program to support micro-businesses and low-to-moderate income entrepreneurs.