Governor Proposes Incentives to Encourage Housing

Under the proposal, local aid bonuses will be awarded to communities in 2005 based on the number of occupancy certificates issued during previous year. The governor's office estimates that communities could receive up to $3,000 for each new and rehabilitated dwelling. The funds will come from the phasing out of the "Transitional Mitigation fund" which was provided temporarily in the governor's 2004 budget.

"If Massachusetts is to remain economically strong and competitive, it must have more housing that is affordable to those across a broad range of incomes," says Romney. "This local aid incentive will provide communities with additional funds to offset infrastructure and education expenses associated with a growing population."

In conjunction with the proposed incentives, the governor has also convened a task force to examine the state's Chapter 40B law affordable housing law. The controversial law, which was created in the 1970s to encourage the development of affordable housing in areas outside the city has come under criticism from local towns and municipalities because they contend that developers use the law to get their projects approved. Under the law, if a developer's project has 25% affordable housing and a town does not have 10% of its housing affordable, the developer can bypass local zoning laws to get its project permitted. But housing advocates champion the law, claiming that it has led to the creation of much needed units of affordable housing.

The governor's office says its task force will be looking at the law "with a view toward making improvements that remove the onerous aspects of the law while increasing progress in the affordable housing area."