SECTION 1. Section 2 of chapter 43D of the General Laws as appearing in the 2012 Official Edition, is hereby amended by inserting, after the definition "Governing body", the following new definition:-

"Housing Priority Zone", a privately or publicly owned property, a zoning district or a zoning overlay district zoned and designated for the development or redevelopment of housing which: (1) exceeds the allowable unit density by a minimum of 10 percent greater than the density allowed prior to designation as a priority zone; (2) includes a minimum of 40% of its units as affordable to those earning 80% or less of area median income; (3) may incorporate the use of zoning methods known as cluster development, as defined in Section 9 of Chapter 40A of the General Laws, or open space residential design; and (4) is designated a priority development site by the board, in consultation with the department of housing and community development.

SECTION 2. Chapter 43D of the General Laws, as so appearing, is hereby amended by inserting, after section 16, the following new section:-

Section 17. For the purposes of determining consistency with the definition of "consistent with local needs" contained in section 20 of chapter 40B, a housing unit developed in a housing priority zone shall be credited at the rate of 1.75 units upon the issuance of a building permit.

SECTION 3. The provisions of this Act shall expire five years following the date of its passage unless otherwise terminated, modified or extended.