Chapter 23A is hereby amended by adding the following section:-

              Section 68.  There shall be in the executive office of housing and economic development a housing development pilot program to offer incentives to cities and towns to zone for substantial multifamily housing and/or mixed use development in transit-oriented locations by funding transportation infrastructure investments in or near those zoning districts.

              (a) For the purposes of this section, unless the context clearly requires otherwise, the following words shall have the following meanings:

          “Multi-family housing”, a building with 3 or more residential dwelling units or 2 or more buildings on the same lot with more than 1 residential dwelling unit in each building.  For purposes of this section, multi-family housing must not be age-restricted and must include at least some units suitable for families. 

“Transit-oriented housing development”, a development that (1) produces multi-family housing and/or a mix of uses that includes multi-family housing, and (2) is located within ½ mile of an existing rail or rapid transit station, a public transportation ferry terminal, or within a corridor with a fixed route bus service or would be so located if the city or town’s proposal under this section were implemented.

“Transit investments,” new public transit infrastructure, or improvements of existing public transit infrastructure, including but not limited to rail or rapid transit stations, ferry terminals, bus stations or corridor stops, dedicated lanes and signaling for bus rapid transit, rail or rapid transit vehicles, buses, and pedestrian and bike infrastructure to improve access to transit.

              (b) To demonstrate local interest and feasibility of a transit-oriented housing development program as set forth in this section, the secretary of housing and economic development, in consultation with the secretary of transportation, shall design a competition open to cities and towns to propose zoning changes to produce transit-oriented housing development in return for transit infrastructure investments in or near the proposed zoning district(s).  The secretary of housing and economic development shall issue a request for proposals within one year of enactment of this section.  The competition may be structured to provide opportunities for cities and towns of different sizes and in different regions to be selected, and may allow municipalities to submit joint proposals.  The request for proposals shall allow cities and towns to propose transit investments already under consideration by the Massachusetts Department of Transportation and its agencies or to propose new investments. 

              (c) The secretary of housing and economic development and the secretary of transportation shall jointly make their selection within 120 days of receiving proposals from cities and towns.  If the secretaries jointly find that no proposal is appropriate for selection, the secretary of housing and economic development may either re-issue the request for proposal with changes as needed, or the secretaries may jointly terminate the pilot. The secretaries shall use their discretion in making the selection, but shall consider at least the following criteria:

1.The number of new multi-family housing that would be produced. Including the number that would be deed-restricted units available for affordable and workforce housing and the number suitable for families;

2.The connectivity between the new multi-family housing units and proposed transit investment, particularly the ability of residents to walk and bike between the two;

3.Consistency of the proposed multi-family housing with the Commonwealth’s sustainable development principles;

4.Alignment of the proposed transit investment with existing plans of the Massachusetts Department of Transportation, particularly if the Department’s evaluation of the proposed investment would be favorably affected by the likelihood of greater ridership or outside financial contributions;

5.The feasibility of the proposed transit investment; and

6.Extent to which the proposal includes commitments of municipal or private funds that would contribute to the investment’s feasibility.   

(d)  With their selection, the secretaries shall outline an implementation plan that may include advancing a transportation investment with funding that has already been appropriated and/or may set forth an intent to seek funding from the legislature for the proposed investment.  The implementation plan shall specify the steps the selected municipality or municipalities must take to zone for and permit the contemplated transit-oriented housing development, and/or to contribute to funding the transit investment

              (e) The secretary of housing and economic development, in consultation with the secretary of transportation, shall report annually to the clerks of the house of representatives and the senate, who shall forward the report to the house of representatives and the senate, the chairs of the joint committee on housing, the chairs of the joint committee on transportation, and the chairs of the senate and house committees on ways and means, on the activities and status of the pilot program, including whether the program should be established on a continuing basis or terminated after the pilot is completed. The reports shall include the request for proposals issued, a list and description of all local proposals responsive to the request for proposal, identification of the selected proposal or proposals and the accompanying implementation plan, updates on implementation as appropriate, and any outcomes obtained through this pilot program.  When the secretaries jointly find that the pilot program is complete, secretary of housing and economic development shall issue a final report to the clerks.