SECTION 1. Chapter 40A of the General Laws is hereby amended by inserting after section 9C the following section:-

Section 9D. A city or town that adopts or has adopted an inclusionary zoning ordinance or by-law may also adopt an ordinance or by-law establishing a veterans’ preference in private development.  A city or town that adopts a veterans’ preference pursuant to this section may offer up to 10 per cent of the city or town’s low or moderate income housing inventory pursuant to sections 20 through 23, inclusive, of chapter 40B and its implementing regulations to a qualified veteran before the lottery process. This section shall not increase existing amount of such affordable units set by the city or town. A veteran who meets all existing requirements for eligibility for low or moderate income housing shall be eligible for such veterans’ preference; and the city or town may require proof of veteran status as the city or down deems necessary. If no veteran is eligible for such veterans’ preference units, said units shall revert back to the general lottery.