SECTION 1.  Chapter 23A of the General Laws, as appearing in the 2018 Official Edition, is hereby amended by inserting, after section 68, the following section:-

Section 69.  There shall be in the executive office of housing and economic development a transit-oriented housing development pilot program to offer incentives to cities and towns to zone for substantial multifamily housing and/or mixed use development in suitable locations by funding transportation infrastructure projects 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 projects,” 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 agency shall design a competition open to cities and towns to propose zoning changes to produce transit-oriented housing development in return for transit infrastructure projects in or near the proposed zoning district(s).  The agency may structure the competition 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. In its request for proposals, the agency shall indicate that cities and towns may propose transit projects already under consideration by the Massachusetts Department of Transportation and its agencies or may propose new projects.  The secretary of housing and economic development, in consultation with the secretary of transportation, shall issue a request for proposals within one year of enactment.

(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:

(d)  With their selection, the secretaries shall outline an implementation plan that may include advancing a transportation project with funding that has already been appropriated and/or may include a request for project funding from the legislature.  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 project.

(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.