SECTION 1. Chapter 40R of the General Laws, as most recently amended by Chapter 268 of the Acts of 2022, is hereby amended in section 9 by striking out subsections (a) and (b) and inserting in place thereof the following:-

(a) The commonwealth shall pay from the trust fund or other funds from appropriations or other money authorized by the general court a zoning incentive payment, according to the following schedule:

Projected Units of New Construction Payment

Up to 20 $20,000

21 to 100 $150,000

101 to 200 $400,000

201 to 500 $740,000

501 or more $1,200,000

Subject to any conditions imposed by the department as a condition of approving a smart growth zoning district or starter home zoning district, the zoning incentive payment shall be payable upon confirmation of approval of the district by the department. The projected number of units shall be based upon the zoning adopted in the smart growth zoning district or starter home zoning district.

(b) The commonwealth shall pay from the trust fund or other funds from appropriations or other money authorized by the general court a one-time density bonus payment to each city or town with an approved smart growth zoning district and a one-time production bonus payment to each city or town with an approved starter home zoning district. This payment shall be $6,000 for each housing unit of new construction created in the smart growth zoning district and $6,000 for each housing unit of new

construction created in the starter home zoning district. The amount due shall be paid on a unit-by-unit basis in accordance with department regulations, upon submission by a city or town of proof of issuance of a building permit for a particular housing unit or units within the district.