Amendment #644 to H5562

Local Housing TIF

Mr. Vargas of Haverhill moves to amend the bill SECTION XXXX. Section 60 of Chapter 40 of the General Laws is hereby struck in its entirety and replaced with the following:-

Section 60. Housing tax increment financing

Section 60. Notwithstanding any general or special law to the contrary, a city or town by vote of its town meeting, town council or city council with the approval of the mayor where required by law, on its own behalf or in conjunction with 1 or more cities or towns and under regulations issued by the executive office of housing and livable communities, in consultation with the department of revenue, may adopt and prosecute a housing tax increment financing agreement, in this section referred to as an HTIF agreement, intended to encourage increased residential and mixed-use growth; provided, however, that the HTIF agreement shall:—

includes a description of the parcels to be included in the agreement; provided, that in the case of an HTIF plan adopted by more than 1 city or town, the areas designated as HTIF zones shall be contiguous areas of those cities and towns;

describe the construction, reconstruction, rehabilitation and related activities, public and private, contemplated for such HTIF agreement as of the date of the adoption of the HTIF agreement; provided, however, that in the case of public construction, the HTIF plan shall include a detailed projection of the costs and a betterment schedule for the defrayal of such costs; provided, further, that the HTIF plan shall provide that no costs of such public construction shall be recovered through betterments or special assessments imposed on a party which has not executed an HTIF agreement in accordance with clause (v); and provided, further, that in the case of private construction, the HTIF plan shall include the types of residential and mixed-use growth which are projected to occur, with such documentary evidence of the level of private investment and projected public benefits, including but not limited to architectural plans and specifications;

authorize tax increment exemptions from property taxes, under clause Fifty-first of section 5 of chapter 59, for a specified term not to exceed 20 years, for any parcel of real property which is included in an HTIF agreement; provided, however, that the HTIF plan shall specify the level of exemptions expressed as exemption percentages, not to exceed 100 per cent to be used in calculating the exemptions for the parcel, and for personal property situated on that parcel, as provided under said clause Fifty-first of said section 5 of said chapter 59; provided, further, that the exemption for each parcel of real property shall be calculated using an adjustment factor for each fiscal year of the specified term equal to the product of the inflation factors for each fiscal year since the parcel first became eligible for such exemption under this clause; provided, further, that the inflation factor for each fiscal year shall be a ratio:

the numerator of which shall be the total assessed value of all parcels of real estate that are assessed at full and fair cash value for the current fiscal year minus the new growth adjustment for the current fiscal year attributable to the residential and mixed-use real estate as determined by the commissioner of revenue under subsection (f) of section 21C of chapter 59; and

the denominator of which shall be the total assessed value for the preceding fiscal year of all the parcels included in the numerator; provided, however, that such ratio should not be less than 1.

establish a maximum percentage of the costs of any public construction, referenced in clause (ii) and initiated subsequent to the adoption of the HTIF agreement, that can be recovered through betterments or special assessments against real property eligible for tax increment exemptions from property taxes under clause (iii) during the period of the parcel's eligibility for exemption from annual property taxes under said clause Fifty-first of said section 5 of said chapter 59, notwithstanding chapter 80 or any other general or special law authorizing the imposition of betterments or special assessments;

includes: (a) all material representations of the parties which served as the basis for the descriptions contained in the HTIF agreement in accordance with the provisions of clause (ii); (b) a detailed recitation of the tax increment exemptions and the maximum percentage of the cost of public improvements that can be recovered through betterments or special assessments regarding such parcel of real property pursuant to clauses (iii) and (iv); (c) a detailed recitation of all other benefits and responsibilities inuring to and assumed by the parties to such agreement; and (d) a provision that such agreement shall be binding upon subsequent owners of such parcel of real property;

delegate to a board, agency or officer of the city or town, the authority to execute agreements in accordance with the provisions of clause (v);

requires of an owner of a parcel pursuant to clause (v) to submit to the city or town clerk a report detailing the status of the construction laid out in the agreement; the current value of the property; and the number of housing units created to date as a result of the agreement; provided, however, that a report shall be filed every two years for the term of the tax increment exemption allowed under clause 51 of section 5 of chapter 59; and provided further, that a final report shall be filed in the final year of the exemption.

The board, agency or officer of the city or town authorized pursuant to clause (vi) to execute agreements shall forward to the board of assessors a copy of each approved HTIF agreement, together with a list of the parcels included therein.

SECTION XXX. Section 3E of Chapter 23A is hereby amended by:

Striking in subsection (a) the words “or (iii) a private project or investment that contributes significantly to the resiliency of the local economy” and inserting its place the following:

“(iii) the creation of new housing units, or

(iv) a private project or investment that contributes significantly to the resiliency of the local economy.”

Adding the follow new subsection (d):

“(d) If a municipality offers tax increment financing to the owner of a residential or mixed-use real estate project, the municipality shall notify the executive office of housing and livable communities by submitting a fully executed copy of the adopted local incentive agreement and any amendments thereto.”

Additional co-sponsor(s) added to Amendment #644 to H5562

Local Housing TIF