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The 192nd General Court of the Commonwealth of Massachusetts

Section 9: Payments from trust fund; density bonus payment; use of discretionary funds

  Section 9. Each city or town with an approved smart growth zoning district or starter home zoning district shall be entitled to payments pursuant to this section.

  (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 $10,000
21 to 100 $75,000
101 to 200 $200,000
201 to 500 $350,000
501 or more $600,000

[ Second paragraph of subsection (a) effective until January 14, 2021. For text effective January 14, 2021, see below.]

  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, and consistent with either the city or town's comprehensive housing plan or housing production plan, if any, or the housing production summary submitted in accordance with section 8.

[ Second paragraph of subsection (a) as amended by 2020, 358, Sec. 41 effective January 14, 2021. For text effective until January 14, 2021, see above.]

  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 $3,000 for each housing unit of new construction created in the smart growth zoning district and $3,000 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.

  (c) The executive office of environmental affairs, the executive office of transportation, the department of housing and community development and the secretary of administration and finance shall, when awarding discretionary funds, use a methodology of awarding such funds that favors cities or towns with approved smart growth zoning districts or starter home zoning districts and other approved zoning policies or initiatives that encourage increased affordable housing production in the commonwealth including, but not limited to, inclusionary zoning.