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Senator urges updating Chapter 40R incentives to account for inflation and spur smart‑growth projects
Summary
Senator Pavel Payano told the Joint Committee on Housing that S.1021 would nearly double one‑time incentive payments and raise per‑unit bonuses to encourage municipalities to adopt smart‑growth zoning under Chapter 40R.
Senator Pavel Payano testified in support of S.1021, saying Chapter 40R — the smart‑growth zoning incentive program enacted in 2004 — no longer reflects today's costs and therefore discourages municipal participation. "The incentives reflect the economy and the value of the dollar back in 2004," Payano said.
Payano said the amendment would nearly double the one‑time 40R incentive payment and raise the per‑unit bonus payment from $3,000 to $6,000. He cited Haverhill as a historical example where two Chapter 40R projects in 2007 produced 362 housing units and delivered roughly $600,000 in one‑time incentive payments plus $1.1 million in density bonus payments to the city under the older payment structure.
Why it matters: Proponents said raising 40R payments would make smart‑growth overlays more financially attractive to municipalities and increase reuse and rehabilitation of downtown districts and mill space. Payano told the committee that updated incentives would help municipalities invest in infrastructure and services that accompany new housing.
Details from testimony: Payano described the proposal as including CPI adjustments and stronger per‑unit bonus payments to better align municipal incentives with current construction and labor costs. He framed the bill as a tool to promote equitable, transit‑oriented development and to encourage communities to adopt by‑right smart‑growth districts.
No committee votes were taken; the senator urged the committee to act favorably and promptly on the proposal.
