Northampton Housing Partnership members discussed a draft workforce housing special tax assessment district at their January meeting, focusing on income bands, developer incentives and how the draft would be implemented.

The draft plan would apply to workforce housing units targeted to households earning between 80% and 120% of the city’s area median income. Keith (staff member) said the plan is intended for that 80–120% range and that "we really wanna push for the 120%" to make projects more attractive to developers.

Members said the program is structured as a special tax assessment that delays a portion of property tax revenue for a fixed period to improve project feasibility during construction. Keith described the draft as a five-year plan that requires a named developer on the plan and starts the tax benefit once approvals are signed and effective in the following fiscal year. He said the draft is intended to be a low-barrier tool that the city can add developers to later if needed.

Bev (participant) provided numerical examples in the draft that members discussed during the meeting. One example in the draft used a hypothetical $1 million parcel; members said the calculation could produce roughly $250,000 in forgone tax revenue over the first one or two years under the proposed schedule. Members noted that the city would begin to receive the full tax benefit in later years and that the program would create new long-term tax revenue after the initial delay. A participant observed that current estimated construction costs can be roughly $500,000 per new unit, underscoring why developers seek such incentives.

Participants asked several procedural and design questions: whether developers could join the program after the plan is adopted (yes, members said developers could be added with approval), how long the program runs (the draft contemplates a five-year window), and when the tax relief period begins (tied to approvals and the next fiscal year). Participants also compared the draft’s 80–120% band to other state proposals and incentives for deeper affordability.

Members said the draft will be revised and circulated for further comment; staff intends to send a consolidated draft to the partnership for review before it is transmitted to city council for initial feedback. No formal vote on the draft occurred at the meeting.

The partnership plans to continue refining the draft and return it to a future meeting once staff has incorporated feedback.