Certified Public Accountants

2025-2026 Regular Session Introduced by Wes Climer

Provides up-front payments and $6,000-per-unit incentives to municipalities approving smart growth or starter-home districts, funded by the 40R trust fund, to spur housing.

Act No. 34

Overview

This bill (filed in the Massachusetts Senate by Senator Paul R. Feeney in January 2025) would amend Chapter 40R, section 9 of the Massachusetts General Laws to revise the state’s financial incentives for municipalities that adopt “smart growth” and “starter home” zoning districts. The amendment replaces existing subsections (a) and (b) with new schedules for zoning incentive payments and a clarified unit-by-unit bonus payment for new construction within approved districts.

Note on materials provided: the descriptive title in the header you supplied (“Relates to providing a civil action for deprivation of rights”) does not match the bill text, which clearly addresses Chapter 40R incentives for housing. Also, some listed committee referrals and sponsors appear inconsistent with a Massachusetts state bill; this summary focuses on the bill text itself.

Key provisions

Rewrites Section 9(a) — Zoning Incentive Payment Schedule:

Up to 20 projected new units: $20,000
21–100 projected units: $150,000
101–200 projected units: $400,000
201–500 projected units: $740,000
501 or more projected units: $1,200,000
Payments are payable upon Department confirmation of district approval. “Projected number of units” is determined from the zoning adopted for the district.

Rewrites Section 9(b) — One-time unit bonus payments:

A one-time density bonus for approved smart growth zoning districts and a one-time production bonus for approved starter home zoning districts.
Payment amount: $6,000 per newly constructed housing unit in the district (for both district types).
Payments are made on a unit-by-unit basis per Department regulations, upon submission by the municipality of proof of issuance of a building permit for each unit.

Who is affected

Municipalities that adopt approved smart growth zoning districts or starter home zoning districts (they would receive state payments).

Developers/builders — incentives encourage production of new housing and may affect project economics.

State budget/trust fund — payments would be drawn from the Chapter 40R trust fund or other appropriations authorized by the Legislature.

Fiscal and procedural notes

Funding source: the trust fund or other appropriations/authorized money.

Timing of payments: incentive payments upon district approval; $6,000/unit payments upon proof of building permit issuance and in accordance with Department regulations.

Legislative status (from provided record): introduced Jan 17–22, 2025; referred to relevant committees; a hearing was scheduled for 07/15/2025. (Records include some conflicting committee entries; the primary legislative sponsor is Paul R. Feeney.)

Potential impacts

Encourages municipal zoning reforms to permit higher-density or “starter home” development by providing up-front and per-unit financial incentives.

Could accelerate housing production in municipalities that adopt qualifying districts, contingent on marketplace response and municipal capacity to rezone.

Has a direct fiscal cost to the Commonwealth equal to the incentive schedules and per-unit bonuses, subject to appropriation.

Bill