Bill
H 3094
Establishes the Rural Housing Development Incentive Program to promote substantial rehabilitation of existing 2+ unit properties in designated rural areas, with tax incentives for
Status & procedural history
- Bill number: H.3094 (House Docket No. 1881) — introduced/prefiled Jan–Feb 2025.
- Sponsor: Rep. Christopher R. Flanagan (1st Barnstable); additional sponsors added (Mitchell, Long, Oremus, Gibson, Huff, Edgerton, and Teeple).
- Referred to: Committee on Judiciary (initially), later referred to Revenue (2/27/2025). Senate concurrence and a hearing are noted (hearing scheduled 09/15/2025).
- Note: The provided bill text is truncated in places and also contains unrelated South Carolina legislation text; this summary focuses on the Massachusetts H.3094 material about rural housing incentives.
Purpose
- Establish a state program to incentivize the substantial rehabilitation (redevelopment) of existing multi‑unit residential properties in designated rural areas, encouraging multi‑family housing through tax incentives and certifications administered by the Department of Housing and Community Development (DHCD).
Key definitions and program structure
- New Chapter proposed: Chapter 40Z — “Rural Housing Development Incentive Program.”
- Important defined terms:
- “Rural area”: area with a low concentration of residential housing as determined by DHCD (municipal application required for designation).
- “Rural housing development project”: an existing multi‑unit residential rehabilitation project located in a designated rural area that, after substantial rehabilitation, will contain at least 80% market‑rate residential units.
- “Certified rural housing development project”: a project that DHCD certifies for participation.
- “Qualified project expenditure”: costs directly related to substantial rehabilitation (including site assessment and hazardous materials remediation), but excluding the purchase price of the property.
- “Substantial rehabilitation”: redevelopment, repair, renovation, and related remediation as determined by DHCD.
Eligibility and certification
- Project eligibility (high level):
- Must have 2 or more residential units.
- Located in a DHCD‑designated (or proposed) rural area.
- After rehabilitation, at least 80% of units are market‑rate (for sale or lease).
- Involves substantial rehabilitation of an existing property (not new construction).
- Application process:
- Municipalities apply to DHCD to be designated rural areas and must submit plans describing contemplated public/private activities.
- Project proposals must be submitted by municipalities (with required documentation and certifications).
- DHCD must evaluate and grant or deny a complete project proposal within 90 days; failure to act within 90 days results in automatic approval for a 20‑year term (with caveat that such automatic approval does not constitute approval of any tax incentives under Chapter 62).
- DHCD may charge application/processing fees.
- Certification term:
- Projects can be certified for at least 5 years and up to 20 years per municipal approval.
Compliance, revocation, and enforcement
- DHCD may revoke a project certification if:
- The municipality petitions and DHCD’s independent investigation finds the sponsors’ post‑certification conduct materially departs from representations and frustrates public purposes; or
- The project no longer meets statutory criteria.
- Upon revocation, the Commonwealth and municipality may pursue recovery for the value of economic benefits received by sponsors.
- DHCD must certify that proposed expenditures qualify both prior to construction and after completion.
Incentives and fiscal details
- The bill references tax incentives (mentions Chapter 62), implying tax credits/benefits tied to certified projects, but the provided text is truncated and does not include specific dollar amounts, credit rates, caps, or detailed fiscal offsets. Those details are essential for assessing state revenue impact and are not present in the excerpt.
Who is affected
- Municipalities seeking to promote rural multi‑family redevelopment (must apply for designation and collaborate on projects).
- Developers/sponsors of multi‑unit rehabilitation projects located in designated rural areas (potential eligibility for certification and tax incentives).
- Residents and local housing markets: increased supply of market‑rate multi‑unit housing in designated rural areas; potential impacts on affordable housing availability and municipal services.
- State agencies: DHCD for program administration; Revenue/Tax authorities if tax incentives are enacted.
Potential impacts and considerations
- Encourages reuse of existing housing stock and remediation of hazards in low‑density/rural communities.
- Policy emphasis on predominantly market‑rate units (minimum 80%) — may increase overall housing supply but may not directly increase affordable units unless paired with other measures.
- Fiscal effects depend on the structure and magnitude of tax incentives (not provided). The program could reduce state tax revenue if credits are generous, but might be justified by increased property values, economic activity, and reduced blight.
- Municipal planning and capacity considerations: DHCD must ensure projects do not overburden local resources and that cumulative certified projects support municipal goals.
Missing or unclear elements in the provided text
- Exact structure, amount, and limits of tax credits or other financial incentives (Chapter 62 references are incomplete).
- Full revocation procedures and any repayment/recapture formulas.
- Specific criteria DHCD will use to determine “low concentration of residential housing” and “substantial rehabilitation.”
- Implementation timeline and any reporting or oversight requirements beyond certification.
Additional note
- The supplied document also contains text from an unrelated South Carolina bill concerning parental rights and gender identity in child welfare. That content is not part of Massachusetts H.3094 and should be treated as a separate legislative proposal; clarification from the bill sponsor or docket source is recommended to confirm the intended text for H.3094.
If you want, I can:
- Extract and list the sections that appear missing or truncated and suggest likely statutory language needed (tax credit formulas, recapture rules).
- Draft a short one‑page fiscal analysis checklist that shows what revenue and budget information would be needed to evaluate the bill.
Compiled from official sources — confirm details with the bill’s official record.
Sign in to ask a question.
