Relates to financial assistance from an industrial development agency; repealer

2025 Regular Session Introduced by Sean Ryan

Expands eligibility for density bonus incentives by defining starter home districts as smart growth districts and including substantial redevelopment and new development under 40R.

REFERRED TO LOCAL GOVERNMENT

Purpose / Intent

S.177 amends Chapter 40S of the Massachusetts General Laws (as enacted by section 186 of chapter 7 of the Acts of 2023) to revise and replace the statutory definitions used to determine what constitutes a "new smart growth development" and a "smart growth zoning district." The change clarifies when residential or commercial development — including substantial redevelopment — is eligible for program benefits (including density bonus payments under chapter 40R) and explicitly recognizes starter home zoning districts as part of the eligible smart growth districts.

Key provisions

Replaces the prior definitions of:

"New smart growth development" — now defined to include any new residential or commercial development (including substantial redevelopment of existing buildings) that:
(a) occurs in a smart growth or starter home zoning district after that zoning is adopted by the community, and
(b) is permitted under that district; and
A "substantial redevelopment" is defined as either:
- costing more than 50% of the building’s pre‑renovation assessed value, or
- constituting a change in use from nonresidential to residential.
"Smart growth zoning district" — now defined as a zoning district adopted by a community and approved by the Department (presumably the state housing/municipal affairs department) that is eligible and remains eligible for density bonus payments under Chapter 40R, and explicitly includes starter home zoning districts as defined in Chapter 40Y.

The amendment cross‑references existing programs (Chapter 40R density bonus payments and starter home districts under Chapter 40Y) to confirm eligibility and continuity of payments for qualifying districts.

Who is affected

Municipalities that adopt smart growth or starter home zoning districts (their zoning decisions and eligibility for state density bonus payments).

Developers undertaking new construction or substantial redevelopment in those districts (project qualification for incentives/payments).

Potentially school cost reimbursement or local fiscal flows tied to Chapter 40S/40R programs (because definitions determine eligibility for payments).

Potential impact / policy implications

Clarifies and broadens eligibility rules to ensure redevelopment that meets the 50% threshold or a change to residential use qualifies as “new smart growth development.”

Explicitly includes starter home zoning districts in the smart growth framework, which may increase the number of projects eligible for density bonus payments and related state reimbursements.

Could encourage conversion of nonresidential buildings to housing and incentivize larger-scale renovations by making them eligible for program benefits.

Legislative status & timeline (as provided)

Introduced in the Senate: January 22, 2025.

Referred to: Committee on Community Development and Small Businesses (and noted as referred to Local Government in accompanying actions).

Hearing scheduled: July 15, 2025 (B‑1).

Reported favorably by committee and referred to Senate Ways & Means: November 13, 2025.

Additional procedural entries in the provided record show multiple referrals and concurrence notes; the principal operative step after committee report is review by Senate Ways & Means.

If enacted, this statute would be a targeted definitional amendment affecting eligibility and administration of smart growth/starter home related state incentives.

Bill