Current through Register 1518, March 29, 2024
Each Municipality with an Approved District shall be entitled to
payments as described in 760 CMR 59.06(1).
(1)
Zoning Incentive
Payments. Upon the issuance by DHCD to the Municipality of a Letter of
Approval or a Letter of Conditional Approval, as applicable, the Municipality may
present that Letter to DHCD at any subsequent time, requesting payment of the amount
of Zoning Incentive Payment or partial Zoning Incentive Payment set forth in the
Letter of Approval or Letter of Conditional Approval. A Letter of Approval will
entitle a Municipality to receive a total Zoning Incentive Payment for a District in
accordance with the following schedule, less any previous Zoning Incentive Payments
received for the District. A Letter of Conditional Approval will state the partial
Zoning Incentive Payment to which the Municipality is entitled based on the number
of Incentive Units in the area of the District for which the Municipality has met
all conditions necessary to ensure consistency with M.G.L. c. 40R and
760 CMR 59.00, in accordance with
the following schedule:
|
Incentive Units
|
Payment
|
|
Up to 20
|
$10,000
|
|
21 to 100
|
$75,000
|
|
101 to 200
|
$200,000
|
|
201 to 500
|
$350,000
|
|
501 or more
|
$600,000
|
Letters of Approval shall remain valid indefinitely for purposes of
Municipal collection of the Zoning Incentive Payment, subject only to a repeal
pursuant to
760 CMR
59.05(5)(d), or payment
suspension or revocation pursuant to 760 CMR 59.06 or
59.07.
DHCD may in its discretion, for purposes of calculating the Zoning
Incentive Payment in the Letter of Approval, treat two or more simultaneously
Approved Districts within proximity of each other as a single District, or treat a
newly Approved District as an amendment to a nearby existing Approved
District.
(2)
Bonus
Payments. Upon issuance of a building permit for a Bonus Unit within an
Approved District, the Municipality may apply to DHCD for authorization of payment
of a one-time Bonus Payment of $3,000 for each Bonus Unit on a Bonus Payment
application form designated by DHCD. Unless DHCD approves an alternative method of
documenting Bonus Units in an Approved District, the Municipality shall submit in
its application for payment:
(a) A certified copy
of the building permit(s) for the Project;
(b) A site plan that indicates building(s)
location (and, if available, address(es)) within the District;
(c) A certified copy, by the building official, of
the Smart Growth or Starter Home residential density plan required pursuant to
760 CMR
59.03(1)(c)4.;
(d) For a Smart Growth Zoning District that
contains sub-districts, a certified copy, by the building official, of the Smart
Growth residential density spreadsheet required pursuant to
760 CMR
59.03(1)(d);
(e) If there are Existing Zoned Units, a
calculation of the number of Bonus Units for the Project (i.e.,
subtracting Existing Zoned Units from the Project's total number of
units);
(f) A copy of the Plan Approval
Authority's decision approving the Project, if applicable;
(g) A copy of a recorded affordable housing
restriction meeting the requirements of M.G.L. c. 184, § 31;
(h) A copy of the approved affirmative fair
housing marketing plan applicable to the Bonus Unit(s); and
(i) A completed original of DHCD's Bonus Payment
application form.
DHCD will accept applications on a regular basis in accordance with
a schedule to be determined by DHCD. DHCD's review of an application will be an
informal, non-adjudicatory procedure. Provided that the Municipality has submitted
all of the information required in 760 CMR 59.06(2)(a) through (i), DHCD will
confirm its approval of an application for payment within 30 days after receipt by
issuing a written authorization of payment to the Municipality.
(3)
Suspension of Payments;
Repayment of Monies. Payments under 760 CMR 59.06(1) or 59.06(2) shall
be suspended or repaid under the following circumstances.
(a) If DHCD approves, pursuant to
760 CMR
59.05(5), an amendment to an
Approved District that decreases the number of Incentive Units, and DHCD determines
that the Zoning Incentive Payment that would have been due using the schedule in 760
CMR 59.06(1) based upon the revised aggregate number of Incentive Units within the
Approved District, as amended, is less than the amount of all Zoning Incentive
Payments previously received with respect to that District, DHCD will issue a Letter
of Conditional Approval requiring that the Municipality repay to DHCD the amount of
such excess payments pursuant to
760 CMR
59.05(5)(c).
(b) If a Municipality has submitted to DHCD the
proposed repeal of an Approved District pursuant to
760 CMR
59.05(5)(d), the repeal shall not
take effect until the Municipality has repaid to DHCD any excess Zoning Incentive
Payments received by the Municipality. Using the schedule in 760 CMR 59.06(1) and
the number of Incentive Units set forth in DHCD's amended Letter of Approval issued
pursuant to
760 CMR
59.05(5)(d), the Municipality
will be entitled to retain the portion of the Zoning Incentive Payment that would
have been due upon the number of Incentive Units still developable within the
District. The Municipality need not repay any Bonus Payments received with respect
to that District.
(c) If DHCD has issued
a Letter of Noncompliance to a Municipality pursuant to
760
CMR 59.07(3), no further Zoning
Incentive Payment or Bonus Payment will be made to that Municipality until DHCD
confirms through issuance of a Certificate of Compliance that the noncompliance has
been cured.
(d) If DHCD has issued a
revocation of a Municipality's certification pursuant to
760
CMR 59.07(3) for the reason that
there has not occurred the Start of Construction of a Project or Planned
Infrastructure upgrade within an Approved District within three years of the date
upon which the Municipality received the Zoning Incentive Payment, consistent with
760
CMR 59.07(1)(f), the Municipality
shall immediately pay to DHCD all Zoning Incentive Payments and Bonus Payments
received with respect to that District.
(e) If DHCD approves a new District within a
Municipality that has an existing District in which construction has not yet
commenced and for which DHCD has not issued a Letter of Noncompliance, DHCD may
issue a Letter of Conditional Eligibility and condition the payment of the Zoning
Incentive Payment for the new District upon the Municipality's documentation that
construction has commenced in either the new District or the existing
District.
(4)
Use
of Zoning Incentive Payments and Bonus Payments.
(a) Zoning Incentive Payments and Bonus Payments
may be made from Capital Funds with a requirement that payments be used by
Municipalities only for capital expenditures. Municipalities receiving such Capital
Funds will agree in contracts with DHCD to comply with funding restrictions and to
provide reporting to DHCD as required by DHCD.
(b) No restrictions set forth in 760 CMR
59.06(4)(a) apply to Zoning Incentive Payments or Bonus Payments made to
Municipalities by DHCD from sources other than Capital Funds.
