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NAIOP SECURES OFFICE CONVERSION TAX CREDIT AND DEFEATS RIGHT OF FIRST REFUSAL; LEGISLATURE DOES NOT ADVANCE ECONOMIC DEVELOPMENT OR CLIMATE BILLS; UNCERTAIN FUTURE FOR BOSTON PROPOSALS

NAIOP's Advocacy Alerts are generously sponsored by Serlin Haley and Pierce Atwood LLC.

NAIOP Secures Nation-Leading Office Conversion Tax Credit, Defeats Right of First Refusal, in Housing Bond Bill

In the early hours of August 1, the negotiating committee finalizing The Affordable Homes Act released final language for passage (H. 4977). In addition to critical spending items for public housing and investments, the final bill reflects several of NAIOP's priorities. The legislation:

  • Includes NAIOP's language for a first-in-the-nation office-to-residential conversion program tax credit to support the development of market rate housing;
  • Doubles the Historic Rehabilitation Tax Credit and extends its authorization to 2030.
  • Creates a Momentum Fund with $50 million in seed funding to support workforce housing.
  • Includes language curbing frivolous appeals.
  • Allows accessory dwelling units (ADUs) by-right in single family zones.
  • Does not include transfer taxes, right of first refusal, rent control proposals or unrealistic contractor requirements.
  • Does not include language that would have conflicted with the Americans with Disabilities Act and the federal Fair Housing Act.
  • Does not amend the voting threshold requirements for inclusionary zoning.

NAIOP is deeply grateful to the legislature for advancing a historic housing bond bill that demonstrates thoughtful investments and targeted policies to support housing production at all levels.

The bill was passed by the both the House and the Senate on August 1, and now goes to the Governor for signature. Because this is a bond bill, the Governor has the ability to line item veto sections. NAIOP has been in near-constant communication with the Healey-Driscoll Administration to advocate for the enactment of the industry's priorities and will continue to update our membership as the legislation advances.

House and Senate Unable to Find Compromise on Economic Development Legislation - Permit Extension Act in Limbo

Despite working to the early hours of August 1, the House and the Senate were unable to come to an agreement that would ensure the passage of An Act relative to strengthening Massachusetts' economic leadership, otherwise known as The Mass Leads Act.

NAIOP is disappointed that this critical legislative package, which included a two-year Permit Extension Act, critical retroactive zoning protections for Special Permits and Site Plan approvals, and investments in our life sciences and innovation economies, will not be able to advance due to the fact that it is a borrowing bill and can only be passed in a formal legislative session.

NAIOP will continue to have conversations with Legislative Leadership and the Healey-Driscoll Administration about the importance of a Permit Extension Act to protect the over 40,000 permitted-but-not-yet-built housing units across the Commonwealth.

Climate Bill Legislation Does Not Advance

House and Senate negotiators were unable to agree on final language for a climate bill this session, and therefore, did not advance a bill for passage.

While NAIOP broadly supported both Chambers' proposals focusing on the challenges of energy siting and permitting, NAIOP was successful in blocking the passage of Senate language seeking a provision that would allow the Board of Building Regulations and Standards to mandate technologies and materials within the building code; and language expanding the 10-community fossil fuel ban demonstration program to 11 communities.

While it is possible for this legislation to pass in informal session, any one vote in opposition will prevent its passage.

Boston Property Tax and BPDA Reform Legislation - Future Uncertain

While the House of Representatives passed both the Boston Property Tax Shift proposal and the legislation seeking to reform the Boston Planning and Development Agency in the final days of the formal session, the Senate has yet to take action.

While it is possible for both of these proposals to pass in informal sessions, any one vote in opposition would prevent their passage. Because neither proposal is a bond bill, if advanced to the Governor's desk, she will have no choice but to either enact or veto the proposals.

NAIOP will continue to communicate the industry's concerns with both proposals with the Healey-Driscoll Administration and Legislative Leadership.

Thank you to the many NAIOP members who worked with the NAIOP Advocacy Team throughout the legislative session and beyond.

The NAIOP Advocacy Team is working on numerous initiatives at the state and local level. If you have questions regarding these, or other topics, please feel free to reach out to NAIOP's CEO Tamara Small or NAIOP's Vice President of Policy and Public Affairs, Anastasia Daou.

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