Massachusetts House Bill H2724

Massachusetts 2023-2024 Regular Session

• Introduced: 2/16/23
• Refer: 2/16/23

Caption

Relative to the housing development incentive program

Impact

The new provisions could have a considerable impact on housing policy in Massachusetts by encouraging the construction of more affordable housing. By expanding the financial incentives available to developers, the bill aims to stimulate housing projects that might not have been viable under the previous credit cap. This change is seen as a vital step toward addressing the housing crisis and increasing the availability of affordable units within the state, responding to growing concerns about housing shortages.

Summary

House Bill 2724 aims to amend the Massachusetts housing development incentive program by significantly increasing the cap on housing tax credits. The bill specifically proposes an increase in the amount of tax credits that the Department of Housing and Community Development (DHCD) can authorize, raising the limit from $10 million to $57 million for fiscal year 2024 and establishing a future cap of $30 million annually. The proposal also includes provisions for carryover credits from previous years to incentivize housing development further.

Contention

However, there are points of contention surrounding Bill H2724. Critics may argue that any large-scale expansion of tax credits could raise concerns about government spending and potential misuse of funds. Additionally, there could be debates regarding the effectiveness of such tax credits in genuinely increasing the availability of affordable housing versus simply benefiting developers. Stakeholders may push for measures to ensure accountability and that the intended benefits of such tax incentives are actually achieved.