In July of 2010, the legislature authorized the Housing Development Incentive Program (HDIP) to spur the creation of market-rate housing in Gateway Cities. Regulations were issued in July 2012. Pittsfield quickly established a zone as required under by the legislation. One after another, other Gateway Cities followed (Chelsea, Holyoke, Springfield, Fall River, Fitchburg, Haverhill, and Lowell). Despite enthusiasm for the program, developers and municipal officials have raised concerns that the HDIP’s cumbersome structure limits its power as a redevelopment tool.

Under the law, DHCD can award up to $5 million in credits annually. So far just two projects have Conditional Certifications totaling $1.2 million: the Flats at 44 ($832,021) under development by Mitchell Properties in Chelsea and the Howard Building ($355,804), which Allegrone Real Estate is currently rehabbing in Pittsfield.

– Ben Forman