Last week, mayors and managers representing 23 Gateway Cities submitted a letter of support to state senate leaders supporting expanding the Housing Development Incentive Program (HDIP) from $10M to $30M annually. The senate is expected to debate its tax package this week.

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May 31, 2023

Karen E. Spilka, Senate President

Michael J. Rodrigues, Chair

Senate Committee on Ways and Means

State House

Boston, MA 02133

via email

Time-sensitive: Housing Development Incentive Program (HDIP)

Dear Senate President Spilka and SWM Chairman Rodrigues:

We, the undersigned Mayors and Managers representing Gateway Cities, respectfully ask you to include the Housing Development Incentive Program (HDIP) in the Senate’s forthcoming tax reform package. We support the Healey-Driscoll language contained in H.42, An Act creating tax relief for affordability, competitiveness and equity, or the very similar language in H.2724/S.1779 sponsored by Rep. Antonio Cabral and Sen. John Cronin. Both versions include a one-year increase to address the program backlog, and an ongoing increase in the state tax credit cap from $10M to $30M.

HDIP has been funded at its original pilot level ($10M) since its creation in 2013. Given its clear success in creating new multifamily housing in our downtowns and transit areas, right-sizing the program to meet the real need has been a top Gateway City priority for several years. We thank you for your past support, having included these provisions in the Senate’s economic development bills that passed the chamber and went to conference committee in both the 2019-2020 and 2021-2022 sessions.

Now we write with greater urgency: Without action this year, a sunset provision will take effect on January 1, 2024 that will reduce the cap from $10M to $5M. In consequence, the current five-year waitlist for project funding would turn into a ten-year waitlist.

Even as many municipalities push back against building more homes, our communities welcome housing investment and new residents. HDIP is the state’s most effective tool for creating vibrant, mixed-income neighborhoods in underinvested areas, yet it is also flexible enough to support up to 20% income-restricted units in stronger markets.

Our racial, ethnic, and economic diversity make Gateway Cities strong. Please help us build the housing that will benefit the entire Commonwealth by helping reduce competition for homes, curb upward pressure on rents, and create more housing choices in every region of the state.

We thank you for your attention and leadership in solving this issue.

Sincerely,

Cathleen DeSimone, Mayor of Attleboro
Robert F. Sullivan, Mayor of Brockton
John L. Vieau, Mayor of Chicopee
Carlo DeMaria, Mayor of Everett
Paul Coogan, Mayor of Fall River
Stephen DiNatale, Mayor of Fitchburg
James Fiorentini, Mayor of Haverhill
Joshua A. Garcia, Mayor of Holyoke
Brian DePeña, Mayor of Lawrence
Dean Mazzarella, Mayor of Leominster
Sokhaury Chau, Mayor of Lowell
Thomas A. Golden, Jr., City Manager of Lowell
Jared C. Nicholson, Mayor of Lynn
Gary Christenson, Mayor of Malden
Neil Perry, Mayor of Methuen
Jon Mitchell, Mayor of New Bedford
Edward A. Bettencourt, Jr., Mayor of Peabody
Linda M. Tyer, Mayor of Pittsfield
Thomas P. Koch, Mayor of Quincy
Patrick Keefe, Jr., Interim Mayor of Revere
Domenic J. Sarno, Mayor of Springfield
Shaunna O’Connell, Mayor of Taunton
Mike McCabe, Mayor, Westfield
Eric D. Batista, City Manager of Worcester
Joseph M. Petty, Mayor of Worcester

cc: Sen. Cindy Friedman, Vice Chair, Senate Ways and Means

Sen. Lydia Edwards, Chair, Joint Committee on Housing

Sen. John Cronin, Chair, Gateway Cities Caucus

View the full letter here