Section 59.06 - Payments and RepaymentsEach 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.Amended by Mass Register Issue 1355, eff. 12/29/2017.