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Senator Moore proposes Chapter 40B reform 

Bill promotes development of truly affordable housing

January 24, 2006 - Today, Senator Richard T. Moore (D-Uxbridge) testified on his bill, Senate Docket 2458, an Act Relative to Reforming Chapter 40B. This bill aims at promoting affordable housing in the Commonwealth by closing some of the loopholes developers use to build affordable housing with little or no benefit to local communities.

“These loopholes allow developers to create highly profitable housing developments at the expense of the truly affordable housing stock of Massachusetts’s communities,” said Senator Moore in a letter to the chairmen of the Housing Committee. “My bill would bring the statute more in line with its original legislative intent and by so doing would make the entire 40B process less acrimonious and more able to truly promote affordable housing.” 

Senator Moore’s bill to reform Chapter 40B would:

  • Require direct public financial subsidies for 40B projects. This subsidy would bring more oversight from state and federal agencies and subsequently reduce the abuses of the law that have occurred. 
  • Increase the percentage of required affordable housing in a 40B developments from 20-25% to 33%. In the last 3 years 30% of all new construction has been proposed under 40B. This leaves little doubt as to the profitability of these developments and illustrates that developers can afford to build more affordable units in each project.
  • Limit the profits of 40B developments. The law was initially drafted to limit the profits of these developments to 20%. However, in recent years, developers have found ways to inflate project costs beyond their actual investment. This would bill would limit developers to seeking 20% profit on only their actual investment. 
  • Limit the waivers a developer can seek under Chapter 40B to density and lot area requirements. Lot size and density restrictions are widely seen as the major impediments to affordable housing. This would allow developers to seek waivers for these requirements while keeping other local regulation such as sewer connection regulations and use zoning.

“Providing affordable housing is absolutely necessary for families of all incomes to afford to live in their desired communities,” Moore explained. “However affordable housing must be built in a way that preserves the fabric of the neighborhood. My bill works towards restoring the balance of Chapter 40B.” 

To view a copy of the proposed bill or learn more about Senator Moore’s education initiatives, log on to his web site at www.senatormoore.com.

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