Representative Steven S. Howitt supports legislation to promote economic development in Massachusetts

Boston – State Representative Steven S. Howitt (R-Seekonk) recently supported a multi-million dollar economic development bill designed to help spur housing development, reform local permitting, and encourage private sector growth in emerging industries across the Commonwealth.

House Bill 5562 was given preliminary approval by the House of Representatives on July 8, passing on a vote of 148-2 following debate on nearly 700 funding and policy amendments filed by members. The bill is a redraft of legislation previously filed by Governor Maura Healey.

Representative Howitt said one key change the House made to the bill was to drop a controversial GlobalMass initiative proposed by the governor, which would have required the Pension Reserves Investment Management (PRIM) Board to provide $50 million for a new fund encouraging global investment in the state. He maintained that this constituted an unacceptable use of employee pension funds and said the House made the right decision by rejecting the governor’s proposal.

One area of concern raised by members of the House Republican Caucus was a provision contained in the bill that would allow the construction of multifamily housing by right on land owned by religious institutions for at least three years. Representative Howitt said this proposal could potentially harm cities and towns if the housing created is deemed to be tax exempt, thereby depriving host communities of critical revenue needed to meet the accompanying increased demand for local services, including expanded school enrollment.

Representative Howitt said amendments filed by Representative Michael Soter (R-Bellingham) included proposals to exempt communities whose affordable housing units meet or exceed 10% of their total housing stock, and to ensure that housing developments on church properties are owned by a separate legal entity and subject to property taxes. While these amendments were not adopted, the House agreed to amend the language in the bill to limit housing development to church-owned properties with four acres or less of land.

In an effort to further assist cities and towns facing increased budgetary pressures, Representative Howitt backed an amendment filed by House Minority Leader Bradley H. Jones, Jr. (R-North Reading) to ensure that funding included in the economic development bill will be available to municipalities and not withheld due solely to their non-compliance with the MBTA Communities Act. The amendment was not adopted.

The initial economic development bill released from House Ways and Means totaled $425.1 million, with $305 million in borrowing authorizations covering a series of grant programs, $120 million in housing-related grants, and $100,000 for local economic development grants included in the bill.

According to Representative Howitt, the bill sets aside:

•$25 million for a capital grant program to help private businesses construct or expand commercial, industrial and manufacturing facilities in Massachusetts;

•$75 million to support the development and application of artificial intelligence technologies in strategically important industries, including life sciences, health care, advanced manufacturing, and climatetech;

•$20 million in capital grants supporting the construction and improvement of facilities designed to attract early-stage and high-growth businesses to the Commonwealth;

•$100 million to invest in capital assets and public infrastructure that promote economic growth and job creation in the defense sector;

•$10 million to support food science, agricultural enterprises, resilient and sustainable food innovation, and food and agricultural technology;

•$25 million in competitive grants to support research, development, testing, commercialization and workforce development of robotics technologies;

•$25 million in competitive grants supporting projects that strengthen downtowns, main streets, business districts, town centers, commercial corridors, cultural districts and other walkable mixed-use areas; and

•$25 million for capital grants supporting arts, culture and the creative economy.

Representative Howitt noted that House Bill 5562 also makes available $50 million in grants and technical assistance for municipalities to help support converting commercial properties into residential housing. An additional $20 million is provided for the Veterans Supported Housing Initiative, along with $50 million to support housing development projects on land and buildings previously owned by the state that require asbestos, lead or hazardous material demolition and remediation.

In addition to creating uniform statewide standards governing municipal site plan review, House Bill 5562 establishes a training program for members of local planning boards, zoning boards of appeals, and special permit granting authorities. The training will be offered at no cost to municipalities.

Additional policy amendments adopted during floor debate included proposals to:

•allow municipalities to adopt housing tax increment financing agreements;

•require real estate agents to be trained in housing compliance laws and requiring that new agents facing discrimination complaints be reported to the Massachusetts Commission Against Discrimination;

•establish a permanent working group on double poles that will annually review and update all relevant regulations; and

•require the Department of Public Utilities, in consultation with the Department of Telecommunications and Cable, to establish a process by July 31, 2028 allowing a single qualified entity to remove all double pole attachments in one visit.

House Bill 5562, as amended, will now move to the Senate for its consideration.