This afternoon, Representative Antonio F.D. Cabral (D-New Bedford) voted in support of a $693 million supplemental budget that features funding for hospitals, collective bargaining agreements, special education, and most importantly, a top priority long fought for by Rep. Cabral: the Housing Development Incentive Program (HDIP). The provisions passed today will have lasting benefits on the City of New Bedford.

“I am proud to have contributed to this latest chapter in the Housing Development Incentive Program in Massachusetts. As the House Chair of the Gateway Cities Legislative Caucus, I have been working with MassINC, mayors and economic development directors from Gateway Cities, and housing advocates to support and improve the HDIP program since 2013. Expanding the benefits of HDIP has long been the top priority of our caucus. We all know that Massachusetts – and our Gateway Cities – are facing a housing crisis that involves rising rents and home prices, and a severe shortage in housing options across all income levels. HDIP addresses this critical lack of middle-income housing by using a tax incentive to make developing market-rate housing in New Bedford more financially viable. It is the only housing development program specifically targeted to meet the financial needs of housing production in Gateway Cities, and today’s legislation ensures the program will play a large role in New Bedford’s housing development production,” said Rep. Cabral.

More specifically, today’s HDIP Amendment raises the current yearly cap from $10 million to $30 million – and provides for a one-time increase to $57 million to address the growing backlog of projects waiting for HDIP credits – including several in New Bedford and Fall River. Despite the Department of Housing and Community Development funding $20 million worth of HDIP requests over the past two years, the pipeline of HDIP requests remains at nearly $50 million dollars, representing at least a four-year wait for any new housing projects. Projects awaiting funding represent 1,782 shovel-ready units with a total development value of nearly half a billion dollars. Today’s commitment to investing $30 million per year for the next ten years ($300 million) will produce 12,500 new homes and leverage direct real estate investment of nearly $4 billion in our Gateway Cities, creating walkable and vibrant downtowns across the state.

Overall, the Supplemental Budget passed today features:

• A five-year extension to the simulcasting wager law
• Updated language regarding the hiring process for school nurses
• A section that will allow the Department of Public Utilities the flexibility to approve amended transmission contracts related to the New England Clean Energy Connect (NECEC) project, which would carry hydroelectric power generated in Quebec through Maine to end points including Massachusetts
• $94.1 million in funds for a Medicaid supplemental payment program for eligible hospitals
• $58.5 million in support to hospitals serving a high percentage of Medicaid patients
• $75 million reserve account to reimburse school districts who are facing increased special education costs
• $226.3 million to meet commitments made in collective bargaining agreements with
  unionized public sector employees

“Housing is a complex issue, one that requires creative and innovative options, but we know that it comes down to creating more housing stock,” said Rep. Cabral. “This legislation is transformative for the state, the future of housing development, and for the City of New Bedford. If we are going to succeed and win this fight, the Housing Development Incentive Program is the best offense.”

The bill now moves to the Senate for their consideration.

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