By Bob Katzen
House 148-2, approved and sent to the Senate a $561 million economic development bond bill that supporters say will strengthen key innovation sectors, support small businesses, expand housing opportunities and position the state for long-term economic growth and competitiveness. They note that the measure makes targeted updates across dozens of state programs to improve efficiency, encourage investment, reduce barriers to economic development and better prepare Massachusetts for emerging industries and workforce needs.
A controversial section of the bill would create a local option allowing municipalities to adopt a local tenant right of first refusal for the sale of multifamily residential properties, giving tenants the opportunity to purchase their building after receiving notice of the owner’s intent to sell. This provision is based on a separate proposed law, known as the Tenant Opportunity to Purchase Act (TOPA), which has been debated for years.
Provisions of the package include authorizing cities and towns to adopt commercial conversion zoning to transform underutilized commercial properties into housing and mixed-use developments through streamlined local approvals; allowing multifamily housing on qualifying land of less than four acres owned by religious institutions and mandating that 20 percent of the units be affordable; lowering the filing fee for a new limited liability company (LLC) from $500 to $100; establishing safety standards and operational rules for personal transportation devices such as motorized bicycles; extending the period during which taxpayers may claim the Massachusetts film tax credit from 12 months to 24 months; and creating a tax credit program to encourage digital game development in the Bay State.
The $561 million includes $100 million to strengthen the state’s defense leadership and accelerate the development of cutting-edge national security solutions; $75 million to support AI tools, infrastructure and emerging technologies; $25 million to support downtown revitalization through capital funding for infrastructure and public spaces; $20 million in capital funding to invest in sites designed to attract international companies to Massachusetts; and $20 million for the veterans supported housing initiative program
“This legislation will bolster the commonwealth’s competitiveness by expanding the housing supply, by safeguarding critical institutions and jobs, by attracting new investments and by positioning Massachusetts for long-term economic success,” said House Speaker Ron Mariano (D-Quincy). “As the commonwealth continues to navigate a housing crisis, the reforms in this legislation will help to increase housing production – a prerequisite for bringing costs down.”
“This well-rounded economic development package makes significant, targeted investments into major sectors of the commonwealth’s economy,” said Rep. Aaron Michlewitz (D-Boston), the chair of the House Committee on Ways and Means. “By advancing this legislation, we will be helping our small businesses cope with an ever-changing economic picture, while also making key advances for housing developments and protections across the commonwealth.”
“This legislation reflects Massachusetts’ commitment to building an economy that is innovative, competitive and inclusive,” said Rep. Carole Fiola (D-Fall River), House chair of the Committee on Economic Development and Emerging Technologies. “By investing in housing, supporting entrepreneurs and small businesses, strengthening our innovation ecosystem, and preparing for emerging industries like artificial intelligence, AgTech, and the defense sector, we are making strategic investments that will create jobs and expand opportunity across every region of the commonwealth. Just as importantly, this bill gives our cities and towns new tools to address local challenges, helps safeguard our economy against federal uncertainty and ensures Massachusetts remains the best place to start a business, grow a company and bring new ideas to market.”
“I am concerned, among other things, that the TOPA component of this legislation will have a severely detrimental impact on small property owners,” said Rep. Dave DeCoste (R-Norwell), one of only two members who voted against the bill. “I believe TOPA will diminish the value of existing properties and discourage potential investors from buying existing properties or building new multi-family homes.”
Rep. Ken Sweezey (R-Duxbury), the only other legislator to vote against the bill, did not respond to repeated attempts by Beacon Hill Roll Call asking him why he opposed the measure.
“The spending package does nothing to cut taxes, lower costs or make Massachusetts more competitive with states like New Hampshire, Florida, Texas and North Carolina,” said Paul Craney, executive director of the Mass Fiscal Alliance which opposed the bill. “Massachusetts cannot spend its way to economic competitiveness. Rather than reducing the tax burden on residents, employers and small businesses, the bill relies on more borrowing, diverting funds to create new programs and government-directed spending while avoiding the broad-based tax relief Massachusetts needs.”
“Businesses do not choose where to locate based on another grant program coming out of Beacon Hill,” continued Craney. “They look at the overall cost of doing business, the tax climate, the regulatory environment and whether a state is committed to long-term economic growth. Massachusetts continues to fall behind because lawmakers refuse to tackle those fundamentals. If Massachusetts wants to compete for jobs and investment, the answer is not another spending package,” said Craney. “The answer is making the commonwealth a more affordable place to live, work, invest and start a business. Until Beacon Hill embraces meaningful broad based tax relief and begins to hit the brakes on the growth of our state government, Massachusetts will continue losing ground to states with lower taxes and a stronger commitment to economic growth.”
(A “Yes” vote is for the bill. A “No” vote is against it.)
Rep. Christine Barber Yes Rep. Mike Connolly Yes Rep. Paul Donato Yes Rep. Erika Uyterhoeven Yes