Code of Massachusetts Regulations › 760 CMR - HOUSING AND LIVABLE COMMUNITIES, EXECUTIVE OFFICE OF › Title 760 CMR 66.00 - Housing Development Incentive Program - Chapter 40v › Section 66.06 - HD Tax Increment Exemptions

Current through Register 1525, July 5, 2024
In addition to the standards and requirements of M.G.L. c. 59,
				§ 5M, HD Tax Increment Exemptions shall meet the following requirements.
(1)
Calculation of
			 Exemption
. The amount of the HD Tax Increment Exemption to be given to
			 a Sponsor of a HD Project shall be determined by applying the Exemption Percentage
			 to the property tax on the Increment.
(a)
The Exemption Percentage
. The Exemption Percentage shall be
			 not less than 10% and not more than 100%, negotiated by the Municipality and each
			 Sponsor and shall be specified in each HD Tax Increment Exemption Agreement. The
			 Exemption Percentage need not be the same for all Sponsors and may change from year
			 to year during the term of the HD Tax Increment Exemption pursuant to a schedule set
			 forth in the Tax Increment Exemption Agreement.
(b)
The Increment
.
1. With respect to a HD Project in which the
			 residential portion is rental housing, the Increment is the assessed value of the
			 residential portion of the HD Project after construction or Substantial
			 Rehabilitation less the Base Value, the sum of which is multiplied by the percentage
			 of useable square footage comprising the Market Rate Residential Units to the total
			 useable square footage of the residential portion of the HD Project.
2. With respect to a HD Project in which the
			 residential portion is for-sale housing units, the Increment for a given Market Rate
			 Residential Unit is the assessed value of the residential portion of the HD Project
			 after construction or Substantial Rehabilitation less the Base Value, the sum of
			 which is multiplied by the percentage of useable square footage comprising all of
			 the Market Rate Residential Units to the total useable square footage of the
			 residential portion of the HD Project, the product of which is multiplied by the
			 percentage of useable square footage comprising the given Market Rate Residential
			 Unit to the total useable square footage of all Market Rate Residential
			 Units.
3. With respect to a HD Project
			 in which the residential portion is a mix of rental and for-sale housing, the
			 Increment is determined as follows:
a. For the
			 rental portion, the assessed value attributed to the rental housing less the Base
			 Value for the rental portion, the sum of which is multiplied by the percentage of
			 useable square footage comprising the rental Market Rate Residential Units to the
			 total useable square footage of the rental residential portion of the HD
			 Project.
b. For a given unit in the
			 for-sale portion, the assessed value attributed to the for-sale portion less the
			 Base Value for the for-sale portion, the sum of which is multiplied by the
			 percentage of useable square footage comprising all of the for-sale Market Rate
			 Residential Units to the total useable square footage of the for-sale portion of the
			 HD Project, the product of which is multiplied by the percentage of useable square
			 footage comprising the given for-sale Market Rate Residential Unit to the total
			 useable square footage of all for-sale Market Rate Residential Units.
(c)
Base
			 Value
. The Base Value is the assessed value of the parcel of the
			 property as of the fiscal year in which a HD Tax Increment Exemption Agreement is
			 executed by the Sponsor and the Municipality with respect to that parcel, and prior
			 to the start of any new construction or Substantial Rehabilitation activities,
			 including demolition minus the assessed value attributable to any portion of the
			 property that was assessed as other than residential in the applicable fiscal year
			 and remains non residential after completion of new construction or Substantial
			 Rehabilitation. In the case of HD Projects in which the residential housing is a mix
			 of rental and for sale units, the Base Value shall be apportioned between the rental
			 and for sale units based upon their respective proportion of the usable square
			 footage upon the completion of new construction or Substantial
			 Rehabilitation.