MARK LEFF
40B also needed

An outside section of the Senate budget approved last week seeks to provide additional school aid for communities that build housing in smart-growth districts created under the state’s new Chapter 40R law.

The section, approved by the Senate Ways and Means Committee, outlines a formula that could be used to determine how much additional school aid cities and towns should receive to cover the costs of educating students that live in housing that’s built in the smart-growth districts.

Supporters of the law wanted school funding to be included as part of the Chapter 40R legislation, which was approved last year, arguing that it was a powerful incentive to encourage communities to embrace more housing development. Municipal leaders often fear that additional housing brings more school children and places financial burdens on local school systems.

“Additional school aid will be a welcome incentive. We had always expected this to be part of the package, but it was left out last year,” said Marc Draisen, executive director of the Metropolitan Area Planning Council. “It will certainly encourage communities to adopt 40R, but it’s only part of the puzzle. There are still other impediments that must be overcome before many communities are likely to join.”

The Home Builders Association of Massachusetts also believes school funding might spur more cities and towns to take advantage of Chapter 40R and produce more housing.

“A lot times when we’re going in front of a municipality to get a project approved, the largest concern a lot of municipalities have is school funding,” said Gregory Spier, a Foxboro builder who is president of the builders’ association.

‘Tight’ Budgets

Under Chapter 40R, cities and towns are eligible to receive financial incentives if they create smart-growth zoning districts for housing development. Communities can receive $3,000 for every housing unit created in those specially established districts. Once the district has been certified by the state, towns can also receive a one-time zoning incentive payment that ranges from $10,000 for up to 20 units that are to be developed to $600,000 for more than 500 units.

Funding for the measure is supposed to come from the sale of surplus state land.

Language for Chapter 40R was included in the Senate version of the budget last year. A joint conference committee of Senate and House leaders, however, eliminated the incentive that would have provided additional school funding to communities. Instead, lawmakers called for a two-year study on the school-aid issue.

Spier expressed doubts that legislators will approve the school assistance incentive this year. “With budgets as tight as they are, I’d be surprised if the mandate gets funded.”

Mark Leff, vice president of the homebuilders group, said Chapter 40R can’t be successful without maintaining the strength of Chapter 40B, a permitting law that enables developers to skirt local zoning in communities where less than 10 percent of the housing is affordable.

“Assuming the status quo of Chapter 40B, with educational funding attached to Chapter 40R, this is really the test for whether communities are going to take the carrot and building housing. If they still don’t do so, then it’s clear that other measures have to be taken,” Leff said.

If Senate and House leaders agree to include the proposal in the budget, it will be sent to Gov. Mitt Romney for his consideration.