The Worcester Regional Chamber of Commerce today announced its support for a state program that gives tax incentives to developers who renovate old buildings into housing, because it would be a boost for businesses.
Launched by the housing and economic development office in 2010, the Housing Development Incentive Program (HDIP) is available to developers in Gateway Cities, including Worcester, who want to build up to 62 housing units, including up to 50 at market rate. However, projects must fall within a zone established by the city and submitted to the state’s Department of Housing and Community Development for approval. According to the chamber, Worcester has not mapped out a zone to submit to the state for approval. Pittsfield was the first of the 24 gateway cities to submit an application to the state and announced a 39-unit project with 10 retail spaces last fall.
“Worcester has been a proud leader in the strategic (tax increment financing) and (district improvement financing) programs,” said Tim Murray, chamber president and CEO. “Adoption of the HDIP will continue that legacy of innovation and add yet another tool to the economic development toolbox.”
Incentives available through HDIP are a local real estate tax exemption for all or part of the increased property value and state tax credits for qualified substantial rehabilitation expenditures.
Timothy McGourthy, the city’s chief development officer, said he expects a plan to be taken to city council for consideration in the fall.
“The city has been working closely with the chamber and other interested parties to consider the potential of the HDIP,” he said in a statement. “To be effective, an HDIP plan should recommend specific strategic projects for HDIP funding. Therefore, we are working with private property owners to ascertain level of interest and readiness to proceed. We … look forward to targeting new market-rate opportunities in our downtown and along our key commercial corridors.”
Read more
‘Gateway Cities’ Designation Could Be Key To Recovery
Worcester Chamber Launches Economic Development Fund
Worcester Nets Brownfield Cleanup Funding
Murray To Pay $80K In Campaign Finance Settlement
