This Is Scary.
By Jim Conley • July 30th, 2006 • Email This Post to a Friend •
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Some Brookline Town Meeting members are circulating an e-mail warning of a provision in a legislative bill (Section 41 of House Bill 5057) that could further erode local decision-making in development matters. Known as Chapter 40T, the provision essentially gives municipalities the power to create “Special Development Districts” that could operate independently of local government. It’s like giving real estate developers the potential to create their own government, or so say 40T opponents.
Onbrookline.com doesn’t know enough to suggest a voter do anything more than contact State Senator Cynthia Creem and ask her whether she intends to override Governor Romney’s veto of Chapter 40T (a vote could come as early as tomorrow).
The House has already voted to override the veto (with at least one member of the Brookline House delegation - Frank Smizik - voting against special districts).
It’s too late for Brookline…developers already run the Town. But if you’re at all concerned for the Commonwealth, call Senator Creem.
Update: The override is on the Senate calendar for today (no doubt because it’s the last day of the Legislative Session).
Jim Conley is publisher of On Brookline.
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I’m very glad to see Jim’s entry above.
Section 41 of H5057 will, if passed, become MGL Chapter 40T. This would allow small groups of property owners to set up Special Development Districts. This would amount to partial secession from their municipality. They could not be taxed, They could not be regulated. They could use eminent domain freely for almost any purpose, They would not be subject to zoning or other municipal limits on development. And they could require the municipality to provide services such as schools and public safety.
Brookline Town Meeting in Nov,, 2005 passed, almost unanimously, a Resolution against the use of eminent domain for to increase local revenues. It appears that Brookline could adopt Ch. 40T simply by a majority vote of the Selectmen. If it passes and Brookline does adopt it, Special Development Districts can happen here, and will have the power to use eminent domain.
If you want to prevent abuse of eminent domain and if you care to keep at least some local control over development, please call or email Senators Creem and Travaglini (President of the Senate) and ask them to uphold the Governor’s veto of Section 41 of H5057.
Sen. Cynthia Creem, Brookline, 617 722 1639, Cynthia.Creem@state.ma.us
Sen. Robert Travaglini, 617-722-1500, Robert.Travaglini@state.ma.us
Thank you,
John Bassett, Town Meeting Member, Precinct 6
This House Bill is quite lengthy. Section 41 setting forth Chapter 40T appears on pages 62 through 80 for those who may wish to print it out. I plan to read this with care as it seems to me to be at the State/Municipality government levelsl somewhat similar to the issue of federalism at the Federal/State government levels. Back in the 1950s when I was in law school, there was Chapter 40A about zoning. Years later, 40B was added to address snob zoning. Then came 40C creating historic districts. Now we are getting to 40T. Those Chapters in between also impact municipalities. With all this regulation, doesn’t quite a bit of expense result? The “mother’s milk” of politicians consists of campaign contributions. So follow the money. Just who are the contributors behind these alphabetical additions to Chapter 40? Sure, let’s prevent sprawl, let’s provide for more affordable housing through more intense development (isn’t Brookline densely developed enough?), let’s cut off NIMBIES at the knees (as if those who do NOT live in a neighborhood are more knowledgable and fair that those who do), let’s eliminate delays that cost developers so much that it doesn’t leave them enough to make campaign contributions, let’s add more and more layers of regulation and boards and agencies to deal with. Better yey let’s get back to open town meeting so that all of us can vent our spleens and not just the 240 TMMs who may not be representative of the rest of us.
Sadly, the die seems to be cast. The only thing in our favor is the current down market that is slowing down development, which may give us time to urge a repeal of 40T.
Your analysis of Chapter 40T is in error. I participated in drafting Chapter 40T. It is designed to provide funding for needed infrastructure such as roads, water and sewer improvements. I can see no use currently for Brookline but many other communities would benefit from its provisions. It will reduce residential and commercial construction costs without one penny of cost to the Commonwealth or local property taxpayers.
You have heard of betterments and assessments? Essentially 40T is a self-taxing mechanism to fund infrastructure. It has no redevelopment powers. The District requires a petition to the local community signed by owners of at least 80% of the acreage in the District. The petition is accompanied by a very detailed Improvement Plan listing all aspects of the project including what powers the District could exercise. The city or town ,after a public hearing, can simply turn down down the requested District for what ever reason. If you read the legislation you will see that it is a public entity and considered a political subdivision of the Commonwealth. It is not a private entity or controled by a developer. Laws such a the open meeting law and other statutes applicable to to other types of districts apply.
The Purdential Committee that runs the District is appointed by the Selectmen or the City Council and can be removed for cause.
If the Improvement Plan lists eminent domain powers (this is optional) and ONLY if the local city or town approves, the District could use this power to widen a road etc. However, any taking MUST be approved by the City Council or Selectmen. This is a much stricter requirement than for a city or town itself since only the apporval of the Selectmen or City Council is required for municipalities. Of course, in that situation, there is no required consent from any property owners. With a 40T District often all property owners or at least owners of 80% of the acreage will have signed the petition to the municipality asking to create the District.
Did you know that 30% of the homes in the Commonwealth are on septic systems? Many of these people are desperate to tie into a modern sewer system. Unfortunately, many municipaliites are unable to fund such improvements. Chapter 40T would permit homeowners to band together and petition to create a District that could fund the improvemetns through assessments or betterment fees. Did you know that there were 403 districts in Massachusetts in 2002 accoding to the US Census Bureau? These districts go about their business very quitely so perhaps many Massachusetts’ citizens are unaware of the functions they fulfill.
Last year over $5 billion in special assessment bonds were isssued outside of MA. We are missing out on a voluntary program that can help fund diverse infrastructure needs. Chapter 40T is local initiative, approved by the local community to permit property owners to self-finance infrastructure improvements. The local community benefits from the increased tax valuation resulting from the improvements. You should check with the Town of East Bridgewater which would like to use Chapter 40T to finance the sewer needs for several thousand home owners. This is no conspiracy. Chapter 40T is a good old fashion self-help program to solve a common need.
Hal Davis
Editorial: Housing bill crucial for state’s future
Saturday, June 23, 2007
Rising mortgage rates and a national real estate slump haven’t made the housing affordability crisis here in Massachusetts any less acute. With median new home prices still over $400,000 in greater Boston, too many families are still locked out of the housing market. We need more housing built, of all kinds, if we are to hold on to young workers and the businesses that depend on them.
What the real estate slump has done is make it harder to get financing to build the new housing Massachusetts needs. That’s especially true of “smart growth” and urban redevelopment projects that require major investments in infrastructure before the first home can be built. Large projects need water and sewer, roads, parking garages and other public amenities, but municipalities can’t afford those investments and private financing is increasingly hard to find for the initial phase of these projects.
One promising option is to allow developers, with the consent of local officials, to create a “special assessment district,” which could issue tax-free bonds to raise money. Those bonds would be paid off through charges levied on those who buy or lease the finished project.
This idea was initially incorporated into the economic development package enacted into law a year ago, but it was vetoed by Gov. Mitt Romney. The House overrode the veto, but the Senate failed to take it up. A new version, sponsored by state Sen. Richard Moore, D-Uxbridge, and known as Chapter 40T, strengthens local control over the districts and removes earlier language granting them eminent domain powers.
The measure is more important now than a year ago. At a State House hearing last week, proponents featured two projects - in downtown Worcester and small-town Upton - that have strong local support and would help provide the housing Massachusetts desperately needs. Their backers say special assessment financing could mean the difference between moving valuable projects like theirs forward or seeing them stalled by the lack of initial financing.
Legislators should enact Moore’s bill before a national real estate slump derails the creation of new housing critical to Massachusetts families and the state’s economic future.