Housing Development Incentive Program (HDIP)
The Housing Development Incentive Program (HDIP) provides Gateway Cities, like Barnstable with a tool to develop market rate housing while increasing residential growth, expanding diversity of housing stock, supporting economic development, and promoting neighborhood stabilization in designated areas.
The program provides two tax incentives to developers to undertake new construction or substantial rehabilitation of properties for lease or sale as multi-unit market rate residential housing:
- A local-option real estate tax exemption on all or part of the increased property value resulting from improvements (the increment), and
- State tax credits for Qualified Project Expenditures (QPEs) that are awarded through a rolling application process.
Tax Increment Exemption (TIE)
The Town of Barnstable seeks to enter into Tax Increment Exemption Agreements with Residential Developers to support investment of market rate residential projects that contribute to meeting the housing goals of the community by increasing residential growth, expanding diversity of housing stock and supporting economic development in the Downtown Hyannis Growth Incentive Zone. The Downtown Hyannis GIZ is uniquely positioned for additional housing development as it is the economic center of the Town and region however it is seeking a greater jobs-housing balance.
A Tax Increment Exemption Agreement (TIE) is a locally negotiated real estate property tax increment exemption between the Developer and Municipality of not less than 10% and not more than 100% of the increment on market rate residential units in a Certified Housing Development (HD) project for a period of not less than 5 years and not more than 20 years in accordance with Massachusetts Housing Development Incentive Program.
- Tax Increment Exemption Agreement – Ownership
- Tax Increment Exemption Agreement – Rental
- Tax Increment Exemption Agreement – Mixed Tenure
Contact: Ryan Bennett, Housing Coordinator