2021-12-07 00:00:00 - Joint Committee on Community Development and Small Businesses
2021-12-07 00:00:00 - Joint Committee on Community Development and Small Businesses
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hearing of13 the community development on a small business committee will come to order. I know we have some guests eagerly awaiting testimony. Um was any of my colleagues in the Senate, so I'd like to hand it over to the my House co chair. Um Representative Ed Carpenter to recognize members.
Thank you. Senator Collins was joined by reps mike Kushmerek rep rich Haggerty was also my vice chair. On the house side we have rep ted Philips rep Brandy Fluker Oakley is joining us today. Uh rep adam Scanlon and I believe that is all of the members from the committee that are on from the House side. So thank you65 guys for all joining us today.
Yeah. Yes, thank you all today. We'll be uh hearing testimony on matters pertaining to economic development. Um First I would like to uh invite up as those who had85 previously signed up to testify. Um Representative uh Ciccolo uh to um give testimony on H 283 and act regarding municipal master plans.
[REP CICCOLO:] [HB283] Okay. Um it's a really simple straightforward bill that aims to help cities and town to do better um Master Planning. Master Planning is a required element under statute Chapter 41 section 81D. And historically many communities don't update master plans as123 frequently as they should or um don't have them at all in some cases because they can be costly to develop. So This bill reduces the required number of elements from nine down to five and modernizes the statute by encouraging um some of the planning areas that we haven't historically done any planning in such as the environment and sustainability and public health are areas for instance that are not150 currently parts of the mandatory um Chapter um uh 41(81D) so reducing the number of elements to make it more cost effective and then having an improved process to have the planning boards adopt those master plans.
So it's a167 fairly simple bill, it's just attempting to uh to make planning a little bit more consistent. This is important for developers and residents alike because the process of developing a master plan enables um communication and priority setting and helps developers understand what the community is hoping to have in its growth patterns and its land use. And that's also a really important thing for developers to understand and then of course for residents to be able to participate in that dialogue about how they want their community to develop over time. Thank you. SHOW NON-ESSENTIAL DIALOGUE
Thank you. Representative call206 um are there any207 questions from members of the committee?
Mhm. Mhm. Mhm. Seeing none. Thank you. Thank you so much. Welcome. We're gonna move on to uh next um
Representative bud, Williams um to uh Peake on an act to establish Western mass balanced sustainable development commission. Thank you mr Chairman, House Chairman, Senate Chairman, my guest in my guests have been trying to get in. I don't know if
I've had some guests and I don't like their their we're supposed to begin to link
Oh, Mr Chairman? Yes, we're trying to get my guests and yeah. So what are the names? Names
Dave Gaby?
Yeah,
the Dave Gaby, can you hear me? Let me turn my let me turn277 my phone off. Okay, trying to find Hunt because they were days maybe uh
parents and one gentleman
with
oh your office is sending me a lightly and try to sign up for a long time ago
calling on the phone. Yeah. Someone else, either a lot of grasshoppers or check out that I had. I was on the phone at the same time was trying to call in and you know, why don't you pass me center and get back? I'm gonna we're gonna send you this link directly right now to share with them. They should be able to hop on pretty quick. All right,
if you're Brown you're brown about 15 minutes.
Let's go. Okay, get back to you. Thanks. So next um joseph Diamond for H 29 four s 15 five. An act to address inequality, promote opportunity and and poverty. Um Thank you Mr Chairman uh and also Chairman Coppinger I'm joined by pam Cutler368 who is the executive Director of Pace inc in New Bedford, Would it be okay to follow me? We wanted to testify as a panel.
Yes, that's fine. Thank you very much. I appreciate it.
JOE DIAMOND - MASSCAP - HB 294 - SB 155 - Thank you. Chair Collins and chair Coppinger for this opportunity to testify in favor of Senate 155 and House390 294 an act to address inequality, promote opportunity and end poverty. We are grateful to Representative Kerans and Senator Moore for their leadership in supporting Community Action Agencies or CAAs as the sponsors of the legislation. I'm Joe Diamond, MASSCAP. Executive director. MASSCAP is the association Of the 23 Community Action Agencies federally mandated anti-poverty agencies operating in Massachusetts. Our mission is to help vulnerable friends and neighbors achieve economic stability and mobility.
We serve close to 600,000 people in virtually every city in town with integrated and blended services including fuel assistance, early education and care including Head Start weatherization and energy conservation, homelessness prevention, job training and access to the earned income tax credit and the child tax credit through voluntary income tax assistance sites and much more. We are local leaders in organizing responses to emergent needs such as the445 health and economic needs brought on by the pandemic. The bills provide for a framework to strengthen the CAA network, the Community Action Agency network As a result of our conversations with legislators and the Ways and Means Committees and as part of the policy making process that involves interaction between the465 legislative and budget processes.
Two of the three main components of this bill and its470 predecessor bill were included in FY 21 and FY 22 budgets namely the line item for Community Action Agencies and the Commission on Poverty for which we are grateful and appreciative. The other part of the bill that remains modernizes statutory language that authorizes CAAs to serve Massachusetts residents. Specifically It notes a service integration approach a no wrong door approach featuring wraparound services. It raises up the CAA's central role in local leadership and coordination and collaboration in addressing emergent needs.
It adds new services508 such as asset development and it calls on MASSCAP to convene statewide forums from time to time. The line item, which again is part of the state budget now is the flexible resource that supports the operations and core programs of CAAs across the state and allows us to respond with partners quickly to emergent needs and to continue to enhance our presence in cities and towns that we serve. Regarding the Commission on Poverty We have been working with legislators and the governor's office on such a commission for a few years are grateful for its enactment and the resources provided in the most recent supplemental budget to support its work to investigate, develop and recommend methods and strategies for550 reducing poverty and expanding opportunity for people with low incomes.
This is timely in light of what we learned about the challenges people living with low incomes face which were exacerbated by the pandemic. We respectfully request that the committee report this bill out favorably564 by including the language in it that updates the Community Action Agency authorizing language in chapter 23B of the Mass General Laws but with amendments572 that reflect the inclusion in the state budgets of the CAA a line item and the Commission on Poverty. We are happy to work with the committee to make any adjustments to the bill. Thank you for this opportunity to testify. SHOW NON-ESSENTIAL DIALOGUE
Thank you.
Thanks. Thanks Joanna. So thank you.
[PAM KUECHLER (PACE):] [SB155] [HB294] I just want to thank the committee for the chance to testify in favor of the bills. Senate 155 and House 294 an act to address inequality and promote opportunity and end poverty. My name is Pam Kuechler I'm the executive director at PACE. We are located in Medford and serve area. Um I also serve as a second vice President in MASSCAP. Um PACE is one of the 23 community action agencies across the state that as Joe indicated. And one of the unique components And one of the reasons why the work that we do is so critical is because we're designed to really assess needs and respond to those needs629 in creative ways.
This uh these uh ways of providing those services really were heightened as a result of the pandemic. And um and we really uh have been grateful for the opportunity to uh to utilize that option um and and pull people together to address some653 of the rising needs. Um PACE as an agency um acts as both a local convener and a and a provider of services and one of the ways that667 we were really brought to the forefront during the pandemic was our responses to671 the need of addressing food insecurity and housing insecurity.
What we were able to do is really get creative in our responses, being able to serve people both on site and delivering to people and uh and really making sure that we uh responded to the fact that that our services, the need for our services increased four five times. We also worked closely with all of the other area agencies and met on a daily basis to really take a look at and drill down as to what the needs were that were that were being arisen and really um and really respond to those needs. The state line item has allowed us to be able to to um address those, not only address those needs, but then to think about the long term impact that we can have and allow us to be really creative in that.
Um It's it's uh we've been really been given the opportunity to utilize our platform to to734 get innovative and uh and really act as conveners in our local communities. Um So we're very grateful that that has that has happened. Um And so um just want to really request that the committee report the bill out favorably at that include that modernism modernisation of the CA language um and with the amendments that reflect the inclusion on the in the budget of the CAA line item and the Commission on Poverty. We appreciate all of your support. And um we look forward to continuing to play this role in our local communities to address the needs of those living in poverty. Thank you. SHOW NON-ESSENTIAL DIALOGUE
Thank you joe. And thank you pam any questions from members of the committee? Mhm. Seeing none. I would like to welcome back if he's available. Uh Did we send that for um Williams if you're you and your coalition's here? We welcome you back.
Just Yeah, we are here. Thank you. Thank you Senator. We've got a small coalition. Okay, that's fine, please. Because in boston when you guys say a coalition804 of like 100 people, so we've got three people
trying to get my camera. I don't need the camera. Okay. There came back on I have with me from Western Mass I believe. Dave Gaby. And who else is on? Because I can't see Day and mike Florio thanks might pull up a little bit mike tell might come to. Yeah. Yeah. Yeah. There you go. And uh where's chuck how far we're waiting on? Okay, no problem.
[REP834 WILLIAMS] [HB302] I'm want to defer senator. Thank you for holding this very important meeting. We uh I think we got a favorable out of committee uh two years ago. Chairman Wagner was I believe chairperson at at the time and it talks about Easter Mass in Western Mass and uh some of the problems in Western Mass as you might know Um Are pay scales and contracts and all that are not equal to Boston and the surrounding towns. So what we're proposing is871 to form a commission to look at, how do we kind of get rates that make sense out in Western massachusetts? You know, you've got a crane operator in Boston, you guys, you know, the pay scale is whatever it is and you can pay all those large feet, you come to Western Mass, which is the same fee as as Boston vicinity, but our, our workforce just cannot afford it. So we got to, we have to try to find a way to make sure that it's equitable across the commonwealth and the rich aren't getting richer and the poor getting poorer. But Dave gave you mike909 and really speak to it because they testified uh, two years ago. Dave? Yeah, but the hearing was in Western Mass.
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To
all right, I want922 to turn over today than to mike. Please thank you and thank you Senator for holding this reading in the House Chair also, thank you.
Thank you everyone. I appreciate the opportunity
be able to be able to David not coming through loud and clear. It's not clear
speaking.
[DAVID GABY (MCKNIGHT CDC):] [HB302] I'm speaking as a private director of the Mcknight Community Development Corporation. We have a specific territory of the Mcknight neighborhood in Springfield, but we have other programs like our let's play safety program and our energy program that focused on the region. What we're finding, working with solar power and working with other sustainability974 programs is that oftentimes the response from the commonwealth is to change the code let's make people safer with More licenses and and education programs, all of which are basically well motivated but which um impact differently on Western Mass and Eastern Mass.
As Rep Bud mentioned a lot of times the fees that are charged for instance to the contractos makes sense within the amount of money that people can make working in1008 metropolitan Boston. Um So they might run a train just used as an example five days a week, Eastern and Western Mass. Our people the kind of work that we have on the kind of activity we have. I'd1023 like you to be able to get paid to run twice or three times a month that the registration costs and increasing complexity is the same. The building poses1034 the same. We do a lot of construction. Um We have as an example recently the building code or the DBRS good that now if we're going to have someone with gas water heater, we have to have a stainless steel that we have that for. Oh Over $600. That's not significant Paying $1 million dollars for housing.
We're trying to make building affordable with $100,000 renovation and I'm much more of a there are a lot of other regulations like this and a lot of other tracks like the way that the forms of authorities are funded one way and M. V. P. In a different way out in the rest of the state if you'd like to have the opportunity to support this legislation. Mhm dramatically work throughout the region collect this information.
Try to come up with positive ways that you mentioned the defense Carey for I have my license to her food musician burden differently or in some way finances differently so that Western mass is not being trapped out being what's happening now. So often we have a um public did process goes out and the only ones that can afford the overhead of the Diggs our Houston mass context so we have people well getting money, the western national that we confront through a system and the contractors are coming from high parking boss Moore from pipe work was done the only Western mass contracting work and the end of that was almost in new york every other one came out of boston are contractors are sitting on watching and this creates all1151 kinds of psychological and economic growth so what we're suggesting and hopefully then we moved to coming out of the pandemic but on top of this so that we1164 don't have another generation of workers and communities made in the sidewalk supervisors essentially but not being supportive equally. Um that's that's my summary summary my promises. SHOW NON-ESSENTIAL DIALOGUE
Mhm
because Michael Kane Sure yeah I think he had a few more guess uh ones Mr chairman I think mr chairman I1203 want to thank I think we've done uh as I said we've been chasing this uh bill for Going on four years now and I think it's really important to watch in massachusetts A level playing field. So I want to thank you Senator Collins and chair Coppinger for at least putting it on the board for hearing. I think that's it for us. Thank you Senator. Thank you. Any questions for um Williams always guess. Dave and uh and also David, we did hear most of what you said but feel free to submit testimony as the um represented Williams said that you know had action in the past. So we'll look at that too as president. But you know what we do here ah quite a bit um in boston that too many of our contractors are coming from new Hampshire. So yeah. Yeah that it seems to be a cat and mouse around the state. But um definitely take a look at and thank you very much for your testimony said
please
[WILLIAMS:] You know it's the provision in the law in the commonwealth.1268 Mhm. When you go to Connecticut and I have experienced this several times and a contractor out of state from Connecticut is awarded the contract. You know what happens? They go back to the to the drawing board and he asks the contractor in Connecticut who was maybe the second highest bidder. Can they match the contract and they award the contract to the Connecticut company. I've researched about this because it's important. We just don't have the are blue laws. They get a second chance.
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Absolutely no. So that that's actually a good idea as well. Um contract str
we're having a hard time here rob Williams like that. All right, well listen, we did catch part of that. We had a hard time getting a little bit. I'm glad we're um putting some uh resources into our broadband across the state. But legislation and uh, um, thank you for testimony. Thank you, senator. Thank you. Uh Carpenter of the Chairman Carpenter. Thank you sir. Thank you. Thank you. And then um next up we have Judith leaving uh, to testify On H 281 and Act relative to neighborhood stabilization and economic development. Thank you. It's my sound working
perfect. Oh, that's because I'm in eastern massachusetts I guess so.
[JUDITH LIBEN (MLRI):] [HB281] Thank you very much to the chairs and members of the committee. My name is Judith Liben I'm1386 a housing attorney at the Mass Law Reform Institute and I'm here to urge you to not to act favorably on Sections 1 and 2 of House Bill 281, which is a longer bill that we have no objection to it all. Um, the provisions we are concerned about would triple the annual tax credit for the Housing Development Incentive Program known as HDIP which subsidizes developers of market rate and often high rent and luxury housing in gateway cities. There are several reasons that we're concerned.
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Excuse me, my own phone is going up. I'm so sorry um
There are several reasons why we're concerned. This bill would increase HDIP subsidies by $20 million 10 million to 30 million each year indefinitely into the future. Since it started HDIP is awarded or reserved about $75 million in tax credits soon to go up to about $99 million. But with no requirement that any of the units be affordable or even mixed income, no requirement that the subsidies demonstrably benefit local residents of the gateway cities, no requirement to take equity or fair housing considerations into account, no requirement to avoid any increased neighborhood rents and possible displacement depending on the neighborhood and the makeup of the neighborhood and no requirement to target weak market communities rather than strong market gateway communities.
Of course as this committee knows better than most. Not all gateway cities are alike nor are all the neighborhoods within these cities yet HDIP fails to prioritize among them based on any clear criteria. As a result, credits have often gone to stronger market cities that are already attractive to developers and command very high rents and I'll just and just two examples and it's just two of several are Mauldin and Worcester. Um Worcester describes itself in the paper and in other ways as booming prospering resurgent And since 2011 about 4000 market rate units have been built in Worcester.
One developer who just bought a property for $16.5 million said 'we want to be a part of Worcester's resurgence and we plan1536 to invest a good amount of capital within the next few years.' Those developers don't need public subsidies like HDIP yet four HDIP projects with hundreds of high rent units have1549 been approved in Worcester with $6.5 million in credits And another 570 units under review including one that's adjacent to Polar Park. A developer magnet If ever there were one. Now in the other 16 cities with HDIP developments there are there are kind of wider issues to think about one is that HDIP rents are very high often.
Not always but often because we're talking about 17 cities that have received these credits so far and within them different neighborhoods so it's hard to just generalize. There's different demography and different issues in each neighborhood but in general HDIP rents are very high some by 50-70% over market averages. And remember we're subsidizing this for instance a1598 two bedroom unit at a Mauldin HDIP development runs for 3430 In Worcester the rents can go from 2000 to 3000. And in some of the gateway cities near Boston you're talking very high ranch talking Quincy Mauldin coming up in Lynn it depends how these cities are coming along and what the, what the trains uh the new train lines are going to bring and all the ways that cities change.
Um two projects each with 2 million in HDIP subsidies. Our students only projects with high rent housing and they rent by the bid. Um There are no protections. Oh HDIP units are generally very small and not feasible for families with Children. Almost very few of them have1643 anything more than two bedrooms and More studios and one bedrooms. So they're sort of marketed to millennials rather than families, families with Children. As I said, there are no protections for lower income and working class residents who may, we don't know that they will but may be adversely affected by high rent developments and um there's no meaningful monitoring1666 or evaluation or reporting of the program.
In order to find out these and many other facts I and others have to do public records requests because there is no annual reporting. There's no there's no public participation. I'm in the process of writing comments for the Low Income Housing Tax Credit Program which is an affordable housing tax credit program in which the public is invited to come and say here's how we think you should spend these credits. You know sometimes sometimes great ideas come in and sometimes not but the public is involved. So in our written testimony which I've been told I can I can submit next week. I hope that's ok. Um we will suggest several ways in which we think HDIP can be refused refused. Excuse me revised and improved rather than expanded and rather than taking time now we'll put that in the written testimony although I'm really happy to take any questions about this program and why we hope it is not expanded by this committee. So thank you very much for your time and thank you for having this1742 hearing.
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and I'm glad I learned how to use your program rather than zoom. It's a new skill that I've developed.
Thank you very much much Judith. Um Any questions from members of the committee? No thank you Judith thank you very much.
Um at this point is there is there anyone else looking to testify any bills before us in this hearing today? That hasn't signed up but has joined us like
um seeing and hearing none. Is there a motion on the floor to close the hearing?
Second?
All those in favor say aye opposed. No the eyes have it. Um the most reveals in the Hearing today on December seven by the Committee on Community Development. Small business. It is closed. Thank you for all for your participation. Thank you. Thank you everyone
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