Administrative Bulletin  Commonwealth Leasing and Real Estate Activity (A&F 25)

Date:	02/17/2025
Organization:	Executive Office for Administration and Finance
Referenced Sources:	M.G.L. c.23A, s.3A M.G.L. c.30, s.62 M.G.L. c.149, s.26 M.G.L. c.149, s.27 - 27C

The purpose of this Bulletin is to establish policy principles and requirements for Commonwealth leasing and real estate activity.

Purpose and Scope

Effective February 17, 2025, all state entities subject to the provisions of M.G.L. chapter 7C, sections 7 and 32-42 inclusive must comply with the following updated policy, in order to ensure that Commonwealth leasing and real estate activity is conducted in alignment with key policy goals including:

• Prioritizing the location of state investments in Gateway Cities, environmental justice areas, and other areas where they can play a role in revitalizing and stabilizing the economies of underserved communities.
• Encouraging participation by individuals and businesses from under-represented groups as vendors, developers and in the workforce.
• Advancing climate and decarbonization objectives in programming, siting, design & construction, and other real estate and property decision-making.
• Ensuring workers are protected and share in the benefits when larger public facilities are developed using public private partnerships.

Leasing and Real Estate Principles

To advance the objectives outlined above, executive departments working with the Executive Office for Administration and Finance’s Division of Capital Asset Management and Maintenance (DCAMM) shall consider the following principles in their real estate activities on behalf of the Commonwealth:

1. In solicitations for procurement of leased property for the Commonwealth, occupant entities and DCAMM should prioritize locations that meet the following criteria (as applicable) to the greatest extent possible consistent with the service requirements of the procurement:
   1. Locations that are accessible to the client populations serviced by the leasing entity.
   2. Locations within the boundaries of Gateway Municipalities as defined in M.G.L. c. 23A, s. 3A.
   3. Locations in Environmental Justice Population neighborhoods as defined in M.G.L. c. 30, s. 62.
   4. Locations with scores of 60 or greater on the Smart Location Index issued by the U.S. General Services Administration.
2. To reduce the Commonwealth’s climate impacts, agencies and DCAMM should aim for new lease agreements or lease extensions that have no net increase in square footage beyond modest variations caused by existing architectural conditions. Where a new or extended lease agreement or lease extension increases usable square footage, agencies are encouraged to offset that increase in the future by the designation of an equal or greater amount of usable square footage of state-controlled facilities for demolition, disposition, or lease revision or termination.

Leasing and Real Estate Requirements

To advance the objectives outlined above, executive departments working with DCAMM are required to implement the following guidelines in their real estate activities on behalf of the Commonwealth:

1. In the absence of an explicit and documented geographic necessity to do so, DCAMM shall not lease property located in an Environmental Justice Population neighborhood for a use that creates an Environmental Burden, as defined in M.G.L. c. 30, s. 62.
2.  As set forth in Section 4.E. of Executive Order 594, all leasing procurements shall incorporate the following criteria:
   1. Compliance with or exceeding current building energy codes;
   2. Meeting environmental criteria and receiving applicable environmental certifications;
   3. Compliance with municipal energy disclosure ordinances;
   4. Compliance with state recycling requirements;
   5. Access to electric vehicle charging stations;
   6. Siting near public transportation and accessibility for pedestrians and cyclists; and
   7. Other elements that contribute to reduced GHG emissions and/or reduced environmental impacts.
3. When disposing of state real property assets, whether through lease or sale, solicitations should require redevelopment projects involving 20,000 or more gross square feet of renovation or construction in a single building be designed and implemented consistent with the standards for new construction and building renovation, as applicable, established for Commonwealth projects in Sections 3 and 4 of Executive Order 594.
4. In all competitive solicitations involving real property acquisition or disposition by lease or purchase and sale, DCAMM shall include a provision that the proposer submit a written plan for how their project will create opportunities for individuals or groups from historically under-represented demographics and incorporate review of said plan as a comparative evaluation criterion.
5. For all public facilities occupied by state entities developed in leased property or through public-private partnerships facilitated by DCAMM that involve substantial renovation or new construction, designs shall emphasize universal design principles to create inclusive environments for all occupants regardless of ability, in addition to compliance with applicable laws and regulations of the Americans with Disabilities Act and the Massachusetts Architectural Access Board.
6. In all instances where DCAMM or any state entity working in partnership with DCAMM seeks authority from the Asset Management Board to enter into public private partnerships and/or lease terms exceeding ten years for projects that include the construction or renovation of facilities to be occupied and used by Commonwealth entities for the delivery of state government services, the construction shall be subject to the prevailing wage provisions of M.G.L. c. 149, sections 26-27C.

Exceptions

Where an entity with care and control or other Commonwealth occupant presents a compelling case that they have service or other needs that deviate from strict applicability of these provisions, including but not limited to, geographic parameters (e.g., a marine research center that requires a coastal location or a regional service center that supports a specific area of the Commonwealth), space requirements, alternative location criteria and size parameters to those described above, those factors may be considered by DCAMM on behalf of the occupant or care and control entity.

Compliance Reporting

The Commissioner of Capital Asset Management and Maintenance shall appropriately track compliance with these policy directives.

Links

For more information visit the Division of Capital Asset Management and Maintenance Real Estate and Leasing websites:

https://www.mass.gov/info-details/dcamms-office-of-real-estate-management-services

https://www.mass.gov/info-details/dcamms-office-of-leasing-and-state-office-planning

A&F Secretary Approval and Effective Date

This Administrative Bulletin published by the Executive Office for Administration and Finance shall be effective as of February 17, 2025.

Matthew Gorzkowicz, Secretary
Effective Date February 17, 2025