How It Works
Developers seeking to build single or multi-family homes, condos or apartments where a certain percentage of the units are proposed to be affordable work with town officials to obtain approval. Such units must serve households below 80% of the area median income; the units must be subject to use restrictions to ensure that they remain in a community's affordable housing stock, and must be sold or rented on a fair and open basis.
The Executive Office of Housing and Livable Communities (EOHLC) provides technical support to both the town and the developer. If a development cannot be built under existing zoning, the developer may seek a comprehensive permit allowing the development to be built at a higher density than allowed under existing zoning.
LIP projects are subject to profit limitations. For homeownership projects, profit and developer fees to all partners and owners are limited to no more than 20 percent (20%) of the total development costs. For rental and cooperative housing projects, the LIP regulatory agreement, signed by the community, developer, and EOHLC, limits distribution of return to all partners and legal or beneficial owners to a maximum of 10 percent (10%) equity per year during the time when the affordability restrictions are in place.
Who Is Eligible
Both for-profit and non-profit developers may use the LIP program in concert with a city or town, as the town and developer jointly submit the application.
LIP applications are available on the EOHLC website, or by calling the LIP staff at 617-573-1301. Information to be provided in the application includes the following:
- Documentation of developer's interest in the site (ownership, option purchase, etc.)
- Description of current site conditions
- Site plan
- Sample floor plans of the proposed units, units identified by size, type and proposed cost
- A financial pro forma of the project
- Appraisal of the site
LIP staff review the application, conduct a site visit and evaluate the application. If the project as proposed is approved, EOHLC will issue a site eligibility letter so that the developer may apply to the local Zoning Board of Appeals for a Comprehensive Permit.
For more information:
Please click here or call the Division of Housing Development at (617) 573-1300.