Understanding Urban Renewal
Urban Renewal is a redevelopment tool available to Massachusetts cities and towns under M.G.L. Chapter 121B. It can help communities address redevelopment challenges in a defined area when private investment or municipal regulatory powers alone are not enough to achieve local redevelopment goals. Some basic features of Urban Renewal are:
| Urban Renewal is | Urban Renewal is not |
|---|---|
| A redevelopment tool for a defined area that meets M.G.L. c. 121B requirements. | A designation for any area where redevelopment is desired. |
| A plan for public actions that address documented conditions and support redevelopment. | A requirement to acquire or clear all property within an Urban Renewal area. |
| A tool that can support rehabilitation, reuse, public improvements, land assembly, site preparation, financial strategies, and new development. | Limited to demolition and new construction. |
| An action-oriented plan developed through local planning. | Solely a general planning or vision document. |
Key features of an Urban Renewal Plan
An Urban Renewal Plan is a blueprint for redevelopment in a designated area. It describes what changes are proposed, why they are needed, and how they will be carried out.
Plans are locally developed and may support residential, commercial, or industrial uses as well as other community needs.
| Key Feature | How it works |
|---|---|
| Applies to a defined area | The Plan establishes boundaries for an area that meets the statutory criteria for a substandard, decadent, and/or blighted open area. |
| Identifies specific public actions | The Plan describes actions to address existing conditions and support the Plan’s objectives. |
| Identifies property acquisition and land assembly | The Plan identifies parcels proposed for acquisition and explains why they are needed to achieve the Plan’s objectives. |
| Guides disposition and redevelopment | The Plan identifies proposed uses and requirements for property to be disposed of for redevelopment. |
| Provides for public participation and approvals | The Plan documents citizen participation and a required public hearing and is subject to local and state approvals. |
When might Urban Renewal be useful?
It may be useful when conditions are affecting redevelopment and investment and public action may be needed to respond to them.
For example, a community may be trying to address:
- vacant, obsolete, deteriorated, or underutilized properties;
- substantial changes in business or economic conditions;
- deteriorated site improvements or facilities;
- physical, parcel, or development patterns that make redevelopment difficult;
- properties requiring rehabilitation, remediation, or site preparation;
- multiple properties that need to be assembled for redevelopment; or
- other characteristics of the area, parcels, or buildings that impede growth and new investment.
When these or similar conditions are affecting redevelopment, a community may want to consider whether the tools available under M.G.L. Chapter 121B could help achieve its redevelopment goals.
Laws and Regulations
Urban Renewal in Massachusetts is governed by:
Where is Urban Renewal used in Massachusetts?
Cities and towns across Massachusetts use Urban Renewal Plans to address different local conditions and redevelopment goals. Plans vary in size, location, and approach and have been used in downtowns, neighborhoods, waterfronts, industrial and business districts, and other areas.
*The year of state approval of the urban renewal plan under M.G.L. c. 121B or its predecessor statutes, where documented, or the best available year associated with the original plan based on historical records.
This list is maintained for general informational purposes and may not include plans that are inactive or expired.
If municipalities believe a plan is missing or needs to be updated in this list, please reach out to the Urban Renewal Program contact.
Is Urban Renewal right for your community?
Before preparing an Urban Renewal Plan, a municipality and Urban Renewal agency may consider:
What conditions are affecting the area?
What physical, economic, property, infrastructure, and other conditions exist and what redevelopment obstacles do they create?
What is the community trying to achieve?
What redevelopment is desired, and how does it relate to local plans and priorities?
Why is public action necessary?
Why would the area not be redeveloped through private enterprise or municipal regulatory powers alone?
What public actions are needed?
What specific actions would address the identified conditions and support redevelopment?
What is expected to result?
What redevelopment, private investment, and other outcomes are expected from those actions?
Existing plans, studies, surveys, and community planning work can help establish the basis for an Urban Renewal Plan.
Preparing an Urban Renewal Plan
An Urban Renewal Plan is prepared by a community and requires local and state approvals. The proposed Urban Renewal area must meet the statutory requirements for a substandard, decadent, or blighted open area under M.G.L. c. 121B.
The planning process includes:
- documenting the area's eligibility;
- establishing objectives and proposed redevelopment activities;
- identifying proposed acquisitions and dispositions;
- addressing relocation, when applicable;
- developing an implementation schedule and financial plan;
- providing for citizen participation;
- obtaining required local approvals; and
- addressing Massachusetts Environmental Policy Act (MEPA) review.
EOHLC reviews Urban Renewal Plans for compliance with M.G.L. c. 121B and 760 CMR 12.00.
For an area to be renewed exclusively or primarily through commercial or industrial development, M.G.L. c. 121B, § 48 requires EOHLC to assign its responsibilities under that section to the Secretary of the Executive Office of Economic Development.
Start with the Urban Renewal Plan Preparation Guide:
Implementing an approved Urban Renewal Plan
Activities under an approved Urban Renewal Plan that require state review under 760 CMR 12.00 include:
- plan changes;
- acquisition of property identified for acquisition; and
- disposition of property identified for disposition.
Urban Renewal agencies carrying out approved plans also have ongoing reporting and recordkeeping responsibilities.
For detailed requirements, see 760 CMR 12.00 and HLC's Guidance and Resources.
Property acquisition or other covered activities may result in the displacement of residents or businesses. State and/or federal relocation requirements may apply, including M.G.L. c. 79A and 760 CMR 27.00.
Contact HLC early when planning an activity that may result in displacement.
Redevelopment Authorities
A redevelopment authority is an independent public body that a city or town may establish under M.G.L. Chapter 121B.
Redevelopment authorities can undertake certain planning and redevelopment activities under state law and, when implementing an approved Urban Renewal Plan, may exercise urban Chapter 121B Urban Renewal powers in accordance with plan requirements.
Review the Urban Renewal and Redevelopment Authorities in Massachusetts Guidebook for information about:
- establishing a redevelopment authority;
- board membership and organization;
- redevelopment authority powers and limitations; and
- reporting and other responsibilities
Guidance and Resources
The following resources, guides, and state programs may be relevant to Urban Renewal planning and redevelopment.
Grants and Funding
There is no dedicated funding source that automatically accompanies approval of an Urban Renewal Plan. Communities may want to explore state planning, housing, infrastructure, economic development, or environmental grant programs, including those listed below. Requirements and eligibility vary.
- Community One Stop for Growth – grants for planning, zoning, community engagement, and predevelopment work
- Community Planning Grant Program - grants for activities related to community planning, zoning, and planning for housing.
- Executive Office of Economic Development (EOED) - Programs and Grants – programs and grants to assist communities and businesses
- MassDevelopment – planning and predevelopment support
Related State Programs and Requirements
Massachusetts Environmental Policy Act (MEPA)
A new Urban Renewal Plan or Major Plan Change may be subject to review under the Massachusetts Environmental Policy Act (MEPA). If required MEPA review is not complete at the time of final submission, HLC may issue conditional approval pending completion of MEPA review. The Plan may be implemented once the required MEPA review is complete.
Communities considering a new Plan or Major Plan Change should review applicable MEPA requirements and may want to consult with the MEPA Office early in the planning process.
Urban Center Housing Tax Increment Financing (UCH-TIF)
UCH-TIF is a separate state program that may support housing and commercial development in eligible commercial centers through local tax increment financing.
Communities considering redevelopment of a commercial center may want to explore whether UCH-TIF could support their redevelopment goals.
Urban Redevelopment Corporations — M.G.L. Chapter 121A
M.G.L. Chapter 121A provides a separate statutory redevelopment and tax incentive program for eligible projects by Urban Redevelopment Corporations.
Municipalities and developers may want to consider whether Chapter 121A could support a proposed redevelopment project.