Housing Development Incentive Program
The Housing Development Incentive Program (HDIP) was established in accordance with 760 CMR 66.00 and M.G.L. Chapter 40V. The mission of the program is to increase residential growth, expand diversity of the housing stock, support economic development and promote neighborhood stabilization. The City of Worcester adopted the program in 2014.
The housing development project must include a substantial renovation resulting in:
- Two or more market-rate housing units for sale or lease.
- 80% of the units per project must be market-rate units.
- The construction cost per unit must be $30,000 or more.
- There is no maximum on the number of units per project.
- Mixed-use properties are eligible.
- New construction projects are also eligible.
- A local property tax exemption on the increase in value resulting from the improvements. The exemption percentage and duration may vary depending on the number of market-rate units. The exemption plan for each project will be approved by the City Council.
- A state investment tax credit (up to 10%) on the renovation costs. The state Department of Housing and Community Development (DHCD) will determine the credit, if applicable.