Governor Maura Healey recently signed into law a provision in an omnibus economic development bill that establishes an automatic two-year extension to certain permits and licenses concerning the use or development of real property. With limited exceptions, the Permit Extension Act automatically extends, for two years beyond its otherwise applicable expiration date, any permit or approval that was “in effect or existence” during the qualifying period beginning on January 1, 2023 and extending through January 1, 2025. The purpose of the Act – Section 280 of Chapter 238 of the Acts of 2024 – is to promote job growth, housing production and long-term economic development.
Included among the permits and licenses covered by the act are municipal approvals such as special permits, variances, subdivision approvals, comprehensive permits, building permits, order of conditions from conservation commissions and board of health approvals. State licenses such as those issued under Chapter 91 or superseding orders of conditions issued by the Department of Environmental Protection are also extended for 2 years.
Enactment of the Permit Extension Act was a major legislative priority of the Home Builders and Remodelers Association of Massachusetts (HBRAMA). It is needed to advance those housing developments that have received all local or state approvals but have been stalled due to financing, interest rates, supply chain disruptions and changes in the market. Without an extension, some of these permits, licenses and approvals may expire before a builder is able to begin construction or development, thereby requiring the builder to begin the lengthy and costly permitting process all over again. Such an outcome would only make housing more expensive and unnecessarily delay bringing those units online for years.
In another victory for the association, the economic development bill includes an important amendment to the Zoning Act (G.L. c. 40A, § 6) regarding special permits. Section 171 of Chapter 238 provides “zoning freeze” protection for any construction or operations under a special permit or site plan approval issued pursuant to a local zoning ordinance or by-law, as long as the use or construction is commenced within a period of 3 years after the issuance of the special permit or site plan approval. In cases involving construction, construction must be continued through to completion as continuously and expeditiously as is reasonable.
Importantly, this new provision clarifies that construction involving the redevelopment of previously disturbed land is deemed to have commenced upon substantial investment in site preparation or infrastructure construction, and construction of developments intended to proceed in phases must proceed expeditiously, but not continuously, among phases.
The HBRAMA had been successful several years ago in securing passage of an amendment to the Zoning Act (G.L. c. 40A, § 9) that increased the expiration date of special permits from “up to 2 years” to “up to 3 years.” The problem, of course, is that amendment requires a municipality to amend its local zoning ordinance or by-law to provide special permit holders with that extra year. Section 171 of Chapter 238 makes the 3-year expiration period for special permits and site plan approvals uniform throughout the state.
Sections 171 and 280 of Chapter 238 became effective upon the governor’s signature on November 20, 2024. A copy of them can be found [here].
