House rejects permit extension; negotiations to begin

In passing a comprehensive economic development bill (H. 4820, as amended), the House on July 7 rejected a provision that would have extended thousands of local development permits by three years.

A bill approved by the Senate in April (S. 2380), however, included the extension in Section 122. The provision would unilaterally add three years to the term of most commercial or residential permits in effect between January 1, 2008, and January 1, 2011, including permits granted under Chapter 40A (the Zoning Act), Chapter 40 (the Subdivision Control Law), and other state and local permitting statutes, ordinances and bylaws.

A legislative conference committee has not yet been named, but House and Senate leaders say they will attempt to draft a compromise bill before the end of formal legislative sessions on July 31.

The permit extension is being pushed aggressively by developers as a statewide solution to the financing problems that some projects have faced due to the recession. But the MMA argues that Section 122 would extend thousands of permits with no evidence that the extension is justified or good public policy.

Local officials assert that there is no evidence that viable projects are being held up or jeopardized under current law. Cities and towns already have the authority to extend local permits and do so routinely. Communities are motivated to extend local permits for approved projects in order to gain the revenue and economic benefits of development.

The MMA argues that Section 122 would extend permits for all projects without regard to viability or the likelihood of construction. It would even extend permits for non-viable projects, which could have the effect of delaying development of important parcels nearby.