Proposed economic development legislation in Massachusetts could provide developers with more time to secure construction financing for approved projects. According to the Boston Business Journal, one provision of the legislation would extend existing approvals for building and other permits by two years.
In recent years, there has been a significant decline in construction starts in Greater Boston due to higher borrowing and building costs as well as difficulty obtaining loans. This has made it challenging for developers to move forward with their projects, especially if their permits expire while they are still seeking financing. In such cases, they would have to spend additional time and money renewing their permits, which is not always guaranteed.
Greg Sampson from law firm Sullivan & Worcester’s permitting and land use practice explained that this extension would give developers a “lifeline” by allowing them to proceed without having to start over with the permitting process. The proposed extension has also been supported by NAIOP Massachusetts.
Overall, this legislative change could potentially benefit developers across Massachusetts who are facing challenges securing financing for their approved projects.
