Center City Housing Incentive Program (CCHIP)
The Center City Housing Incentive Program (CCHIP) was created and approved to take advantage of the Massachusetts Housing Development Incentive Program (HDIP) established by M.G.L. Ch.40V, to spur residential development, expand the diversity of housing stock in the Zone, support economic development and promote neighborhood stabilization. Project Sponsors within the CCHIP Zone in the City of Holyoke would be eligible for local and state tax incentives when undertaking substantial rehabilitation of properties for lease or sale as multi-unit market rate housing.
The increase in a mix of housing will attract more residents to the Center City as well as allow residents to remain in the downtown when they increase their purchasing power or their housing needs change. This increase in households within the Center City will also support economic development strategies for the successful revitalization of downtown Holyoke including supporting existing and additional commercial businesses, increased pedestrian activity, attraction and support of job opportunities, and a general increase in activity in the Center City.
This plan establishes an implementation strategy to balance the existing types of housing with the addition of market rate through the adaptive reuse of existing buildings and upper floors in mixed use buildings into market rate units to create an overall increase in the number of housing units and housing choice in the Center City.
The Holyoke HDIP Zone includes the first four census tracts and is consistent with the geographic area of the Holyoke Urban Renewal Plan.
The target income for Holyoke’s HDIP is a minimum of $48,472, which could support a rent of $1,200 per month. This is a floor to median incomes and rents, there is no ceiling.
The duration of the HD Plan shall be 20 years from the data of approval by DHCD in order to spur private development of market-rate housing within the Center City of Holyoke to develop an adequate mix of housing in the area.
Due to the challenges of being the first projects to complete adaptive reuse developments within under-utilized and abandoned buildings, a greater local tax exemption incentive will be provided for those projects that receive Preliminary Certification within the first 5 years after DHCD approval.
Local Tax Exemption
Projects receiving Preliminary Certification within years 1-5 – 100% exemption for 10 years*
Projects receiving Preliminary Certification years 6-20 – Negotiated based on the Criteria below
*the period may be extended longer than 10 years based on the criteria listed below.
- The extent to which the Certified HD Project will encourage residential development, expand diversity of housing supply, promote economic development, and support neighborhood stabilization.
- The number and percentage of market rate units contained in the Certified Project.
- Integration of the HD Project with other development and redevelopment, public and private, in the HD Zone.
- HD Projects consistency with the sustainable development principles, including the extent to which it includes elements of green design, and promotes conservation of energy resources.
- Strength of the development team, including a positive record in market rate housing development and management.
- Status of compliance monitoring with other tax credit programs, if applicable.
- Effect of geographical balance in the allocation of HD tax exemptions.