Housing incentive

THE ROMNEY administration is working hard to implement a law that will encourage the construction of housing in so-called smart growth zoning districts. The administration and the Legislature need to make sure that there are enough incentives to produce the thousands of units necessary to reduce housing costs for the families who are essential to economic growth of the state.

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The Legislature, spurred by a sobering report from the private Commonwealth Housing Task Force, passed a law last June to encourage communities to loosen zoning restrictions. Under this new approach to development, housing would be clustered on small lots, near public transportation and downtown centers to reduce use of motor vehicles.

To encourage communities to increase zoning densities, the Legislature included incentive payments ranging from $10,000 to $600,000 for creation of smart growth districts, and an extra $3,000 for each new building permit issued.

The Department of Housing and Community Development unveiled regulations to implement the law in March. Several communities have already expressed interest, but it is not yet clear that the incentives so far in place will produce the necessary housing.

Many towns mandate large-lot zoning, but not because they worry about one-time costs. They want to limit the number of new students who might put continuing pressure on local school budgets. More state aid may be needed. The budget approved last week by the state Senate included a plan to hold communities harmless for any additional school costs generated by new housing in smart growth districts.

This is a solid idea, but it was not debated and approved separately. The incentive was included as one of more than 100 outside sections tacked on to the back of the Senate budget. This outside section procedure, which adds extraneous matters to the annual state spending document, has produced important policy initiatives in the past, but it is also a vehicle for special interest proposals that would not survive separate scrutiny. This latest housing incentive should not be lumped in with the state budget but should be debated and approved in its own right.

About 20,000 housing units are built in Massachusetts each year. The Commonwealth Housing Task Force estimates the state needs an additional 3,300 new units annually for the next 10 years to stabilize housing prices. If incentives do not produce enough housing starts, the state needs to consider a tougher approach -- perhaps reducing school building assistance and other aid to recalcitrant cities and towns. Restrictive housing policies should not be allowed to throttle the Massachusetts economy.