In the waning hours of the 2009-2010 legislative session, the Massachusetts legislature passed the Permit Extension Act (pdf) as part of An Act Relative to Economic Development Reorganization. True to its name, the Permit Extension Act extends for two years most local and state permits and approvals that were issued or in existence between August 15, 2008 and August 15, 2010. The two-year extension period runs from the current expiration date of the permit or approval. The Permit Extension Act defines “approval” broadly to include zoning permits (including Boston), highway access permits, Chapter 91, wetlands permits and approvals, Endangered Species Act permits, local building permits and MEPA decisions.
Notable permits and approvals not covered by the Permit Extension Act include Chapter 40B Comprehensive Permits, Massachusetts Historical Commission approvals and permits issued by special state agencies such as the MWRA. In addition, the extension doesn’t specifically include zoning freezes under section 6 of Chapter 40A, the Zoning Enabling Act.
The Permit Extension Act was passed to provide an impetus to commercial and residential real estate projects that have been put on hold by the recession. Stalled projects can avoid another trip through the costly and unpredictable permitting gauntlet. Giving moribund projects a new lease on life will create jobs, build new and repair old infrastructure, and boost local property tax revenues — a trifecta for the Massachusetts economy, especially these days when meager funding has reduced infrastructure work to the dropping of orange cones on potholes.
Not so fast, say some municipalities (you didn’t think permitting in Massachusetts would be that easy, did you?). Their view is that the Permit Extension Act is an unnecessary intrusion by the state on matters best left to the locals, setting up a classic state/local battle. Another looming battle involves tax abatements — some lawyers are saying that if a town doesn’t honor the extensions, they will advise their clients to file for a tax abatement.
The sides are dug in and it appears that the Permit Extension Act will serve as a stimulus program for litigators on both sides. Stay tuned.