Thursday night the Salem City Council voted 7-3 to pass the expansion of the Housing Development Incentive Program citywide.
The purpose of HDIP is to afford developers incentives to overcome high redevelopment costs. The incentives come in the form of a local-option real estate tax exemption and state tax credits that are awarded through a rolling application process.
HDIP targets the creation of market value properties. Salem’s current HDIP zone is located within the Central Development zoning district (downtown). The objective of expansion is to foster appropriately scaled residential development throughout the city.
Even with the expansion, HDIP incentives are not by-right. City Council approval is required for all HDIP applications.
