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A new Permit Extension Act provides an additional two years to commence work under most state and local land use permits issued in 2023 and 2024, aiding projects stalled by increased construction costs and financing challenges.
Part of the “Mass Leads Act”, Chapter 238 of the Acts of 2024, the Permit Extension Act provides an automatic two-year extension to land use permits “in effect or existence” from January 1, 2023 to January 1, 2025, “in addition to the lawful term of the approval.”
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Example 1: A special permit granted on March 15, 2023 and originally valid until March 15, 2025, is now valid under the PEA until March 15, 2027.
- Example 2: An order of conditions granted on December 1, 2024 and originally valid until December 1, 2027, is now valid under the PEA until December 1, 2029.
The Permit Extension Act broadly applies to any “approval,” defined as “any permit, certificate, order, license, certification, determination, exemption, variance, waiver, building permit or other approval or determination of rights from any municipal, regional or state governmental entity . . . concerning the use or development of real property.”
The Permit Extension Act also defines “approval” as any environmental permit (“including certificates, licenses, certifications, determinations, exemptions, variances, waivers, building permits or other approvals or determinations of rights”) issued under various State laws, including but not limited to:
- Zoning Act (G. L. c. 40A);
- Affordable Housing (G. L. c. 40B §§ 20–23);
- Subdivision Control Law (G. L. c. 41 §§ 81K–81GG);
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Wetlands Protection Act (G. L. c. 131 § 40);
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MA Endangered Species Act (G. L. c. 131A);
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MA Environmental Policy Act (G. L. c. 30 §§ 61–62L); and
- MA Administrative Procedure Act (G. L. c. 30A).
The Permit Extension Act includes numerous exceptions under which the automatic extension does not apply, including:
- Enforcement orders, consent decrees, or settlement agreements;
- Approvals by the United States government;
- Approvals by which the duration or term of expiration is specified under a law of the United States government;
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Approvals by the Division of Fisheries and Wildlife under G. L. c. 131;
- Administrative actions by the Department of Energy Resources regarding renewable energy incentives under 225 CMR 20.00 & 21.00; and
- Approvals or agreements involving MassDOT or MBTA.
Other important points to consider regarding the Permit Extension Act include:
1. The Permit Extension Act freezes any applicable local ordinance or bylaw in effect at the time the approval was granted, for the duration of the extension period.
2. The Permit Extension Act does not affect the ability of local, regional, or state government to revoke or modify a specific approval, or extension thereof, so long as either the approval or the law under which it was issued contains language authorizing modification or revocation.
3. If an approval tolled under the Permit Extension Act is based on the connection to a sanitary sewer system, the automatic extension is contingent on the future availability of sufficient capacity to accommodate the development. Should sufficient capacity not be available, then permit holders with extensions under the Permit Extension Act have priority for future allocation in the order of the original approvals.
To find the complete text of the Permit Extension Act, located at Section 280 of Chapter 238 of the Acts of 2024, please refer to the link below:
https://malegislature.gov/Laws/SessionLaws/Acts/2024/Chapter238
If you have questions about the new Permit Extension Act, please reach out to an attorney in our Municipal or Real Estate group.
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